Pexip (PEXIP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $32.2 million, up 18% year-over-year, with ARR at $140.2 million, also up 18% year-over-year, driven by Secure & Custom solutions, especially in Defense and National Security, now 15% of ARR, up from 7% last year.

• EBITDA for Q2 was $7.2 million (22% margin), with 12-month rolling EBITDA at $40 million and a 31% margin, reflecting operational efficiency.

• Free cash flow in Q2 was $8.1 million, with a cash and money market position of $44.8 million and no material interest-bearing debt.

• Key customer wins in sovereign and classified environments, including major contracts with European ministries, police, defense agencies, and financial institutions.

• Expansion in AI capabilities and interoperability solutions, including the launch of Pexip Connect for Microsoft Teams Rooms on Android, further strengthened market position.

Financial highlights

• ARR grew by $5.2 million in Q2, reaching $140.2 million, an 18% year-over-year increase.

• Secure & Custom ARR rose 27% year-over-year to $64.2 million, now 46% of total ARR; Connected Spaces ARR grew 11% to $76.1 million.

• Q2 2026 consolidated revenue was $32.2 million (+18% y-o-y); software revenue up 21%, SaaS revenue up 15%.

• EBITDA for Q2 was $7.2 million (22% margin); 12-month rolling EBITDA margin reached 31%.

• Free cash flow for Q2 was $8.1 million; trailing 12 months free cash flow was $38 million.

Outlook and guidance

• Q3 2026 ARR guidance is $142–145 million.

• Long-term ambition to consistently deliver above Rule of 40 performance (ARR growth + EBITDA margin) and double-digit ARR growth.

• Positive market outlook driven by demand for sovereign control, custom video workflows, and interoperability.