Financial Trends -- 9/10

Near best-in-class trajectory. Revenue compounded $485M (FY21) to $2.20B (FY25), running ~69% YoY for four straight quarters (seven consecutive above 60%). The operating-leverage story is the standout: GAAP operating margin swung −11.0% to +27.6%, Adj EBITDA margin expanded +2,610bps to 40.1%, and the company crossed into GAAP profitability in FY25 (+$530M). FCF positive and growing every quarter, a record 46.9% margin in Q1'26, on a net-cash, capital-light balance sheet. No mandatory penalties triggered. Held one notch below 10 because revenue YoY is stable rather than cleanly accelerating. Weight: 25%

Q1'26 Revenue

$663M

src | +69.1% YoY | Sustained

Adj EBITDA Margin

40.1%

+2,610bps over 8 qtrs | Inflecting

FCF Margin

46.9%

Record; positive every qtr | Strong

GAAP Profit

Crossed

FY25 net income +$530M | Turned

Quarterly Revenue Trajectory ($M)

Quarter	2024Q1	2024Q2	2024Q3	2024Q4	2025Q1	2025Q2	2025Q3	2025Q4	2026Q1
Total Revenue	$243M	$281M	$348M	$428M	$392M	$500M	$585M	$726M	$663M
YoY	+48.4%	+53.6%	+67.9%	+71.3%	+61.5%	+77.7%	+67.9%	+69.7%	+69.1%

Seven consecutive quarters of >60% revenue growth, holding a tight ~69% band while the base nearly doubled. Neither cleanly accelerating nor decelerating — the durability at scale is the point. The 2026Q1 step-down from $726M (Q4'25) to $663M reflects normal ad-budget seasonality (Q4 peak), not deceleration: YoY held at +69.1%. Growth is high-quality, driven by both DAUq (41M to 73M) and ARPU (+40%+ YoY across geos), not one lever.

Profitability Inflection

Metric	2024Q2	2025Q1	2025Q4	2026Q1	8-Qtr Δ
GAAP Op Margin	−11.0%	1.0%	31.9%	27.6%	+3,860bps
Adj EBITDA Margin	14.0%	29.4%	45.1%	40.1%	+2,610bps
Adj EBITDA ($M)	$40M	$115M	$327M	$266M	6.7x

Textbook operating leverage: ~70% revenue growth on a largely fixed cost base. With a structurally high ~91% gross margin, incremental revenue drops through at a very high rate. The sequential Adj EBITDA margin give-back (45.1% to 40.1%) is seasonal (Q4 ad peak), not structural — the eight-quarter trend is a clean inflection from loss-making to ~40% margins.

Annual Financial Summary (FY ends December)

Metric	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue ($M)	$485M	$667M	$804M	$1,300M	$2,203M
Rev YoY	—	+37.5%	+20.6%	+61.7%	+69.4%
Adj EBITDA ($M)	$30M	($108M)	($69M)	$298M	$845M
Net Income ($M)	($128M)	($159M)	($91M)	($484M)	$530M
Free Cash Flow ($M)	($132M)	($100M)	($85M)	$216M	$684M

Key trends

Revenue compounding at ~46% CAGR: From $485M (2021) to $2.20B (2025), running ~69% YoY for four straight quarters on performance-ad mix and ARPU gains
GAAP profitability crossed in FY2025: Net income swung from −$484M (FY24, IPO stock-comp-driven) to +$530M (FY25)
Adj EBITDA inflected from negative to $845M: FY22/FY23 were negative; the FY24-FY25 swing is the operating-leverage inflection
FCF positive and growing: −$85M (FY23) to +$216M (FY24) to +$684M (FY25); a record 46.9% FCF margin in Q1'26

Engagement & Monetization (Quarterly)

Metric	2024Q1	2024Q4	2025Q2	2025Q4	2026Q1
Total DAUq (M)	41.2	53.7	60.1	68.9	73.3
US ARPU ($)	4.77	7.04	7.87	10.79	9.63
ROW ARPU ($)	1.10	1.67	1.73	2.31	2.02

Two-lever growth: DAUq 41M to 73M (+78%) plus US ARPU $4.77 to $9.63 (+40%+ YoY). Growth is not reliant on a single input. US ARPU is well ahead of ROW ($9.63 vs $2.02), leaving a long international monetization runway. Sequential dips in ARPU (Q4 to Q1) are seasonal, mirroring the ad-budget calendar.

Free Cash Flow ($M, Quarterly)

Metric	2025Q1	2025Q2	2025Q3	2025Q4	2026Q1
Cash from Ops	$128M	$111M	$185M	$267M	$312M
Free Cash Flow	$127M	$111M	$183M	$264M	$311M
FCF Margin	32.3%	22.2%	31.3%	36.3%	46.9%

FCF positive every quarter and margin rising to a record 46.9%. A capital-light model (capex ~0.2% of revenue) on a net-cash balance sheet. FCF YoY growth is decelerating (+333% to +146%) but only because the base is now large — absolute FCF and FCF margin both continue to set records.

Blemishes -- Not Operational Deterioration

Blemish	Detail	Penalty
IPO SBC / Net-Loss Spike	2024Q1 net loss (−$575M) and SBC spike (~$577M) are IPO-driven (RSU settlement at March 2024 IPO); one-off, excluded from the operating-margin trend	None
Class A Share Creep	Class A shares rose post-IPO, but driven by mechanical Class B-to-A conversion; total A+B roughly flat — not organic dilution	None
FCF YoY Decelerating	FCF YoY growth slowed +333% to +146% — but only off a larger base; FCF margin still rose to a record 46.9%	None

All three blemishes are mechanical or base-effect, not operational. The IPO SBC/net-loss spike is a one-time settlement; the share creep is Class B-to-A conversion, not new issuance; the FCF-growth deceleration is arithmetic off a fast-growing base. Underlying margins, FCF, and revenue growth all continue to improve. No mandatory penalties triggered.

Score Rationale

Score of 9/10 reflects a near best-in-class financial trajectory. No penalty modifiers applied; held one notch below 10 because revenue YoY is stable rather than cleanly accelerating.

Supports 9/10:

Revenue compounding $485M (FY21) to $2.20B (FY25), running ~69% YoY for four straight quarters (seven consecutive above 60%)
GAAP operating margin swung −11.0% (2024Q2) to +27.6% (2026Q1), +3,860bps
Adj EBITDA margin expanded +2,610bps to 40.1%; Adj EBITDA inflected from negative to $845M (FY25)
GAAP profitability crossed in FY25 (+$530M net income)
FCF positive and growing every quarter, a record 46.9% margin in Q1'26, on a net-cash balance sheet
High-quality growth driven by both DAUq (41M to 73M) and ARPU (+40%+ YoY), not one lever

Acknowledged blemishes (no penalty):

IPO-driven SBC / net-loss spike in 2024Q1 -- one-off, not operational
Class A share creep -- mechanical Class B-to-A conversion, not organic dilution
FCF YoY growth decelerating -- base effect; FCF margin still rising

Composite quality gate -- positiveGrowingFcf: YES. FCF positive every quarter shown and growing strongly (FY: −$85M to +$216M to +$684M; 2026Q1 +$311M, 46.9% margin).

Data sourced from Daloopa (company_id: 156259). Fiscal year ends December 31. All financials in USD.