• Q4 margin pressure: The roughly 500 basis point margin decline was driven by a one-off employee bonus catch-up accrual after shifting the fiscal year, ongoing AI and technology investments, and write-offs from closing two to three centers.
• Quarterly attrition increase: Attrition rose from 22%–23% in Q3 to approximately 38% in Q4 due to business seasonality, as staffing levels normalize following the open enrollment period.
• Revenue and margin guidance: Full-year revenue is guided to grow in the low double digits with adjusted EBITDA margins between 24% and 25%, with Q1 also expected to deliver double-digit year-on-year growth.
• AI productivity benefits: AI adoption is aimed at securing larger outcome-based contracts rather than increasing pricing power, with 80% to 90% of cost and productivity savings passed back to clients while protecting margins.