POSaBIT Systems Corporation (PBIT) reported a 15% year-over-year decline in revenue to approximately $2.3 million for the second quarter of 2026, ending June 30, according to its earnings call transcript published August 20, 2026. The decline was attributed to a strategic shift toward an agent-only payment model, which removed lower-margin processing revenue from reported figures.
Gross profit increased 10.5% to $2.0 million, lifting gross margins to approximately 91%, up from about 70% in the prior-year period. On an adjusted basis, gross margins reached 93.8%, while adjusted revenue totaled $3.4 million, including $1.5 million in licensing cash receipts. Adjusted gross profit rose to $3.2 million, and adjusted EBITDA surged 177% to $1.0 million, compared with $390,000 in Q2 2025.
The company reported an operating loss of $201,000 and a net loss of $315,000, down from net income of $635,000 in the same period a year earlier. Operating cash flow turned positive at $850,000 for the quarter, bringing the first-half total to $1.58 million, versus a cash outflow of $107,000 in the prior-year period. Cash and cash equivalents increased 34% from the end of Q1 2026 to $3.34 million, up nearly 90% from $1.76 million at the start of the year.
POSaBIT’s POS revenue segment grew 64% year over year to about $1.0 million, while current liabilities remained steady at approximately $1.7 million. The company’s credit facility balance was essentially unchanged at about $4.6 million. Management estimated a market capitalization of roughly $7.5 million, with $3.5 million in cash, implying an operating business value of about $4.0 million. The stock traded at $0.05, near the bottom of its 52-week range of $0.045 to $0.12.
Chief Executive Officer Ryan Hamlin highlighted a focus on Washington state as a core market, describing it as a potential $50 million to $100 million opportunity. The company’s brand portal covers a significant portion of products in the state, connecting retailers, producers, and processors. Hamlin emphasized that the shift to an agent-only model was designed to improve margins, cash generation, and the mix of software and SaaS revenue.
POSaBIT plans to release an MCP server within a month, enabling vendors and retailers to connect AI models such as ChatGPT and Claude to the platform for real-time data access. Management and the board purchased over 1 million shares in early 2026, though thin trading volume limits liquidity. The company views federal cannabis illegality as the least favorable regulatory environment, with recreational legalization cited as the primary catalyst for broader banking and credit card processing access.
