Parabolic Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Parabolic (NASDAQ: PARA) reported Q2 2026 revenue of $2.3 million, down 15.7% sequentially and $0.9 million year-over-year, with gross margin of 80.2%. Net loss narrowed to $5.0 million from $8.4 million in Q1 2026, while Adjusted EBITDA loss improved sequentially to $1.7 million.
The company reduced Q2 operating expenses to $6.2 million and cut net debt by $3.8 million since December 31, 2025, lifting stockholders’ equity to $12.2 million. Parabolic closed the asset acquisition of ConnectAndSell, whose FY 2025 revenue was $14.7 million with 86% gross margin, and now expects FY 2026 revenue of $17 million and FY 2027 revenue of $26 million. Management expects operations to generate operating income, excluding non-cash expenses, on a monthly run-rate basis starting during Q2 2027.
Positive
- Q2 2026 net loss improved to $5.0M from $8.4M in Q1 2026
- Q2 2026 operating expenses reduced to $6.2M from $8.0M in Q1 2026
- Net debt reduced by $3.8M since December 31, 2025
- Stockholders’ equity increased to an all-time high of $12.2M
- Acquired ConnectAndSell assets; FY 2025 revenue $14.7M with 86% gross margin
- Management outlook for FY 2026 and FY 2027 revenue of $17M and $26M, respectively
Negative
- Q2 2026 revenue of $2.3M, down $0.9M year-over-year and 15.7% sequentially
- First-half 2026 revenue declined 23.6% year-over-year to $5.0M
- Q2 2026 gross profit fell to $1.8M from $2.6M in Q2 2025; margin down to 80.2%
- Adjusted EBITDA loss widened to $1.7M in Q2 2026 from $0.9M a year earlier
- First-half 2026 net loss of $13.4M versus $11.6M in prior-year period
- Cash balance remained low at $0.6M as of June 30, 2026
News Explained
Completed share conversions can reduce existing holders’ percentage ownership; the company also reports June 30 cash of $0.6 million and continued financing of operations.
Parabolic reports a closed
The supplied definition of dilution means additional shares reduce an existing holder’s percentage ownership absent offsetting changes.
At
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 12 | earnings date | Neutral | -4.0% | Conference call scheduling notice preceded second-quarter financial results |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The available prior earnings-date notice was followed by a -4.02% 24-hour move, indicating divergence between neutral announcement content and trading response.
Key Terms
net dollar retention financial
adjusted ebitda financial
convertible debt financial
gross margin financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Cost Reductions Contribute to
Management to Host Second Quarter 2026 Results Conference Call Today, Friday, August 14, 2026 at 4:30 p.m. Eastern Time
SEATTLE, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: PARA) (d/b/a “Parabolic” or the “Company”), a leading AI-powered agentic applications technology company, today reported financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 and Subsequent Key Financial & Operational Highlights
- Company expands vision to Agentic Applications for enterprise with Parabolic rebrand
- Net Loss for Q2 2026 was
$5.0 million , compared to Q1 2026 Net Loss of$8.4 million . - The Company achieved net dollar retention in its core customer base of
91% in Q2 2026, an all-time high. - Revenue of
$2.3 million for Q2 2026, which represented a decrease of$0.4 million from Q1 2026, due to one-time non-recurring revenue in Q1 2026. - Gross profit of
$1.8 million for Q2 2026, a decrease of$0.4 million compared to Q1 2026. Gross margin was80.2% for Q2 2026 compared to80.7% in Q1 2026. - Q2 2026 Adjusted EBITDA Loss improved to
$1.7 million , compared to an Adjusted EBITDA Loss of$1.9 million in Q1 2026. - Reduced net debt by
$3.8 million compared to December 31, 2025, bringing net debt to an all-time low. - Stockholder’s Equity increased to an all-time high of
$12.2 million as of June 30, 2026; converted$7.0 million of debt to equity and raised an additional$8.1 million of equity since December 31, 2025. - Customer base includes over 150,000 total customers who have purchased or subscribed to Parabolic products.
- Closed the acquisition of the assets of ConnectAndSell, expected to increase annual revenue and expand AI Platform capabilities beginning in third quarter 2026.
“Our proposed name change to Parabolic represents more than a new brand. This change reflects where we believe the future of software is headed, and the path to strategic growth through investment in high potential businesses. Our continued aim is to build a business that delivers profitable growth both organically and strategically. For example, the recently announced acquisition of ConnectAndSell, an AI sales acceleration platform, will begin contributing to company results in the third quarter of this year and will transform the scale of our business in 2H 2026 and FY 2027 when we estimate 2027 revenue growth of
“ConnectAndSell serves approximately 250 B2B organizations such as Intuit, RingCentral, Truckstop, and SAP across financial services, healthcare, technology, and other industries. ConnectAndSell’s FY 2025 revenue was
“I am pleased to report the second quarter operating losses have decreased primarily from executing on the cost management plan that we announced in May. Additionally, I am pleased that Parabolic's management is making further cost reductions, which we expect will meaningfully reduce operating expenses within this calendar year.
