This article first appeared on GuruFocus .
Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Excluding reduced DSP spending, total revenue increased approximately 5% year-to-date, indicating underlying growth in the core business.
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Successfully launched AI search and geo offerings, which are seeing strong demand from both existing and prospective clients.
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Client retention rate is strong at approximately 80% among clients representing about 80% of revenue for the first half of 2026.
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Operating expenses decreased 7% year-over-year in Q2 2026, reflecting improved cost management.
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Net loss improved to $3.6 million in Q2 2026 from $4.2 million in Q2 2025, showing progress in reducing losses.
Negative Points
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Total revenue declined to $7.8 million in Q2 2026 from $10.1 million in Q2 2025, driven by a $2.5 million decrease in DSP customer spending.
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Adjusted EBITDA loss widened to $2.3 million in Q2 2026 from $1.5 million in Q2 2025.
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Cash and cash equivalents fell to $500,000 at June 30, 2026, from $700,000 at the end of 2025, indicating tight liquidity.
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The company was not in compliance with certain financial covenants under its credit facility as of the end of Q2 2026, and a waiver request is still pending.
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Operating loss increased to $2.9 million in Q2 2026 from $2.4 million in Q2 2025, reflecting ongoing operational challenges.
Q & A Highlights
Q: What were the key drivers behind the revenue decline in the second quarter of 2026, and how is the company's strategic shift impacting growth? A: Mark Walker, CEO, explained that the total revenue decline was primarily due to decreased activity from demand-side platform (DSP) customers, which was an expected outcome of the company's strategic shift announced in Q1 2026. Excluding the impact of reduced DSP spending, total revenue increased approximately 5% year-to-date compared to the first half of 2025. The company is focusing on diversifying its pipeline, broadening customer relationships, and enhancing product capabilities to drive more consistent, scalable, long-term growth.
Q: Can you provide more details on the new AI search and geo offerings and their impact on the business? A: Mark Walker, CEO, stated that the company successfully unveiled AI search and geo offerings in the past quarter and is seeing strong demand from both current and prospective clients. These offerings, along with AI support and web infrastructure technology services, expand the company's addressable market. They unlock new technology budgets and provide clients with service performance multipliers that improve conversion performance and lower customer acquisition costs, positioning the company as a comprehensive digital growth partner.
Q: What were the specific financial results for the second quarter of 2026? A: Diana Diaz, CFO, reported consolidated revenue of $7.8 million in Q2 2026, down from $10.1 million in Q2 2025, due to a $2.5 million decrease in DSP customer spending. Gross profit was $2.7 million (34% of revenue) compared to $3.6 million (35% of revenue) in the prior year. Operating expenses decreased 7% to $5.6 million, and the operating loss was $2.9 million. Net loss improved to $3.6 million from $4.2 million, while adjusted EBITDA loss was $2.3 million compared to $1.5 million in Q2 2025.
Q: How is the company's client retention rate performing, and what does it indicate about customer relationships? A: Mark Walker, CEO, highlighted that the company's client retention rate is approximately 80% among clients that represented approximately 80% of revenue for the six months ended June 30, 2026. This strong retention rate demonstrates the solid relationships built with clients and the value proposition of the company's technology and media-agnostic approach, which helps brands achieve enhanced market reach through strategic digital advertising.
Q: What is the company's current cash position, and are there any concerns regarding its credit facility? A: Diana Diaz, CFO, stated that the company ended the quarter with cash and cash equivalents of $500,000, down from $700,000 at the end of December 2025. Total cash plus accounts receivable was $3.2 million compared to $3.9 million at the end of 2025. The company was not in compliance with certain financial covenants under its current credit facility as of the end of the quarter. They are actively engaged with the lender and have requested a waiver, with discussions described as constructive and ongoing.
Q: How is the company managing its operating expenses and overall financial discipline during this transition? A: Diana Diaz, CFO, noted that operating expenses decreased 7% in Q2 2026 to $5.6 million compared to $6 million in Q2 2025. The company's focus remains on driving operational efficiencies and managing the business with financial discipline while strategically investing in areas that capitalize on opportunities and drive sustainable long-term growth.
Q: What is the company's outlook for the remainder of 2026, and what are the key priorities? A: Mark Walker, CEO, acknowledged that while demand for new offerings is strong, the company is still in the early stages of its strategic shift. He emphasized that the company is operating from a much stronger foundation and driving measurable results. The flexibility to evaluate strategic partnerships and opportunities that complement the platform's strength is a priority, with the goal of driving shareholder value.
Q: Can you elaborate on the year-to-date revenue performance excluding DSP customers? A: Diana Diaz, CFO, explained that on a year-to-date basis, revenue was $14.5 million compared to $18.3 million in the first half of 2025. Excluding the $4.5 million decrease in sales to DSP customers, revenue grew approximately $700,000, or 5%, year over year. This indicates that the core business, excluding the expected DSP decline, is trending in the right direction.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
