Kidoz Reports Record Q2 2026 Revenue, up 37%, as H1 Revenue Reaches US$6.28 Million (CAD$8.66 Million)
Rhea-AI Summary
Kidoz (OTCQB:KDOZF, TSXV:KDOZ) reported record Q2 2026 revenue of $3.33 million, up 37% year over year, and H1 2026 revenue of $6.28 million, up 22%. Q2 gross profit rose 22% to $1.42 million, though gross margin declined to 42.5% from 47.8%.
Q2 operating expenses increased 29% to $2.99 million, including bonuses and incentive compensation of $862,863. Q2 net loss widened to ($1.56 million) from ($1.17 million). For H1, net loss was ($2.37 million) versus ($1.11 million) in 2025. Cash declined to $1.33 million and working capital to $2.89 million as of June 30, 2026, compared with December 31, 2025.
Positive
- Q2 2026 revenue up 37% YoY to $3.33 million
- H1 2026 revenue up 22% YoY to $6.28 million
- Q2 2026 gross profit up 22% YoY to $1.42 million
- H1 2026 gross profit up 8% YoY to $2.67 million
Negative
- Q2 2026 gross margin fell to 42.5% from 47.8%
- H1 2026 gross margin fell to 42.6% from 48.1%
- Q2 2026 operating expenses up 29% YoY to $2.99 million
- H1 2026 operating expenses up 38% YoY to $5.10 million
- Q2 2026 net loss widened to ($1.56 million) from ($1.17 million)
- H1 2026 net loss widened to ($2.37 million) from ($1.11 million)
- Cash balance declined to $1.33 million from $4.45 million
- Working capital declined to $2.89 million from $5.08 million
AI-generated analysis. How Rhea-AI works. Not financial advice.
VANCOUVER, BC / ACCESS Newswire / August 26, 2026 / Kidoz Inc. (TSXV:KDOZ)(OTCQB:KDOZF), a full-stack global advertising platform powered by contextual AI, enabling brand performance in mobile games without reliance on personal data, today announced its unaudited condensed interim financial results for the three and six months ended June 30, 2026. All amounts are presented in United States dollars and are in accordance with United States Generally Accepted Accounting Principles.
Kidoz delivered record second-quarter revenue and year-over-year growth in both the second quarter and first half of 2026. Q2 revenue increased
Q2 2026 Financial Result Summary
Total Revenue of
$3,334,835 , an increase of37% compared with$2,430,216 in Q2 2025.Gross Profit of
$1,418,582 , an increase of22% compared with$1,161,972 in Q2 2025. Gross margin was42.5% compared with47.8% in the prior-year quarter.Sales and Marketing expenditure of
$665,828 , an increase of50% from$444,520 in Q2 2025.Content and Software Development expenditure of
$895,692 , an increase of10% from$816,153 in Q2 2025.Operating expenses of
$2,990,617 , an increase of29% from$2,320,314 in Q2 2025.Net loss and comprehensive loss of (
$1,558,343) , compared with a net loss and comprehensive loss of ($1,171,483) in Q2 2025.
H1 2026 Financial Result Summary
Total Revenue of
$6,281,576 , an increase of22% compared with$5,168,519 in H1 2025.Gross Profit of
$2,673,688 , an increase of8% compared with$2,484,316 in H1 2025. Gross margin was42.6% compared with48.1% in the prior-year period.Sales and Marketing expenditure of
$1,291,928 , an increase of69% from$764,784 in H1 2025.Content and Software Development expenditure of
$1,828,895 , an increase of23% from$1,491,680 in H1 2025.Operating expenses of
$5,103,123 , an increase of38% from$3,686,645 in H1 2025.Net loss and comprehensive loss of (
$2,372,907) , compared with a net loss and comprehensive loss of ($1,111,340) in H1 2025.
Cash of
"Kidoz delivered record second-quarter revenue, with revenue increasing
"It is also important to put the Q2 expense profile and reported loss in the proper context. Our bonuses and incentive compensation are paid across the organization in the second quarter and are based on the prior year's performance. The 2026 payment therefore reflects the team's strong performance in 2025. This compensation structure is deliberate: rather than carrying a higher fixed-salary base throughout the year, we seek to keep recurring salaries disciplined and place a meaningful portion of compensation in annual, performance-based incentives. We believe this is a sensible allocation of capital because it aligns a greater share of employee compensation with Company performance and rewards the people responsible for delivering that performance."
"In Q2 2026, bonuses and incentive compensation were
"It is also important to view our investment levels against the historical pattern of our business. In prior years, a significant proportion of annual revenue has been generated in Q4, while investments in product development, technology, sales and personnel are incurred throughout the first three quarters. We therefore believe quarterly results should be considered in the context of this historical revenue pattern and the investments made to support the business. This is not guidance for any future quarter, but it is relevant context for our investment levels and quarterly profitability."
"We are balancing cost discipline with investment behind an expanding opportunity. With record Q2 revenue, growth of
Additional Financial Information
The Company's financial statements note that, in the second quarter of 2026, certain server costs were reclassified from content and software development to cost of sales, and bonuses and incentive compensation were reclassified from several operating expense categories to a separate bonus and incentive compensation line. Comparative 2025 results were recast for presentation purposes. These reclassifications did not affect total income from operations. The separate presentation makes the annual bonus expense more visible in the quarter and should be considered when comparing Q2 operating expense levels.
For full details of the Company's operations and financial results, please refer to the Securities and Exchange Commission website at www.sec.gov, the Kidoz Inc. investor website at https://investor.kidoz.net, or the SEDAR+ website at https://www.sedarplus.com.
About Kidoz Inc.
Kidoz Inc. (TSXV:KDOZ)(OTCQB:KDOZF) (www.kidoz.net) is a full-stack global advertising platform powered by contextual AI, enabling brand performance in mobile games without personal data.
Originally developed for children's digital environments, where compliance and safety requirements are among the highest, Kidoz delivers privacy-first advertising without reliance on personal data tracking or behavioural profiling. Its technology combines proprietary SDK integrations, the Kidoz Privacy Shield, and the Kite IQ contextual AI engine to match advertising to content, environment, and geography, in alignment with COPPA, GDPR-K, Apple ATT, and global standards.
The platform supports both children's and all-ages audiences through its Kidoz and Prado offerings, enabling brands to scale performance across the global mobile gaming ecosystem using safe, trusted, contextual, privacy-first targeting.
Google-certified and Apple-approved, Kidoz reaches a global audience across mobile apps and games and is trusted by leading global brands.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Specifically, readers should read the Company's Annual Report on Form 20-F, filed with the SEC and the Annual Financial Statements and Management Discussion & Analysis filed on SEDAR on April 29, 2026, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, and the TSX Venture Exchange Listing Application for Common Shares filed on June 29, 2015 on SEDAR, for a more thorough discussion of the Company's financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Kidoz Inc.
For more information contact:
Henry Bromley
CFO
ir@kidoz.net
(888) 374-2163
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Kidoz Inc.
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