“Overall, our revenue trend was influenced by one-time non-recurring revenue recognized in Q1 2026. We saw many bright spots including all-time high NRR in and growing bookings in our enterprise segment, consistently high gross margin, and meaningful decreases in operating expenses as a result of the management actions announced in May. Additionally, we are seeing improvements in leading indicators within the sales pipeline and strong customer retention statistics,” said Joe Davy, Founder and CEO of Parabolic.
“During the quarter, we strengthened our balance sheet by retiring debt totaling
“Looking ahead, we have announced a rebranding and have aligned our business units to align leadership and go-to-market execution with our evolved vision. The Company’s operations are now organized into three business units: ConnectAndSell, the Company’s AI sales acceleration platform, Banzai, our enterprise video business, and CreateStudio, our AI-powered video content creation platform. These business units are supported by a cost-efficient shared service function.
“We also maintain an active pipeline of potential acquisition opportunities across key industries where we have strong sector experience and can leverage our AI platform and experience to add value and strategic operational acceleration. The recent acquisition of ConnectAndSell is a demonstration of a successful execution of our strategic growth goal,” concluded Davy.
Second Quarter 2026 Financial Results
Total revenue for the three months ended June 30, 2026 decreased
Total cost of revenue for the three months ended June 30, 2026 was
Gross profit for the three months ended June 30, 2026 was
Total operating expenses for the three months ended June 30, 2026 were
Net Loss for three months ended June 30, 2026 was
Adjusted EBITDA Loss for the three months ended June 30, 2026 increased to
First Half Financial Results
Total revenue for the six months ended June 30, 2026 decreased
Total cost of revenue for the six months ended June 30, 2026 was
Gross profit for the six months ended June 30, 2026, was
Total operating expenses for the six months ended June 30, 2026 were
Net loss for the six months ended June 30, 2026 was
Adjusted EBITDA Loss for the six months ended June 30, 2026, was
Net cash used in operating activities for the six months ended June 30, 2026, was
Cash totaled
During the six months ended June 30, 2026, we continued to fund our operations through a combination of equity and debt financings, and most notably, closed an additional tranche of convertible debt, totaling approximately
Management has continued to strengthen the balance sheet and reduced net debt by
2026 and 2027 Outlook
The addition of the ConnectAndSell business will more than double the company’s revenue, on an annualized basis. Full year effect of this acquisition will be realized in 2027.
Combined with cost reduction actions, Management expects operations to generate operating income, excluding non-cash expenses, on a monthly run rate basis starting during Q2 2027.
Second Quarter 2026 Results Conference Call
Parabolic Founder & CEO Joe Davy and CFO Dean Ditto will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.
To access the call, please use the following information:
| Date: | Friday, August 14, 2026 |
| Time: | 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) |
| Webcast Registration: | Parabolic Q2 2026 Financial Results Conference Call |
A replay of the webcast and the presentation utilized during the call will be available in the Company’s investor relations website here.
Note About Non-GAAP Financial Measure
Adjusted EBITDA
In addition to our results determined in accordance with U.S. GAAP, we believe that Adjusted EBITDA, a non-GAAP measure as defined below, is useful in evaluating our operational performance distinct and apart from certain irregular, non-cash, and non-operational expenses. We use this information for ongoing evaluation of operations and for internal planning purposes. We believe that non-GAAP financial information, when taken collectively with results under GAAP, may be helpful to investors in assessing our operating performance and comparing our performance with competitors and other comparable companies.
Non-GAAP measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We endeavor to compensate for the limitation of Adjusted EBITDA, by also providing the most directly comparable GAAP measure, which is net loss, and a description of the reconciling items and adjustments to derive the non-GAAP measure.
