Dubber Corporation Limited

Q2 FY26 reported revenue was $9.3 million, down 1% from the prior quarter. Recurring revenue was $7.8 million versus $8.2 million in Q1, with the decline mainly attributed to residual Cisco invoicing impact. Gross margin was 70%, up 1 percentage point from Q1. Operating cash-based costs were $9.5 million, down 12% quarter on quarter, and annualized cash-based costs were $38 million. Operating cash outflow was $11.2 million versus $13.1 million in Q1, and overall cash outflow for the quarter was $2.6 million before normalization; management said the normalized cash outflow was effectively nil after adjusting for one-offs and timing. Guidance-wise, Dubber expects a roughly $4.6 million payment in Q3 from the Tier 1 North American CSP, with subscription revenue to follow after the partner launches its product, and it continues to target underlying cash-flow breakeven in FY26.

Matthew Bellizia framed the quarter as progress back toward breakeven while emphasizing a strategic shift toward AI and higher-value software on top of Dubber’s global call-recording asset. He said the company is moving from damage control to growth, with more focus on product direction, sales, marketing, automation, and vertical-specific solutions that can increase revenue, reduce costs, or improve compliance. He also highlighted the North American CSP win as both a revenue driver and a market validation point after prior setbacks.

Prasad Kasinadhuni said Q2 revenue was $9.3 million and recurring revenue $7.8 million, with the recurring decline tied mainly to Cisco invoicing timing. He pointed to gross margin improvement to 70% and said cash-based operating costs fell to $9.5 million, helped by the exit of a surplus U.K. lease, workforce optimization, automation, and SaaS vendor rationalization. He also noted $8.6 million of receipts, $11.2 million of operating cash outflow, $765,000 from a directors’ capital raise, and an undrawn $5 million loan facility as of 31 December 2025.

Analysts focused on the quality of the pipeline, the remaining revenue roll-off from VMO2, the likelihood of further capital raises, and whether the recent ASIC action against BDO helps Dubber’s own claims. Management said the BDO proceedings are a positive validation signal, but recoveries remain uncertain. On VMO2, Bellizia said some revenue is still rolling off and he would not quantify it. He also said he does not expect another capital raise and is aiming to run the business to breakeven and then profitability.