A：The financial measures discussed include non GAAP (Generally Accepted Accounting Principles) measures. Management believes non GAAP financial measures provide meaningful information about the financial performance of the business and are useful for comparison purposes among peer companies that publish similar non-GAAP measures. Non GAAP financial information should not be considered in isolation but is meant to complement GAAP financial information.

A：In the second quarter, revenue grew by approximately 16% to about $98 million, gross profit increased by about 17% year over year, and adjusted EBITDA grew by about 33% to $11 million. This growth reflects solid execution against the company's strategy and constant demand for their solutions. It also indicates that technology is increasingly indispensable in the face of rising global threats and complex data volumes.

A：Governments and agencies are facing rising levels of complexity and uncertainty in the global environment, marked by physical security challenges from the digital to the physical domains. There is an urgent need for advanced, intelligent solutions to address these challenges. The anticipated impact of the company's solutions is indicated by customers placing follow-on orders, demonstrating confidence in the technology and the potential for broader and long-term partnership.

A：The company's technology is differentiated by its three-layered approach of signal processing, data mining, and investigative analytics, culminating in a decision intelligence solution. The technology is integrated into a single platform that creates a complete and differentiated intelligence capability powered by advanced AI. This capability is effective in helping agencies detect threats faster, act with precision, protect communities, and respond decisively to criminal, terror, and national security challenges. Customer feedback and industry recognition further validate the company's solutions, as seen in Gartner's 2025 Hype Cycle for Public Safety and Law Enforcement, where the company was named a sample vendor for AI and predictive analytics.

A：To support the company's growth in the U.S. market, a strategic alliance was entered into with LexisNexis Risk Solutions, a Q1 partner with deep specialization in the federal market. This partnership expands the company's footprint and enhances its self-preservation capability by providing access to a highly connected team with strong relationships with U.S. agencies, particularly for tactical intelligence.

A：Federal customers face challenges due to a 80% procurement delay rate that limits budget visibility. However, the company is confident that normalized spending will allow it to accelerate customer positioning and reinforce its competitive position.

A：The company is preparing for key events like Millipore, Asian Defense and Security in Bangkok, and IACP in Denver. These events provide an opportunity to showcase capabilities, strengthen relationships, and create new business opportunities.

A：The company's technology offers agencies speed, accuracy, and insight necessary to stay ahead in an environment that is becoming more diverse and harder to predict.

A：The financial targets include $500 million in revenue, 73% gross margins, and adjusted EBITDA margins above 20%. These goals are grounded in strategies such as deepening relationships with existing customers, winning new customers, and expanding in the US market. Confidence in achieving these targets stems from growing market needs, strong technology leadership, and consistent execution.

A：The core challenge is the imbalance between the agility of bad actors and the need for law enforcement and security agencies to respond to a range of evolving threats in real time with precision, where bad actors only need to succeed once while agencies must succeed every time.

A：The purpose of the company is to provide technology that enables customers to generate the insight and confidence needed to stay ahead of threats. This purpose drives every innovation, partnership, and decision at the company.

A：Q2 2026 financial performance was solid, supported by healthy demand and good visibility, reflecting the consistency of the company's execution and reinforcing confidence in the outlook.

A：Q2 revenue was $97.5 million, with software revenue at $36.6 million and professional services revenue at $14.2 million. The company expects software revenue to be about 87% of total revenue and professional services revenue to be about 30% of total revenue on an annual basis.

A：The growth margin for Q2 was 72.1%, expanding by 81 basis points year over year.

A：Gross profit grew faster than revenue growth, to $70.3 million, an increase of 16.8% year over year, driven by the significant value derived from innovative solutions, competitive differentiation, and improved cost structure.

A：Non-GAAP operating income grew to $8 million, nearly double the $4.4 million in Q2 last year, while adjusted EBITDA increased to $11 million, 33% higher than $8 million in the prior year's Q2.

A：Revenue for H1 grew by 15.5%, and gross profit grew faster at 16.8%. This led to a significant improvement in profitability with H1 GAAP operating income of $4.9 million versus an operating loss of $3.7 million in the prior year's H1. Non GAAP operating income was $15.6 million, more than double the $6.3 million in the prior year's H1, and H1 adjusted EBITDA was $21.3 million, versus $13.3 million in the prior year's H1.

A：The company's balance sheet shows robust short and long-term contract liabilities of $114.3 million at the end of Q2. However, there was negative cash flow from operations of $6.3 million and negative free cash flow of $8.9 million for Q2, primarily due to the timing of certain expenses.

A：The company completed a previous share repurchase program of about 2.1 million ordinary shares for $20 million and has been approved for a new share repurchase program of up to $20 million in ordinary shares over the next 18 months, set to commence on August 13 following a 30-day notice period.

A：The updated fiscal year revenue expectations imply a strong financial outlook for the company, with an estimated full revenue of about $397 million, a year-over-year growth of approximately 30%. This is underpinned by a projected software revenue of around $345 million and professional service revenue representing about 30% of total revenue.