Adjusted EBITDA should only be considered alongside results prepared in accordance with GAAP, including various cash-flow metrics, net income (loss) and our other GAAP results and financial performance measures.
| BANZAI INTERNATIONAL, INC. | ||||||||||||||||
| Net Income (Loss) to Adjusted EBITDA Reconciliation | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Six Months Ended June 30, | Period-over-Period | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Net loss | $ | (13,382 | ) | $ | (11,572 | ) | $ | (1,810 | ) | (15.6 | %) | |||||
| Interest income | (6 | ) | — | (6 | ) | NM | ||||||||||
| Interest expense | 138 | — | (138 | ) | NM | |||||||||||
| Interest expense – related party | 396 | 895 | 499 | 55.8 | % | |||||||||||
| Income tax expense (benefit) | (133 | ) | (157 | ) | (24 | ) | (15.3 | %) | ||||||||
| Depreciation and amortization expense | 608 | 547 | (61 | ) | (11.2 | %) | ||||||||||
| Stock based compensation | 2,479 | 1,093 | (1,386 | ) | (126.8 | %) | ||||||||||
| Gain on extinguishment of liabilities | (715 | ) | (4,489 | ) | 3,774 | 84.1 | % | |||||||||
| Loss on debt issuance | 208 | 443 | 235 | 53.0 | % | |||||||||||
| Loss on Private Placement Issuance | 1,598 | 837 | (761 | ) | (90.9 | %) | ||||||||||
| Loss on extinguishment of debt, net | 58 | 1,770 | 1,712 | 96.7 | % | |||||||||||
| Change in fair value of financial instruments | 1,179 | 266 | (913 | ) | (343.2 | %) | ||||||||||
| Change in fair value of financial instruments – related party | 43 | 64 | 21 | 32.8 | % | |||||||||||
| Change in fair value of convertible notes | (551 | ) | 238 | 789 | 331.5 | % | ||||||||||
| Loss on Yorkville SEPA advances | 227 | 747 | 520 | 69.6 | % | |||||||||||
| Other (income) expense, net | 774 | 1,211 | 437 | 36.1 | % | |||||||||||
| Transaction related expenses | 3,573 | 6,421 | 2,848 | 44.4 | % | |||||||||||
| Adjusted EBITDA | $ | (3,506 | ) | $ | (1,686 | ) | $ | (1,820 | ) | (107.9 | %) | |||||
About Parabolic
Parabolic builds agentic applications that power the future of business. We believe that the future of enterprise software will be agentic applications that are net-beneficiaries of AI transformation, and we focus on building, acquiring, and investing in those and related businesses. We have over 150,000 customers including Amazon, Dell, Salesforce, Aflac, Thermo Fisher Scientific, RBC Wealth Management, and Fitch Group. Learn more at www.parabolic.io. For investors, please visit ir.banzai.io.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.’s (d/b/a Parabolic, the “Company’s”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release.
Investor Relations
Dean Ditto
Chief Financial Officer
206 414-1777
ir.banzai.io
Media
Paul Witkowski
Senior Director Financial Reporting
media@banzai.io
| BANZAI INTERNATIONAL, INC. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (in thousands, except share and per share data) | |||||||||
| As of | |||||||||
| June 30, 2026 | December 31, 2025 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash | $ | 646 | $ | 259 | |||||
| Accounts receivable, net | 399 | 709 | |||||||
| Prepaid expenses and other current assets | 752 | 445 | |||||||
| Total current assets | 1,797 | 1,413 | |||||||
| Property and equipment, net | — | 8 | |||||||
| Intangible assets, net | 7,434 | 8,027 | |||||||
| Goodwill | 21,992 | 21,992 | |||||||
| Operating lease right-of-use assets | 42 | 56 | |||||||
| Bifurcated embedded derivative asset – related party | — | 9 | |||||||
| Deferred offering costs | 32 | 122 | |||||||
| Other assets | 4 | 4 | |||||||
| Total assets | 31,301 | 31,631 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | 2,466 | 2,494 | |||||||
| Accrued expenses and other current liabilities | 3,481 | 4,354 | |||||||
| Convertible notes – related party | 4,752 | 4,923 | |||||||
| Convertible notes, carried at fair value | 484 | 1,856 | |||||||
| Convertible notes (Yorkville) | — | 1,200 | |||||||
| Notes payable, carried at fair value | 1,489 | 2,591 | |||||||
| Private placement warrant liability | 1,699 | 296 | |||||||
| Financial instruments – related party | 34 | — | |||||||
| Earnout liability | 500 | 991 | |||||||
| Deferred revenue | 3,078 | 3,642 | |||||||
