Conferencia de resultados del 3T 2026 de Informa TechTarget (TTGT): caen los ingresos, se recortan las previsiones de EBITDA

Puntos clave

• Informa TechTarget registró unos ingresos de 119,2 millones de dólares en el tercer trimestre de 2026, lo que supone un descenso interanual del 2,5%, pero un incremento secuencial del 2,6%.
• El EBITDA ajustado cayó a 18,6 millones de dólares frente a los 22,6 millones anteriores, mientras que el margen de EBITDA ajustado retrocedió del 18,5% al 15,6%, debido principalmente a los menores ingresos y a la inflación de costes.
• La dirección prevé ahora que los ingresos de todo el ejercicio 2026 sean ligeramente inferiores a los del año anterior, revirtiendo su expectativa previa de crecimiento. La previsión de EBITDA ajustado se redujo a un rango de 80 a 85 millones de dólares, frente a los 95 a 100 millones de dólares previstos con anterioridad.
• El número de miembros de la audiencia superó los 59 millones, lo que representa un crecimiento interanual en el rango medio de un solo dígito. La dirección señaló que el tráfico de búsqueda se estabilizó y que la conversión del tráfico de búsqueda en miembros mejoró cerca de un porcentaje de dos dígitos.
• Las reservas del segmento de clientes más importantes de la empresa crecieron a un ritmo de dos dígitos en el tercer trimestre; no obstante, la dirección prevé que continúe la volatilidad en el mercado intermedio y una mayor presión macroeconómica en los mercados internacionales.
• Más del 40% de los usuarios adoptaron las nuevas capacidades de IA en Buyer Intelligence. La dirección indicó que los usuarios de sus funciones de IA registraron sesiones más largas y un mayor seguimiento en el contacto con clientes potenciales.

Principales resultados financieros

A 30 de septiembre de 2026, el efectivo y equivalentes de efectivo se situaban en 35,3 millones de dólares. La empresa había dispuesto de 120,1 millones de dólares de su línea de crédito renovable no garantizada de 250 millones de dólares, lo que dejaba 129,9 millones de dólares disponibles. La deuda neta era de 84,8 millones de dólares, es decir, aproximadamente 1 vez el EBITDA ajustado de los últimos 12 meses.

Desempeño comercial y operativo

Los ingresos de Brand to Demand se vieron afectados por los menores ingresos procedentes de datos de intención y por el calendario de las campañas de los clientes, en particular en los mercados internacionales. La dirección señaló que las reservas de productos de datos de intención mejoraron durante el tercer trimestre, lo que apunta a una estabilización en esa categoría de productos.

Los ingresos por suscripciones de Intelligence & Advisory crecieron, respaldados por la base de suscriptores de la empresa, pero la disminución de los ingresos por asesoría compensó con creces dicho aumento. En los primeros nueve meses, los ingresos de Brand to Demand fueron de 248,8 millones de dólares y se mantuvieron prácticamente estables frente al año anterior, mientras que los ingresos de Intelligence & Advisory descendieron un 4,5%, hasta los 92,6 millones de dólares.

Informa TechTarget continuó priorizando a los clientes de mayor tamaño y a los mercados más atractivos. Este grupo generó un crecimiento de las reservas de dos dígitos a medida que la empresa amplió sus relaciones entre unidades de negocio y regiones geográficas. No obstante, la dirección prevé una volatilidad continua en el mercado intermedio y señaló que los clientes internacionales están sufriendo un mayor impacto por la incertidumbre macroeconómica que los clientes norteamericanos.

El número de miembros de la audiencia aumentó a más de 59 millones, lo que representa un crecimiento interanual en el rango medio de un solo dígito. La membresía activa en la red Dive creció a un ritmo de dos dígitos. La empresa completó la actualización y el cambio de plataforma de TechTarget.com y tiene previsto migrar el resto de sus publicaciones a la nueva plataforma y modelo operativo para finales del primer trimestre de 2027.

