Rank One Computing (ROC) investor relations material

Executive summary

• Q2 2026 revenue increased 2% year-over-year to $5.1 million, nearly doubling sequentially, driven by a 41% rise in R&D contract revenue and expanded government contracts, while product revenue declined due to the completion of a major ROC Watch deployment.

• Gross margin improved to 90% from 80% in Q2 2025, reflecting a higher mix of software license and government contract revenue.

• Commercial adoption expanded across the Vision AI platform, with ROC SDK, ROC ABIS, and ROC Enroll all showing strong year-over-year growth, and ROC Evidence generating its first commercial revenue ahead of plan.

• The company completed its IPO in February 2026, began trading on Nasdaq, and advanced its go-to-market strategy, completing Vision AI platform monetization ahead of plan.

• Leadership and board were strengthened with appointments including Dr. Kathleen Kiernan, and a Homeland Security and Intelligence division was formed.

Financial highlights

• Q2 2026 revenue was $5.1 million (up 2% YoY, nearly double Q1); six-month revenue was $7.6 million (down 6% YoY).

• Gross profit for Q2 2026 was $4.6 million, with gross margin expanding to 90% from 80% in Q2 2025.

• Product revenue declined 26% year-over-year to $2.1 million, while R&D contract revenue rose 41% to $3.0 million.

• Operating expenses rose to $5.3 million, with net loss at $0.8 million versus net income of $0.6 million in Q2 2025; EPS was $(0.04).

• Cash at June 30, 2026 was $11.9 million, up from $0.3 million at December 31, 2025, with no debt outstanding.

Outlook and guidance

• Management expects stronger government contracting activity in H2 2026, with agencies needing to obligate budgets by September 30.

• Focus remains on converting pilots and early deployments into larger, multi-year recurring contracts, especially for ROC ABIS and ROC Watch.

• No formal financial guidance was provided, but management is optimistic about continued growth and margin strength; Q2 gross margin improvement is not expected to recur in H2 2026.

• Continued investment in product development and sales is expected to drive further operating losses and cash usage.

• The pending acquisition of Zuccaro Technical Consulting LLC is expected to increase operating expenses post-closing.