The quarter narrowly cleared the published bar, led by earnings rather than sales. Non-GAAP EPS of $0.17 was about $0.02 above the published consensus of roughly $0.15, while reported revenue of $523 million was only about $2 million above the roughly $521 million expectation. That is a real beat, but a modest one—and adjusted EPS was flat year over year rather than accelerating. (Non-GAAP Diluted EPS reconciliation; Income Statement)
| Metric | Q2 2026 | Q2 2025 | Market expectation / comparison |
|---|---|---|---|
| Revenue | $523M | $660M | ~$521M published consensus; modest beat (Income Statement) |
| Revenue, pro forma for hardware transition | $523M | $520M | +1% underlying comparison after adjusting 2025 hardware sales (Hardware Transition Impact reconciliation) |
| Adjusted EBITDA | $98M | $93M | +5%; margin rose to 18.7% from 14.1% (Adjusted EBITDA reconciliation) |
| Non-GAAP diluted EPS | $0.17 | $0.17 | ~$0.15 published consensus; modest beat (Non-GAAP Diluted EPS reconciliation) |
| GAAP diluted EPS from continuing operations | $(0.03) | $(0.03) | Still unprofitable on a reported basis (Income Statement) |
| Full-year adjusted EBITDA outlook | $432M–$447M | — | Unchanged from prior outlook (2026 Outlook) |
| Full-year non-GAAP EPS outlook | $0.89–$0.92 | — | Unchanged from prior outlook (2026 Outlook) |
The apparent 21% revenue decline is mostly an accounting-model effect, but underlying growth remains thin. The hardware transition changed sales recognition from gross hardware revenue to commissions, making the reported comparison misleading; on the company's pro forma basis, revenue rose just 1%. That validates the transition's margin benefit, but it does not yet show a decisive top-line reacceleration. Retail revenue fell 20% reported, while Restaurants fell 23%. (Hardware Transition Impact reconciliation; Segment revenue)
Margins did the heavy lifting. Adjusted EBITDA rose 5% despite lower reported revenue, and total adjusted EBITDA margin expanded 460 basis points to 18.7%. Retail was the standout: EBITDA increased 20% and margin climbed to 26.6% from 17.8%. Restaurants' EBITDA fell 15%, although its margin still improved to 36.7% from 33.2%. The result supports the cost-and-mix improvement narrative, but it is not broad-based growth across both operating segments. (Segment Adjusted EBITDA)
The beat is tempered by unchanged full-year targets and a continued GAAP loss. Management kept its $432 million–$447 million adjusted EBITDA and $0.89–$0.92 non-GAAP EPS outlook intact, rather than raising it after the quarter. Meanwhile, the $0.17 adjusted EPS required excluding $20 million of transformation and restructuring costs, $11 million of stock compensation, $6 million of acquisition-intangible amortization, and related tax effects; GAAP continuing-operations EPS remained a $0.03 loss. (2026 Outlook; Non-GAAP Diluted EPS reconciliation)
Cash flow improved sharply, though part of the improvement is not recurring operating performance. Six-month operating cash flow swung to a $59 million inflow from a $284 million outflow, but investing cash flow included $67 million of collections on non-operating receivables related to inventory sold in the hardware transition. Long-term debt was essentially unchanged at $1.101 billion, so the filing shows better liquidity execution rather than a meaningful deleveraging event. (Cash Flow statement; Balance Sheet)
Read the original 8-K on SEC EDGAR ↗