La empresa lanzó Buyer Intelligence, su solución de datos de intención de próxima generación, durante el tercer trimestre. Más del 40% de los usuarios adoptaron sus nuevas funciones de IA. La dirección afirmó que el asistente de IA puede elaborar informes de inteligencia sobre perfiles de comprador en menos de un minuto, mientras que los comerciales que utilizan las capacidades de IA pasaron casi el doble de tiempo en la plataforma por sesión.

Informa TechTarget también introdujo un marco de integración MCP que permite a los clientes utilizar sus datos de intención e inteligencia de compradores dentro de sus propios flujos de trabajo de IA y entornos de modelos lingüísticos de gran tamaño. A partir de enero, se espera que los clientes conjuntos accedan a los datos de intención a nivel individual y a los análisis de comportamiento de Informa TechTarget mediante Demandbase Pipeline Engine.

La empresa también lanzó el B2B AI Authority Index. La dirección indicó que el 77% de los clientes considera la autoridad en IA como una prioridad, pero solo el 45% cuenta con un plan sólido para alcanzarla.

Previsiones de la dirección

La dirección prevé una sólida mejora secuencial estacional en los ingresos y la rentabilidad del cuarto trimestre, respaldada por tres foros anuales de socios de canal en EMEA, América y APAC.

Para todo el ejercicio 2026, la empresa prevé ahora que los ingresos sean ligeramente inferiores a los del año anterior, frente a sus perspectivas previas que apuntaban a una vuelta al crecimiento. La dirección atribuyó esta revisión a la cautela en el gasto de los clientes y a una conversión más lenta de una sólida cartera de oportunidades.

Ahora se prevé que el EBITDA ajustado de todo el año se sitúe entre 80 y 85 millones de dólares, por debajo del rango anterior de 95 a 100 millones de dólares. Las perspectivas revisadas también reflejan la inversión continua en el desarrollo de audiencias, la innovación de productos, las capacidades de datos y los recursos de comercialización.

Riesgos y factores a seguir

• Los clientes tardan más en tomar decisiones de gasto, lo que ralentiza la conversión de la cartera de oportunidades de la empresa.
• Los profesionales del marketing B2B siguen evaluando cómo la IA y los motores de respuestas transformarán los procesos de compra y las estrategias de marketing.
• Los mercados internacionales afrontan una mayor presión por los tipos de interés, los conflictos bélicos, los aranceles y el cambio de prioridades geográficas entre las empresas tecnológicas asiáticas.
• La dirección prevé una volatilidad continua entre los clientes del mercado intermedio.
• Los menores ingresos y la inflación de costes, incluido un mayor coste de los ingresos, ejercieron presión sobre el margen de EBITDA ajustado del tercer trimestre, a pesar de los ahorros estructurales y las sinergias.
• Las perspectivas para todo el año dependen en parte de la contribución estacional prevista de los foros de socios del cuarto trimestre.

Puntos destacados de la sesión de preguntas y respuestas con analistas

La dirección afirmó que la cautela de los clientes es generalizada en todos los segmentos, pero el enfoque de la empresa en sus principales clientes está generando una ejecución más sólida y un crecimiento de dos dígitos en las reservas. Se espera que el mercado intermedio siga siendo volátil.

El tráfico de búsqueda se estabilizó durante el tercer trimestre, mientras que su conversión en miembros de la audiencia mejoró cerca de un porcentaje de dos dígitos. La dirección subrayó que la empresa monetiza las membresías de audiencia autorizadas y no solo el tráfico, y que está ampliando los métodos de distribución para llegar a audiencias fuera de las búsquedas tradicionales.

Por lo general, los clientes están adoptando tanto el portal de Buyer Intelligence como el acceso a datos como servicio (DaaS), en lugar de optar por un único método de entrega. La dirección indicó que esto puede reflejar en parte una estrategia de transición, así como la demanda de integrar señales de datos propios directamente en los sistemas de comercialización de los clientes.

