The quarter beat the standing bar on sales and adjusted profitability. Revenue was $753.2 million versus the prior $680–$700 million company outlook and roughly $724 million published consensus, while Adjusted EBITDA was $60.3 million versus the prior $35–$55 million outlook.
| Metric | Q2 2026 | Q2 2025 | Comparison / expectation |
|---|---|---|---|
| Revenue | $753.2M | $544.8M | +38%; above ~$724.1M consensus (Financial Highlights) |
| Adjusted EBITDA | $60.3M | $82.2M | -27%; above $35M–$55M prior outlook (Adjusted EBITDA reconciliation) |
| Adjusted EBITDA margin | 8% | 15% | Down 7 percentage points (Adjusted EBITDA reconciliation) |
| Gross margin | 64% | 76% | Down 12 percentage points (Income Statement) |
| Net income | $(86.3)M | $42.5M | GAAP loss versus profit (Income Statement) |
| Free cash flow | $(68.2)M | $(69.4)M | Still materially negative (Free Cash Flow reconciliation) |
Growth re-accelerated beyond the headline acquisition contribution. U.S. revenue rose 16% year over year to $621.8 million after only 3% growth in the first half, while subscribers increased 19% to 2.891 million and monthly revenue per average subscriber rose 21% to $92. International revenue reached $131.4 million, up from $7.5 million, helped by the Eucalyptus acquisition closing in June (Revenue; Key Business Metrics). The international surge is partly acquisition-driven, so the more important underlying signal is the U.S. acceleration.
The earnings beat is less clean than the revenue beat. Adjusted EBITDA exceeded the company’s prior range, but fell from $82.2 million a year earlier and margin compressed to 8% from 15%. GAAP operating expenses climbed to $578.0 million from $389.5 million, including $47.5 million of legal contingencies and $28.8 million of acquisition-related costs; even excluding selected charges, Adjusted Net Loss was $20.8 million versus $48.7 million of adjusted net income last year (Income Statement; Adjusted Net Loss Income reconciliation). The filing therefore shows stronger scale, but not yet operating leverage.
The balance sheet and cash profile add a real constraint to the upbeat narrative. Six-month operating cash flow fell to $53.4 million from $90.0 million, while receivables increased to $375.3 million from $32.1 million and the company spent $318.1 million on acquisitions. Cash ended at $609.8 million, but total liabilities rose to $3.30 billion, including $1.37 billion of convertible notes and $703.0 million of current and long-term deferred acquisition payables (Balance Sheet; Cash Flow statement).
Net read: a genuine top-line and guidance beat, tempered by sharply weaker profitability. Management says it raised 2026 revenue guidance, but the provided filing does not state the revised numerical range, so the size of that increase cannot be assessed. Against the published bar, the quarter lands modestly better than expected because the revenue surprise, domestic acceleration, international expansion, and EBITDA beat outweigh the margin, cash-flow, and GAAP-loss deterioration—but only narrowly.
Read the original 8-K on SEC EDGAR ↗