MIND CTI Reports Second Quarter 2026 Results
Rhea-AI Summary
MIND CTI (Nasdaq: MNDO) reported Q2 2026 revenues of $4.6 million, down from $4.8 million in Q2 2025, mainly due to weaker messaging. Operating income rose to $0.7 million (15% margin) from $0.3 million (6%), and net income increased to $0.8 million, or $0.04 per share, versus $0.5 million, or $0.02 per share.
For the first six months of 2026, revenues were $9.7 million, flat year over year, with operating income up to $1.6 million (17% margin) and net income of $1.6 million ($0.08 per share). Cash, short-term deposits and marketable securities totaled $13.5 million on June 30, 2026. The company completed the cash payments for the Aurenz acquisition and has repurchased 617,000 shares for about $674,000 under a $2.4 million buyback plan.
MIND CTI also disclosed two Nasdaq notifications: one regarding minimum bid price noncompliance with a cure period to December 21, 2026, and another regarding audit committee composition, with a cure period until the earlier of the next annual meeting or August 1, 2027.
Positive
- Q2 2026 operating margin improved to 15% from 6% year over year
- Q2 2026 net income increased to $0.8M, $0.04 per share
- H1 2026 operating income rose to $1.6M, 17% of revenues
- H1 2026 net income grew to $1.6M, $0.08 per share
- Cash, deposits and marketable securities reached $13.5M at June 30, 2026
- Share repurchases of 617K shares for approximately $674K under buyback plan
Negative
- Q2 2026 revenues declined to $4.6M from $4.8M year over year
- Q2 2026 operating cash flow fell to $0.1M from $0.9M
- H1 2026 operating cash flow dropped to $0.7M from $1.6M
- Nasdaq minimum bid price noncompliance with cure period to December 21, 2026
- Nasdaq audit committee composition noncompliance, cure period to August 1, 2027
- Management outlook references anticipated mid-term revenue decline and competitive pressure
News Explained
The Nasdaq notices do not currently suspend MIND CTI’s listing: its ordinary shares continue trading during cure periods ending
Market Reaction – MNDO
Following this news, MNDO has declined 2.80%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.04.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 11 | Q1 earnings report | Positive | -8.8% | Higher profitability accompanied a major-customer non-renewal warning for March 2027. |
| Mar 10 | Q4 earnings report | Negative | -3.2% | Revenue declined year over year while the company introduced a share repurchase program. |
| Nov 12 | Q3 earnings report | Positive | +6.8% | Follow-on orders and an infrastructure upgrade accompanied quarterly profitability and repurchase authorization. |
| Aug 11 | Q2 earnings report | Negative | -3.0% | Revenue and operating income declined after the Aurenz acquisition and dividend distribution. |
| May 06 | Q1 earnings report | Negative | -3.3% | Revenue, operating income, and net income declined amid customer-care and billing challenges. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events generally had negative 24-hour price reactions, with an average move of -2.31%.
Key Terms
minimum bid price requirement regulatory
audit committee requirement regulatory
marketable securities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
* MIND Receives Nasdaq Notifications
YOQNEAM, Israel, Aug. 06, 2026 (GLOBE NEWSWIRE) -- MIND C.T.I. LTD. (NasdaqGM: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers, unified communications (UC) analytics for enterprises as well as enterprise messaging solutions, today announced results for its second quarter ended June 30, 2026.
The following will summarize our major developments in the second quarter of 2026 as well as our business. The financial results can be found in the Company News section of our website at http://www.mindcti.com/company/news/ and in our Form 6-K.
Financial Highlights
- Revenues were
$4.6 million , compared with$4.8 million in the second quarter of 2025, with the decrease mainly attributed to the messaging segment. - Operating income was
$0.7 million , or15% of total revenues, compared with$0.3 million , or6% of total revenues in the second quarter of 2025, with the increase mainly attributed to a different revenue mix with improved margins. - Net income was
$0.8 million , or$0.04 per share, compared with$0.5 million , or$0.02 per share in the second quarter of 2025. - Cash flow from operating activities was
$0.1 million , compared with$0.9 million in the second quarter of 2025.
