Desert Control (DSRT) H1 2026 earnings summary

Executive summary

• Rapid expansion in California and Arizona with 42 Tier 1 pilots and 66,000 addressable acres, focusing on scalable markets and operational efficiency.

• Strong pilot-to-customer conversion in high-value crops and golf, with commercial milestones at Woodland Hills and Berkeley and expansion into Las Vegas.

• Rights issue completed, raising NOK 70 million and extending financial runway through Q3 2027, with leadership providing guarantees.

• Strategic partnerships and independent scientific validation, with expanded R&D and new hires strengthening leadership and operational capabilities.

• Next-generation production unit launched, enhancing automation, scalability, and digital integration.

Financial highlights

• Revenue guidance for 2026 maintained at over $2 million, representing up to 7x growth over 2025, with revenues expected to be back-end loaded.

• Total revenue and other income for 1H 2026 was NOK 0.7 million, down from NOK 1.7 million in 1H 2025, reflecting a shift to outcome-based contracts.

• Golf course customers provide recurring revenue, with each valued at over $300,000; steady contributions from Woodland Hills and Berkeley.

• NOK 56 million pipeline realized in the past nine months, with commercial pipeline valued at approximately $56 million.

• Cash burn remains steady as investments in team and capacity have been made; cash and cash equivalents at 30 June 2026 were NOK 17.9 million.

Outlook and guidance

• Focused on converting record pilot activity into commercial contracts in agriculture and golf, with significant business expected in Q3 and Q4 2026.

• Marketing efforts ramped up, including social media, consultants, and in-field events; financing options offered to customers post-harvest.

• Middle East outlook tempered by geopolitical concerns, factored into guidance; supporting partners as market conditions allow.

• Visibility expected to improve in the next 1-2 months as pilot conversions progress.

• Ongoing research collaborations to expand understanding and addressable market for LNC.