Los patrones de compra de los clientes mostraron una división entre contratos a corto plazo y una planificación más temprana para 2027. La dirección señaló que la cartera de pedidos para 2027 aumentó durante el tercer trimestre.

La empresa prevé que los costes en efectivo relacionados con adquisiciones, integración y reestructuración hayan quedado prácticamente atrás al entrar en 2027. La dirección indicó que, a partir de entonces, la conversión de efectivo debería reflejar principalmente los gastos de capital, los impuestos en efectivo y los intereses de la línea de crédito renovable.

Transcripción completa de la conferencia de resultados

Transcripción completa de la conferencia de resultados

Comentarios de la dirección

Operator

Greetings, and welcome to Informa TechTarget Third Quarter 2026 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Charles Rennick, General Counsel and Corporate Secretary. Thank you, you may begin.

Charles Rennick

Thank you, Donna, and good morning, everyone. The speakers joining us here today are Gary Nugent, our Chief Executive Officer; and Daniel Noreck, our Chief Financial Officer.

Before turning the call over to Gary, we would like to remind you that in advance of this call, we posted a press release to the Investor Relations section of our website and furnished it on an 8-K. You can also find these materials on the SEC's website at www.sec.gov.

A replay of today's conference call will be made available on the Investor Relations section of our website. Following opening remarks from Gary and Dan, they'll be available to answer questions. Any statements made today by Informa TechTarget targets that are not historical, including during the Q&A may be considered forward-looking statements. These forward-looking statements, which are subject to risks and uncertainties are based on assumptions and are not guarantees of our future performance. Actual results may differ materially from our forecast and from these forward-looking statements.

Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factors section of our most recent periodic report filed on Form 10-Q and the forward-looking statement disclaimer in our earnings release filed earlier today. These statements speak only as of the date of this call, and Informa TechTarget undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law.

Finally, we may also refer to certain financial measures not prepared in accordance with GAAP. A reconciliation of certain of these non-GAAP financial measures to the most directly comparable GAAP measures to the extent available without unreasonable efforts accompanies our press release.

With that, I'll turn the call over to Gary.

Gary Nugent

Thank you, Charlie, and good morning, everyone. As always, we appreciate you taking the time to join us today. Our third quarter results reflect disciplined execution and continued strategic and product progress in a market that remains challenging and shaped by macro uncertainty.

In the main, our customers are healthy, they are growing and profitable. However, they continue to wrestle with both the risks and opportunities that AI represents and the healthy opportunity pipeline that we have built through the year is converting more slowly than we anticipated. Against that backdrop, we continue to invest in our audience membership and our products and to focus our go-to-market efforts in the largest customers and the most attractive markets.

In a moment, Dan will review the quarter in more detail. But at a high level, third quarter revenue was $119.2 million, up 2.6% sequentially from the second quarter, a little stronger than last year's 2% sequential improvement, lowered down 2.5% year-on-year. Brand to demand revenue was 2.5% lower than last year's Q3, while Intelligence & Advisory revenue was 2.4% lower. Adjusted EBITDA was $18.6 million, representing a margin of 15.6%.

For the first 9 months, revenue was $341.4 million, down 1.4% year-on-year. Behind the scenes, we remain focused on and continue to make good progress on our strategic priorities. On the subject of trust and authority, our audience membership and their engagement is a key leading indicator into the underlying health of the business and our ability to grow. AI is changing how technology buyers discover, research and make buying decisions. The buying journey and the concept of the buying group is evolving, and that has implications on how our clients the vendors of technology and services, raise awareness, establish thought leadership, ensure consideration and generate demand.

In the short term, it is giving our customers reason to pause. In the midterm, however, I am confident that the dynamics of this new world render Informa TechTarget and even more indispensable partner. As in this new world, trust and authoritative voices are highly priced and valued assets. As such, we continue to invest in our editorial activities. The source of our audience membership and that vital permissioned first-party audience member data. Our audience membership continued to grow in the third quarter to over $59 million which represents a mid-single-digit percentage increase year-over-year.

