- Core Products Dominance: HawkSearch Suite and AI products accounted for 58% of total revenue ($8.9M) and over 60% of subscription revenue ($7.4M) with 75% gross margin.
- Strong Sales Efficiency: Average sales cycle reduced from 160 to 92 days, with average ARR per sale rising 35% to $25,000, and 16% CAGR in core products.
- Revenue Growth & Retention: Fiscal 2025 saw 83 licenses sold ($6.9M TCV, $2.4M ARR), an 18% increase over 2024, alongside 117% net revenue retention.
- Strategic Partnerships: New integrations with Salesforce AppExchange and Unilog, targeting B2B manufacturing/distribution, show early traction with pipeline expansion.
- Financial & Operational Momentum: 65% larger 2026 sales pipeline, $1.6M cash balance, and Gartner recognition highlight growth potential despite $400K net loss and -$169K adjusted EBITDA.
Core Products Drive Growth
The company's core products achieved 117% net revenue retention and 16% CAGR, with HawkSearch's average sales cycle reducing from 160 days to 92 days, and average ARR per sale growing by 35% to $25,000. The company sold 83 licenses in fiscal 2025, with a total contract value of $6.9 million and ARR of $2.4 million, an 18% increase over fiscal 2024. The integration of HawkSearch with Salesforce AppExchange is gaining traction, and the partnership with Unilog is expected to be impactful.
Sales and Marketing Strategy
The company's sales and marketing spend was $1.1 million in the September quarter, which is expected to be the rate moving forward. The company has a sales team structure that includes 2 BDRs, 2 BDEs, and a VP of Sales, as well as a customer success team. The company feels good about its current investment in sales and plans to reevaluate the spend level at the end of 2026. Analysts estimate next year's revenue growth at 19.0%, indicating a positive outlook for the company.
Valuation Metrics
Looking at the company's valuation metrics, the P/S Ratio is 0.77, indicating that the stock may be reasonably valued. The EV/EBITDA ratio is -5.96, which is expected given the company's current loss-making position. The ROE is -25.79%, and the ROIC is -21.51%, reflecting the company's current investment phase. As the company grows and becomes profitable, these metrics are expected to improve.