VerticalScope (FORA) investor relations material

Executive summary

• Q2 2026 showed improving revenue trends, adjusted EBITDA growth, and margin expansion, driven by investments in AI and disciplined capital allocation.

• MAU reached 103 million, up 14% year-over-year, marking the first YoY growth since search landscape changes.

• AI initiatives are central to strategy, enhancing community engagement, operational efficiency, and revenue streams.

• Net loss narrowed to $0.8M from $1.8M YoY, driven by reduced operating expenses.

• Revenue grew 20% sequentially to $13.8M, exceeding typical seasonal patterns but down 5% YoY.

Financial highlights

• Revenue for Q2 2026 was $13.8M, up 20% sequentially but down from $14.5M in Q2 2025.

• Adjusted EBITDA was $4.5M, up 4% YoY, with margin expanding to 32% from 30%.

• Free cash flow conversion was 81% in Q2 and 83% for the first half.

• Operating expenses declined, reflecting cost savings and early AI-driven efficiencies.

• Net loss for Q2 2026 was $0.8M, improved from $1.8M in Q2 2025.

Outlook and guidance

• Margins are expected to remain above 30% on a full-year basis.

• AI investments and cost discipline are expected to drive further operating leverage and long-term value.

• Traffic and direct sales initiatives, along with AI programs, are positioned to support continued improvement through the year.

• Expectation of continued stabilization and growth in MAU and direct advertising revenue.

• Ongoing focus on scaling AI-enabled commerce experiences and new products.