Executive Summary

Strong beat and raised guide: Revenue $111.7M (+45% y/y; +7.3% q/q) vs S&P Global consensus $105.5M; Primary EPS $0.02 vs consensus -$0.008; FY26 revenue guidance raised to $435–$445M from $430–$440M . Revenue consensus and Primary EPS consensus from S&P Global estimates; see Estimates Context.*
Profitability and mix improved: Gross profit $62.6M (56.0% GM) vs $41.3M (54.0%) y/y; Adjusted EBITDA rose to $24.8M (22.2% margin) vs $14.5M (18.8%) y/y; services gross margin strengthened (62.2% GAAP; 77.4% adjusted) .
Non-GAAP methodology refined: Company removed the prior Fleet Complete contract-asset add-back from adjusted EBITDA; growth range (45–55%) unchanged but FY25 base reset to $67.1M from $71.1M; leverage glidepath updated to ~2.25x by Mar-26 (from <2.25x) .
Execution drivers and catalysts: Double-digit organic services ARR growth achieved ahead of plan; product rebound and channel momentum (AT&T, TELUS) support H2 acceleration; net leverage improved to 2.9x, maturity extension secured on Term Loan A .

What Went Well and What Went Wrong

What Went Well
- “Defining quarter... record revenue” with 7%+ sequential revenue growth driven by AI-powered SaaS and core markets; product revenue up 27% q/q and margins expanded sequentially (CEO) .
- Adjusted EBITDA up 71% y/y to $24.8M (22% margin), with services mix at 80% and services gross margin (adjusted) at 77% (CFO) .
- Channel traction and enterprise pipeline: 26% increase in new logo wins; 32% sequential increase in North America channel pipeline; AI video cross-sell pipeline up 23% (CRO) .
What Went Wrong
- GAAP net loss widened to $(4.3)M (–$0.03/share) on higher interest and amortization; margin expansion tempered ~4% by $4.6M incremental non-cash amortization .
- Macro/tariff sensitivity on CapEx-led product cycles earlier in year; although Q2 product margins improved to 31.5%, management remains cautious on customer CapEx timing .
- Non-GAAP presentation change reduced prior-period adjusted EBITDA base by $4.0M (removal of Fleet Complete contract asset add-back), requiring investor re-basing of leverage/EBITDA targets .

Financial Results

Revenue and segment mix (USD Millions)

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
Total Revenue	$77.0	$104.1	$111.7
Services Revenue	$56.7	$86.5	$89.3
Products Revenue	$20.3	$17.7	$22.4

Profitability and margins

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
Gross Profit ($M)	$41.3	$56.5	$62.6
Gross Margin %	53.7%	54.2%	56.0%
Adjusted EBITDA ($M)	$14.5	$21.6	$24.8
Adjusted EBITDA Margin %	18.8%	20.8%	22.2%
Services Gross Margin % (GAAP)	61.7%	60.2%	62.2%
Products Gross Margin % (GAAP)	31.4%	25.1%	31.5%

Earnings and adjusted results

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
GAAP Net Loss/Share	$(0.02)	$(0.08)	$(0.03)
Adjusted Net Income ($M)	$0.47	$0.96	$2.06
Adjusted EPS (Basic)	—	$0.01	$0.02

Leverage and liquidity

Metric	Q4 FY2025 (Mar-31)	Q1 FY2026 (Jun-30)	Q2 FY2026 (Sep-30)
Net Debt ($M)	$225.0	$234.8	$242.6
Adjusted Net Debt/Adj. EBITDA (TTM)	3.4x	2.97x	2.9x
Total Debt ($M)	$273.8	$270.4	$275.1
Cash & Equivalents ($M)	$48.8	$35.6	$32.5

Notes: Company removed Fleet Complete pre-10/1/24 contract asset add-back from adjusted EBITDA in Q2; historical figures revised accordingly .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY2026	$430–$440M (raised in Q1)	$435–$445M	Raised
Adjusted EBITDA Growth	FY2026	+45–55% on FY25 adj. EBITDA $71.1M	+45–55% on FY25 adj. EBITDA $67.1M	Base re-stated (methodology refined)
Net Leverage (Adj. Net Debt/Adj. EBITDA)	FY2026 Exit	Improve 3.2x → <2.25x by Mar-26	Improve 3.4x → ≈2.25x by Mar-26	Start point revised; target ≈unchanged
CapEx and Financial Assumptions	FY2026	CapEx ~11.5% of revenue; interest ~9%; cash taxes ~10% of EBITDA	Reiterated in outlook commentary	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY2025, Q1 FY2026)	Current Period (Q2 FY2026)	Trend
AI/Tech initiatives	ABI ranked Unity #1 globally for platform/innovation; AI video pipeline up; Unity data highway scaling	Continued AI video momentum; CRO cited 23% expansion in video pipeline; Frost & Sullivan Product Leadership Award	Improving
Supply chain/tariffs	Tariffs elongated product cycles; mitigation actions reduced CoS risk <$5M expected	Product margins rebounded to 31.5%; management still cautious on CapEx decisions	Stabilizing
Channel partners	AT&T/TELUS activation; major EU and NA telco partners in pipeline	NA channel pipeline +32% q/q; global channel bookings up; MTN momentum	Improving
Product performance	In-warehouse up 71% y/y in FY25; Q1 product margin pressured (25.1%)	Sequential product revenue +27%; product margin 31.5%	Improving
Regional trends	International operations +13% organic in FY25	North America double-digit y/y growth (CRO)	Improving
Leverage/Balance Sheet	Net debt $225M; target <2.25x by year-end FY26	Net debt $242.6M; 2.9x; target ≈2.25x; extended TLA maturity to 2028	Improving leverage; extended runway