In particular, active membership across our dying network grew double digits further validating the role of trusted authoritative content in the buying journey and our strategy and the investments we are making in this area of the business. To that end, in Q3, we completed the brand refresh, replatforming and future proofing of the editorial and audience's development strategy of TechTarget.com.

Leveraging the tried and tested dive model, these investments support our strategy of prioritizing engagement over acquisition quality over quantity and meeting the audience where they are rather than expecting the audience to come to us. The new tech target network focuses on 5 topics in communities, AI, the CIO, cybersecurity, data and infrastructure. Further, we will have completed the migration of the remainder of our media titles, for example, [ Dark Reading ] and information week to this new platform and model by the end of Q1 2027, enabling us to extract further performance and scale gains.

On the subject of product innovation, we remain committed to investing in our products and leveraging AI technology to enhance how our customers discover, access and extract value from our proprietary market under permissioned audience membership data. In Q3, we launched Buyer Intelligence, our next-generation intent solution. Buyer intelligence includes 3 built-in AI skills, designed to translate our personal-level intent signals into actionable buyer intelligence for marketers and sales professions. Pain points identify the exact business program prospects are actively trying to solve.

[ Pitch assist ], auto-market crafts, tailored messaging and talking points aligned with observed buyer behaviors. And [ Persona and ICP ] Intelligence refines ideal customer profiles and maps out active buying group road. Since the launch, over 40% of our users have embraced these new features and adoption continues to grow with encouraging observations. On the subject of speed to insight, our AI assistant produces full buyer persona intelligence reports in less than a minute.

In terms of deepening engagement, sellers using our AIM sites spend nearly twice as long in the platform per session as those who do not. And on the subject of insight to action, sellers using [ Pithasyst ] are far more likely to take our next step in their selling journey, nearly half go on to generate an outreach e-mail to the prospects we've identified. In addition, we launched our model context protocol or MCP integration framework allowing clients to activate our proprietary intent and buyer intelligence within their own AI workflows and large language model environments.

It is a vitally important step and further embedding our data within the tools our customers use to plan and execute their go-to-market programs. And by way of example, we further announced our plans to integrate buyer intelligence with demand basis pipeline engine. Beginning in January, joint customers will be able to access Informa TechTarget directly observed personal-level intent data and click level behavioral insights natively within their demand-based investment.

We also launched in Q3 the Informa TechTarget B2B AI Authority Index. a diagnostic tool designed to help B2B marketers assess and improve their brand's influence across AI mediated buying journeys. This builds on the AI visibility audit and the geo topic planner products that we introduced earlier in the year and further strengthens our ability to help customers understand how their brands and content appear in emerging answer engine environments. A key insight from those engagements while 77% of customers cite AI authority as a priority business objective, only 45% currently have a robust plan to achieve that goal.

This is a clear market opportunity. And finally, on our commercial focus, we continue to focus and align our go-to-market efforts on the largest clients in the market. This approach is designed to deepen relationships increased share of wallet and bring a more integrated set of intelligence, media, content and marketing solutions to market.

This focus is paying dividends with double-digit bookings growth from this cohort in Q3 as we cross-sell the breadth and scale of our portfolio and expand into new business units and geographies. We successfully launched our North American B2B marketing community event, [ STRATA ] in Austin, Texas, with over 50 of our largest clients in the room, STRATA represented a unique opportunity to position Informa TechTarget as a thought leader in the evolving B2B landscape.

We took the opportunity to demonstrate the breadth and scale of Informa TechTarget with speakers from BrightTALK, NetLine and Omdia and through keynotes and panels featuring our own experts alongside customer and industry voices we delivered the sort of real-world actual insights that our customers count on us for.

Looking ahead, we expect a strong seasonal sequential improvement in fourth quarter revenue and profitability underpinned by our 3 channel partner forums across EMEA, the Americas and APAC. However, given the caution and uncertainty in client spending and the slower conversion of our opportunity pipeline, we now expect full year 2026 revenue to be modestly lower than the prior year compared with our prior expectation of a return to growth.

