Tear Sheet: Cardinal Parent Inc.

This report does not constitute a rating action. Cardinal Parent Inc.'s (Zywave) revenue will likely grow low- to mid-single-digit percent. The company increased its revenue by about 2.5% year over year in 2025 as bookings expanded. We expect 2026 revenue to grow low- to mid-single-digit percent as Zywave continues to benefit from digitization in the insurance space. However, given the ongoing macroeconomic uncertainty, there is some risk that its customers, especially in the small- to medium-sized business (SMB) space, spend more conservatively. We expect investments to pressure margins. In fiscal 2025, Zywaves spent more on product enhancements and sales and marketing to promote organic growth, which contracted S&P Global Ratings-adjusted EBITDA margin by about 200 bps to low-30%. We anticipate

...June 11, 2026 This report does not constitute a rating action. Cardinal Parent Inc.'s (Zywave) revenue will likely grow low- to mid-single-digit percent. The company increased its revenue by about 2.5% year over year in 2025 as bookings expanded. We expect 2026 revenue to grow low- to mid-single-digit percent as Zywave continues to benefit from digitization in the insurance space. However, given the ongoing macroeconomic uncertainty, there is some risk that its customers, especially in the small- to medium-sized business (SMB) space, spend more conservatively. We expect investments to pressure margins. In fiscal 2025, Zywaves spent more on product enhancements and sales and marketing to promote organic growth, which contracted S&P Global Ratings-adjusted EBITDA margin by about 200 bps to low-30%. We anticipate margins will further decline to about 30% in 2026, as we expect Zywave to continue increasing its investment in R&D and sales and marketing. High interest expense will continue to...

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