CirTran Corporation Delivers Record Second Quarter: Q2 Revenue Increases 596%, Operating Profitability Accelerates

Q: How did CirTran (CIRX) perform in Q2 2026?

CirTran reported record Q2 2026 net sales of $1,171,666 , up 595.6% year over year. According to CirTran, it achieved income from operations of $160,628 , marking a second straight quarter of operating profitability and significantly narrowing losses from continuing operations.

Q: Did CirTran (CIRX) achieve profitability in the first half of 2026?

CirTran generated first-half 2026 net income of $2,112,777 , or $0.43 per share. According to CirTran, this includes $2,274,031 of income from discontinued operations tied mainly to extinguishment of time-barred debt, while continuing operations still showed a net loss.

Q: What were CirTran (CIRX) gross margin trends in Q2 2026?

CirTran’s Q2 2026 gross margin improved to 52.8% , up from 50.4% a year earlier. According to CirTran, gross profit rose 628.7% to $619,024 , reflecting higher-margin vapor product sales and the impact of much higher volumes on fixed production costs.

Q: How did operating expenses impact CirTran (CIRX) results in Q2 2026?

Operating expenses rose 64.8% to $458,396 in Q2 2026, far below revenue growth. According to CirTran, employee costs increased only 4.9%, while SG&A rose 111.9% due to promotional spending, supporting strong sales while still allowing positive operating income.

Q: How much time-barred debt did CirTran (CIRX) extinguish in first-half 2026?

CirTran reported extinguishing $2,324,279 in time-barred debt during the first half of 2026. According to CirTran, this generated most of the $2,274,031 income from discontinued operations, which turned the company’s overall first-half results from a net loss into reported net income.

Rhea-AI Impact

(Very High)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

CirTran (OTC:CIRX) reported record Q2 2026 results, with net sales of $1,171,666, up 595.6% from $168,435, driven by strong demand for its vapor products and broader retail distribution. Gross profit rose to $619,024, up 628.7%, lifting gross margin to 52.8% from 50.4%.

Income from operations reached $160,628, versus a $193,258 loss a year earlier, marking a second consecutive profitable quarter at the operating level. Operating expenses increased 64.8% to $458,396, well below the revenue growth rate, highlighting operating leverage.

For first-half 2026, net sales grew 270.8% to $2,333,019 and operating income was $196,750 versus a $236,531 loss. Net loss from continuing operations narrowed 74.5% to $161,254. Including $2,274,031 of income from discontinued operations tied mainly to extinguishment of $2,324,279 in time-barred debt, CirTran reported first-half net income of $2,112,777, or $0.43 per share, compared with a $718,186 loss, or ($0.14) per share, in 2025.

Positive

Q2 2026 net sales up 595.6% to $1,171,666
Q2 gross profit up 628.7% to $619,024; margin 52.8%
Q2 income from operations of $160,628 vs. $193,258 loss
First-half 2026 net sales up 270.8% to $2,333,019
First-half operating income $196,750 vs. $236,531 loss prior year
First-half net income $2,112,777, or $0.43 per share, vs. loss

Negative

Q2 net loss from continuing operations $95,517, or ($0.02) per share
First-half net loss from continuing operations $161,254, despite operating income
Q2 SG&A expenses up 111.9% to $329,829
First-half income heavily reliant on $2,274,031 from discontinued operations
Q2 total other expense remains high at $256,145

AI-generated analysis. How Rhea-AI works. Not financial advice.

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08/19/2026 - 10:30 AM

Company reports second consecutive quarter of operating profitability; first-half revenue surges 271% as
its product demand continues to accelerate

LAS VEGAS, Aug. 19, 2026 /PRNewswire/ -- CirTran Corporation (OTC: CIRX), a diversified consumer products company specializing in the manufacturing and distribution of HUSTLER^®-branded products, today announced financial results for the second quarter and six months ended June 30, 2026. The Company delivered its strongest quarterly performance on record, with Q2 net sales surging 595.6% year over year and the Company achieving operating income for the second consecutive quarter.

SECOND QUARTER 2026 HIGHLIGHTS

Net sales reached $1,171,666 for the second quarter of 2026, up 595.6% from $168,435 in the prior-year period, driven by accelerating demand for the Company's vapor product line and expanded retail distribution. Gross profit surged to $619,024, a 628.7% increase from $84,942 in Q2 2025, reflecting a robust 52.8% gross margin—a significant expansion from 50.4% in the year-ago quarter.

