VerticalScope Q2 Earnings Call Highlights

Key Points

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• Q2 gross fell 5% twelvemonth implicit twelvemonth to $13.8 million, but roseate 20% sequentially, portion adjusted EBITDA accrued 4% to $4.5 cardinal and borderline expanded to 32%. Net nonaccomplishment narrowed to $800,000.

• Monthly progressive users grew 14% to 103 million, driven chiefly by paid AudienceEngine traffic. Programmatic advertising's diminution narrowed to 8%, portion AI-driven affiliate-commerce initiatives approached a $1 cardinal yearly gross tally rate.

• VerticalScope reduced operating expenses by 13% and repaid $12 cardinal of debt, portion investing $400,000 successful AI during the 4th and maintaining its program for astir $2 cardinal of AI concern successful 2026. The institution besides precocious discussions connected a imaginable ongoing AI-content licensing deal.

VerticalScope (TSE:FORA) reported second-quarter 2026 gross of $13.8 million, down 5% from a twelvemonth earlier but up 20% sequentially, arsenic the institution cited improving programmatic advertizing trends, maturation successful paid assemblage acquisition and expanding AI-driven commerce initiatives.

Adjusted EBITDA roseate 4% twelvemonth implicit twelvemonth to $4.5 million, portion adjusted EBITDA borderline expanded by 270 ground points to 32%. Net nonaccomplishment narrowed to $800,000 from $1.8 cardinal successful the prior-year quarter. Chief Executive Officer Chris Goodridge said the 4th showed that enactment undertaken implicit the past twelvemonth was opening to look successful the company's fiscal results.

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"Revenue trends are improving, adjusted EBITDA is growing, and margins are expanding," Goodridge said, adding that the institution was backing AI initiatives portion maintaining outgo discipline.

Audience maturation driven by paid postulation

Monthly progressive users averaged 103 cardinal during the quarter, an summation of 14% from a twelvemonth earlier and the company's archetypal year-over-year MAU maturation since changes successful the hunt situation affected traffic. Goodridge said astir of the summation came from AudienceEngine, VerticalScope's paid postulation source, with a smaller publication from nonstop users.

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Google Search postulation has stabilized successful caller months but remained importantly beneath the prior-year level, according to management. Goodridge said caller Google merchandise changes intended to aboveground links to first-hand discussions had not yet contributed to VerticalScope's growth.

Management said postulation acquired done AudienceEngine is profitable but monetizes astatine a little complaint than integrated hunt traffic, contributing to a 16% year-over-year diminution successful mean gross per idiosyncratic to $0.045. Chief Financial Officer Vince Bellissimo said the reported ARPU diminution besides reflects the program's accounting presentation: acquired visitors are included successful MAU astatine their afloat count, portion related gross is recorded nett of postulation acquisition costs.