Management Commentary

Strategic framing: “Q2 was a defining quarter… record revenue and strong performance across key financial and operational metrics… expanding momentum in our AI-powered SaaS solutions” (CEO) .
Profit focus: “Adjusted EBITDA increased 23% sequentially and 71% year-over-year to $24.8 million… Adjusted EBITDA margin increased to 22%” (press release) .
Non-GAAP refinement: “Following consultation with the SEC… adjusted EBITDA will no longer include… recognition of pre-Oct 1, 2024 contract assets (Fleet Complete)” (CFO) .
Go-to-market: “North America… double-digit year-over-year revenue performance… 26% increase in new logo wins… 32% sequential increase in quarterly pipeline” (CRO) .

Q&A Highlights

Organic growth trajectory: Management reiterated confidence in double-digit organic growth exiting FY26; cited strong pipeline and channel activation for FY27 .
CapEx/tariffs: Macro/tariff uncertainty had “weathering effect” on CapEx-heavy in-warehouse deals earlier; rebound seen and financing options to aid decisions .
Channel momentum: Partners AT&T and TELUS ramping; North America channel pipeline +32% q/q; additional NA/EU telcos signed and expected to contribute into FY27 .
Regional outlook and hedging: North America double-digit growth; balance-sheet hedging with ILS and ZAR debt to mitigate FX .
Warehouse solutions: Analyst cited 67% growth; management said gains are broad-based across customers and markets .

Estimates Context

Q2 FY2026 versus S&P Global consensus

Metric	Consensus*	Actual
Revenue ($M)	$105.5*	$111.7
Primary EPS ($)	-$0.008*	$0.02*
EBITDA ($M)	$24.0*	$22.1*

Notes:

Company-reported GAAP diluted EPS was -$0.03; adjusted EPS was $0.02 . S&P Global “Primary EPS” actual shown above differs from GAAP; compare definitions carefully.*
Company-reported adjusted EBITDA was $24.8M (22.2% margin); S&P Global’s EBITDA actual above reflects a different basis and is not directly comparable to adjusted EBITDA .*

Values retrieved from S&P Global.*

Key Takeaways for Investors

Revenue and EPS beat with guidance raise: The beat was driven by services strength and a product rebound; FY26 revenue guide edged up, signaling confidence in H2 pipeline conversion .
Quality of earnings improving: Mix shift to high-margin services and synergy execution expanded adjusted EBITDA margin to 22.2% with further leverage targeted in H2 .
Methodology change cleans comparability: Removing the Fleet Complete add-back lowers the FY25 base but aligns adjusted EBITDA more closely with ongoing operations; growth range intact .
Channel flywheel building: Telco/channel momentum (AT&T, TELUS, MTN) and enterprise wins should support sustained double-digit services growth into FY27 as partners scale .
Product trajectory stabilizing: Tariff headwinds abated sequentially with product margins back to 31.5%; continued caution on CapEx timing remains prudent .
Deleveraging path credible: Net leverage improved to 2.9x; company targets ~2.25x by year-end FY26 and extended loan maturity, supporting flexibility for growth investments .
Trading setup: Narrative skewed positive (beat/raise, margin expansion, channel activation). Monitor conversion of H2 pipeline, services mix durability, and any macro/tariff relapse impacting product margins and cash conversion .

Appendices

Supplemental GAAP disclosures (Q2 FY2026)

Income statement (condensed): Total revenue $111.679M; gross profit $62.589M; SG&A $54.151M; R&D $4.194M; operating income $4.244M; net loss to common $(4.288)M; basic/diluted EPS $(0.03) .
Balance sheet (Sep-30-2025): Total debt $275.112M; cash $27.898M; total assets $936.893M; equity $468.979M .
Cash flow (6M ended Sep-30-2025): CFO $10.243M; CFI $(23.880)M; CFF $(3.327)M -.

Referenced awards/press

Frost & Sullivan 2025 North America Product Leadership Award for Unity .

All document facts are cited to company filings/press materials as indicated.

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