Rank One Computing Corp.

Second-quarter 2026 revenue was $5.1 million, up 2% year over year from $5.0 million. Product revenue was $2.1 million, down 26%, while R&D contract revenue was $3.0 million, up 41% from $2.1 million. Gross profit was $4.6 million and gross margin was 90%, versus gross profit of $4.0 million and gross margin of 80% a year ago. Operating expenses were $5.3 million, net loss was $0.8 million, and loss per share was $0.04 versus EPS of $0.04 in the prior-year quarter. The company ended the quarter with $11.9 million in cash, $14.8 million in working capital, and no outstanding debt. Management said it does not provide formal guidance, but expects stronger government performance in the second half and said the balance sheet supports continued investment in product development, deployment capacity, and customer acquisition.

Scott Swann said Q2 was ROC’s first full quarter as a public company and showed measurable progress in government contracting and commercial adoption across the Vision AI portfolio. He emphasized that government activity appears to be normalizing after a difficult 2025 marked by a continuing resolution and shutdown, and pointed to improving signals like awards, quotes, pricing, and solicitations. He framed the strategy as converting early beachhead wins into larger, longer-duration recurring programs, while acknowledging revenue will not be linear because government timing is unpredictable.

Cody Barnes highlighted that total revenue was $5.1 million, product revenue was $2.1 million, and R&D contract revenue was $3.0 million, with the latter boosted by an exercised option to expand an existing government R&D contract. He said gross margin expanded to 90% from 80% due to a higher-margin revenue mix and lower cost of sales, but warned that margin will fluctuate with the mix of software, services, hardware, and R&D contracts. He also noted operating expenses of $5.3 million were driven by continued investment in personnel, engineering, product development, and infrastructure, and said the company’s $11.9 million in cash and $14.8 million in working capital leave it comfortable and disciplined on capital allocation.

Analysts focused on the government funding environment, the conversion path from ABIS pilots to larger deployments, the outlook for ROC Watch after last year’s large deployment, the role of ZTC in accelerating ROC Evidence, and the meaning of recent benchmark awards. Management said government agencies are moving toward their September 30 obligation deadlines and that it is seeing more quotes, solicitations, and customer interaction, but reiterated that timing remains variable. On ABIS, Swann said the current pilots are early wins and that true beachhead deals would be multi-year, multi-million-dollar contracts; he also said the Watch business remains active but last year’s quarter was a spike, and he expects 2025 Q2 to make future comparisons tougher. On ZTC, management said integration is already underway and should help build a stronger Evidence product, while benchmark results and awards help in procurement decisions because customers value objective proof of performance.