Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Management attributed the strongest revenue growth in four years to an increasingly complex fraud landscape, where agentic tools are accelerating the velocity and sophistication of bad actors.
The company is successfully pivoting from point solutions to a unified platform approach, as merchants express a clear preference for integrated identity, checkout, and dispute intelligence. Growth was significantly driven by the Digital Finance category, which grew 180% year-over-year due to rapid onboarding of new merchants in event contracts and gaming. The platform's expansion into non-card payment methods, specifically ACH, has created a 'trust layer' that allows merchants to use low-cost funding instruments with reduced risk.
Management highlighted a 50% year-over-year increase in their multi-product merchant base, validating the strategy that integrated signals across the transaction lifecycle improve overall defense. Competitive win rates remained above 75%, which management cites as evidence of platform differentiation against alternative point solutions. A dense global sports calendar, including the World Cup and NBA finals, provided a temporary but significant volume boost to both the ticketing and digital finance verticals.
The full-year revenue and adjusted EBITDA guidance was raised for the second time this year, reflecting increased visibility and strong early execution in the second half. Management expects third-quarter revenue growth to accelerate further to approximately 27%, supported by the ramp-up of new merchant go-lives. The Digital Finance category is projected to significantly exceed the company's average growth rate for the remainder of 2026.
Gross margins are expected to improve over time as new merchant cohorts, which typically start at lower margins due to initial risk profiles, mature and benefit from machine learning optimizations. The company expects to exceed $40 million in positive free cash flow for 2026 while maintaining a disciplined approach to capital allocation and share repurchases. Operating expenses were impacted by the continued appreciation of the Israeli shekel; on a constant currency basis, OpEx would have been $4.1 million lower.
The company reduced its total shares outstanding by 8% in the quarter and 26% since the inception of its buyback program, signaling a commitment to returning capital. Management noted that while fraud sophistication is rising, they remain confident in maintaining Chargeback-to-Value (CPV) ratios through their global data network and AI assistant, ARIA. The transition of customer service toward conversational AI agents is creating new demand for real-time risk scoring within support workflows.
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