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SEGMENTS
 6 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
The Company determines its operating segments based on ASC 280, Segment Reporting, in alignment with how the chief operating decision making group monitors and manages the performance of the business as well as the level at which financial information is reviewed. The Company’s operating segments are strategic business units that offer different products and services.
As noted above, on September 20, 2024, the Company completed the transactions contemplated by the Merchant Services Purchase Agreement dated June 26, 2024, and sold the equity interests of the Merchant Services Acquired Entities comprising the Merchant Services Business. The Merchant Services Business comprised the Company's entire former Merchant Services segment and a small portion of the Company's former Software and Services segment. As a result of the sale of the Merchant Services Business, the historical results of the Merchant Services Business have been reflected as discontinued operations in our consolidated financial statements, and the Company no longer presents a Merchant Services segment. See Note 2 to our condensed consolidated financial statements for additional information.
After giving effect to these developments, the Company's core business for continuing operations is delivering seamlessly software solutions integrated with our proprietary payment facilitator platform to customers in strategic vertical markets. The Company has since updated its segmentation, and the core business consists of two new operating segments and reportable segments, Public Sector and Healthcare.
The Public Sector has products and solutions that create an efficient flow of information throughout a variety of public sector entities. We serve customers at both the state and local level and our geographic reach covers most of the United States and some of Canada. Our solutions help our customers provide more responsive and efficient services to their citizens and stakeholders.
The Healthcare segment is dedicated to delivering integrated solutions across the healthcare ecosystem, catering to providers and payers, with a strong emphasis on enhancing process efficiency and ensuring compliance.
The Other category includes corporate overhead expenses, technology resources shared across segments and inter-segment eliminations.
The Company has since updated its intercompany transactions and allocations to adhere to the updated segment structure, which includes Public Sector intercompany, Healthcare intercompany, and intercompany locations within its business. As described above, these transactions include, but are not limited to, resources shared across segments and also exist to eliminate revenue and cost between components that should not be included on a consolidated basis. Although our intercompany structure and allocations have changed due to our updated segments, this reporting is consistent with our accounting policies from prior periods.
The Company primarily uses adjusted EBITDA margin to measure operating performance and for purposes of making decisions about allocating resources to the Company's business segments. The following is a summary of reportable segment operating performance for continuing operations for the three and six months ended March 31, 2025 and 2024.
For the Three Months Ended March 31,
For the Six Months Ended March 31,
2025202420252024
Public Sector adjusted EBITDA margin(1)
41 %41 %40 %40 %
Healthcare adjusted EBITDA margin(1)
16 %16 %23 %20 %
Public Sector revenue$52,405 $47,097 $101,190 $90,595 
Healthcare revenue10,857 11,053 24,028 22,633 
Other revenue(203)(182)(468)(206)
Total revenue$63,059 $57,968 $124,750 $113,022 
Public sector adjusted EBITDA21,576 19,233 40,819 36,592 
Healthcare adjusted EBITDA1,722 1,775 5,470 4,569 
Corporate, eliminations and other(6,156)(5,794)(12,775)(11,959)
Stock compensation expense(3,932)(5,022)(7,746)(10,380)
M&A-related expenses(570)(714)(1,116)(958)
Other taxes and one-time expenses(455)(89)(707)(173)
Depreciation and amortization(7,840)(7,193)(15,524)(14,247)
Change in fair value of contingent consideration(381)290 (1,758)527 
Income from operations3,964 2,486 6,663 3,971 
Other (income) expense
Interest expense446 7,714 1,126 14,401 
Other income(631)(2,257)(2,457)(2,150)
Total other (income) expense(185)5,457 (1,331)12,251 
Income (loss) before income taxes$4,149 $(2,971)$7,994 $(8,280)
n/m = not meaningful
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1.Adjusted EBITDA Margin represents adjusted EBITDA as a percentage of revenue. The chief operating decision maker primarily uses adjusted EBITDA margin to measure operating performance and for purposes of making decisions about allocating resources to the Company's business segments.
March 31,March 31,
20252024
Public Sector total assets$479,354 $467,465 
Healthcare total assets90,823 92,848 
Other total assets76,182 65,526 
Total assets$646,359 $625,839 
Public Sector goodwill$233,850 $222,364 
Healthcare goodwill46,828 46,828 
Total goodwill$280,678 $269,192 
The Company has not disclosed expenditures on long-lived assets at a segment level as such expenditures are not reviewed by or provided to the chief operating decision maker at a segment level.