Tear Sheet: Cardinal Parent Inc.

The company increased its revenue by about 3% year over year in fiscal year 2024, primarily due to an expansion in its bookings. We expect Zywave will further improve its revenue by the low- to mid-single digit percent range in fiscal year 2025 as it continues to benefit from the secular trend toward digitization in the insurance space. However, given the ongoing macroeconomic uncertainty, there is some risk that the company's customers, especially in the small- to medium-size business (SMB) area, spend more conservatively. Zywave's prior cost-curtailment measures and the expansion of its workforce in low-cost regions helped improve its S&P Global Ratings-adjusted EBITDA margin to the mid-30% range in fiscal year 2024 from the mid-20% range in fiscal year

...June 9, 2025 S&P Global Ratings expects Cardinal Parent Inc. (Zywave) will increase its revenue by the low- to mid-single digit percent range and maintain its EBITDA margin in fiscal year 2025. The company increased its revenue by about 3% year over year in fiscal year 2024, primarily due to an expansion in its bookings. We expect Zywave will further improve its revenue by the low- to mid-single digit percent range in fiscal year 2025 as it continues to benefit from the secular trend toward digitization in the insurance space. However, given the ongoing macroeconomic uncertainty, there is some risk that the company's customers, especially in the small- to medium-size business (SMB) area, spend more conservatively. Zywave's prior cost-curtailment measures and the expansion of its workforce in low-cost regions helped improve its S&P Global Ratings-adjusted EBITDA margin to the mid-30% range in fiscal year 2024 from the mid-20% range in fiscal year 2023. We anticipate that the company will...

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