Otovo (OTOVO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 8% quarter-over-quarter at constant currency to $10 million, driven by a strategic shift from new builds to high-growth field services and recurring service revenues, despite a 38% year-over-year decline in NOK terms reflecting the pivot.

• Field services revenue surged 197–200% sequentially, supported by the integration of EnergyAid and ramp-up of service businesses.

• Adjusted group gross profit increased 28% quarter-over-quarter, with gross margin improving to 34% by June and 46% in NOK terms, driven by the service mix shift.

• Adjusted EBITDA improved by $1.1 million sequentially and $1.5 million year-on-year, but remained negative at -$4.5 million; positive adjusted EBITDA expected in Q3 2026.

• Customer base reached approximately 55,000 by July 31, up over 80% from Q1 and 200% from end of 2025, with a target of 90,000 by year-end 2026.

Financial highlights

• Q2 2026 revenue was $10 million (NOK 94.4 million), up 8% from Q1 at constant currency but down 38% year-over-year in NOK.

• Field services contributed $3.3 million (NOK 31 million), up 197–200% sequentially; recurring services reached $600,000 (NOK 6 million), up 20%.

• Adjusted group gross profit was $2.3 million (NOK 43.5 million), with gross margin improving from 18% in Q2 to 34% by June and 46% in NOK.

• Adjusted OpEx declined 9% quarter-over-quarter to $6.8 million, and OpEx per customer fell to $402 in H2 2026 from $1,268 in H1 2025.

• Cash at quarter-end was $3.9 million (NOK 37 million), supplemented by a $7 million (NOK 67 million) equity raise in July.

Outlook and guidance

• 2026 revenue guidance raised to $105–$115 million, with adjusted EBITDA of $15–$20 million, both on a Q4 annualized run rate basis.

• Year-end customer target increased to 90,000, up from 60,000.

• Field services gross margin expected to approach 45% by end of 2026.

• Profitability targeted for late 2026, with first profitable month expected in August or September, contingent on successful M&A execution.

• Additional M&A and organic growth expected to be highly accretive to EBITDA and net income.