Earnings call transcript: Sabio Holdings misses Q2 2026 estimates as growth bets build

Sabio Holdings reported a loss of 7 cents per share and $8.23 million in revenue for the second quarter of 2026, falling short of Wall Street estimates. Despite this miss, the company's stock rose 5% to 11 cents after trading at 10 cents, positioning it near the low end of its 52-week range. The earnings decline was primarily due to a 17% drop in consolidated gross revenue, which fell from $11.7 million to $9.7 million.

This decline was mainly attributed to the absence of about $2.5 million in political and advocacy revenue, which typically occurs later in election years.

However, Sabio Holdings pointed to growth in programmatic advertising, international expansion, and owned inventory as factors driving the business's transformation. The company reported an improvement in gross margins, widening to 61% from 53% in Q1, and an adjusted EBITDA loss narrowed to $2.7 million from $3.4 million in the previous quarter. These improvements can be attributed to better supply agreements, technology efficiencies, and a higher mix of higher-margin sales.

While the revenue shortfall was substantial, management noted that the quarter was seasonally soft, and the absence of political and advocacy spending weighed on results. The company's recurring revenue accounted for 82% of total revenue, with U.S. recurring revenue reaching 92%, providing better visibility for the business. Sabio Holdings expects adjusted EBITDA to return to profitability in the second half of 2026, supported by cost savings, stronger margins, secured political and advocacy commitments, and continued growth in U.S. programmatic and EMEA markets.