BOARDWALKTECH REPORTS SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS

Core Viewpoint - Boardwalktech Software Corp. reports financial results for Q2-FY26, indicating challenges in revenue growth but anticipating improved performance in the second half of the fiscal year due to customer expansions and new license agreements [3][6]. Financial Performance - Revenue for Q2-FY26 was $1 million, a 4% increase from $0.9 million in Q1-FY26 but a 25% decrease from $1.3 million in Q2-FY25, primarily due to two customer non-renewals [6]. - Annual recurring revenue (ARR) as of September 30, 2025, was $3.8 million, defined as expected annual revenue from license subscriptions and certain recurring services [6]. - Gross margin for Q2-FY26 was 86.7%, up from 83.5% in Q1-FY26 but down from 88.7% in Q2-FY25 [6]. - Adjusted EBITDA for Q2-FY26 was a loss of $(0.4) million, showing a 44% improvement from a $(0.6) million loss in Q1-FY26 [6]. - Net loss for Q2-FY26 was $(0.5) million, compared to $(0.9) million in Q1-FY26 and $(0.7) million in Q2-FY25, indicating a 44% sequential improvement [6]. Operational Insights - The CEO noted that customers are leveraging Boardwalktech's Velocity and Digital Ledger successes, leading to expanding deployments and increased user adoption [3]. - The company is focused on completing several late-stage license agreements and upgrade projects with existing customers, which are expected to enhance professional services revenues and ARR [3]. - Cost-reduction initiatives implemented in August 2025 are anticipated to support the company's path to EBITDA break-even [3]. Technology and Market Position - Boardwalktech has developed a patented Digital Ledger Technology Platform utilized by Fortune 500 companies for mission-critical applications [4]. - The platform allows multiple parties to work on the same data simultaneously while maintaining data fidelity and provenance, distinguishing it from non-digital ledger technology platforms [4]. - The company operates from Cupertino, California, with additional offices in India and North America, indicating a broad operational footprint [4].