NowVertical Group (NOW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was reported as $9.7 million in some sources and $10.4 million in others, with strategic account and integration services growth, and Google Cloud revenue surging 84% to $2.7 million.

• Strategic account revenue grew 9% year-over-year, now representing 73% of total revenue, with top 30 accounts averaging $5.2 million lifetime value.

• Integration revenue increased 58%, and operational focus shifted toward higher-margin, AI-enhanced delivery and scaling through NowUnlock AI.

• Achieved positive net income for the first time since 2024, driven by operational improvements and reduced cost of capital.

• Named Google Cloud Data & Analytics Partner of the Year for Latin America for the second consecutive year.

Financial highlights

• Q1 2026 revenue was reported as $9.7 million or $10.4 million, with strategic account and integration revenue growth.

• Adjusted EBITDA for Q1 2026 was $1.8 million (18% margin), down from $2.5 million (24% margin) in Q1 2025.

• Gross margin was 48% in Q1 2026, down from 50% in Q1 2025.

• Operating cash flow improved by $3.4 million year-over-year, reaching $1.6 million in Q1 2026.

• Cash on hand increased to $4.4 million, and working capital turned positive at over $1 million.

Outlook and guidance

• Investments in commercial capabilities and integration blueprints are expected to yield meaningful revenue impact in three to four quarters, with early pipeline growth visible.

• Management targets gross margin around 50% (+/- 2 points), with fluctuations depending on contract mix.

• Focus remains on accelerating top-line growth, expanding strategic and emerging accounts, and scaling AI-enhanced delivery.