Sabio Holdings reported a second-quarter 2026 loss of $0.07 per share, wider than the expected $0.02 loss, as revenue totaled $8.23 million against a forecast of $11.9 million. The shortfall represented a 30.8% miss, with consolidated gross revenue down 17% year-over-year to $9.7 million from $11.7 million in the same period of 2025.
Gross margin expanded to 61%, up eight percentage points sequentially from 53% in Q1 2026, with June’s margin reaching 67% as the strongest month of the year. Adjusted EBITDA loss narrowed to $2.7 million from $3.4 million in the prior quarter. Recurring revenue accounted for 82% of total revenue globally, with U.S. recurring revenue at 92%.
The company ended the quarter with $1.5 million in cash, an increase from $1.0 million in Q1 2026, while total outstanding debt remained flat at $6.1 million compared with $6.2 million in the prior quarter and down from $9.1 million at year-end 2025. Segment performance showed ad-supported streaming at $6.2 million versus $7.9 million a year ago, while mobile gross sales held steady at $3.5 million with brand mobile sales up 32% year-over-year after normalizing for political advocacy spending.
U.S. programmatic sales rose 240% year-over-year to $2.9 million, representing 30% of consolidated gross sales, with the customer count up 116% and 90% of Q1 programmatic customers renewing into Q2. EMEA sales surged 386% year-over-year to $1.9 million, with first-half 2026 EMEA revenue matching full-year 2025 EMEA performance at $5 million.
Management attributed the revenue decline primarily to the absence of approximately $2.5 million in higher-margin political and advocacy revenue typically realized later in election years. Normalized for political spending, core brand revenue grew 6% year-over-year. The company has secured over $5 million in political and advocacy commitments for H2 2026, while cost reduction initiatives are expected to deliver more than $2 million in annualized savings once fully implemented.
Sabio expects adjusted EBITDA to return to profitability in the second half of 2026. Financing updates included an increase in its U.K. credit facility from GBP 3 million to GBP 5 million, supplemented by a CAD 900,000 convertible debt note, followed by a $1.5 million non-dilutive term loan secured by EMEA assets. The company’s market capitalization stood at $154 million, with shares trading near the bottom of their 52-week range of 10 cents to 52 cents in Canadian dollars.
Automotive remained a challenged sector due to tariffs, while healthcare and quick-service restaurants continued to show growth. The company’s U.K. Household Graph, launched in April, has supported international margin expansion and customer acquisition, with the EMEA employee count rising from one in 2023-2024 to around eight currently.
