Rank One Computing (ROC) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked the first earnings call as a public company after a successful IPO and NASDAQ listing, raising $21.5M net proceeds.

• Unified Vision AI platform integrates biometrics, video analytics, object detection, and digital evidence for defense, security, and commerce applications.

• Focused on high-margin, recurring revenue from national security, public safety, and digital identity sectors, with a product-led, land-and-expand strategy.

• Leadership team includes experienced professionals from FBI, DoD, CIA, and major biometric providers.

• Strong demand persists across government and commercial markets, with optimism for accelerated federal procurement post-shutdown.

Financial highlights

• Q1 2026 total revenue was $2.5M, down 20% year-over-year from $3.2M, mainly due to lower R&D contract revenue.

• Product revenue was $2.3M, nearly flat year-over-year, with ROC Watch up 77% and ROC ABIS up 255%; R&D contract revenue fell 69% to $0.2M.

• Gross margin remained strong at 79%, consistent with the prior year.

• Operating expenses rose to $5M, driven by higher personnel and public company costs; net loss widened to $3M ($0.18/share) from $0.7M ($0.05/share) year-over-year.

• Cash balance at quarter-end was $16.6M, bolstered by IPO proceeds; no long-term debt.

Outlook and guidance

• Management expects increased federal procurement activity in Q2 and a surge in Q3 as agencies obligate funds before September 30.

• Near-term growth driven by commercial scale-up of ROC Watch and ROC Evidence, and expansion of national security and law enforcement programs.

• Ongoing conversion of pilot programs and FFP contracts into 3-5 year recurring revenue streams.

• Management anticipates continued lumpiness in legacy SDK and R&D contract revenue but is encouraged by product momentum.

• No guidance on future revenue or profitability was provided.