This article first appeared on GuruFocus .
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Revenue:$2.3 million in Q2 2026, a decrease of 27% from $3.1 million in Q2 2025.
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Gross Profit:$1.8 million in Q2 2026, down from the prior-year quarter.
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Gross Margin:80.2% in Q2 2026, remaining robust and fairly stable.
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Operating Expenses:$6.2 million in Q2 2026, a 16% improvement over Q2 2025.
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Net Loss:$5 million in Q2 2026, a 37% improvement from a $7 million loss in Q2 2025.
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Adjusted EBITDA:Loss of $1.7 million in Q2 2026, compared to a loss of $0.9 million in Q2 2025.
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Year-to-Date Revenue:$5 million through June 2026, a 24% decrease from $6.5 million in the first half of 2025.
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Year-to-Date Gross Profit:$4 million through June 2026, down 25% from $5.3 million in the first half of 2025.
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Year-to-Date Gross Margin:80.5% for the first six months of 2026, compared to 82.2% in the same period of 2025.
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Year-to-Date Operating Expenses:$14.2 million through June 2026, down from $15.1 million in the first half of 2025.
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Year-to-Date Net Loss:$13.4 million through June 2026, compared to $11.6 million in the first half of 2025.
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Year-to-Date Adjusted EBITDA:Loss of $3.5 million through June 2026, compared to a loss of $1.7 million in the first half of 2025.
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Cash:$600,000 at the end of Q2 2026, up from approximately $300,000 at December 31, 2025.
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Stockholders' Equity:$12.2 million on June 30, 2026, an all-time high, up from $8.1 million on December 31, 2025.
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Net-Dollar Retention Rate:91% in Q2 2026, an all-time high for the core customer segment.
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Customer Base:Over 150,000 total customers who have purchased or subscribed to Parabolic products.
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ConnectAndSell Acquisition:Expected to increase annual revenue by approximately $15 million when fully realized, boosting total annualized revenue to approximately $27 million; adds about 250 enterprise customers and has a gross margin of approximately 86%.
Release Date: August 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Banzai International Inc ( NASDAQ:PARA ) closed the acquisition of ConnectAndSell, which is expected to add approximately $15 million in annual revenue and boost total annualized revenue to about $27 million.
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The company achieved an all-time high stockholders' equity of $12.2 million, reflecting a stronger balance sheet and improved financial position.
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Net-dollar retention for the core customer segment reached an all-time high of 91%, indicating strong customer satisfaction and upsell potential.
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Operating expenses were reduced by $1.7 million compared to Q1 and $1.2 million year-over-year, contributing to a 41% improvement in net loss.
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The company expects significant revenue growth in the second half of 2026, driven by a 10% improvement in legacy products and ConnectAndSell's contribution, with a projected 50% improvement in EBITDA.
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Banzai International Inc ( NASDAQ:PARA ) has a robust pipeline of potential acquisitions and is seeing attractive opportunities, supported by a $1.1 million tranche from its existing facility.
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The company is on track to obtain ISO 27001 certification by the end of Q3 2026, which will also unlock additional operational cost savings.
Negative Points
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Total revenue for Q2 2026 decreased 27% year-over-year to $2.3 million, primarily due to non-recurring revenue from the prior year.
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Adjusted EBITDA loss widened to $1.7 million in Q2 2026 from $0.9 million in Q2 2025, indicating ongoing profitability challenges.
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The company's cash position remains low at $600,000, though improved from $300,000 at the end of 2025.
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Net loss for the first half of 2026 increased 16% year-over-year to $13.4 million, despite cost reductions.
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The ConnectAndSell acquisition closed in July, so its financial benefits are not yet reflected in Q2 results, and integration risks remain.
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The company's reliance on acquisitions for growth may pose execution risks, and management declined to provide details on future acquisition targets.
Q & A Highlights
Q: Any more acquisitions in the pipeline? A: Joe Davy (Chairman & CEO) declined to discuss specific deals but confirmed a robust acquisition process, noting they are seeing "a lot of attractive companies coming through right now." He reiterated the company's policy of not commenting on potential acquisitions until they are ready to close.
Q: Any update on the progress of the strategic alliance with Ingram Micro? A: Joe Davy (Chairman & CEO) expressed excitement about the partnership, which provides access to Ingram Micro's large sales network. He mentioned upcoming milestones and positive feedback from the team, highlighting the potential for this to become a powerful sales channel for Parabolic.
Q: Can you comment on the quality of the sales pipeline? A: Joe Davy (Chairman & CEO) reported a very high-quality sales pipeline, driven by new demand-generation strategies led by Matt McCurdy. He noted that initiatives launched in Q1 have already converted into closed customers, and importantly, this was achieved while reducing marketing expenses. He also sees a significant opportunity to apply these marketing capabilities to the newly acquired ConnectAndSell business.
Q: What is the expected financial impact of the ConnectAndSell acquisition? A: Joe Davy (Chairman & CEO) stated the acquisition is expected to increase annual revenue by approximately $15 million when fully realized, boosting Parabolic's total annualized revenue to roughly $27 million. The business has a high gross margin of ~86%, about 250 enterprise customers, and 10 issued and pending patents. The results will begin to reflect in Q3 and Q4 of 2026.
Q: What is the company's financial outlook for the second half of 2026 and 2027? A: Dean Ditto (CFO) guided for significant revenue growth in H2 2026, driven by a forecasted 10% improvement in legacy products and the addition of ConnectAndSell revenue (expected to contribute $6.5 million this year). They expect a 50% improvement in EBITDA and a 40% decrease in operating losses from H1 to H2. For 2027, they expect 50% to 55% revenue growth, driven by organic growth and the full-year effect of ConnectAndSell.
Q: What were the key drivers of the improved net loss in Q2 2026? A: Dean Ditto (CFO) explained that the net loss improved by 37% year-over-year to $5 million, primarily driven by lower operating expenses. Total operating expenses were reduced by $1.7 million compared to Q1 2026 and $1.2 million compared to Q2 2025, as a result of the cost-management plan announced in May.
Q: How is the company's balance sheet strengthening? A: Dean Ditto (CFO) highlighted that stockholders' equity reached an all-time high of $12.2 million on June 30, 2026, up from $8.1 million at the end of 2025. The company finished the quarter with $600,000 in cash, up from $300,000 at the end of 2025, and has continued to reduce debt.
Q: What is the status of the ISO 27001 certification? A: Joe Davy (Chairman & CEO) stated that the company is working diligently on the certification and expects to obtain ISO 27001 certification by the end of Q3 2026. He noted that this certification will also unlock additional operational cost savings for the company.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
