Norwegian artificial intelligence company Elliptic Labs reported a 48% year-on-year drop in revenue for the second quarter of 2026, with sales falling to NOK 13 million. The company’s shares fell 4.54% to $2.74 following the release of its earnings call transcript on August 27.
Operating performance also weakened, with EBITDA turning negative at NOK 5.1 million. The company’s gross profit margin over the last twelve months stood at 4.39%, while operating cash flow was negative NOK 8.5 million. Cash and cash equivalents declined to NOK 59 million at the end of June, down about NOK 50 million from the prior quarter.
Elliptic Labs reduced its operating cost base by approximately 15% following restructuring measures implemented in the first quarter, with full cash impact expected in the second half of 2026. Employee benefit expenses fell 39% year-on-year to NOK 11.1 million, while operating expenses before depreciation and amortization decreased to NOK 18 million from NOK 23.9 million a year earlier. Non-recurring legal and patent-related costs totaled about NOK 1 million during the period.
The company’s current ratio improved to 6.68, reflecting a stronger liquidity position relative to short-term obligations. However, the balance sheet remains under pressure as the firm continues to invest in its Edge AI platform and new commercial verticals.
Elliptic Labs’ CEO Ola Sandstad emphasized the company’s focus on deploying advanced intelligence at scale across edge devices. He highlighted the accelerated development timelines enabled by the firm’s technology, noting that customers could transition from months to weeks in implementation. Sandstad also addressed privacy concerns in smart glasses, positioning audio-based sensing as an alternative to camera-based solutions.
CFO Mathias Norderud described the company as well capitalized with no borrowings and a strong equity position. The firm’s customer base includes major device manufacturers such as Vivo, Transsion, Honor, Xiaomi, and Nvidia, though shipment volumes for smartphones declined 17% year-on-year. Laptop shipments, by contrast, rose 33% over the same period.
Looking ahead, Elliptic Labs expects commercial contracts in new verticals and Edge AI platform revenue contributions to begin materializing in 2027, with ambitions to finalize commercial execution in new verticals before the end of 2024.
