Company Expects 10% Subscription Revenue Growth in 2026
The company states: "We expect subscription and service revenue to grow approximately 10% due to improvements in ARPU growth of 10% and improvements in attach rates and retention rates, which are slightly offset by subscribers projected to be down 7% year-over-year in 2026 to 2.2 million. We expect operating expenses to be in the range of $220 million to $230 million, down from $261 million in 2025, a 14% reduction. The anticipated decrease is primarily due to a reduction in litigation expenses, our prior restructuring actions, which resulted in reduced employee-related costs in 2025, and a continued strong focus on expense management. The cumulative effect of our planned actions is expected to result in a reduced operating expense range in 2027 of between $200 million to $210 million. In closing, we believe our strategy is working. We are in the midst of an exciting innovation cycle, with the launch of leading products, continued AI content licensing, and other services expected over the next several years that we believe will bolster our market position while expanding our TAM. We expect to continue operating expense reduction initiatives in 2026 that we initiated in 2024 to mitigate memory cost increases. We believe we will restore revenue growth and deliver Adjusted EBITDA in a range of $10M to $20M in 2026."