CirTran generated income from operations of $160,628 in the second quarter, compared to an operating loss of $193,258 in Q2 2025, marking the Company's second consecutive quarter of operating profitability. Total operating expenses increased 64.8% to $458,396—a fraction of the 595.6% revenue growth rate—demonstrating powerful operating leverage. Employee costs rose only 4.9% to $128,567, while the 111.9% increase in SG&A expenses to $329,829 reflects continued strategic investment in promotional activities to support the Company's rapidly expanding sales.

Net loss from continuing operations narrowed 81.8% to $95,517, or ($0.02) per share, from $524,489, or ($0.11) per share, in Q2 2025. Total other expense improved 22.7% to $256,145 from $331,231, driven by a significantly smaller loss on derivative valuation of $41,411 compared to $127,850 in the prior-year period.

FIRST HALF 2026 HIGHLIGHTS

For the six months ended June 30, 2026, net sales reached $2,333,019, up 270.8% from $629,251. Gross profit grew 204.7% to $1,082,406, up from $355,236, on a 46.4% gross margin. The Company achieved income from operations of $196,750 for the first half, compared to an operating loss of $236,531 in the prior-year period. Total operating expenses increased just 49.6% to $885,656 against the 270.8% revenue increase, reflecting disciplined cost management as the business scales.

Net loss from continuing operations improved 74.5% to $161,254 from $632,761. Including income from discontinued operations of $2,274,031—primarily from the extinguishment of $2,324,279 in time-barred debt—net income for the first half totaled $2,112,777, or $0.43 per share, compared to a net loss of $718,186, or ($0.14) per share, in the first half of 2025.

MANAGEMENT COMMENTARY

"Our second quarter results exceeded all expectations," said Iehab Hawatmeh, Chairman and Chief Executive Officer. "We nearly seven-times'd our year-ago quarterly revenue, posted a second consecutive quarter of operating profitability, and reduced our continuing-operations loss by over 80%. The vapor product category continues to drive extraordinary growth, and our cost discipline means more of every revenue dollar is falling to the bottom line.

ABOUT CIRTRAN CORPORATION

CirTran Corporation (OTC: CIRX) Celebrating its 32nd anniversary, CirTran has evolved from its origins as an electronics contract manufacturer into a global producer and distributor of products serving the adult lifestyle and entertainment marketplace. Leveraging strategic partnerships and targeted initiatives, the Company continues to diversify its product portfolio and expand its international footprint. With a renewed focus on innovation and market responsiveness, CirTran is building a platform for sustainable growth in high-demand consumer segments. For more information, visit the Company's SEC filings at www.sec.gov.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied. The Company undertakes no obligation to update forward-looking statements. Past performance is not indicative of future results.

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SOURCE CirTran Corporation

FAQ

How did CirTran (CIRX) perform in Q2 2026?

CirTran reported record Q2 2026 net sales of $1,171,666, up 595.6% year over year. According to CirTran, it achieved income from operations of $160,628, marking a second straight quarter of operating profitability and significantly narrowing losses from continuing operations.

What drove CirTran (CIRX) revenue growth in Q2 2026?

CirTran’s Q2 2026 revenue growth of 595.6% was driven primarily by accelerating demand for its vapor product line. According to CirTran, expanded retail distribution also contributed, helping net sales reach $1,171,666 compared with $168,435 in the same quarter of 2025.

Did CirTran (CIRX) achieve profitability in the first half of 2026?

CirTran generated first-half 2026 net income of $2,112,777, or $0.43 per share. According to CirTran, this includes $2,274,031 of income from discontinued operations tied mainly to extinguishment of time-barred debt, while continuing operations still showed a net loss.

What were CirTran (CIRX) gross margin trends in Q2 2026?

CirTran’s Q2 2026 gross margin improved to 52.8%, up from 50.4% a year earlier. According to CirTran, gross profit rose 628.7% to $619,024, reflecting higher-margin vapor product sales and the impact of much higher volumes on fixed production costs.

How did operating expenses impact CirTran (CIRX) results in Q2 2026?

Operating expenses rose 64.8% to $458,396 in Q2 2026, far below revenue growth. According to CirTran, employee costs increased only 4.9%, while SG&A rose 111.9% due to promotional spending, supporting strong sales while still allowing positive operating income.

What was CirTran (CIRX) net loss from continuing operations in Q2 2026?

CirTran’s Q2 2026 net loss from continuing operations narrowed to $95,517, or ($0.02) per share. According to CirTran, this compares with a $524,489 loss, or ($0.11) per share, in Q2 2025, reflecting higher gross profit and lower other expenses.

How much time-barred debt did CirTran (CIRX) extinguish in first-half 2026?

CirTran reported extinguishing $2,324,279 in time-barred debt during the first half of 2026. According to CirTran, this generated most of the $2,274,031 income from discontinued operations, which turned the company’s overall first-half results from a net loss into reported net income.