The quarter missed the market on scale. Revenue totaled approximately $35.1 million, well below the published consensus of roughly $48.0 million, while diluted EPS of $0.05 was slightly below the approximately $0.06 expectation.
| Metric | Q2 2026 | Year-ago period / expectation |
|---|---|---|
| Total revenue | $35.1M | ~$48.0M consensus |
| Procurement revenue | $18.2M | Down 45% year over year |
| Systems Integration revenue | $13.9M | Up 46% year over year; 39% of total revenue vs 22% |
| Facilities Management revenue | $2.7M | Up 84% year over year |
| Gross profit | $8.0M | Up 11% year over year |
| Net income | $1.4M | $1.5M year ago |
| Diluted EPS | $0.05 | $0.06 year ago; ~$0.06 consensus |
| Adjusted EBITDA | $4.5M | Up 12% year over year |
The revenue mix is materially better, but not enough to offset the top-line hole. Systems Integration and Facilities Management grew rapidly and carry higher margins, helping gross profit rise 11% and adjusted EBITDA rise 12% despite the 45% procurement decline. That is a real business-quality improvement, but the market still received much less total revenue than expected. (Financial Highlights; Revenue by Business Line)
The EPS miss was mild because profitability held up. Net income declined only modestly to $1.4 million, and pre-tax income rose 19%, indicating that the higher-margin mix and expense leverage absorbed much of the lost procurement volume. The comparison is also affected by the full tax provision introduced after the fourth quarter of 2025 removal of the deferred-tax-asset valuation allowance. (Income Statement; Financial Highlights)
Management preserved the forward earnings framework rather than raising it. The company maintained its 2026 adjusted EBITDA outlook at the upper end of the $20 million to $22 million range, while saying the second half should be stronger and that the planned $17 million AI data-center readiness investment should begin converting into higher Systems Integration revenue in Q3 2026. The direction was already broadly known from the prior outlook, so the new information is mainly whether the promised Q3 conversion materializes. (Outlook; Capital Investment)
Net read: a clear earnings miss with a constructive structural transition. The filing supports the long-term shift toward higher-margin AI infrastructure services, but versus the standing expectation, the immediate quarter was weaker than feared on revenue and only roughly in line to slightly below on earnings. The reaffirmed EBITDA outlook prevents this from becoming a full outlook reset, but it does not erase the size of the top-line shortfall.
Read the original 8-K on SEC EDGAR ↗