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  "documentTitle": "PowerSchool Holdings, Inc. (PWSC)",
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      "text": "We believe consensus expectations on revenue growth and Adj. EBITDA margin expansion are not realistic. We believe PowerSchool's strong growth has been the result of a glut of emergency K-12 spending brought on by the COVID-19 pandemic. That spending is drying up and district leaders will soon face tough choices on which segments of the budget to prioritize.",
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      "text": "Consensus Adj. EBITDA fails to reflect the impact of ~$40M of annual capitalized software expenses, resulting in a more favorable view of Adj. EBITDA. More on this later.",
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      "text": "The impending ESSER funding cliff is apparently of no consequence to sell-side analysts who largely underwrite management's growth targets. We find it hard to believe that PowerSchool will be able to sustain a double-digit revenue growth rate through 2026 while K-12 districts across the U.S. face tremendous budget challenges as ESSER funds finally roll off.",
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      "text": "Source: Bloomberg",
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      "text": "Consensus Estimates Assume Flawless Execution",
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