Zoomd Technologies (ZOMD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $7.7 million, up 11% sequentially from Q1 2026, with net income improving by $1.7 million to $1.2 million and a positive turn in operating income and EBITDA.

• Maintained strong liquidity with a cash balance of $22.6 million and no bank debt, supporting ongoing investments in growth and technology.

• Operating expenses decreased to $2.8 million, reflecting cost optimization, a 20% workforce reduction, and efficiency initiatives leveraging AI tools.

• Continued diversification of customer base, with new clients contributing over 20% of quarterly revenues.

• Management emphasized a structurally leaner, scalable cost base and a focus on deploying capital for growth opportunities.

Financial highlights

• Q2 2026 revenue was $7.7 million, a 61% decrease year-over-year from Q2 2025, primarily due to changes in two major customers' operating models.

• Gross margin improved to 43% in Q2 2026 from 34% in Q1 2026 and held steady year-over-year.

• Operating expenses declined 7% year-over-year to $2.8 million, reflecting ongoing cost optimization.

• EBITDA for Q2 2026 was $0.7 million, up $1 million sequentially from Q1 2026 but down from $5.5 million in Q2 2025.

• Net income for Q2 2026 was $1.2 million, compared to $6.1 million in Q2 2025.

Outlook and guidance

• Management expects newly onboarded customers to contribute more meaningfully to revenues during 2026 as their ramp-up cycles progress.

• Optimism remains for continued growth with one major customer expanding into new geographies, though recovery with another remains uncertain.

• Management highlights ongoing growth in the mobile app economy and global ad spend, with continued investment in growth initiatives and technology.

• Revenue trajectory is improving, with a more efficient cost structure and foundation for renewed growth in coming quarters.

• Focus remains on organic and inorganic growth, leveraging strong cash reserves and AI-driven operational efficiencies.