🔹 Revenue: $32.47M (Est. $40.74M) 🔴; DOWN -18% YoY
🔹 EPS: $(0.71) (Est. $(0.06)) 🔴
FY25 Guide:
🔹 Revenue: $125M–$140M (revised lower) 🔴
🔹 Withdrew FY25 Adj. EBITDA guidance due to Army program uncertainty & new growth investments 🔴
Other Q2 Metrics:
🔹 Gross Margin: 25.0% vs. 27.8% YoY
🔹 Net Loss: $(228.6M) vs. $(14.4M) YoY (incl. $135.8M non-cash derivative loss & $70.6M goodwill impairment)
🔹 Adj. EBITDA: $(8.5M) vs. $(3.7M) YoY
🔹 Cash: $390.8M (record high)
🔹 Backlog: $380M
Operational & Strategic Updates:
🔹 Targeting growth from “One Big Beautiful Bill” — $170B DHS & $150B DoD disruptive defense tech funding
🔹 Signed partnership with UAE’s IHC group for AI adoption across multiple domains
🔹 Federal contract disruptions, mainly in U.S. Army data architecture programs
CEO Commentary:
🔸 “We’re positioned to capitalize on transformative U.S. and international opportunities, but adjusted guidance to reflect near-term contract disruptions.”
