Rank One Computing (ROC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 2% year-over-year to $5.1 million, nearly doubling sequentially, driven by strong R&D contract growth and commercial adoption across the Vision AI platform, despite a 26% decline in product revenue due to the completion of a major ROC Watch deployment recognized in the prior year.

• Gross margin improved to 90% from 80% year-over-year, reflecting a higher mix of software-driven and government contract license revenue.

• Net loss for Q2 2026 was $0.8 million (EPS $(0.04)), compared to net income of $0.6 million (EPS $0.04) in Q2 2025, as operating expenses rose due to investments in personnel, R&D, and public company costs.

• ROC SDK, ROC ABIS, ROC Enroll, and ROC Evidence all posted strong year-over-year revenue growth, with ROC Evidence generating its first commercial revenue ahead of schedule.

• Strategic acquisition of Zuccaro Technical Consulting (ZTC) announced to enhance digital forensics and ROC Evidence capabilities, with integration progressing and closing expected by end of Q3 2026.

Financial highlights

• Q2 2026 revenue: $5.1 million (+2% YoY, +100% sequentially); six months: $7.6 million (-6% YoY).

• Gross profit: $4.6 million (+14% YoY); gross margin: 90% (up from 80% prior year).

• Operating expenses: $5.3 million (+69% YoY), driven by higher personnel and R&D costs; net loss: $0.8 million; net loss per share: $(0.04).

• Cash at June 30, 2026: $11.9 million (up from $0.3 million at Dec 31, 2025), with $14.8 million in working capital and no debt.

• Product revenue: $2.1 million (-26% YoY); R&D contract revenue: $3.0 million (+41% YoY).

Outlook and guidance

• Management expects continued improvement in government contracting activity, with significant budgets to be obligated by September 30, potentially benefiting H2 results.

• Focus remains on converting pilots and early deployments into large, multi-year recurring contracts across product lines.

• Gross margin expected to fluctuate based on contract mix; no formal quantitative guidance provided.

• Continued investment in product development and sales is expected to drive further operating losses and cash usage.

• The pending ZTC acquisition is expected to increase operating expenses post-closing.