Zoomd Technologies (ZOMD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $6.9 million, down 62% year-over-year due to changes in two major customers' operating models.

• Net loss for Q1 2026 was $0.5 million, compared to net income of $4.8 million in Q1 2025.

• Adjusted EBITDA was negative $0.3 million, down from $5.2 million in Q1 2025.

• Cost optimization measures, including a 20% workforce reduction, were implemented to align expenses with activity levels.

• Diversification strategy yielded results, with customers onboarded in 2025 contributing about 30% of Q1 2026 revenues.

Financial highlights

• Q1 2026 revenue was $6.9 million, a 62% decrease year-over-year.

• Gross margin was 34% in Q1 2026, down from 44% in Q1 2025.

• Operating expenses were $3 million, a 6% decline year-over-year.

• Adjusted EBITDA was negative $0.3 million in Q1 2026.

• Cash flow from operations was $0.6 million in Q1 2026.

Outlook and guidance

• Management expects new clients added in 2025 to contribute more meaningfully in 2026.

• Recovery with one major client is underway, while visibility with the second remains limited but expected to improve within a couple of quarters.

• World Cup-related partnerships expected to impact revenue between Q3 and Q4 2026.

• Most cost savings from recent measures are expected to be reflected starting Q2 2026.

• The company remains focused on growth initiatives, business development, and technology investments.