Sabio's Q1 revenue falls, adjusted EBITDA loss widens on lower political, advocacy spending

Sabio Holdings

26/05/2026 02:37

Overview

The US ad-tech firm's Q1 revenue fell yr/yr as political and advocacy spend declined

Adjusted EBITDA loss widened from prior year, reflecting shift in higher-margin revenue to later quarters

Company implemented $2.3 mln in annualized cost reductions year-to-date

Outlook

Sabio says gross revenues are tracking more than 35% higher sequentially entering Q2 2026

Company expects continued growth throughout 2026 and anticipates a record revenue year

Sabio sees election-related demand contributing to margin expansion and improved cash flow visibility

Result Drivers

POLITICAL & ADVOCACY SPEND SHIFT - Co said Q1 revenue decline was mainly due to lower political and advocacy spending, which is expected to be higher in the second half of the yr

INTERNATIONAL & PROGRAMMATIC GROWTH - International and programmatic revenues each grew nearly 13x yr/yr, now representing 62% of Q1 revenue mix

PRICING STRATEGY IMPACT - Gross margin was 53%, reflecting aggressive pricing in January to drive adoption of programmatic and international offerings, with margins improving throughout the quarter

Company press release: ID:nCNW8Jkg6a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$8.20 mln
$8.85 mln (2 Analysts)
Q1 Adjusted EBITDA
-$3.40 mln
-$650,000 (2 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Sabio Holdings Inc is C$0.50, about 127.3% above its May 25 closing price of C$0.22

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)