Clear Blue Technologies International (CBLU) Q2 2026 earnings summary

Executive summary

• Bookings increased by 19% in Q2 2026, with recurring revenue up 11% and significant improvement in adjusted EBITDA, resulting in positive net income for the quarter.

• Achieved positive net income in Q2 2026, reversing a net loss from the prior year period.

• Cost reduction initiatives are on track, with further reductions planned through the rest of 2026.

• Continued execution of the Clear Blue 2.0 strategy, focusing on product, partnerships, and operating leverage.

• The Eutelsat partnership is advancing, providing strong visibility into the second half of the year and underpinning revenue guidance.

Financial highlights

• Q2 2026 revenue was $1,000,477 (CAD 1 million), down 12% year-over-year and flat sequentially.

• Gross margin reached 53%, the highest in two years, with gross profit at $526,305.

• Recurring revenue rose to $200,395 (CAD 200,000), up 11% year-over-year.

• Bookings totaled $1,794,802 (CAD 1.8 million), up 19% year-over-year.

• Adjusted EBITDA loss narrowed to $(48,405), a 78–79% year-over-year improvement, with positive net income of $23,374.

• Working capital improved to $1,404,122 (CAD 1.4 million), up 113% from year-end.

Outlook and guidance

• Revenue for H2 2026 expected to reach $3.0 million, with full-year revenue targeted at $5 million, representing 53% growth over fiscal 2025.

• H2 gross margin is conservatively modeled at 40% due to a higher hardware mix.

• Finalization of a three-year supply agreement with Eutelsat is expected in the coming weeks.

• Additional telecom contracts and pilots are in the pipeline, with potential for further large-scale agreements.

• Anticipates receiving $580,000 from a Scientific Research and Experimental Development claim by August 31, 2026.