| Cadence OneFive° Internal Handbook

January 23, 2026

[Intro paragraph - what’s on your mind this week?]

Metrics

We have officially closed the books on 2025 and this week we’re taking a look back at our year-end performance. Descriptions of each metric live in the handbook.

Metric	Value (%YoY)	Takeaway
Revenue (2025)	$1.63M (+9.4%)	Exceeded our revenue target of $1.6M
Transaction fees	$65K (+43%)	4% of 2025 revenue; below target of $178K
Gross margin	78%	Healthy margin, up from 75% in 2024
Net income	-$560K (-18%)	Moving twoard profitability - net loss improved by $120K and we surpassed year-end projection of -$1M
Cash	$395K (-63%)	Liquidity still healthy; decrease reflects timing of payments
Accounts receivable	$160K (+600%)	AR collected in Jan 2026
Runway	12 months	At the healthy threshold for our stage; runway should increase with our new contracted revenue and tight hold on expenses
Customer Churn	4	Two customers were expected to churn as contracts were short-term

Revenue: Solid Growth with Mixed Performance

Subscription revenue remains our foundation, with Real Estate subscriptions +16% and NYSERDA Data adding an additional $166K in 2025 ($200K projected for 2026). We also had strong collections despit delays.
Reevaluation of transaction fee strategy is already underway The gap between target and actual underscores the need to prioritize better forecasting and a reconsideration of our revenue model - both of which were happening prior to year-end.

Expenses: Disciplined with Strategic Shifts

Total expenses down 4.2% YoY despite revenue growth- which signals improving operational efficiency.
Payroll continued to dominate expenses at $1.68M or 78% of total expenses.
Consultant spending dropped 46% from $681K in 2024 to $395K in 2025, highlighting a strategic shift toward building internal capabilities.

2025 expenses by department

Department	Spend (% YoY)	Notes
R&D	$1.21M (-0.6%)	56% of total expenses, spend remained flat though salaries grew 12% YoY
G&A	$681K (+14%)	Growth driven by increases in legal fees and IRA contributions
COGS	$282K (-4.9%)	Decline due to personnel shifts
Sales	$256K (-40%)	Eliminated consultants and right-sized the team

We had a more platform-focused meeting with Willdan. It’s clear we’ll need to help them shape this program (which we knew), but in any case, it’s great that things are finally moving! (JMB)
We have draft scope of work requirements/specifications for two more measures: ventilation overhaul and packaged terminal heat pumps. I’m sure our owner clients and receiving contractors will have some comments, but I think we’re close. (JMB)
Bomee’s 360 (JMB) + Chuck’s 360 (FRH)
Some early internal versions of AI-powered features are landing in development. (FRH)

Any missing highlights? Please share in Slack comments.

Looking out for icebergs: What are the risks on the horizon that we’re watching for and navigating around?

Repeats:

It’s again (always?) hat-shedding season… and hat-shedding is hard. I’m thankful to folks for picking up on infrastructure and operations tasks that grew to consume too much of my bandwidth. Our systems and coding practices need hat-shedding too! Having agents handle document scraping, transitioning EPA PM to the back-end, delegating more coding and design work to agents: all these transitions are necessary and difficult, and we (always will) have a lot of them to balance with regular work.
Balancing short-term / vision Agents are fundamentally a combo of a/ a LLM (largely commoditized, but needs selection and possibly tuning), b/ a prompt (context + generic instruction), c/ tools (access to information and APIs relevant to perform a task), and d/ an architecture (orchestration of the above, evaluations, analytics). Even if we don’t put agents in Momentum right away, we have to make sure that what we build today prepares us for c/ and d/.

Improving clarity around our roadmap and prioritization process–I’ve started to meet with a PM coach to help me.
We may have won some minds, and we’re winning some wallets, but will we win their fingers? Which users will actually use our software instead of just looking for the outputs and expecting consultant-style service?
What is our moat in a world and industry where data wants to be free, especially when some of our largest customers are city and state agencies?
Getting a clearer sense of our delivery velocity. I anticipate we’ll need to be more responsive to ad hoc customer feedback this year, and this will help me better plan and prioritize our product needs.

Cash Flow Still watching this closely and maintaining a lean budget until we start to receive income from our latest agreements. Also need to reevaluate the plan to replenish our equity account, so there is a balance between new expense needs and overall cash management. This will also require more feedback from team leads.

Release 113

Release 114

Please note your reaction to this update in the Discord channel. It helps us to know what is resonating, what is unclear, etc. Thanks!