Q2 Revenue of
H1 2026 Revenue of
Operating Expenses Decline 36.0% Year-Over-Year
Continued investment in R&D and Business Development in the Defense Sector
CEO Commentary
“Vislink delivered its second consecutive quarter of positive EBITDA in Q2 2026, and for the first half of the year EBITDA turned positive at
“Live Production revenue strengthened materially, up 27.2% year-over-year and more than doubling sequentially, led by demand across
Second Quarter and First Half 2026 Highlights
Financial Performance
- Q2 2026 revenue of
$5.9 million increased 22.6% from Q2 2025 and 9.7% sequentially from Q1 2026. - Q2 gross margin of 57.4%, down from Q1 2026’s 65.0% as revenue mix shifted back toward lower-margin Live Production.
- Q2 non-GAAP EBITDA profit of
$0.1 million (GAAP EBITDA profit of$43K ) marked the Company’s second consecutive quarter of positive EBITDA, compared to a non-GAAP EBITDA loss of$1.9 million in Q2 2025. - Operating expenses of
$3.6 million declined 37.22% year-over-year, with G&A expenses down 37.9% from Q2 2025. - First half 2026 revenue of
$11.3 million increased 19.6% year-over-year; first half EBITDA of$145K compares to a loss of$4.6 million in H1 2025, a swing of more than$4.7 million . - Cash balance of
$2.8 million atJune 30, 2026 , down$1.4 million fromDecember 31, 2025 , primarily reflecting inventory build and receivables timing.
Strategic Transformation and Market Development
- MilGov revenue more than doubled from the first half of 2025, up 103.4%.
- Live Production revenue increased 27.2% year-over-year and 106.9% sequentially in Q2 2026, led by demand across
Asia and theAmericas . U.S . Federal/Department of War business development initiative continues to build momentum, with active engagement acrossU.S . defense agencies; new formal partner agreements executed with regional and national channel partners, and new prime engagements underway with several leading defense system integrators.- Expanded European market development has generated more than 45 meetings and 20 qualified leads across the region; the Company is progressing two potential beachhead partnerships in
Europe .
New Products and
- Continued investment of our R&D resources in Defense and Public Safety product lines.
- Tactical 5G Node development continues, targeting a low-SWaP, all-in-one network node with AI/ML capabilities. Expect to have beta deployments in Q4 2026.
- Aero5 and Aero5 Antenna DO-160 qualification testing is progressing, targeting aviation-certified availability to address growing demand from OEMs and public safety customers.
- LiveLink/Playout Server FIPS 140-3 certification is underway, a key differentiator on active opportunities with
U.S . defense agencies.
Marquee Events and Global Partnerships
- Continued to support marquee live sports and broadcast productions across
North America ,Europe , and theMiddle East , and shipped a key studio program to a leading North American broadcaster during the quarter.
AI Initiative
- Company-wide AI initiative targeting improved time-to-market, quality, and customer support at lower cost, with a goal of increasing revenue per employee toward
$500,000 over time. - New AI-enabled CRM is completing rollout at the end of
August 2026 , replacing our legacy CRM platform at a fraction of the cost; quote-to-order cycle time has already begun to compress.
Financial Discussion
Revenue
Revenue of
Gross Margin
Gross margin of 57.4% in Q2 2026 declined from 65.0% in Q1 2026, reflecting a mix shift back toward lower-margin Live Production and away from the higher-margin MilGov orders that benefited the first quarter; for the first half, gross margin was 61.0% compared to 61.7% in the first half of the prior year.
Operating Expenses and EBITDA
Operating expenses of
The Company ended the second quarter with
Business Outlook
The Company’s first-half performance reflects continued progress on its cost transformation and margin expansion.
