The quarter came in slightly below the published bar. Revenue was $18.0 million versus published consensus of roughly $18.53 million, while GAAP loss per share was $0.52 versus an expected loss of about $0.27. That makes this a modest top-line miss and a clearer earnings miss, despite sequential improvement. (Financial Highlights; Income Statement)
| Metric | Q2 2026 | Q2 2025 | Market reference |
|---|---|---|---|
| Revenue | $18.0M | $19.2M | ~$18.53M consensus |
| Revenue excluding maritime | $16.6M | $14.3M | — |
| GAAP gross margin | 34% | 50% | — |
| Non-GAAP gross margin | 38% | 52% | — |
| GAAP net loss | $(20.0)M | $119.6M net income | — |
| GAAP loss per share | $(0.52) | $3.80 income per share | ~$0.27 loss consensus |
| Adjusted EBITDA | $(8.6)M | $(10.2)M | — |
| Cash flow used in operations | $(23.4)M | $(34.2)M | — |
The underlying revenue trend is better than the headline suggests. Selling the maritime business explains the reported 6% year-over-year decline; excluding that divested operation, revenue rose 16% year over year and 19% sequentially to $16.6 million. Higher space-services deliveries and RF geolocation purchases drove the improvement. (Financial Highlights; Revenue Reconciliation)
Margin deterioration is the filing’s biggest negative surprise. GAAP gross margin fell to 34% from 50%, and non-GAAP gross margin fell to 38% from 52%, primarily because of the WildFireSat contract, which was cancelled for convenience during the quarter. The revenue recovery therefore did not translate into proportionate profitability, and the cancellation adds uncertainty around the economics of that business. (Financial Highlights; GAAP to Non-GAAP Reconciliations)
Cost control is improving, but the company remains materially cash-burning. Adjusted EBITDA improved 16% year over year and 15% sequentially to a loss of $8.6 million, while operating cash usage improved 32% year over year to $23.4 million. However, free cash flow was still negative $28.8 million in the quarter, and first-half operating cash usage reached $49.6 million. The $91.7 million of cash, cash equivalents and marketable securities and debt-free balance sheet provide liquidity, but continued losses remain central to the story. (Financial Highlights; Cash Flow Reconciliation; Balance Sheet)
Reaffirmed guidance is not an upside signal here. Full-year revenue guidance remains $75 million to $85 million, including $71.6 million to $81.6 million excluding maritime, with adjusted EBITDA guidance of negative $26.0 million to negative $20.7 million. Since the range was already established, reaffirmation removes a downgrade risk but does not raise the market’s expectation. The filing’s net read is therefore a modest earnings miss: improving core demand and lower expenses are outweighed by the revenue shortfall and sharp WildFireSat-related margin compression. (Financial Outlook)
Read the original 8-K on SEC EDGAR ↗