REKR Q2 2026 - Preliminary Earnings Alert
Verdict
- Revenue: $12.66m against consensus of $12.61m, a 0.4% beat, and up 2.5% on $12.36m a year ago.
- EPS: $(0.00) against consensus of $(0.03), a $0.03 beat on a net loss of $0.6m versus $(8.7)m.
- No numeric guidance given. The company reaffirmed only its qualitative target of adjusted EBITDA profitability during the second half of 2026.
- The one thing that matters: the reported operating profit of $0.2m exists only because of a $2.8m one-time gain on lease remeasurement. Strip it and operations lost $2.5m. The genuine improvement is cost, not demand: combined G&A, sales and marketing, and R&D fell $4.0m year on year on a 20% headcount cut, while revenue grew 2%. This is a shrinking cost base meeting a flat top line.
- Tone flag: the release leads with "Revenue Grew 23% Sequentially," measured off a $10.3m first quarter. Year on year the same line grew 2%.
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue (consolidated) | $12.662m | $12.612m | Beat +$0.050m | +0.4% |
| EPS (GAAP diluted) | $(0.00) | $(0.03) | Beat +$0.03 | +100.0% |
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Revenue | $12.66m | $12.36m | +2.5% |
| Recurring revenue | $6.7m | — | +14% |
| Adjusted gross margin | 56.2% | 49.5% | +670bps |
| Adjusted EBITDA | $(1.20)m | $(5.79)m | +79% |
| Net loss | $(0.55)m | $(8.66)m | +94% |
| Cash | $10.0m | — | $2.4m operating burn in the quarter |
Recurring revenue reached 53% of the total, and the company states the quarter included no large non-recurring software transactions.
Guidance changes
No financial guidance change disclosed.
Quality of earnings
- The swing to operating profit is a one-off. Income from operations of $0.222m includes a $2.753m net gain on lease remeasurement; excluding it, the quarter produced a $2.53m operating loss. Adjusted EBITDA, which backs the gain out, is a loss of $1.20m.
- The improvement is cost, not revenue. Total operating expenses fell to $6.89m from $13.85m, with G&A, selling and marketing, and R&D down $4.0m combined; revenue contributed only $0.30m of growth. Share-based compensation also fell, to $0.21m from $0.72m.
- The loss per share flatters the dilution. Net loss narrowed 94% to $0.55m while weighted average shares rose 17% to 137.6m, so the move to $(0.00) from $(0.07) understates how much of the per-share improvement came from the earnings line rather than the count.
Gotchas & watch items
- $14.9m of Series A Prime Revenue Sharing Notes sit in current liabilities against $10.0m of cash, and the company says only that it is "evaluating options to refinance" them. Current liabilities of $29.7m exceed current assets of $23.1m.
- Cash fell to $9.77m from $16.57m at December on $2.4m of quarterly operating burn; at that rate the runway is short of the second-half profitability target without the refinancing.
- The adjusted EBITDA profitability target requires closing a $1.2m quarterly gap. Management cites further identified efficiencies worth "several million dollars" annualised but does not quantify or date them.
- Gross margin gains rest on mix toward software and recurring revenue rather than pricing; a return of lower-margin service work would reverse the 670bp expansion.
Event: https://web.quartr.com/companies/11222/events/666026/overview Retrieved: 2026-08-13T12:12:00Z Comparison mode: maximal · Scorecard contract: v1 The release landed at 12:01Z, well ahead of the scheduled after-market time; the 20:30Z call had not been held when this was written.