to I'd of my focus business into the our balance and growth Tom. attractive our algorithm, our remarks on like strength business the X sheet. in our things: how translates you, Thank leverage operating
client foundation we is as Our algorithm. our The our expand through growing the result growth extend cash free supports and flow and value chain. offerings durable
delivering footprint our among focus Our by and advisers technology, software consistent, existing strategy solutions. expanding including both mission-critical is on our to
to not we or count As do on our algorithm our depend I've drive expand growth growth to mentioned continue margins. adviser previously,
delivering pricing an platform strategies As evolve, we the growing on are adviser focus and to continues with products. better across our to implementing clients differentiated landscape integrated
has and our As segment subscription-based consisting a fees as defined both for Data and segment of reminder, only. primarily Solutions while generates our platforms. asset-based Investment asset-based variable revenues, traditionally Analytics revenues our Wealth providing generates subscription-based revenues
relationships believe our segment strong organic across delivered growth structural of inflows $XX Solutions of a the In one consistent growth, We to clients. existing Investment with and during We these that constructs asset from pricing to grow. of from factors. variability the most industry channels, Envestnet inflows. asset-based despite Wealth our and the expand accounts client enable represents diverse or of measured inflows strategy revenue nearly our fit franchise as breadth consistent our Solutions provide solutions cyclical has the Wealth net into of to seasonal by confirmation features view enduring QX structural billion
our we Envestnet's leader both are actions market as demonstrate specific a as flows to grow as clients. positioning taking to QX wallet well
quarter-to-quarter, to clients vary connected long-standing grow deeper opportunities our from have Although to of will and capabilities. our ecosystem comprehensive mix with go we significant with continue
of banking related of clients, net XX rate, quarter. our flows. tool assets our the flows extending platform a reporting were QX late in-house mix to which top an long-standing enterprise in firm, $XX a headwind appear call-outs overall to regarding Approximately our and fee AUA of reflected in couple replace regional as outlook. A billion create inflows low-fee effective is to their a These our use
on an process reporting several in given the the to should March results. core for hybrid assets and Envestnet our a This RIA March event QX. other firm The and the carry timing, reflected months. as only approximately also platform Our away outflow for was In this words, not has as billion operating longer-than-anticipated end the both of we leaving been this during firm during our broker-dealer used the deconversion platform our QX, numbers from reflect be $XX part revenue. that from net RIA. significant our idiosyncratic We contributor anticipated of
remaining increase by have markets inverted equity as curve supported continued XXXX, QX XXXX, despite XX% has XXXX. During ad-based the Wealth signs total been $XXX be over conditions. has by to revenues Solutions million, while Year-to-date, since it market was of QX from generated a showed improving normalization strong,
cash often for their needs Investors portfolios defensive liquidity and keep in reasons.
have balances the cash results levels time to are high Investors However, where on the as large run market with attractive paid sidelines suggests or attempts time in better research remained given short-term of at a cash the market. missing risk the to to rates longer leads that all-time wait. a being investors
Client results, hold results. cash albeit invest to believe the be a view one we financial equity has money and our in assets to to and more will accretive propensities accomplish their debt We headwind help created investors objectives invested temporary. markets in more as
was leading During QX, a included a XXXX insurance revenue has into financial operations In financial over the of protection on FedEx million QX marketplace provide our approximately their statements. Envestnet in to with integrated to million $X consolidated accordance for QX subscription-based growth clients. is of XXXX. revenue. enable revenue platform. wealth represented Envestnet to FedEx historically subscription-based and annuities $XX FedEx, FedEx's GAAP, income products our Solutions formed Wealth X% advisers
In by connection clients. with with capital the partners recent new FedEx and with funding company insurance round investment led
accounting of During rules, in that entity. governance we anticipate deconsolidating QX, with accordance updated VDX reflecting
While the not we funding owning this approximately largest FedEx in in XX% participate the company. did investment remain round, of shareholder
revenue. During XX% this subscription of XXXX, of consolidated FedEx contributed approximately million revenue, contribution approximately in with $X
over QX On Solutions revenue Wealth during representing million XX% QX, over XXXX. overall growth to an grew $XXX basis,
analytics and which revenues alternative our representing offerings, data business, an to during XXXX. was decline revenue data our generates X% million, Turning banking from D&A $XX.X across QX, open and QX subscription-based
calls, primarily its continues turmoil to is previous banking regional created business a on this a comparison for Overall, XXXX that stabilization. business As to the mentioned turmoil headwind and pre path relative March base. the
reduced uptime, Some and the we include have incident of improving actions renewals. contract improving quality taken exchanges, securing time response API several
We will updated all transformation as progresses. keep stakeholders this
during which For has in decline the D&A, represents sequentially historical last primary revenue, business modest than subscription the from that The QX, been stabilization QX source than a D&A few QX. growth. trends We consistent taken orient had services higher that decline efforts. sequential professional of our stabilize was future in with to X% and a will actions believe Relative less decline quarters. revenue, for
to on moving Now expenses.
