Sabio Holdings lost 7 cents a share in the second quarter. Analysts had expected a loss of 2 cents. Revenue came in at $8.23 million against an estimate of $11.9 million, according to Investing.com. The stock rose 5% anyway.
The company, a Los Angeles-based ad-tech firm listed on the TSX Venture Exchange, put out its numbers on August 19, 2026. Consolidated gross revenues were $9.7 million. A year earlier the figure was $11.7 million, a drop of 17%.
Why revenue fell
Politics. In election years, political and advocacy ad spending piles up in the third and fourth quarters, and about $2.5 million of it was missing from this one. Strip it out and the core business grew 6% from a year ago.
The adjusted EBITDA loss was $2.7 million. That is wider than the $1.2 million loss of Q2 2025 but narrower than the $3.4 million lost in the first quarter. The IFRS net loss was approximately $3.9 million, up from approximately $1.4 million a year before.
Gross margin rose to 61% from 53% in Q1, which Sabio credited to better supply agreements, technology efficiencies and a richer revenue mix.
Growth pockets
U.S. Programmatic revenue hit $2.9 million, against $0.8 million in Q2 2025. U.S. Programmatic customers rose 116% year over year, and about 90% of them renewed from Q1 into Q2. EMEA revenue reached $1.9 million, and first-half EMEA sales of $5.0 million already equal all of 2025. Together the two lines made up 49% of gross sales, up from 10% a year earlier.
The company added 46 new customer logos worldwide, up 77%. Recurring revenue was 82% of the total, and 92% in the U.S.
“Q2 provides early indications that the investments we have made in key growth areas … are beginning to pay off through customer growth, retention and margin acceleration,” said CEO Aziz Rahimtoola.
Cash and the second half
Sabio ended the quarter with $1.5 million in cash and $6.1 million in debt, Investing.com reported. On August 5 it secured a US$1.5 million term loan with a nine-month term and 25% annual interest, generally paid in kind, to help buy higher-margin supply before the political season. It was fully advanced on August 13.
Management says more than $5 million in political and advocacy commitments are already secured for the second half. Cost cuts should save about $1.2 million this year and more than $2 million annualized. Rahimtoola said he expects adjusted EBITDA to return to profitability in the second half of 2026.
Sources
- Sabio Announces Second Quarter 2026 Results
- Earnings call transcript: Sabio Holdings misses Q2 2026 estimates as growth bets build