We expect that this will translate into a full year adjusted EBITDA of between $80 million and $85 million compared to our prior expectation of $95 million to $100 million. While I am disappointed to in having to revise our near-term 2026 expectations, I remain confident in our strategy. the investments that we are making and the long-term opportunity created by a unique combination of trusted brands, market expertise and proprietary data.

And in our ability to leverage AI to unlock greater value from these assets. Our priorities as we will transition into 2027 are clear, taking market share and share of wallet and returning the business to top line growth remains our key performance indicator. As such, we will continue to invest in our go-to-market and our marketing and sales increasingly shifting the emphasis of our resources to the front line. We will continue to invest in our products and in particular, leverage AI to enable our clients to more easily discover consume and extract value from our proprietary market and our permissioned audience membership data.

And we will continue to invest in trust and authority, and our permissioned audience membership as a key point of differentiation and what makes us an even more indispensable partner to the B2B technology industry and in [ to AI ].

Now I'll turn the call over to Dan to discuss our financial results and outlook in more detail, and then we'll be happy to take your questions.

Daniel Noreck

Thanks, Gary, and good morning, everyone. In the third quarter of 2026, revenue was $119.2 million, 2.5% lower than in Q3 2025. On a sequential basis, revenue grew 2.6% from the second quarter reflecting continued progress and disciplined execution in what remains a subdued market. For the first 9 months of 2026, revenue was $341.4 million, 1.4% lower than the $346.1 million in the prior year period.

As Gary discussed, the market environment remains challenging. Customers continue to take longer to make decisions and commit to spend, resulting in slower conversion of a healthy opportunity pipeline. We remain focused on commercial execution while continuing to invest in product capabilities that strengthen the customer proposition over the longer term.

Looking at our segments. Brand to demand revenue was $87.8 million in the third quarter, down 2.5% year-over-year primarily reflecting declines in intent data revenue and the timing of customer campaign activity, particularly in our international markets. Intelligence & Advisory revenue was $31.5 million, down 2.4% year-over-year. Subscriptions revenue grew in the quarter, underpinned by our solid subscription base but this was offset by lower advisory revenues.

For the first 9 months, brand to demand revenue was $248.8 million, similar to last year's level. Intelligence and advisory revenue was $92.6 million, 4.5% lower than the prior year. Adjusted EBITDA for the third quarter was $18.6 million compared with $22.6 million in the prior year period. Adjusted EBITDA margin was 15.6% compared to 18.5% a year ago. The year-over-year change largely reflected the lower revenue and cost inflation, including higher cost of revenues. These pressures were partially offset by structural cost savings and synergies.

For the first 9 months, adjusted EBITDA was $41 million compared with $45.7 million in the prior year period. Adjusted EBITDA margin was 12% compared with 13.2% in the first 9 months of 2025. On a GAAP basis, third quarter net loss narrowed to $18.2 million or a net loss margin of 15.2% compared with a net loss of $76.8 million or a net loss margin of 62.8% in the prior year period.

For the first 9 months, net loss narrowed to $110.7 million or a net loss margin of 32.4% from $998.8 million, or a net loss margin of 288.6%. The year-over-year improvement primarily reflects substantially lower noncash goodwill impairment charges and the absence of restructuring expense in the third quarter of 2026. From a cash flow standpoint, adjusted free cash flow was a positive $15 million for the first 9 months of 2026. On adjusted free cash flow was impacted by acquisition, integration and restructuring cost programs we have had in place, the majority of which are now behind us as we have previously mentioned.

Our balance sheet remains strong, at September 30, 2026, cash and cash equivalents were $35.3 million. We had $120.1 million drawn under our $250 million unsecured 5-year revolving credit facility leaving $129.9 million available. This resulted in a net debt of $84.8 million, representing approximately [ 1x ] trailing 12-month adjusted EBITDA. We believe our existing cash and remaining availability are sufficient to meet our anticipated cash needs.

