Boardwalktech Software (BWLK) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue reached $1 million, up 4% sequentially but down 25% year-over-year due to two customer non-renewals.

• Gross margin improved to 86.7% from 83.5% in Q1 FY26, though slightly below 88.7% in Q2 FY25.

• Adjusted EBITDA loss narrowed to $(0.4) million, a 44% improvement sequentially and flat year-over-year.

• Net loss for Q2 FY26 was $(0.5) million, a 44% sequential improvement, driven by higher revenue and lower costs.

Financial highlights

• Annual recurring revenue (ARR) at September 30, 2025, was $3.8 million.

• Cash at quarter-end was $0.04 million, with $0.6 million in receivables; operational cash usage decreased by $1.6 million year-over-year.

• Outstanding debt stood at $2.6 million, reclassified as current liability under IFRS, with maturity in March 2027.

Outlook and guidance

• Anticipates improved revenue in the second half of FY26, contingent on closing late-stage license agreements.

• Ongoing and completed customer upgrade projects expected to boost professional services revenue and ARR.

• Cost-reduction initiatives and anticipated growth position the company to approach EBITDA break-even soon.