This article first appeared on GuruFocus .
Release Date: August 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record Q2 2026 revenue of $50.2 million, a 52% year-over-year increase, marking the first quarter above the $50 million threshold.
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Exchange service revenue surged 108% year-over-year to $27.1 million, driven by new customer acquisitions, increased existing client spend, and expanded publisher partnerships.
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Returned to positive net income of $19,000 in Q2 2026, compared to a net loss of $5.8 million in Q2 2025, and achieved positive adjusted EBITDA of $2.0 million.
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Operating expenses decreased year-over-year to $18.7 million from $19.2 million, with operating expenses as a percentage of revenue improving to 37.3% from 58.0%.
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Strategic partnerships with Synth Group and Audience Acuity enhance platform capabilities, offering real-time brand lift measurement and deterministic audience data to improve advertiser ROI.
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Added nine net new clients during the quarter, with both managed service and self-serve DSP revenue growing year-over-year by 13% and 18%, respectively.
Negative Points
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Gross margin declined to 35.1% in Q2 2026 from 42.9% in Q2 2025, due to a higher proportion of lower-margin exchange service revenue.
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Cash balance decreased to $33.7 million as of June 30, 2026, from $43.8 million at December 31, 2025, due to product investments, working capital timing, and share repurchases.
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The company did not purchase any shares under its NCIB in Q2 2026 to conserve cash for potential acquisitions, indicating a cautious approach to capital returns.
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DSP revenue growth of 15% is below historical levels of 20-30%, with management acknowledging the need to improve sales execution and move upstream to larger clients.
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The company is still evaluating M&A opportunities with no imminent deals, and valuations remain 'all over the place,' creating uncertainty in capital allocation.
Q & A Highlights
Q: Can you describe the recent partnerships with Synth Group and Audience Acuity and how they might drive demand? A: Tal Hayek, CEO, explained that the Synth Group partnership integrates real-time brand lift measurement directly into campaigns, giving marketers faster insight into campaign effectiveness. The Audience Acuity partnership brings deterministic audience data into the platform, which delivers better ROI for advertisers compared to probabilistic models. Early testing shows this data drives much better returns, and the company is excited about the special relationship moving forward.
Q: What are the key demand drivers behind the extremely strong 108% year-over-year growth in the exchange business? A: Tal Hayek, CEO, attributed the growth to the exchange team's success in onboarding more and higher-quality publishers and supply-demand partners. Better quality publishers lead to better inventory, which improves results for advertisers and increases revenue. On the DSP side, he noted a 15% growth, a recovery from a tough prior year, driven by product improvements, partnerships, and a more mature sales process moving upstream to larger clients.
Q: Are there any specific verticals that have come back online in size? A: Tal Hayek, CEO, stated that there is no specific vertical to call out. The growth is across the board, driven by medium-sized customers spending more consistently, rather than a few large customers suddenly increasing spend.
Q: How do you think about the right mix of revenue between the DSP and exchange product lines, and how do you allocate resources? A: Tal Hayek, CEO, explained that it is risky for a DSP to own an exchange due to potential conflicts of interest. The company separates them by using an algorithm on the DSP side that prioritizes ROI for customers when deciding where to buy ads. The majority of resources and focus remain on the DSP side, while the exchange runs with fewer people and relies more on systems and algorithms. The exchange's 108% growth was not predicted, and the company is learning about that business while the DSP side remains more predictable for resource allocation.
Q: Is the current margin profile a fair baseline, and what are your expectations for OpEx and gross margins going forward? A: Tal Hayek, CEO, confirmed that OpEx cuts made in early Q2 are yielding savings, with increases only in variable costs like sales commissions. He expects gross margins to improve by a few points (2-3 points) throughout the year as the company removes or renegotiates low-margin accounts on the DSP side.
Q: Can you provide an update on M&A activity and the go-to-market sales strategy? A: Tal Hayek, CEO, stated that a hired banker has created a list and initiated conversations, with no imminent deals. They are looking at companies with revenue ranging from $10 million to nearly $300 million, though the larger ones are too big for now. Valuations are lower and favorable. On sales, he believes the team size is right, and the focus is on making each salesperson more efficient by targeting larger accounts, allowing revenue growth without major new investments.
Q: What were the key financial drivers behind the record revenue and return to positive net income in Q2 2026? A: Michael Amaro, CFO, reported record revenue of $50.2 million, a 52% increase year-over-year, driven by strong performance across all service lines, particularly the exchange business which grew 108% to $27.1 million. Gross profit increased 24% to $17.6 million, though gross margin decreased to 35.1% due to a shift toward lower-margin exchange revenue. Operating expenses decreased to $18.7 million from $19.2 million, leading to positive adjusted EBITDA of $2.0 million and net income of $19,000, a significant improvement from a $5.8 million loss in Q2 2025.
Q: Can you elaborate on the company's cash position and capital allocation strategy, including the NCIB? A: Michael Amaro, CFO, noted the company ended the quarter with $33.7 million in cash and no debt. Cash decreased from $43.8 million at the end of 2025 due to platform investments, working capital timing, and share repurchases. The company paused NCIB purchases in Q2 to conserve cash for potential acquisitions. They are seeing attractive, more rational valuations and will continue to evaluate opportunities with a disciplined approach to enhance shareholder value.
Q: What is the outlook for Q3 2026? A: Tal Hayek, CEO, stated that the company sees continued momentum into Q3 with double-digit year-over-year growth. The focus remains on building sustainable, profitable growth, and the company is investing in AI-powered technologies for the next generation of the platform, with more details to be shared closer to launch.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