Turning to our full year outlook. We expect a strong seasonal sequential improvement in fourth quarter revenue and profitability, supported by the 3 annual forums that run in the EMEA, Americas and APAC regions. For the full year, given continued customer caution and slower pipeline conversion, we now expect 2026 revenue to be modestly lower than the prior year rather than growth.

Our opportunity pipeline, as Gary mentioned, remains healthy and is growing. As a consequence of the lower revenue outlook and continued investment in the health of our business for the long term in terms of audience, product innovation, data capabilities and go-to-market we now expect full year adjusted EBITDA to be between $80 million and $85 million.

And with that, we're now happy to answer your questions. Operator, will you please open the line for Q&A?

Operator

[Operator Instructions] Our first question today is coming from Joshua Reilly of Needham & Company.

Preguntas y respuestas

Joshua Reilly

All right. Great. You cited customers prioritizing AI investments again this quarter, over product marketing. And earlier this year, you flagged longer decision cycles and maybe a little bit higher churn in some of the lower-end accounts. I guess what are you seeing by customer cohort? And are your largest customers still growing? And has the mid-market and long tail stabilized? Or what are the trends we should be thinking about there?

Gary Nugent

Josh, it's Gary here. I appreciate the question. Thank you. I think it's an interesting picture, I think. I mean as we mentioned, I think generally, the customer sentiment is the same across most of the cohorts actually. And I think the differences in results are about where we're focusing and how we're executing.

Generally speaking, I think that as we've mentioned, the general macro uncertainty, which is causing pause. And then B2B marketers are wrestling, as I say, with what are the implications of AI and answer engines to buying groups and buying journeys and therefore, what that means for their marketing strategies.

And all of that is to [ creating ] the environment in which we're operating in. And I would say that, that is different depending upon whether we're talking about the midsize of the market or the larger players in the market or whether we're talking about our international customers or our North American customers. I think that's a very consistent picture. I think what you're seeing, though, is that our -- the breadth and scale of our portfolio and the focus that we are placing on our largest customers and the more attractive markets, is paying dividends from an execution perspective.

And that's why we're seeing strong double-digit growth in that space. I think it's fair to say that we expect, and you're certainly in my outlook in my expect, we're expecting to see continued volatility in the mid-market. I think it's also fair to say that there is a distinction between our international markets and our North American market, that, that sort of macro uncertainty is having a stronger impact or a greater impact on our international markets.

Joshua Reilly

Just a follow-up on the international piece there. Is there any particular macro issue that you think is causing issues internationally? Or is it just a greater extension of what's going on in the U.S.?

Gary Nugent

I think it's the same thing. I mean, obviously, it's the implication of interest rates. It's the implication of wars. It's the implication of tariffs. And I think it's -- we're beginning to see a bit of a what I would describe as a hemispheric divide between the North American technology industry and the international technology industry. especially as our Asian customers, the Asian technology industry focuses its growth ambitions more into Southeast Asia, more into Middle East and Africa, more into Latin America and increasing that focus and less having eyes on the North American market or the European market.

Joshua Reilly

Got it. That's very helpful. You've called out traffic disruption from AI search in the last several quarters as well. Can you give more color on top of the funnel activity, specifically, how traffic and audience activity trended through the quarter? And what are you doing to offset any potential impact there in terms of distribution, AI visibility or other channels?

Gary Nugent

Yes, certainly. I mean, first of all, actually, encouragingly, in the third quarter, we saw search traffic begin to stabilize a bit. And in actual fact, what we're also seeing is that our search traffic is converting to membership at a higher rate than it has been in the past. Almost by a double-digit percentage improvement in conversion rate. So that's good news, I think, generally. But of course, as we've always said, two things.

One, of course, is that our company does not monetize traffic. We monetize membership -- audience members. And the second thing, of course, is that search is a relative. It's important, but it's only part of our mix in terms of how we develop our audiences. And how we develop the membership. So as I mentioned in the call, actually, our membership grew again mid-single digits.

