Altigen Communications, Inc.

Altigen reported third-quarter fiscal 2026 revenue of $3 million, down from $3.5 million in the prior-year quarter. GAAP net income was $15 thousand, or $0.00 per share, versus $110 thousand, or $0.00 per share, last year; non-GAAP net income was $190 thousand, or $0.01 per share, versus $350 thousand, or $0.01 per share. Cloud services revenue was approximately $1.4 million, down 18% year over year, and services/other revenue was approximately $1.5 million, down 8%. Gross margin was 58% versus 63% last year, and GAAP operating expenses were $1.7 million, down 18% from $2.1 million. Cash and cash equivalents were $3.4 million at quarter end, up from $2.75 million at September 30, 2025, and adjusted EBITDA was $423 thousand versus $645 thousand a year ago. Management did not provide formal next-quarter or full-year financial guidance on the call, but said fourth-quarter priorities are to keep growing recurring revenue, expand adoption of CoreEngage and CoreInteract, leverage the Fiserv relationship, and continue investing in AI-powered solutions.

The CEO framed the quarter as evidence that Altigen’s transformation is starting to work, saying newly contracted cloud revenue exceeded revenue lost to legacy churn for the first time and that most legacy churn is now behind the company. He emphasized the shift toward an AI-powered customer engagement platform built around CoreInteract, CoreEngage, and CoreInsights, targeting larger mid-market and enterprise customers with longer retention and more expansion potential. His tone was optimistic but execution-focused, repeatedly stressing that the company is still in the middle of a transition and now needs to convert the pipeline into recurring revenue.

The CFO said Q3 revenue was $3 million, with GAAP net income of $15 thousand and non-GAAP net income of $190 thousand. He noted gross margin was 58%, down from 63% last year, due to lower revenue and increased professional services costs tied to new project work, while operating expenses fell 18% to $1.7 million, helping the company remain profitable. He also pointed to $3.4 million in cash and cash equivalents, up from $2.75 million at September 30, 2025, and said adjusted EBITDA was $423 thousand versus $645 thousand last year.

There was no substantive analyst Q&A; the operator opened the session but no questions were asked before the call ended. As a result, there were no additional management clarifications on margins, pipeline timing, or outlook beyond the prepared remarks.