Rank One Computing (ROC) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $8.0M, up 50% YoY and 57% QoQ; first profitable quarter since IPO, with $0.6M net income and 90% gross margin for a second consecutive quarter.

• Two federal awards expanded ROC ABIS and ROC Evidence: DOJ ROC Evidence has up to $64.3M potential value over eight years; ROC ABIS has up to $51M potential value over five years, including ~$2.5M committed.

• Q3 results reflected stronger software licensing and government R&D activity before material revenue began from the DOJ award.

Financial highlights

• Revenue was $8.0M versus $5.3M in Q3 2025 and $5.1M in Q2 2026; product revenue was $5.7M, up 24% YoY and 71% of total revenue.

• Government R&D contract revenue rose 175% YoY to $2.2M; service contracts contributed $0.2M, primarily following the August 31 ZTC acquisition.

• Operating expenses were $6.6M versus $4.3M YoY; SG&A was $3.9M and R&D expense was $2.7M.

• Net income was $0.6M versus a $0.8M net loss in Q3 2025; basic and diluted EPS were $0.03 versus a $0.05 loss per share.

• Nine-month revenue was $15.6M versus $13.5M; nine-month net loss was $3.2M versus $0.9M, and operating cash use was $9.5M versus $1.2M.

Outlook and guidance

• Meaningful DOJ ROC Evidence revenue is expected from Q4 2026 through Q3 2027 as implementation and delivery milestones are completed; the initial one-year base period is valued at ~$7.4M.

• DOJ base-year revenue mix is 45% software licensing and 55% services; ~83% of software licensing revenue is expected in Q4, with services recognized from Q4 through Q3 2027.

• Blended DOJ base-year gross margin is estimated at 56%; software licensing margin is expected in the high 90s, with consumption upside possible as the program progresses.

• Priorities include expanding ABIS, executing DOJ implementation, and securing a ROC Watch anchor customer targeted for H1 2027; management expressed confidence in a strong 2026 close.