Parabolic's Q2 net loss narrows on cost cuts, acquires ConnectAndSell to more than double annual revenue

Parabolic Technologies

14/08/2026 21:25

Overview
US AI software firm's Q2 revenue declined and missed analyst expectations
Net loss narrowed from Q1 2026, helped by cost reductions
Company acquired ConnectAndSell, expected to increase FY2026 and FY2027 revenue

Outlook
Company expects FY2026 revenue to reach $17 mln
Parabolic projects FY2027 revenue of $26 mln
Acquisition of ConnectAndSell expected to increase annual revenue and expand AI platform capabilities beginning in Q3 2026
Management expects to generate operating income, excluding non-cash expenses, starting Q2 2027

Result Drivers
COST REDUCTIONS - Co said lower operating losses were primarily due to execution of a cost management plan announced in May
REVENUE DECLINE - Co attributed lower Q2 revenue to absence of one-time non-recurring revenue recognized in Q1 2026

Company press release: ID:nGNX4LY6xf

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$2.27 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 12 "hold" and 7 "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy."
Wall Street's median 12-month price target for Paramount Skydance Corp is $10.00, about 0.3% above its August 13 closing price of $9.97
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)