A：The company expects Q3 revenue to be slightly below the Q2 level reported, with Q4 revenue also anticipated to grow sequentially. The revenue growth trajectory is supported by a favorable demand environment and the company's strong RPO.

A：The company expects adjusted EBITDA to be about $45 million for the year ending January 2026, marking an approximate 65% year-over-year growth. The guidance also includes improved non-sGAAP tax expenses at about $11 million, leading to a projected annual GAAP EPS of 23 cents at the midpoint of the revenue range.

A：The lawsuit has been fully dismissed with no further appeal possible, which positively impacts the company's outlook. The company remains confident in its ability to generate $45 million of operating cash flow in FY26, reflecting strong collections discipline and profitability.

A：While the U.S. represents a small portion of the company's business in the short term, it is considered a significant opportunity and is expected to become a major part of the business over time due to the large territory, many security agencies, and successful engagements with federal agencies. The company has a strong relationship with federal agencies, runs POCs and demos effectively, and sees good indications across federal, central, and local agencies for group contribution to future growth.

A：The company acknowledges the budget challenges in the U.S. and has factored these into their guidance. They observe that the impact is not immediate but are challenges that need to be taken into account. Despite this, the company has been able to acquire new customers, successfully demonstrate their products, and engage with federal agencies, maintaining a positive outlook on the potential for growth.

A：The company is confident that the software revenue mix will increase in the second half of the year, despite not seeing any significant seasonality playing a role. They are reassured by the strategies in place, such as the expansion into the federal sector and the performance in previous quarters, which have demonstrated the company's ability to grow software revenue.

A：The focus on professional services is justified by the belief that it enables customers to generate value faster from the solution and allows the company to collaborate with the customer more efficiently.

A：The main driver of the company's growth is from the existing customer base, which usually comes from both data and functionality upgrades. The growth is also influenced by the addition of new customers, who, over time, become part of the existing customer base.

A：The three pillars of the company's growth strategy are the existing customer base, acquiring new logos, and accelerating performance in the U.S.

A：Acquiring new logos contributes to the company's growth, although most of the growth is driven by the existing customer base. New customers typically start small and then grow over time, eventually being considered part of the existing customer base.

A：The main reason customers stay with the company over time is due to the continuous innovation and the release of more capabilities that generate more value and insights from the same data sets the customers have.

A：The company displaces incumbent vendors by offering advanced analytics, AI capabilities, an improved workflow, and the ability to handle and analyze large volumes of data effectively. This provides customers with a competitive advantage and aids in staying ahead of adversaries.

A：Pushing incumbents out in the market is significant because it demonstrates the superiority of the company's technology. This allows security agencies to more successfully stay ahead of adversaries and complete their missions.

A：The company acquires new logos from various sources, including new territories, new departments within the same organization, and new agencies in countries where they already have a presence. The mix of new logos is a combination of displacing incumbent vendors and acquiring new customers in greenfield opportunities.

A：The strong bill number or score in the latest quarter reflects a significant increase in billing compared to the previous year's typical seasonality, with an increase from over 78 to 93 million in the score. This strength is not due to usual seasonal patterns but to the performance in the latest quarter.

A：The overall trend of the company's billing is impacted by various factors such as milestone billing for contracts, new orders accompanied by advances, and multiple significant impacts. The company's billing shows strength at a similar level of revenue over the past 12 months, indicating quality revenue.

A：The recurring revenue mix is expected to either trend up or at least sustain at its current level. The current revenue is composed of two major pillars: support and subscription. While support is growing and expected to continue doing so, the subscription component is also projected to grow due to the disclosure of new subscription deals that will be active in the upcoming year.

A：The main component of the current revenue is the support segment, which is the vast majority. The subscription component is split into two parts, one of which is a small number and the other is the 'temp' segment, which can cause fluctuation. The recurring revenue, which consists predominantly of support, is projected to grow in the long term.

A：The long-term expectation for recurring revenue is an improvement due to disclosed subscription deals that will be active in the upcoming year. The company currently has 48% to 49% of total revenue as recurring, and while they still see customers buying on perpetual licensing, there is a plan to increase the subscription offering. Consequently, the overall trend is expected to show recurring revenue growing.

A：The U.S. market has the potential to become a significant part of the company's revenue mix. The company's long-term guidance of $500 million in revenue includes the U.S. market, which they expect to grow over time. They have considered several data points, such as product market fit, positive customer feedback, partner interest, and successful new customer acquisitions, that support their belief in the potential of the U.S. market.

A：The current state of the overall deal pipeline is healthy. It has not shown any incremental pressure from macro issues and continues to demonstrate strong demand. The company observes a robust environment for deals, both in the number of proposals and customer demonstrations, as well as from existing customers looking to modernize their solutions. There is also a positive trend at industry conferences and customer discussions, indicating strong demand drivers and a healthy environment.

A：The public sector has observed new trends in the threat landscape, where the challenge for security agencies and customers is growing. This is due to the increasing difficulty in distinguishing between criminal and terror activities, advanced technology that aids evading detection, and the need for modernization of existing solutions. There is a heightened demand for analytics to uncover insights from data and predictive analytics to anticipate and neutralize potential threats.