In the quarter, which is obviously encouraging. And indeed, as I mentioned, the active membership is particularly across our dive network, which deploys audience development techniques, audience development strategy and tactics, which -- where we go to the audience rather than expecting the audience to come to us has been yielding very strong dividends.

And that's the reason why we have made the investments to move other elements of our network to that platform and to that business model so that we can further develop scale and performance in that space.

Joshua Reilly

Got it. That's very helpful. Last question for me is, can you talk about any early traction you're having on your data as a service and [ tenant ] offering you discussed last quarter? And are you seeing customers shift towards accessing your intent data through MCP and direct integrations rather than through the portal? And what does that ultimately mean for pricing and ARPU?

Gary Nugent

It's an interesting picture, Joshua, actually on that front. So certainly, yes, we're seeing intent to stabilize and indeed, bookings for the intent products improved in the third quarter, which was encouraging. I think actually what interestingly, what we are seeing at the moment is not customers deciding whether they are going for the portal or the data as a service.

Actually, what we're seeing is our customers opting to go for portal and data as a service as part of their buying into the intent proposition. As they actually are looking to -- and that might be, to some extent, as partly of a transition strategy, I think I acknowledge that point. But I think it also reflects a broader strategy within their business about how do they leverage high-value unique data signals in their go-to-market efforts.

So generally speaking, that's good. And then as I mentioned in the earlier script, since launching Buyer Intelligence, actually, for those customers, we're seeing good adoption of those new features, as I mentioned, over 40% of our users actively engaging with those features and that is growing. But not only that, when they engage with those features, we're seeing much deeper levels of engagement and action from those users. And that is giving us reason to be optimistic about the future of our product.

Operator

The next question is coming from Jason Kreyer of Craig-Hallum.

Jason Kreyer

So just in terms of like the subdued demand environment, can you talk about what the appetite is for shorter-term engagements. It seems like longer-term stuff is probably where you're seeing a lot of the pressure. Just wondering if there's any meaningful changes in the more episodic stuff you do with customers?

Gary Nugent

Jason, thank you. Yes, interesting question. Actually, I would say it's a little bit of a bifurcation, Certainly, obviously, what we saw in the third quarter.

Yes, there's a little bit more short-term focus and by being kind of looking forward maybe about 90 days a quarter. But actually, we also saw customers looking forward to 2027. And in actual fact, the backlog of orders for 2027, was increased during the quarter. So it feels to me it's a little bit of a bit of a bifurcation in that regard in terms of our customers' outlook. There's a little bit of focus on the near term and rounding out this fiscal year as strongly as they can. But their eyes are moving to 2027. And actually, the [ horizon ] moving to 2027 slightly earlier than I would see they have done in past years.

Jason Kreyer

Appreciate that. Maybe for Dan. Just wanted to talk about the conversion from EBITDA to cash flow. I mean, perhaps you can touch on that for Q4, but really wanted to see how that changes as we get into 2027.

Daniel Noreck

Yes. So as you think about 2027 in particular, all the cash flows from the adjustments we've made for our restructuring plans, or the acquisition and integration costs will really be behind us as we enter into 2027. So as you think about the flow-through, you're really going to be talking about the CapEx numbers that we have sort of historically invested into the business.

And then also cash taxes cash for taxes and then cash on the interest that we pay on the revolver. And so if you look at where we stood at the 9 months, you get -- you can use that as a good proxy for the 2027 sort of run out for those.

Gary Nugent

Jason does that answer your question?

Jason Kreyer

Well, I mean a lot of the onetime stuff that we've dealt with in '25 and '26 should be behind us, and we'll finally get more of a clean cash flow story in '27 right?

Daniel Noreck

Exactly. That's correct. That's correct.

Operator

Ladies and gentlemen, that brings us to the end of today's question-and-answer session and today's event. We would like to thank you for your participation and interest in Informa Tech -- sorry, Informa TechTarget. You may disconnect your lines or log out the webcast at this time, and enjoy the rest of your day.