This article first appeared on GuruFocus .
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Revenue:$7.2 million in Q2 2026, a 10% increase year-over-year from $6.5 million.
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Gross Profit:$3.7 million in Q2 2026, up 19% from $3.1 million in the prior year.
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Gross Margin:Improved to 51% in Q2 2026, up from 47% in the same period last year.
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R&D Expenses:$0.6 million in Q2 2026, slightly up from $0.5 million due to increased use of AI-related tools.
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SG&A Expenses:$3.7 million in Q2 2026, a 22% increase from $3 million, driven by payroll-related expenses and foreign exchange fluctuations.
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Operating Loss:$0.6 million in Q2 2026, compared to $0.5 million in the prior year.
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Net Loss:$0.8 million in Q2 2026, compared to $0.4 million in the same period last year.
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Adjusted EBITDA:$41,000 in Q2 2026, down from $155,000 in Q2 2025.
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Cash Position:$4.0 million as of June 30, 2026, compared to $10.3 million at December 31, 2025.
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Working Capital:$3.1 million as of June 30, 2026, down from $5.1 million at year-end 2025.
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Geographic Revenue (Q2 2026):EMEA grew 12% year-over-year; North America rebounded with a 27% increase to $1.5 million.
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H1 2026 Revenue:$15.7 million, a 16% year-over-year increase.
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H1 2026 Gross Profit:$6.8 million, up 10% year-over-year.
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue grew 10% year-over-year to $7.2 million in Q2 2026, with gross profit up 19% to $3.7 million.
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Gross margin expanded to 51% from 47% year-over-year, driven by a favorable client mix.
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North America rebounded strongly with 27% year-over-year growth, and all regions (APAC, EMEA, North America) grew in H1 2026.
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The company overdelivered on its AI agent commitment, shipping 5 agents (inbound, outreach, deal, customer, and AI Studio) versus the planned 3 by Q2 2026.
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AI Studio is already generating early revenues with positive client feedback, and the new MCP connector allows integration with platforms like ChatGPT and Claude.
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The company remains debt-free with a solid cash position of $4 million as of June 30, 2026.
Negative Points
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Net loss widened to $0.8 million in Q2 2026 from $0.4 million in the prior year, and operating loss increased to $0.6 million.
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Adjusted EBITDA declined to $41,000 in Q2 2026 from $155,000 in Q2 2025.
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Cash and cash equivalents dropped significantly to $4 million from $10.3 million at the end of 2025, and working capital decreased to $3.1 million from $5.1 million.
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SG&A expenses rose 22% year-over-year, driven by payroll and foreign exchange headwinds.
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The company plans a 15-20% OpEx reduction, including employee cuts, which may impact morale and operational capacity.
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The cash decline is partly seasonal, but the company expects recovery only in Q4, leaving uncertainty for H2 2026.
Q & A Highlights
Q: Gross margin expanded nicely to 51% from 47% year-over-year, with gross profit growing almost twice as fast as revenue. What's driving that mix shift and how much more room is there to keep expanding the margin? A: Omri Brill (CEO) stated that the company is focusing on more profitable revenue streams with better margins, and this strategy is proving itself. He expects this positive trend to continue, with the caveat that Q4 traditionally has lower gross margins due to holiday-related spending spikes.
Q: You committed to 3 autonomous agents by Q2 and actually delivered 5. What kind of early customer feedback or usage signals are you seeing from Proposaly agents and the creative agents on AI Studio? A: Omri Brill (CEO) noted that Proposaly has 4 live agents (inbound, outreach, deal, and customer) with good market fit from early beta clients. He highlighted that Adcore's solution is unique because its agents are integrated with workspaces and can generate revenue from A to Z. Kobi (AI Studio Lead) added that partners are saving significant time and resources, with one partner noting they no longer need to rely on agencies or designers, paying less than a day's designer work for a full stack of creatives.
Q: It's encouraging to see North America bounce back with 27% growth after a softer 2025. What's behind the turnaround, and do you feel good about that momentum carrying into the second half? A: Omri Brill (CEO) attributed most of the growth to increased activity from existing clients, which is a positive sign. He noted that H2 comparables should work in their favor due to the soft 2025, and they expect to preserve this momentum into the second half of the year.
Q: Omri mentioned plans for a 15% to 20% OpEx reduction. Could you share more on the expected timeline, any onetime implementation costs, and which areas of spend will primarily be targeted? A: Omri Brill (CEO) stated that employee costs are the biggest line item and will be the first area to tackle, including planned headcount reductions. They also plan to address other expenses like AI tokens. The majority of savings efforts will occur during Q3 2026, with the goal of entering Q4 as a leaner company with SG&A costs down by 15-20%.
Q: You mentioned keeping adjusted EBITDA positive while investing in an ambitious agent build-out. How are you thinking about balancing funding innovation and protecting profitability in H2 2026? A: Omri Brill (CEO) acknowledged the "arms race" in AI development but emphasized the need to balance speed with financial discipline. He noted the company has proven its ability to execute fast (delivering 5 agents vs. 3 committed) while maintaining a solid financial position, and he is confident in continuing this balance.
Q: The first half revenue grew 16% and gross profit grew 10%. How much of that momentum do you expect to carry through the second half, which you flagged as seasonally your strongest? A: Omri Brill (CEO) confirmed a very strong start to 2026 with all metrics moving in the right direction. The plan is to enter Q4, the most important quarter, as a slimmer company while maintaining the same momentum. If they can continue growing top-line and mid-line revenue while reducing SG&A costs, it will put the company in a better position moving forward.
Q: You mentioned the cash flow working capital decline is largely seasonal and should reverse in H2. Could you give more color on the expected timeline for that recovery? A: Amit Konforty (CFO) explained that historically, Q4 is the strongest quarter of the year for the company, so they expect a recovery. The H1 decrease is partially due to payments for Q4 of last year, which is a usual pattern for the company.
Q: Can you elaborate on the new AI Studio features, particularly the ability to generate multiple creative formats from a single static banner? A: Kobi (AI Studio Lead) demonstrated that from a single static banner, users can generate motion banners, UGC content like TikTok videos, and full CTV commercials with a single click. The platform also now includes an embedded AI agent and an MCP connector that allows users to generate creatives through external AI platforms like ChatGPT or Claude. The platform already has active paying clients, and feedback highlights significant time and resource savings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
