Pivotree Announces First Quarter 2026 Results

• Pivotree reported Q1 2026 net income of $0.6 million, marking the fifth consecutive quarter of positive net income.
• Total revenue declined 27.6% year-over-year to $13.9 million due to a planned wind-down of Legacy Managed Services (LMS).
• Adjusted EBITDA was $1.2 million with an 8.9% margin, down from 10.3% in the prior year period but still positive for the sixth consecutive quarter.
• MIPS Revenue (Managed and IP Solutions) increased 7.9% to $4.0 million, offsetting declines in other segments.
• LMS Revenue declined 52.3% as Oracle customers are phased out.
• Professional Services revenue decreased 29.7% due to start-date slippage on expansion engagements.
• Gross margin improved to 47.3% compared to 44.1% in the prior year period.
• A $2.5 million contract was signed subsequent to quarter-end, including approximately $800K of MIPS deals.
• Management highlighted a shift in client conversations from AI investment questions to deployment strategies against outcomes.

• The revenue decline is consistent with previously announced strategic pivots and the wind-down of low-margin legacy services seen in Q4 2025 results.
• Profitability confirmation (fifth consecutive quarter) validates the operational discipline narrative established in FY 2025.
• Margin compression from 10.3% to 8.9% is a minor negative but within expected transition costs for shifting business mix.
• MIPS growth of 7.9% demonstrates the core strategic initiative is gaining traction despite overall revenue contraction.
• The news does not introduce unexpected capital raises, M&A, or major contract wins that would alter valuation significantly beyond current expectations.
• Market reaction likely priced in the revenue decline given prior guidance on LMS wind-down; the positive EBITDA and cash flow are the key drivers here.

• Pivotree provides data management, product information management (PIM), and eCommerce solutions for B2B distributors and manufacturers.
• Flagship initiative is the transition from Legacy Managed Services to MIPS (Managed & IP Solutions) focused on AI-driven data outcomes.
• The company partners with platforms like Shopify, SAP, VTEX, Syndigo, Stibo, and OroCommerce to deliver integrated commerce and data solutions.
• Strategic focus is on "Real Intelligence" (RI) capabilities intersecting with client deployment needs rather than just AI investment discussions.