Fadel Partners (FADL) Q2 2026 TU earnings summary

Executive summary

• Revenue increased 4% year-over-year to $4.8 million for H1 2026, with strong growth in license and support revenue and improved gross margin.

• Annual Recurring Revenue (ARR) rose 11% to $9.4 million, reflecting new customer wins and upsell activity.

• Adjusted EBITDA loss narrowed by 53% to $1.1 million, driven by cost reductions and operational efficiencies.

• Cash position improved 18% to $1.9 million, with access to an undrawn $1.0 million credit facility.

Financial highlights

• License and support revenue grew 25% to $3.1 million, while services revenue declined 19% to $1.8 million.

• Gross margin improved to 61% from 49% year-over-year.

• Total operating expenses decreased 15% to $4.1 million.

• Cash and cash equivalents at period end were $1.9 million, up from $1.6 million a year earlier.

Outlook and guidance

• Management expects full-year 2026 revenue, adjusted EBITDA loss, and cash to be in line with market expectations.