REVENUEBeat +1.8%
EPSBeat +5.6%
Actuals vs. estimates
| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| RevenueTotal revenue (GAAP, headline) | $83.2M | $81.7M | ▲ Beat +1.8% |
| EPS(Non-GAAP diluted) | $0.35 | $0.33 | ▲ Beat +5.6% |
Revenue — API Ninjas actual matches multiple Quartr consolidated revenue values
EPS — API Ninjas actual matches multiple Quartr EPS bases
Verdict
- Revenue of $83.2m beat the estimate by 1.8% and non-GAAP EPS of $0.35 beat by 5.6%.
- The 25% growth is acquisition-assisted: subscription and services revenue rose to $75.6m from $61.1m, driven partly by the December 2025 FluentStream and Phone.com deals.
- Adjusted EBITDA of $12.4m was a record, up 72%, while GAAP net income of $3.0m remains a fraction of the $10.2m non-GAAP figure.
- Q3 revenue is guided to $83.7m-$84.5m, at most 1.6% above the quarter just reported.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Total revenue | $83.2m | $66.4m | +25% |
| Subscription and services revenue | $75.6m | $61.1m | +24% |
| Non-GAAP net income | $10.2m | $6.5m | +58% |
| Non-GAAP diluted EPS | $0.35 | $0.23 | +52% |
| Adjusted EBITDA | $12.4m | $7.2m | +72% |
| Outstanding debt at quarter end | $47m | — | — |
Guidance changes
| Item | New guidance | Prior guidance |
|---|---|---|
| Q3 FY2027 total revenue | $83.7 million to $84.5 million | — |
| Q3 FY2027 GAAP net income per share | $0.11 to $0.12 | — |
| Q3 FY2027 non-GAAP net income per share | $0.34 to $0.35 | — |
| FY2027 total revenue | $332.0 million to $333.5 million | — |
| FY2027 GAAP net income per share | $0.42 to $0.45 | — |
| FY2027 non-GAAP net income per share | $1.35 to $1.38 | — |
Quality of earnings
- Non-GAAP net income of $10.2m is more than three times the $3.0m GAAP figure, with $3.8m of stock compensation and $3.0m of intangible amortisation excluded.
- The 25% revenue growth includes the December 2025 FluentStream and Phone.com acquisitions; the organic rate is not separately disclosed.
Gotchas & watch items
- GAAP gross margin was flat year over year at 61% even as subscription rose to 91% of revenue.
- Interest and other expense of $0.8m reversed a $0.2m prior-year benefit, following $6.5m of debt repayments that took outstanding debt to $47m.
- Full-year non-GAAP EPS guidance of $1.35-$1.38 sits close to four times the $0.35 just reported, leaving little implied second-half step-up.