Otovo (OTOVO) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked a strategic shift from Newbuilds to higher-margin Field and Recurring Services, with total revenue of $10 million, up 8% quarter-on-quarter at constant currency, and the first full consolidation of EnergyAid.

• Field Services revenue grew approximately 200% sequentially, and adjusted group gross profit increased 28% quarter-on-quarter, with gross margin reaching 34% in June and on track for mid-40s by Q4 2026.

• Adjusted OpEx declined 9% quarter-on-quarter, and adjusted EBITDA improved by $1.1 million sequentially and $1.5 million year-on-year, with positive adjusted EBITDA expected in Q3 2026.

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

• The Endurance AI platform is central to cost savings, operational integration, and margin expansion, with over $5 million in annualized cost avoidance identified.

Financial highlights

• Q2 2026 revenue was $10 million, up 8% from Q1; Field Services contributed $3.3 million (+200%), Recurring Services $600,000 (+20%), and Newbuild $6.1 million.

• Adjusted gross profit rose 28% quarter-on-quarter to $2.3 million; gross margin improved from 18% in Q2 to 34% by June.

• Adjusted OpEx was $6.8 million, down 9% quarter-on-quarter; adjusted EBITDA was -$4.5 million, a $1.1 million sequential and $1.5 million year-on-year improvement.

• Cash at quarter-end was $3.9 million, down from $15.6 million in Q1 due to M&A, severance, and operating losses; July equity raise added $7 million.

• Total equity rose 11% quarter-on-quarter to $36.4 million; total assets were $56.9 million, liabilities $20.5 million.

Outlook and guidance

• 2026 revenue guidance raised to $105–$115 million (from $80–$90 million), and adjusted EBITDA to $15–$20 million (from $2.5–$7.5 million), both on Q4 annualized run rate.

• Year-end customer target increased to 90,000 (from 60,000), with 170,000 by end of 2027 and 275,000 by end of 2028.

• Revenue excluding newbuild expected to reach $27.5 million in Q4, over 7x Q2 levels, with core G&A slightly declining.

• Pipeline includes five companies in definitive discussions ($118 million revenue, $18 million EBIT potential) and four more on shortlist ($17 million revenue potential).

• Positive adjusted EBITDA expected in Q3 2026, with SaaS cost savings to be realized in Q4 2026.