On the
Management expects operating expenses to continue to decline as the Company’s AI initiative and strategic transition take full effect, and remains focused on converting its pipeline into revenue, sustaining EBITDA profitability, and prudently managing working capital and liquidity.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,777 | $ | 4,159 | ||||
| Accounts receivable, net | 3,927 | 3,369 | ||||||
| Inventories, net | 6,436 | 5,632 | ||||||
| Prepaid expenses and other current assets | 1,161 | 989 | ||||||
| Total current assets | 14,301 | 14,149 | ||||||
| Right-of-use assets, operating leases | 472 | 569 | ||||||
| Property and equipment, net | 1,382 | 1,574 | ||||||
| Intangible assets, net | 1,764 | 2,006 | ||||||
| Total assets | $ | 17,919 | $ | 18,298 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 3,118 | $ | 2,448 | ||||
| Accrued expenses | 1,526 | 1,576 | ||||||
| Notes payable | 155 | 76 | ||||||
| Operating lease obligations, current | 272 | 322 | ||||||
| Accrued restructuring costs | 156 | 200 | ||||||
| Customer deposits and deferred revenue | 3,121 | 3,908 | ||||||
| Total current liabilities | 8,348 | 8,530 | ||||||
| Operating lease obligations, net of current portion | 262 | 372 | ||||||
| Deferred tax liabilities | 250 | 292 | ||||||
| Total liabilities | 8,860 | 9,194 | ||||||
| Commitments and contingencies (See Note 12) | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | — | — | ||||||
| Additional paid-in capital | 349,579 | 349,413 | ||||||
| Accumulated other comprehensive loss | (1,080 | ) | (1,072 | ) | ||||
| (277 | ) | (277 | ) | |||||
| Accumulated deficit | (339,163 | ) | (338,960 | ) | ||||
| Total stockholders’ equity | 9,059 | 9,104 | ||||||
| Total liabilities and stockholders’ equity | $ | 17,919 | $ | 18,298 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (IN THOUSANDS, EXCEPT NET LOSS PER SHARE DATA) | ||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue, net | $ | 5,886 | $ | 4,800 | $ | 11,252 | $ | 9,407 | ||||||||
| Cost of revenue and operating expenses | ||||||||||||||||
| Cost of revenue: | ||||||||||||||||
| Cost of components and personnel | 2,552 | 1,812 | 4,260 | 3,444 | ||||||||||||
| Inventory valuation write-downs | (45 | ) | 76 | 126 | 160 | |||||||||||
| Total cost of revenue | 2,507 | 1,888 | 4,386 | 3,604 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative expenses | 2,432 | 3,919 | 4,891 | 8,292 | ||||||||||||
| Research and development expenses | 786 | 1,331 | 1,641 | 2,293 | ||||||||||||
| Restructuring costs | 113 | 160 | 189 | 173 | ||||||||||||
| Depreciation and amortization | 246 | 272 | 502 | 546 | ||||||||||||
| Total operating expenses | 3,577 | 5,682 | 7,223 | 11,304 | ||||||||||||
| Total cost of revenue and operating expenses | 6,084 | 7,570 | 11,609 | 14,908 | ||||||||||||
| Loss from operations | (198 | ) | (2,770 | ) | (357 | ) | (5,501 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Realized loss of investments in debt securities | — | — | — | (46 | ) | |||||||||||
| Other income (loss) | 1 | 392 | 1 | 404 | ||||||||||||
| Dividend income | 15 | 25 | 121 | 49 | ||||||||||||
| Interest (loss) income, net | (2 | ) | (4 | ) | (3 | ) | 3 | |||||||||
| Total other income | 14 | 413 | 119 | 410 | ||||||||||||
| Net loss before income taxes | (184 | ) | (2,357 | ) | (238 | ) | (5,091 | ) | ||||||||
| Income taxes | ||||||||||||||||
| Deferred tax benefits | 17 | 29 | 35 | 58 | ||||||||||||
| Net loss attributable to common shareholders | $ | (167 | ) | $ | (2,328 | ) | $ | (203 | ) | $ | (5,033 | ) | ||||
| Net loss per share attributable to common shareholders: | ||||||||||||||||
| Basic and diluted loss per share | $ | (0.07 | ) | $ | (0.94 | ) | $ | (0.08 | ) | $ | (2.04 | ) | ||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic and diluted | 2,479 | 2,467 | 2,479 | 2,467 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (167 | ) | $ | (2,328 | ) | $ | (203 | ) | $ | (5,033 | ) | ||||
| Unrealized gain (loss) on currency translation adjustment | (10 | ) | 457 | (8 | ) | 600 | ||||||||||
| Total comprehensive loss | $ | (177 | ) | $ | (1,871 | ) | $ | (211 | ) | $ | (4,433 | ) | ||||
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations about future events and are predictions based on our current expectations and assumptions. We caution readers that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified, and, consequently, the actual performance of Vislink Technologies, Inc. may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, our ability to sustain EBITDA profitability, our ability to execute our strategic transformation toward Military/Government markets, U.S. Federal budget dynamics and their impact on defense procurement, our ability to develop and introduce new products and to secure customer orders for such products, competition, and other factors described from time to time in our reports filed with the OTC Disclosure & News Service. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.
About Vislink Technologies, Inc.
Vislink Technologies is a global technology leader in capturing, delivering, and managing high-quality live video and associated data. With a renowned heritage in video communications spanning over 50 years, Vislink has revolutionized live video communications by delivering the highest-quality video from the scene, even in the most challenging transmission conditions, enabling broadcasters, defense, and public safety agencies to capture and share live video seamlessly and securely. Vislink provides live streaming solutions using RF, bonded cellular, 5G, and AI-driven technologies. Vislink’s shares of common stock are publicly traded on the OTCID Basic Market under the ticker symbol “VISL.”
For more information, please visit www.vislink.com.
Investor Relations & Media Contact
investors@vislink.com
