MeridianLink, Inc.

MeridianLink reported Q1 total revenue of $81.5 million, up 5% year over year. Adjusted EBITDA was $34.8 million with a 43% adjusted EBITDA margin; adjusted gross profit was $60.4 million, or 74% margin. Free cash flow was $40.6 million, or 50% of revenue, and cash and cash equivalents were $128.9 million. On the revenue mix, subscription revenue was 84% of total revenue and grew 4% year over year; services revenue declined 4%; other revenue grew 41% on approximately $600,000 of nonrecurring items. By solution, total lending software revenue grew 10%, consumer lending revenue grew 11%, mortgage lending revenue grew 7%, and data verification software solutions revenue declined 15%. Full-year 2025 guidance remains unchanged: GAAP revenue of $326 million to $334 million and adjusted EBITDA of $131.5 million to $137.5 million, with adjusted EBITDA margin around 41% at the midpoint. Management said ACV release should remain the largest driver of 2025 growth, price should offset churn, and volumes plus the DBS renewal should be a low-single-digit headwind.

Nicolaas Vlok said the quarter reflected discipline and execution in an uncertain macro backdrop, and he emphasized that the company has transformed from on-premise software into a cloud platform serving nearly 2,000 financial institutions and CRAs with more than 600 partners. His tone was confident and reflective, repeatedly saying MeridianLink’s best days are ahead. He also framed Larry Katz’s upcoming CEO role as a carefully planned transition and said Larry is the right leader for the next chapter.

Elias Olmeta highlighted that revenue accelerated and profitability expanded, with $81.5 million in revenue, $34.8 million of adjusted EBITDA, a 43% margin, and $40.6 million of free cash flow. He broke out revenue drivers as ACV release contributing mid-single digits, price and churn offsetting each other in the low single digits, and volumes plus one-time customer down-sells creating a low-single-digit drag. For full year 2025, he guided to $326 million-$334 million of revenue and $131.5 million-$137.5 million of adjusted EBITDA, and said the company plans to reinvest in product and go-to-market, with R&D and sales and marketing each rising about 100 bps of revenue versus 2024.

Analysts focused on whether the new CEO’s strategy represented a real shift, how durable the strong bookings and ACV release could be amid macro uncertainty, and what was driving the consumer and mortgage acceleration. Management said Larry Katz’s plan is a continuation of the existing strategy with added focus on product breadth, customer experience, and talent, while noting some softness at the top of the funnel but no material sales-cycle changes yet. On mortgage and churn, management said retention improved but that losses remain concentrated among smaller customers; on M&A, they said they remain disciplined, have balance-sheet capacity, and see consolidation as a potential tailwind because acquirers are often MeridianLink customers.