SOBR Safe (SOBR) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2026, declined 72% year-over-year to $29,075, primarily due to lower unit sales and backordered inventory of SOBRcheck and SOBRsure devices.

• The company initiated a major restructuring, reducing its workforce by 70% and announcing the discontinuation of its legacy alcohol monitoring operations effective July 31, 2026.

• A merger agreement was signed with Clean World Ventures, Inc. (CWV), with CWV shareholders expected to own 98% of the combined entity upon closing.

Financial highlights

• Net loss for the quarter was $3.06 million, up 53% from $2.00 million in the prior year quarter.

• Gross margin turned negative due to a $142,222 inventory write-off and lower sales, resulting in a gross loss of $117,324.

• Operating loss increased to $3.07 million, driven by a $1.1 million non-cash asset impairment charge.

• Cash at June 30, 2026, was $429,068, down from $4.76 million at year-end 2025.

• Working capital deficit stood at $411,000 as of June 30, 2026.

Outlook and guidance

• Management does not expect existing cash resources to fund operations for the next twelve months without additional financing or completion of the CWV merger.

• The company is evaluating further financing alternatives but has no committed arrangements in place.

• Discontinuation of legacy operations and cost reductions are expected to lower annual operating expenses by $2.8 million.