Circle8 Group (CIRC) investor relations material

Executive summary

• Completed acquisition of Circle8 Group B.V. in January 2026, expanding into European IT and technology staffing and diversifying revenue streams.

• Service revenue for Q2 2026 rose 210.8% year-over-year to $319.8M, driven by the Circle8 acquisition and organic growth.

• Net loss for Q2 2026 was $86.4M, compared to $10.7M in Q2 2025, reflecting higher operating expenses, debt extinguishment, and settlement losses.

• Significant non-cash loss of $60.4M recognized due to a settlement agreement with SPP, restructuring legacy financing and eliminating a $35M convertible note.

Financial highlights

• Q2 2026 service revenue: $319.8M (+210.8% YoY); six months: $569.7M (+176.9% YoY).

• Gross profit for Q2 2026: $23.8M (7.4% margin), up from $11.4M (11.1% margin) in Q2 2025; margin decline due to lower-margin international operations.

• Operating expenses for Q2 2026: $39.2M, up 95% YoY, including $15.9M higher SG&A and $3.2M higher depreciation/amortization.

• Net loss per share for Q2 2026: $(0.98) vs. $(0.20) in Q2 2025; six months: $(1.45) vs. $(0.40).

• Cash and cash equivalents at June 30, 2026: $19.3M; net cash from financing activities: $33.2M for six months.

Outlook and guidance

• Management expects enhanced scale, liquidity, and access to capital from the Circle8 acquisition, with anticipated operating efficiencies and improved profitability.

• Substantial doubt remains about the company's ability to continue as a going concern for at least one year due to ongoing net losses and negative working capital.

• Actively pursuing additional equity and debt financing and strategic partnerships to address liquidity needs.