Elauwit Connection (ELWT) Q2 2026 earnings summary

Executive summary

• Achieved record growth in contracted units, with 16% sequential and 33% annual increases, reaching nearly 43,000 units under contract as of June 30, 2026, and over 10,000 new units signed year-to-date, including major wins with large REIT owners.

• Activated units grew 94% year-over-year to 27,134, and billed units increased 163% year-over-year to 22,967, supporting growth in long-term recurring services revenue.

• Backlog reached $38.9 million, up from $36 million a year earlier, with a robust sales pipeline and verbal commitments on additional properties.

• Revenue declined 46% year-over-year for Q2 2026, mainly due to lower project-based activity, while recurring service revenue grew significantly, reflecting a shift toward long-term service contracts.

• Growth strategy focuses on high-density markets and large property owners, leveraging a land-and-expand approach to drive incremental growth.

Financial highlights

• Q2 2026 revenue was $2.9 million, down 46% year-over-year; six-month revenue ended June 30, 2026, was $7.3 million, down 32.4% year-over-year.

• Recurring service revenue increased to $1.2 million for the quarter, up from $0.7 million year-over-year.

• Gross profit for Q2 2026 was $0.4 million (15.5% margin), compared to $0.8 million (15.1%) in Q2 2025.

• Operating expenses rose to $3.5 million from $1.5 million, reflecting increased scale, public company costs, and investments in sales and marketing.

• Net loss for Q2 2026 was $3.1 million, compared to $0.9 million in Q2 2025; adjusted EBITDA for Q2 2026 was $(3.0) million, compared to $(0.7) million in Q2 2025.

Outlook and guidance

• Construction activity and revenue expected to increase in H2 2026 as new contracts are executed, with recurring services revenue growing from increased billed units.

• Anticipates exceeding 50,000 contracted units by year-end, a 46% annualized increase.

• Operating results and net loss expected to improve in H2 2026 and into 2027 as cost efficiencies materialize and margin improvements are realized.

• Backlog of $38.9 million provides visibility into future revenue, with $10.5 million expected to be recognized in 2026.

• Liquidity is considered sufficient for at least the next twelve months, supported by available financing and cost management flexibility.