Otovo (OTOVO) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked a strategic transition, with total revenue of $10 million (NOK 94 million), up 8% quarter-on-quarter but down 38% year-over-year, driven by a shift from Newbuilds to Field Services and the integration of EnergyAid.

• Field Services revenue grew approximately 200% sequentially, and adjusted group gross profit increased 28% quarter-on-quarter, with gross margin reaching 34% in June and 46% overall due to improved revenue mix.

• Adjusted OpEx declined 9% quarter-on-quarter, and adjusted EBITDA improved by $1.1 million sequentially and $1.5 million year-on-year, with positive adjusted EBITDA expected in Q3 2026.

• Customer base reached approximately 55,000 as of July 31, up over 80% from Q1 and over 200% from end of 2025, with a target of 90,000 by year-end 2026.

• Strategic acquisitions (EnergyAid, Onvis, SST) expanded the service footprint in the US and Europe, accelerating the transition to a service-led model.

Financial highlights

• Q2 revenue was $10 million (NOK 94.4 million), up 8% from Q1 but down from NOK 151.6 million year-over-year; Field Services contributed $3.3 million (+200%), and recurring services $600,000 (+20%).

• Adjusted gross profit rose 28% quarter-on-quarter to $2.3 million, with gross margin improving from -12% in Q1 to 18% in Q2, 34% in June, and 46% overall.

• Adjusted OpEx was $6.8 million, down 9% quarter-on-quarter; adjusted EBITDA was -$4.5 million, a $1.1 million sequential and $1.5 million year-on-year improvement.

• Cash at quarter-end was $3.9 million (NOK 37 million), down from $15.6 million in Q1, with July equity raise adding $7 million (NOK 67 million).

• Total equity rose 11% quarter-on-quarter to $36.4 million; total assets were $56.9 million, liabilities $20.5 million.

Outlook and guidance

• 2026 revenue guidance raised to $105–$115 million, and adjusted EBITDA to $15–$20 million, both on Q4 annualized run rate.

• Year-end customer target increased to 90,000, with 170,000 by end of 2027 and 275,000 by end of 2028.

• Gross margin expected to improve further in H2 2026 as service mix increases; first profitable month targeted for August or September 2026.

• Pipeline includes five companies in definitive discussions ($118 million revenue, $18 million EBIT potential) and four more on shortlist ($17 million revenue potential).

• Achievement of 2026 targets depends partly on completion of planned acquisitions.