-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
KXS delivered a blowout Q1, beating revenue expectations with $165.6M (+25% Y/Y) and adjusted EPS of $1.34 versus the $1.14 consensus, more than doubling Y/Y. SaaS revenue accelerated to 21% growth, reaching $102.9M, while subscription term licenses surged 111% and adjusted EBITDA margin expanded an unexpected 700 bps to 32%. The strong performance was driven by record new business bookings, operating leverage, and successful wins in large customer opportunities and existing relationship expansions. Management maintained cautious FY 26 guidance of $620M-$635M revenue and 17%-19% SaaS growth despite the Q1 outperformance. Annual recurring revenue accelerated to 20% growth reaching $447M, while operating cash flow surged 87% to $59.1M in its asset-light model. The contracted revenue backlog of $948.7M provides strong visibility with $309.3M expected in remainder of 2026. We view the maintained guidance as conservative and believe the company should be able to exceed these targets.