MERIDIAN TECHNOLOGIES INC.
FORM 10-Q -- QUARTERLY REPORT
For the Fiscal Quarter Ended December 31, 2025

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Total revenue for the quarter ended December 31, 2025, was $287.4 million,
representing a 23% increase from $233.7 million in the prior year period.
Subscription revenue accounted for $214.8 million, or 74.7% of total revenue,
compared to $168.3 million, or 72.0%, in Q4 2024.

Cost of revenue was $98.2 million, resulting in a gross profit of $189.2
million and a gross margin of 65.8%, compared to 63.1% in the year-ago
quarter. Operating expenses totaled $142.6 million, including $52.3 million
in research and development and $58.1 million in sales and marketing.

Net income attributable to common stockholders was $31.8 million, or $0.42
per diluted share, compared to $18.9 million, or $0.26 per diluted share,
in Q4 2024.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

The increase in revenue was primarily driven by strong enterprise adoption
of our AI-powered compliance platform, with net new annual recurring revenue
(ARR) of $48.2 million during the quarter. Our dollar-based net retention
rate was 128%, reflecting expansion within existing accounts. We ended the
quarter with approximately 2,340 enterprise customers, up from 1,870 at
the end of Q4 2024.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933. Actual results may differ
materially from those projected due to risks and uncertainties described
in our Annual Report on Form 10-K.
