Adcore (ADCO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 10% year-over-year to CAD $7.2 million, with gross profit up 19% to CAD $3.7 million and gross margin expanding to 51% from 47% a year ago.

• North America revenue rebounded 27% year-over-year, EMEA grew 12%, and APAC showed strong performance, with APAC H1 revenue up 23%.

• Five autonomous AI agents launched, including AI Studio and Proposaly, with a sixth agent for media buying scheduled for Q3.

• AI Studio platform enhancements enable rapid, cost-effective creative production, driving early revenue and strong client feedback.

• The company targets a leaner cost structure heading into Q4 2026, aiming for a 15%-20% reduction in SG&A/operating expenses.

Financial highlights

• Q2 2026 revenue: CAD $7.2 million, up from CAD $6.5 million in Q2 2025; gross profit: CAD $3.7 million, up from CAD $3.1 million.

• Gross margin improved to 51% from 47% year-over-year, driven by a favorable client mix.

• Net loss for Q2 2026 was CAD $815 thousand, compared to CAD $425 thousand in Q2 2025.

• Adjusted EBITDA for Q2 2026 was CAD $42,000, down from CAD $156,000 in Q2 2025, mainly due to higher operating loss.

• Cash and cash equivalents stood at CAD $4 million as of June 30, 2026, down from CAD $10.3 million at year-end 2025.

Outlook and guidance

• Management expects continued gross margin strength, with some seasonal Q4 cost pressures.

• North America is expected to maintain positive momentum into H2 2026.

• The company plans to enter Q4 2026 as a leaner organization, targeting a 15%-20% reduction in SG&A/operating expenses.

• Focus remains on balancing innovation investment with profitability, aiming to keep adjusted EBITDA positive.

• Management highlighted significant share price upside potential compared to industry peers, with an 860% upside noted.