EMERGE Commerce (ECOM) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked the ninth consecutive quarter of year-over-year revenue growth, with revenue reaching $9.11M, the highest since early 2023, and strong performance across revenue, gross margin, and adjusted EBITDA, alongside positive cash flow generation.

• All three business verticals—Grocery, Golf, and B2B—delivered positive adjusted EBITDA, with Viral Loops contributing to improved gross margins in its first full quarter post-acquisition.

• Management remains focused on strengthening the balance sheet, reducing cost of capital, and pursuing both organic growth and accretive acquisitions, including the integration of Viral Loops and ongoing success with Tee 2 Green.

• Net income from continuing operations was $200K, consistent with the prior year.

• Cash position increased to $4.8M at June 30, 2026, up $1.3M from a year earlier.

Financial highlights

• Q2 2026 revenue grew 7.4% year-over-year to $9.11M, with gross profit rising 14.8% to $3.55M and gross margin improving to 39% from 36.5%.

• Adjusted EBITDA reached $1.03M, up 7.3% year-over-year, marking the seventh consecutive quarter of positive adjusted EBITDA.

• Gross merchandise sales (GMS) grew 4% to $11.8M compared to Q1 2025.

• Trailing twelve months (TTM) revenue exceeded $29M, with TTM adjusted EBITDA over $1.6M.

• All-in cash flow was positive for both Q2 and year-to-date.

Outlook and guidance

• Management expects continued revenue growth, improved gross margins, and positive adjusted EBITDA in Q3 2026.

• Year-over-year gross margin gains are anticipated to persist, supported by Viral Loops' higher margins and the end of adverse inventory accounting impacts at Tee 2 Green.

• Q3 is expected to be seasonally strong for the golf business, while truLOCAL may see slower activity during the summer.

• Focus on integrating Viral Loops, implementing AI initiatives, and completing accretive acquisitions.

• Targeted investments planned to support both organic and inorganic growth.