C3ai's Financial Challenges and Strategic Partnerships: A Balanced Hold RecommendationAfter a dismal Q1, which saw subscription revenue contract >30% on a sequential basis, C3's FQ2'26 was comparatively much better. That's not to say it was great - total revenue of $75M still declined 20% on a yoy basis, NG gross margins remained depressed at 55% due to greater IPD mix, and NG operating margins of (56%) remain a far cry from break- even. So as bad as Q1 was, the silver lining is that the business is headed in the right direction, and we've been impressed by the poise, presence, and technical acumen of fresh CEO Stephen Ehikian in his short time at the company. It's never easy stepping in as CEO for a business in major flux.