Q2 2026 NowVertical Group Inc Earnings Call Transcript
Key Points
- Revenue increased 18% year-over-year to $9.7 million in Q2 2026, driven by strong growth in core data analytics solutions.
- Gross margin improved to 50% from 47% in the prior year, reflecting better product mix and delivery efficiency.
- Adjusted EBITDA rose 41% year-over-year to $1.5 million, with a 15% margin, and the company achieved positive net income for two consecutive quarters.
- Cash flow from operations turned positive at $1 million in H1 2026, a $5 million improvement from a $4 million consumption in the prior year, strengthening the balance sheet.
- The company has a durable revenue base with 85% of revenue from top 30 accounts and 92% from clients with over one year tenure, and Google Cloud-related revenue surged 77% year-over-year.
- The company experienced a leadership transition with the CEO and CFO stepping down, creating uncertainty despite the interim CEO's commitment.
- Adjusted EBITDA for H1 2026 declined 10% year-over-year due to growth-related investments in commercial capacity.
- Reselling revenue declined $600,000 quarter-over-quarter, and its lumpy recognition can cause revenue volatility.
- New client revenue (under 1-year tenure) was only $0.7 million in Q2, indicating slow progress in client acquisition despite investments.
- The company faces currency risk in Argentina with no hedging, though the impact has stabilized, and it has not yet expanded Google Cloud go-to-market to all regions.
Good morning, everyone, and welcome to the NowVertical second quarter 2026 results conference call. My name is Stefan Eftychiou with Bristol Investor Relations. And I'd like to thank everyone on the call for joining us this morning. Before we get started, I want to remind everyone to read the company disclaimer and forward-looking statements that you can find on Page 2 and 3 of today's presentation and on the presentation materials related to today's earnings, press release, financial statements and management discussion and analysis that are available on the Investor Relations section of the company's website at www.nowvertical.com and on the SEDAR website, www.sedar.com.
All figures discussed on today's call are in US dollars and will be on an IFRS basis, unless otherwise noted, and we'll refer to the specific non-IFRS measures, including, but not limited to, adjusted EBITDA, adjusted EBITDA percentage
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