Stable ARR Run Rate
Annual recurring revenue (ARR) run rate remained steady at $23.0M on a constant currency basis, indicating resilience in subscription and maintenance revenue.
Strong Quarterly Sales Orders and New Bookings
Sales orders totaled $6.8M for the quarter, including $3.1M of new sales. Renewals represented ~40% of sales orders ($2.9M) and add-ons/expansions were just over $0.9M (~14%), signaling ongoing customer commitment and healthy pipeline activity.
Improved Operating Cash Flow and Strong Balance Sheet
Cash receipts from customers were $7.9M in the quarter (driving positive operating cash flow for Q2). Total payments were $7.9M, and the company closed the quarter with $18.5M in cash and zero debt, providing runway to execute the reset strategy.
Cost Reductions and Operational Efficiency
Total payments were down 9% versus the same quarter last year and 6% lower than Q1, reflecting efficiency and cost reduction initiatives (IT reductions, licensing optimization and contract renegotiations) without materially increasing marketing spend.
Product and Commercial Milestones — Flamingo Launch and First Customer
Launched Flamingo architecture publicly (move from archive to architecture) and signed the first Flamingo architecture customer in Q2 FY'26 — the first brand-new direct customer since July 2023. Flamingo is modular and expected to begin contributing meaningfully to ARR in H2 FY'26 and into FY'27.
Regulatory Approval and International Expansion
eUnity Viewer received a new CE certificate under EU Medical Device Regulations, preserving access to European and critical Middle Eastern markets. The company also expanded development capability with hires in Malaysia and launched intern programs in North America and Malaysia to scale engineering cost-effectively.
Improved Customer Engagement and Early KLAS Gains
Early gains in eUnity KLAS scores and positive direct customer feedback were reported, attributed to a new 'flight crew' customer engagement operating model and renewed focus on responsiveness and accountability.
Strengthened Partnerships and Commercial Focus
Expanded partner engagement with AWS, Dell and Ingram, reenergized commercial leadership, and targeted marketing (RSNA) generated high-quality leads and deeper partner interactions to support scaled go-to-market execution.