NowVertical Group (NOW) Q2 2026 earnings summary

Executive summary

• Interim CEO Andre Garber emphasized accelerating execution, rebuilding the commercial engine, and maintaining financial discipline, with the search for a permanent CEO ongoing.

• Achieved 18% year-over-year revenue growth in Q2 2026, reaching $9.7 million, driven by recovery from prior-year currency devaluation in Argentina and improved performance in Brazil.

• Adjusted EBITDA grew 41% to $1.5 million (15% margin) in Q2 2026, and net income improved by $1.5 million, turning from a $1.3 million loss in H1 2025 to a $0.2 million profit in H1 2026.

• The business model centers on enterprise AI enablement, with 89% of revenue from core data and analytics solutions and services, and strong client retention with 92% of revenue from clients with relationships over one year.

• Administrative expenses increased 24% due to higher compensation, professional fees, and non-recurring severance and legal costs.

Financial highlights

• Q2 2026 revenue was $9.7 million, up from $8.2 million in Q2 2025; H1 2026 revenue reached $19.4 million, up from $18.6 million in H1 2025.

• Gross margin improved to 50% in Q2 2026 from 47% in Q2 2025, with gross profit rising 26% to $4.8 million.

• Adjusted EBITDA for Q2 2026 was $1.5 million (15% margin), up from $1.0 million (13%) in Q2 2025; H1 2026 Adjusted EBITDA was $3.6 million, up from $3.2 million.

• Net income for H1 2026 was $0.2 million, a $1.5 million improvement from a loss in the prior year.

• Cash flow from operations improved to $2.3 million in H1 2026 from $1.0 million in H1 2025.

Outlook and guidance

• Organic growth is the primary focus for 2026 and 2027, with M&A considered opportunistically.

• Management expects continued growth in core data analytics services, stable or improving gross margins, and ongoing partnership growth with Google Cloud.

• Investments in commercial capacity and Google Cloud go-to-market initiatives are expected to drive future growth.

• Management introduced defined client KPIs for ongoing progress tracking.

• Anticipates continued growth in AI services, with Gartner forecasting 34% global spending growth and a market size of $589 billion in 2026.