This article first appeared on GuruFocus .
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Revenue:$9.7 million in Q2 2026, up 18% year-over-year from $8.2 million; first half 2026 revenue was $19.4 million, up 4% year-over-year.
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Gross Margin:50% in Q2 2026, up from 47% in the same period last year.
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Adjusted EBITDA:$1.5 million in Q2 2026, up 41% year-over-year, with an EBITDA margin of 15%; first half 2026 adjusted EBITDA was $3.2 million, down 10% year-over-year.
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Net Income:$0.2 million in the first half of 2026, compared to a loss of $1.3 million in the same period of 2025.
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Cash Flow from Operations:$1 million positive cash flow in the first half of 2026, compared to $4 million cash consumption in the same period last year.
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Core Data Analytics Solutions Revenue:Grew $600,000 or 7% from the prior quarter and 13% from the same quarter in the prior year.
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Google Cloud Platform Revenue:$2.5 million in Q2 2026, up about 10% sequentially and up 77% from the prior year.
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Reselling Revenue:Declined $600,000 quarter-over-quarter but doubled from the same quarter in 2025.
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Client Concentration:85% of Q2 2026 revenue came from top 30 accounts; 92% from clients with more than one year tenure.
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New Client Revenue:$0.7 million from clients with under one year tenure in Q2 2026.
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Working Capital:Positive working capital of $2.3 million.
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Net Debt:1.8 times trailing 12-month adjusted EBITDA.
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Total Debt Facility:Declined to $16.9 million from $17.6 million.
Release Date: August 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue increased 18% year-over-year to $9.7 million in Q2 2026, driven by strong growth in core data analytics solutions.
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Gross margin improved to 50% from 47% in the prior year, reflecting better product mix and delivery efficiency.
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Adjusted EBITDA rose 41% year-over-year to $1.5 million, with a 15% margin, and the company achieved positive net income for two consecutive quarters.
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Cash flow from operations turned positive at $1 million in H1 2026, a $5 million improvement from a $4 million consumption in the prior year, strengthening the balance sheet.
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The company has a durable revenue base with 85% of revenue from top 30 accounts and 92% from clients with over one year tenure, and Google Cloud-related revenue surged 77% year-over-year.
Negative Points
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The company experienced a leadership transition with the CEO and CFO stepping down, creating uncertainty despite the interim CEO's commitment.
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Adjusted EBITDA for H1 2026 declined 10% year-over-year due to growth-related investments in commercial capacity.
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Reselling revenue declined $600,000 quarter-over-quarter, and its lumpy recognition can cause revenue volatility.
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New client revenue (under 1-year tenure) was only $0.7 million in Q2, indicating slow progress in client acquisition despite investments.
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The company faces currency risk in Argentina with no hedging, though the impact has stabilized, and it has not yet expanded Google Cloud go-to-market to all regions.
Q & A Highlights
Q: As a Co-Founder and now Interim CEO, how are you prioritizing your focus? What are your key items? And looking forward, how do you see organic growth looking into 2027? A: Andre Garber (Interim CEO) stated his mandate is to accelerate execution of the strategy, not to keep the seat warm. His priorities are pulling on immediate levers, including finishing the rebuild of the commercial engine, keeping financial discipline non-negotiable, and launching Google Cloud propositions into new markets. CFO Philip Jones added that organic growth is the primary focus for the short term and next year, with any M&A activity being opportunistic. Growth will be driven by adding new customers and expanding existing accounts, as seen in the growth of top 30 accounts year-over-year.
Q: Could you comment on how you see the revenue mix evolving and the sustainability of gross margins relatively consistent with the current quarter? A: CFO Philip Jones explained that while the company wants to grow all revenue streams, the data analytics and solutions services portion is expected to be the primary driver of growth versus reselling. Since services are a higher-margin product compared to reselling software, the company anticipates that margins will at least remain stable, if not improve over time.
Q: How are you dealing with Argentina hyperinflation, and are you hedging the currency? A: CFO Philip Jones stated that the company has not been hedging the currency specifically in Argentina. The company benefits from a natural hedge as its suppliers and revenues are in the region. He noted that the currency has stabilized somewhat this year, and the impacts on Q2 financials were much less than in prior quarters and years.
Q: What is preventing NowVertical from improving its growth rate, and when can we expect to see results on the commercial engine? A: Interim CEO Andre Garber responded that the company is not reporting pipeline metrics for competitive reasons. However, they have introduced a revenue-by-client-tenure table, with the under-one-year revenue line being the key number they are most focused on moving. This will show new client conversion on a trend basis and is the key indicator for the success of the commercial engine investments.
Q: Why is the CEO role interim, and why not have a permanent CEO? A: Interim CEO Andre Garber explained that the Board is conducting a search for a permanent CEO but is not rushing the process. He noted that the strong Q2 results demonstrate there is no need to rush, and giving the Board and the business time to find the right leader is critical.
Q: You mentioned in a previous call that cash taxes in LatAm occur primarily in Q1 and Q2. Is that still accurate? A: CFO Philip Jones confirmed that this is still accurate and that the company is compliant with all of its tax filings, tax payments, and tax obligations.
Q: To benefit NowVertical, if you have to bring anything from your past experience, what would it be and why? A: CFO Philip Jones highlighted his ability to take the finance function from a compliance reporting focus to a forward-looking focus, which he plans to bring to the company. He also cited his extensive experience in multinational environments, which helps in integrating operations and improving process flows across borders, a key initiative he is working on with business unit leaders.
Q: Can you provide more detail on the commercial engine investments in Q2 compared to Q1, and what is the expectation for H2? A: CFO Philip Jones stated that the company spent about $300,000 in Q1, and this was consistent again in Q2. The spending is allocated to marketing tools, travel, improving awareness and outreach, as well as people and tools to create capacity to deliver more and fund growth with existing staff levels. The company expects to continue investing in this growth infrastructure in H2.
Q: What is the likelihood of significant growth in the United States over the coming quarters? A: Interim CEO Andre Garber acknowledged the United States is a mature market and stated that it is an ambition of the company to look at the US market again. He mentioned they are thinking about how to approach US market expansion and look forward to expanding on that in future calls.
Q: Could you speak to your past experiences regarding M&A, efficiency drives, and organizations with double-digit growth? A: CFO Philip Jones detailed his experience in businesses from start-up to turnaround situations, with significant involvement in M&A on both the acquisition and divestiture sides, including successful exits. He has been involved in companies that expanded organically globally, setting up multiple offices worldwide. He also noted experience with businesses that saw magnitude growth of 5 to 6 times revenue within a single year, though he is not predicting that for NowVertical, he is comfortable preparing the team and infrastructure for large levels of growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
