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Achieved fourth consecutive quarter of double-digit growth, driven by strong execution in North America and continued scaling of the Cybersecurity as a Service (SECaaS) business.

North America revenue share increased to 31% from 17% year-over-year, fueled by high-capacity Tera III platform sales and steady demand for smart network intelligence products.

SECaaS revenue grew 47% year-over-year, now accounting for over one-third of total revenue and significantly improving long-term predictability through recurring subscription fees.

Successfully executed a 'land and expand' strategy in EMEA, securing four new SECaaS deals including the first sale of a new identity monitoring service to an existing customer.

The Tera III platform is driving a multi-year refresh cycle as Tier 1 operators consolidate network visibility, traffic management, and cybersecurity onto a single high-capacity gateway.

Operational efficiency improved as operating expenses as a percentage of revenue declined to 62% from 68%, despite increased investments in sales and marketing.

Raised 2026 revenue guidance to $115 million–$118 million based on accelerating order momentum in North America and a robust existing backlog.

Expect SECaaS revenue growth of 40% or more for the full year 2026, supported by four distinct growth vectors: user onboarding, segment expansion, new applications, and new logos.

Anticipate continued profitability and cash flow improvements through the remainder of 2026, maintaining a target gross margin of approximately 70%.

Visibility into 2027 is bolstered by long-term deferred revenue and multi-year Tera III upgrade projects that are currently advancing through the sales pipeline.

Capital allocation strategy now includes a $40 million share repurchase program, reflecting confidence in the company's $107 million cash position and debt-free balance sheet.

Recorded a one-time $1.2 million GAAP financial gain related to an office lease modification, which management explicitly stated is not expected to recur.

Gross margin of 71.8% reflected a slight year-over-year decline due to product mix, specifically the higher concentration of hardware-heavy smart product sales in the quarter.

Operating cash flow of $8.5 million was driven by robust profitability and strong collections, though it normalized following a one-time cash advancement in the prior quarter.

Identified a significant opportunity in 'zero rating' fraud mitigation, with a case study showing an 87% reduction in fraudulent traffic for a Tier 1 operator.

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Management attributed the regional surge to both predictable SECaaS subscriptions and large, non-recurring Tera III platform sales.

While product sales fluctuate quarterly, the high-capacity requirements of 5G and fiber upgrades provide a sustainable long-term pipeline for the Tera III platform.

Growth is expected to step up due to existing partners expanding services into new domains (like SMB) and adding new applications like identity theft monitoring.

Management noted that while the run rate is stable, timing depends on the execution of marketing campaigns by communication service provider (CSP) partners.

The program was initiated due to seven consecutive quarters of positive cash flow and a strong balance sheet that allows for simultaneous investment in organic growth and M&A.

Management views the buyback as a 'vote of confidence' and a tool to be used opportunistically based on market conditions.