Six Months Financial Highlights
- Revenues were
$9.7 million , same as in the first six months of 2025. - Operating income of
$1.6 million , or17% of total revenues, compared with$0.6 million or7% of total revenues in the first six months of 2025 (that included an allowance for credit loss of a specific customer, as well as acquisition related costs) - Net income of
$1.6 million , or$0.08 per share, compared with$1.0 million , or$0.05 per share in the first six months of 2025. - Cash flow from operating activities in the first six months of 2026 was
$0.7 million , compared with$1.6 million in the first six months of 2025.
Monica Iancu, MIND CTI’s interim CEO, commented: “As I step back into the leadership role at MIND, my primary focus is to reinforce our foundational customer relationships and maximize the value of our technology roadmap. Alongside our newly appointed Chief Business Officer, Orly Sorokin, we are implementing proactive measures to pursue new opportunities, strengthen the Company’s long-term stability, and create sustainable value for our shareholders. The telecommunications and enterprise messaging spaces remain highly competitive, placing ongoing price pressures on our core segments. Our strong cash position and ongoing long-term profitability give us the flexibility to navigate these market challenges. We will continue to optimize our organizational structure while maintaining the high-quality support and execution that our global customers expect from MIND. Our immediate priority is to offset the anticipated mid-term revenue decline by accelerating commercial efforts."
Cash Position and Buyback Update
Our cash position, including short-term deposits and marketable securities, was
The increase in the cash position, resulting from ongoing positive cash flow, was partially offset by three events.
As previously announced, we completed the acquisition of Aurenz in the first quarter of 2025. An initial cash payment of
In addition, the cash position was also impacted by a withholding tax of approximately
As previously announced, MIND’s Board of Directors authorized a new share repurchase plan on November 12, 2025, allowing the Company to repurchase ordinary shares in the open market for up to
Under the repurchase program, share purchases may be made from time to time, depending on market conditions, share price, trading volume, and other factors. The repurchase program may be suspended from time to time or discontinued.
Revenue Distribution for Q2 2026
Revenues in Europe represented
Revenues from our customer care and billing software were
Revenues from maintenance and additional services were
Revenue Distribution for the First Six Months of 2026
Revenues in Europe represented
Revenues from our customer care and billing software were
Revenues from maintenance and additional services were
Nasdaq Letters
On June 23, 2026, we received a letter from Nasdaq indicating that the Company is no longer in compliance with the minimum bid price requirement for continued listing. We were provided a compliance period of 180 calendar days, or until December 21, 2026, to regain compliance with the minimum bid price requirement. In the event the Company does not regain compliance by the end of the compliance period, the Company may then be eligible for an additional period to regain compliance. If it appears to Nasdaq’s staff that the Company will not be able to cure the deficiency by the end of the compliance period, or if the Company is otherwise not eligible for an additional compliance period, Nasdaq’s staff will notify the Company that its ordinary shares will be subject to delisting.
The Company intends to actively monitor the closing bid price of its ordinary shares and will consider available options to resolve the deficiency and regain compliance with the minimum bid price rule. However, there can be no assurance that the Company will be able to regain compliance with the minimum bid price rule.
On August 3, 2026, we received a letter from Nasdaq indicating that, due to the resignation of Ms. Orly Sorokin from the Company’s Board of Directors and Audit Committee, the Company no longer complies with Nasdaq’s audit committee requirement as set forth in Listing Rule 5605(c)(2).
However, consistent with Listing Rule 5605(c)(4), Nasdaq will provide the Company with a cure period to regain compliance until the earlier of the Company’s next annual shareholders’ meeting or August 1, 2027. The Company must submit documentation to Nasdaq, including biographies of any new directors, evidencing compliance with the rules no later than this date. In the event the Company does not regain compliance by this date, Nasdaq rules require Nasdaq staff to provide written notification to the Company that its securities will be delisted. At that time, the Company may appeal the delisting determination to a Hearings Panel.
The Company intends to correct this deficiency and regain compliance at the annual general meeting to be held in May 2027.
These letters have no immediate effect on the listing of the Company’s ordinary shares. During the applicable compliance periods, as may be extended, the Company’s ordinary shares will continue to trade on Nasdaq under the symbol “MNDO.”
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product-based solutions for service providers, unified communications analytics as well as enterprise messaging solutions. MIND provides a complete range of billing applications for any business model (license, SaaS, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty-five years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements", including estimations relating to the impact of the political situation in Ukraine, expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company's annual report and other filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.
For more information please contact:
Janice Kaye
MIND C.T.I. Ltd.
Tel: +972-4-993-6666
investor@mindcti.com
