CDW Holding (BXE) H1 2026 earnings summary

Executive summary

• 1H2026 revenue fell 34.8% YoY to US$28.1m amid softer demand in BLU and OEM businesses and an unfavorable OEM product mix.

• Net loss widened to US$3.4m from US$1.0m; near-term priorities are liquidity preservation, cost control, efficiency and customer diversification.

Financial highlights

• Gross profit declined to US$4.2m from US$6.9m; gross margin fell to 15.0% from 16.0%, reflecting sales mix and pricing and cost pressures.

• Operating loss was US$3.3m versus US$0.3m; loss before tax was US$3.4m versus US$0.5m, and net loss was US$3.4m versus US$1.0m.

• Administrative expenses rose 4.5% to US$7.3m, including US$0.6m of FX losses; distribution costs declined 27.3% to US$0.7m.

• Basic and diluted loss per share was US$1.50 cents, compared with US$0.41 cents in 1H2025.

Outlook and guidance

• Cautious on the remainder of FY2026 given continued BLU and OA weakness, adverse OEM mix and the early-stage nature of newer businesses.

• OA revenue is expected to decline further and become an insignificant portion of revenue as low-margin production is phased down.

• OEM product mix is expected to remain weighted toward lower-priced payment devices in the near term; prospective new-customer discussions remain preliminary, with no certainty of material orders.

• Priorities include preserving liquidity, controlling costs, improving manufacturing efficiency, diversifying customers and developing new revenue opportunities.