investments costs and to As achieve grow a made enable last operating reminder, the cash by growing we few over leverage ahead platform of infrastructure years us the expand free have our revenues our flow. profitability to
expenses. previously a Envestnet's of detailed, manageable noncontrollable and As costs combination consist of
Our expenses third parties, payments which common in wealth with noncontrollable industry. growth tandem include move asset-based are to and for revenue the
During direct $XXX of costs. asset-based QX, expenses million were nearly our including $XXX million these
of XXXX. Manageable to of However, general single these mid- noncompensation form most categories: whether our fall costs of of expenditures. we X an cash and manageable manageable. Compensation or delivered for stock; scale, expect our in decrease the digits in cost base into high overall is capital Because expenses expenses year-over-year related, the
through Let me components. the walk
reduced the conclusion consistent As a of by investments. during platform a XXXX, reminder, period infrastructure with Envestnet XX%, of elevated headcount its
For flat compensation. be digit severance total year-over-year. compensation-related our be we XXXX, in costs high includes the development while XXXX stock-based benefits, to down stock-based software compensation salary, mid- This we treatment year-over-year, to regarding to and expect all of approximately single a expect regardless
taxes, comprehensively cash area expenses, the G&A; items, described or previously unrelated noncompensation-related major our consistent cost based expenses total flow, manageable emphasis of with interest our income asset-based any deployment; several we second, is third, expenses, first, development on and net capitalizable costs; cash consider direct economic operating which any all noncompensation costs. includes expense second costs nondiscretionary on stage The brings software were that to cash noncontrollable of fourth, including other and development expenses our or free including
continue expenses these Overall, as in forward. We and XXXX XXXX our our our costs be will headwinds, inflationary noncompensation on we expect we expense versus scale, a nondiscretionary XXXX. despite focus lower level this for to modestly will reasonably XXXX similar in going efforts anticipate area given
digits. expectation CapEx, which was our approximately million, variance The XXXX $X than of our components approximately million. rather overall reflecting non-compensation $XX decrease we all of total in XXXX our any we manageable of manageable remainder the costs, total timing X to costs capital expenses, for aggregate costs the our When our expenditures, QX related, spend from the expect of and compensation single high
or well As stock-based treated a this operating reminder, expenses whether as includes compensation. as costs, both cash capitalized as all
regarding number improvement performance, metric XXXX adjusted we on useful In to continue providing EBITDA, flow. free addition our cash improving the to which $XX My the from be our QX is cash reflecting are committed focus to will in and and for track Free this transparency greater negative $XX an million, to our over million flow XXXX. QX was negative seasonality XXXX.
during with to the Envestnet's Consistent observed million. previous seasonality Turning balance declined in cash sheet. years, QX, $XX our
action turn convertible This this basis over from QX, pay a of as XXXX. and ratio which X.Xx. A due EBITDA defined end of leverage less trailing debt in the represents debt, of the prior of points approval interest QX tranche we of modest was is full on year. approximately quarter-over-quarter XX during decline As our ratio, cash total other adjusted point
to Given capital to we our low carry, prudent intend regarding be patient structure. our cost of and continue
Our fully look further undrawn market capital to we optionality revolver million as patiently conditions provides enhance structure. $XXX opportunities and our evaluate for
strategy. our give we our strongly In believe we and deleveraging pursue flexibility as us position continued total,
continue with to We and modestly infrastructure period are our as deleveraging look necessary ahead our investments. elevated to of and respect of schedule from platform we forward
expect reduce leverage our ratio We further XXXX. during to
our items have assets FedEx, on liabilities method our for FedEx those moved into expect we in separate deconsolidation mentioned we an As balance connection previously, equity investment. In to as line sheet. with QX QX, of and expected beginning account
the would how our and we X% points EPS represent QX EBITDA and million midpoint ahead, and of $X.XX $XX versus representing second be of quarter guided between XXXX of adjusted $X.XX. basis for and between of Looking million range QX margin to midpoint $XXX Adjusted range. consistent to and we've between revenues The $XX million. improvement provided with information previously, approximately XXX be XXXX be growth expect assuming the XXXX, to million, the over $XXX
Envestnet continues we leading executing and what delivering be to clients on our its position value. because are need in shareholder
management that businesses. wealth the scale across leading channels unmatched have their to rely power firms We on
you testament results our differentiated inherent and in for Our leverage and are operating from deepening to quarter products, business. client a first in quarters. see our growth and tremendous forward runway to continued relationships We expansion updating margin look future future here
remiss and share to Thank are calls for for would if and say questions, Envestnet progress your thank forward our I we take These your milestones team. you support, your and vision. didn't we to articulate the us be important to I shareholders you our questions. entire look Before our analysts
