Adcore Inc.

For Q2 2026, Adcore reported revenue of $7.2 million, up 10% year over year from $6.5 million. Gross profit was $3.7 million, up 19% from $3.1 million, and gross margin improved to 51% from 47%. Operating loss was $600 thousand versus $500 thousand a year ago, and net loss was $800 thousand versus $400 thousand last year. For the first half, revenue was almost $16 million, up 16% year over year, and gross profit was almost $7 million, up 10%. Cash and cash equivalents were $4 million at June 30, 2026, and the company is debt free. Management did not give formal quarterly or full-year financial guidance, but said it expects Q4 to be the strongest quarter seasonally and is aiming for SG&A to fall by 15% to 20% by Q4 after executing most of the savings in Q3.

Omri Brill described Q2 as a very strong quarter and said the business is seeing a positive trend in both top line and gross profit. He emphasized that Adcore is shifting toward more profitable revenue streams, which is helping margin expansion, and said the company expects gross margin to remain solid despite normal Q4 seasonality. Strategically, he framed the company as having rapidly evolved into an agent-first, generative-first platform, with Proposaly and AI Studio now much more mature and already producing revenue or early traction.

Amit Konforty highlighted 10% revenue growth, 19% gross profit growth, and gross margin expansion to 51% in Q2. He also cited R&D of $600 thousand, up from $500 thousand, mainly due to increased AI-related tools, and SG&A of $3.7 million, up 22% year over year due mostly to payroll and some FX impact. Cash and cash equivalents were $4 million at quarter-end, down from $10.3 million at December 31, 2025, total working capital was $3.1 million, and the company remained debt free. Adjusted EBITDA was $41 thousand versus $155 thousand a year ago, with the decline tied to the higher operating loss.

Analysts focused on gross margin expansion, North America’s rebound, the pace of AI agent execution, seasonal cash/working-capital patterns, and the planned OpEx reduction. Management said margin improvement is coming from a deliberate mix shift toward more profitable revenue streams, while North America’s recovery is being driven mainly by better activity from existing clients. On the AI side, Omri said the company delivered 5 agents instead of the 3 it had originally targeted, and Kobi said early clients are praising the time and cost savings from the platform. On cash and costs, Amit said H1 working-capital declines are seasonal and should recover in H2, while Omri said most of the 15% to 20% SG&A reduction should be implemented in Q3.