Aug 13, 2026 earnings call — Strong Q2 revenue growth and retail-media deals
Company reported Q2 revenue of $21.5 million, its best ever Q2 and second-largest revenue quarter.
Revenue $0.0B (est $0.0B) · EPS $-0.41 (est $-0.29)
Key quotes
"We expect Q3 this quarter to significantly exceed Q4 2025 when we achieved $23.9 million in revenue."
"I can now say that this new customer is Albertsons, an incredible brand, well-known company with thousands of locations across the U.S."
"We announced earlier this year, we expect to realize synergies of at least $10 million on an annualized basis."
Analyst Q&A 4
Albertsons conversion and pipeline impact
Q (Jason Kreyer · Craig-Hallum): He asked what work has been done so far on the Albertsons rollout and whether a big deal like that opens new retail media opportunities or accelerates existing pipeline conversations. He also asked about competitor troubles and how that affects their prospects and visibility into 2027.
A: Management said they have converted about 3,000 screens and are running them across 220 to 250 locations, and they will take over deployment of players and technology over the next 30 days. They said Albertsons is running about 1 million ads a day, is using their CMS and AdTech, and that having a customer like Albertsons strengthens their position among top retail media providers and should accelerate the pipeline. They expect to close multiple new customer "logos" on a quarterly basis and said Q3 will be the largest quarter in company history with Q4 larger than Q3.
"As of today, we have converted about 3,000 screens, and we're currently running 3,000 screens across 220 to 250 locations." — Richard Mills (CEO)
Services vs hardware split and margins
Q (Brian Kinstlinger): He asked how the second-half revenue split looks between services (SaaS) and hardware, and how pricing and margins will behave for each. He also asked why a pending win can be delivered by end of September and whether screens are already in inventory.
A: They said most of the second-half growth is services/SaaS, with some hardware, and that should improve the company's composite margin in Q3 and especially Q4. Management said services pricing has faced downward pressure from competitor turmoil but they have largely withstood it; hardware margins will be under pressure through year-end but they expect relief and expansion in 2027. For the pending conversion, they said there are no installs because the customer already has hardware and players in place, and the company will convert the 1,000 locations remotely and deploy their CMS and new content by end of September; Tamra added Q3 will have a higher percentage of hardware revenues due to planned installs (notably the Tennessee Titans) and Q4 will return to Q2 levels with a large media revenue base coming online.
"We see the SaaS continuing to grow from a services perspective, Brian." — Richard Mills (CEO)
Margin targets and Culver's/lottery updates
Q (Jon Hickman · Ladenburg): He asked whether there is a longer-term gross margin target and how much revenue is needed to reach desired margins. He also asked for updates on Culver's and lottery opportunities.
A: Management said their goal is to get back into the 40s gross margin range as they enter 2027, noting they have experienced about 5% to 6% margin compression and expect SaaS mix to lift margins. They noted they have about $3.5 million to $4 million of seeded SaaS that will turn on January 1 and will materially add high-margin revenue. They said Culver's deployments continue monthly with a 3-year target to complete restaurants, and they are in significant discussions with 7–8 additional lotteries with potential expansion (including North Carolina) in 2027 and announcements expected closer to year-end.
"But as we build that SaaS base, then we can start to get back closer to that 40% plus target." — Tamra Koshewa (CFO)
SG&A coverage and planned cost reductions
Q (a private investor): He asked at what revenue level SG&A of $9 million would be covered and whether there are plans to improve efficiencies so SG&A is smaller.
A: Management said it is a combination of revenue growth and cost reductions: they expect the next two quarters to add significant ongoing revenue and said they will be north of $25 million, closer to $30 million, if not exceed $30 million on a quarterly basis. They said they have already taken out $7.5 million of costs (not all reflected yet) and plan a couple million more in savings through 2027, while also migrating customers off third-party platforms to their own to reduce costs. Tamra added that a portion of G&A is noncash amortization for mall leases which varies through the year and is not a hard G&A cost that can be cut.
"We expect the next 2 quarters to add significant ongoing revenue to the business that we will certainly be north of $25 million, closer to $30 million, if not exceed $30 million on a quarterly basis." — Richard Mills (CEO)