v3.26.1
Segment reporting and concentrations
 6 Months Ended
Jun. 30, 2026
Segment reporting and concentrations  
Segment reporting and concentrations

13.Segment reporting and concentrations

The Company’s Chief Operating Decision Maker (“CODM”) is the Company’s Chief Executive Officer (“CEO”).

During the quarter ended March 31, 2026, the Company reassessed its operating and reportable segment structure and concluded that it operates as a single reportable segment. This change reflects a shift in how the Company’s CEO evaluates performance and allocates resources. The CEO now reviews financial results on a consolidated basis and does not regularly review discrete financial information at a level below the consolidated entity for purposes of allocating resources or assessing performance. In addition, the Company’s operations have become increasingly integrated, with shared delivery infrastructure, technology platforms, and workforce supporting its service offerings. As a result, the Company determined that it has one operating and reportable segment.

The U.S. GAAP measures used by the Company’s CEO to evaluate segment performance and allocate resources such as employees, property, and financial or capital resources during the annual budgeting and forecasting process, are Revenues, Gross Profit and Net Income. Performance results are monitored, reviewed, and measured monthly and quarterly by comparing budget and forecast to actual results for profit measures, assessing returns on investment, compensation decisions and changing strategies, if required.

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For the Three Months Ended June 30,

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For the Six Months Ended June 30, 

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  ​ ​

2026

  ​ ​

2025

  ​ ​

2026

  ​ ​

2025

Revenues

 

$

92,142

​

$

58,393

 

$

182,238

​

$

116,737

Direct operating costs (1) (3)

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​

49,682

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​

35,370

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​

99,986

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​

70,462

Gross profit

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​

42,460

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​

23,023

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​

82,252

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​

46,275

Selling and administrative expenses (2) (4)

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​

26,600

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​

14,112

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​

49,492

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​

29,092

Segment operating income

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​

15,860

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​

8,911

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​

32,760

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​

17,183

Interest income, net

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​

(1,695)

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(577)

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(2,137)

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(704)

Income before provision for income taxes

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​

17,555

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9,488

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34,897

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​

17,887

Provision for income taxes

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​

3,143

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​

2,269

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​

5,587

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​

2,881

Net Income

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$

14,412

​

$

7,219

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$

29,310

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$

15,006

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(1)Direct operating costs consist of direct and indirect labor costs, occupancy costs, data center hosting fees, cloud services, AI technology subscriptions, content acquisition costs, depreciation and amortization, travel, telecommunications, computer services and supplies, realized (gain) loss on forward contracts, foreign currency revaluation (gain) loss, recruitment costs and other direct expenses that are incurred in providing services to customers.
(2)Selling and administrative expenses consist of payroll and related costs including commissions, bonuses, and stock-based compensation; marketing, advertising, trade conferences and related expenses; new services research and related software development expenses, software subscriptions, AI technology subscriptions, professional and consultant fees, provision for credit losses and other administrative overhead expenses.
(3)Includes non-cash expenses which consist mainly of depreciation, amortization of capitalized software development costs and stock-based compensation expense.
(4)Includes non-cash expenses which consist mainly of stock-based compensation and depreciation and amortization expense.

A significant portion of the Company’s revenues is generated from its locations in the United States, Philippines, India, Sri Lanka, Canada, Germany, Israel, and the United Kingdom.

Revenues for the three and six-month periods ended June 30, 2026, and 2025 by geographic region (determined based upon customer’s domicile), were as follows (in thousands):

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For the Three Months Ended

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For the Six Months Ended

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June 30, 

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June 30, 

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2026

  ​ ​ ​

2025

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2026

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2025

United States

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$

79,860

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$

48,563

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$

159,079

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$

97,460

Canada

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3,326

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2,955

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6,384

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5,678

United Kingdom

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2,950

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2,470

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5,729

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4,897

The Netherlands

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2,201

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2,277

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​

4,643

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​

4,442

Others - European countries principally, Germany and Belgium

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3,805

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2,128

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6,403

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4,260

Totals

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$

92,142

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$

58,393

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$

182,238

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$

116,737

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Long-lived assets as of June 30, 2026 and December 31, 2025 by geographic region were comprised of (in thousands):

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June 30, 

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December 31, 

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2026

 

2025

United States

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$

13,614

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$

12,576

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Foreign countries:

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Canada

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6,024

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6,325

Philippines

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5,051

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5,091

India

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2,179

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2,582

Sri Lanka

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715

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833

United Kingdom

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​

546

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​

653

Israel

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55

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56

Germany

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​

4

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6

Total foreign

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14,574

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15,546

Totals

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$

28,188

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$

28,122

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Long-lived assets include the unamortized balance of right-of-use-assets amounting to $3.6 million and $4.1 million as of June 30, 2026 and December 31, 2025, respectively.

One customer generated approximately 37% and 58% of the Company’s total revenues for the three months ended June 30, 2026 and 2025, respectively. Another customer generated approximately 34% of the Company’s total revenues for the three months ended June 30, 2026. No other customer accounted for 10% or more of total revenues during these periods. Revenues from non-U.S. customers accounted for 13% and 17% of the Company’s total revenues for the three months ended June 30, 2026 and 2025, respectively.

One customer generated approximately 46% and 59% of the Company’s total revenues for the six months ended June 30, 2026 and 2025, respectively. Another customer generated approximately 26% of the Company’s total revenues for the six months ended June 30, 2026. No other customer accounted for 10% or more of total revenues during these periods. Revenues from non-U.S. customers accounted for 13% and 17% of the Company’s total revenues for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, approximately 13% of the Company’s accounts receivable was due from foreign (principally European) customers and 66% of the Company’s accounts receivable was due from two customers. As of December 31, 2025, approximately 10% of the Company’s accounts receivable was due from foreign (principally European) customers and 63% of the Company’s accounts receivable was due from two customers. No other customer accounted for 10% or more of the accounts receivable as of June 30, 2026 and December 31, 2025.