| Operating lease liabilities, current | 31 | 23 | |||||||
| Total current liabilities | 18,014 | 22,370 | |||||||
| Deferred revenue, non-current | 101 | 94 | |||||||
| Deferred tax liability | 945 | 1,078 | |||||||
| Operating lease liabilities, non-current | 11 | 34 | |||||||
| Total liabilities | 19,071 | 23,576 | |||||||
| Stockholders' equity: | |||||||||
| Common stock | — | — | |||||||
| Additional paid-in capital | 126,445 | 108,912 | |||||||
| Accumulated other comprehensive (loss) income | (61 | ) | (85 | ) | |||||
| Accumulated deficit | (114,154 | ) | (100,772 | ) | |||||
| Stockholders' equity | 12,230 | 8,055 | |||||||
| Total liabilities and stockholders' equity | $ | 31,301 | $ | 31,631 | |||||
| BANZAI INTERNATIONAL, INC. | ||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating income: | ||||||||||||||||
| Revenue | $ | 2,273 | $ | 3,127 | $ | 4,969 | $ | 6,506 | ||||||||
| Cost of revenue | 450 | 554 | 971 | 1,160 | ||||||||||||
| Gross profit | 1,823 | 2,573 | 3,998 | 5,346 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative expenses | 5,906 | 7,113 | 13,556 | 14,546 | ||||||||||||
| Depreciation and amortization expense | 303 | 300 | 608 | 547 | ||||||||||||
| Total operating expenses | 6,209 | 7,413 | 14,164 | 15,093 | ||||||||||||
| Operating loss | (4,386 | ) | (4,840 | ) | (10,166 | ) | (9,747 | ) | ||||||||
| Other expenses (income): | ||||||||||||||||
| Interest income | (3 | ) | — | (6 | ) | — | ||||||||||
| Interest expense | 129 | — | 138 | — | ||||||||||||
| Interest expense – related party | 202 | 537 | 396 | 895 | ||||||||||||
| Gain on extinguishment of liabilities | (715 | ) | (146 | ) | (715 | ) | (4,489 | ) | ||||||||
| Loss on debt issuance | 159 | 169 | 208 | 443 | ||||||||||||
| Loss on Private Placement Issuance | — | 837 | 1,598 | 837 | ||||||||||||
| Loss on extinguishment of debt, net | 52 | — | 58 | 1,770 | ||||||||||||
| Change in fair value of financial instruments | 571 | 126 | 1,179 | 266 | ||||||||||||
| Change in fair value of financial instruments – related party | 21 | 19 | 43 | 64 | ||||||||||||
| Change in fair value of convertible notes | (179 | ) | 79 | (551 | ) | 238 | ||||||||||
| Loss on Yorkville SEPA advances | 199 | 362 | 227 | 747 | ||||||||||||
| Other (income) expense, net | 224 | 1,336 | 774 | 1,211 | ||||||||||||
| Total other expenses, net | 660 | 3,319 | 3,349 | 1,982 | ||||||||||||
| Loss before income taxes | (5,046 | ) | (8,159 | ) | (13,515 | ) | (11,729 | ) | ||||||||
| Income tax expense (benefit) | (81 | ) | (231 | ) | (133 | ) | (157 | ) | ||||||||
| Net loss | $ | (4,965 | ) | $ | (7,928 | ) | $ | (13,382 | ) | $ | (11,572 | ) | ||||
| Net loss attributable to common shareholders | (4,965 | ) | (7,928 | ) | (13,382 | ) | (11,572 | ) | ||||||||
| Net loss per share attributable to common shareholders | ||||||||||||||||
| Basic and diluted | $ | (3.05 | ) | $ | (82.58 | ) | $ | (11.38 | ) | $ | (146.48 | ) | ||||
| Weighted average common shares outstanding (in thousands) | ||||||||||||||||
| Basic and diluted | 1,627 | 96 | 1,176 | 79 | ||||||||||||
| BANZAI INTERNATIONAL, INC. | ||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (13,382 | ) | $ | (11,572 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | — | — | ||||||
| Depreciation and amortization expense | 608 | 547 | ||||||
| Provision for credit losses on accounts receivable | (35 | ) | 50 | |||||
| Non-cash shares issued for consulting expenses | — | 633 | ||||||
| Discount at issuance on notes carried at fair value | — | 578 | ||||||
| Non-cash interest expense | 127 | — | ||||||
| Non-cash interest expense - related party | 396 | 658 | ||||||
| Amortization of debt discount and issuance costs - related party | — | (2 | ) | |||||
| Amortization of operating lease right-of-use assets | 14 | 11 | ||||||
| Stock based compensation expense | 2,479 | 1,093 | ||||||
| Gain on extinguishment of liability | (715 | ) | (4,489 | ) | ||||
| Loss on debt issuance | 208 | 443 | ||||||
| Loss on Private Placement Issuance | 1,598 | 837 | ||||||
| Loss on extinguishment of debt, net | 58 | 1,770 | ||||||
| Change in fair value of financial instruments | 1,179 | 266 | ||||||
| Change in fair value of financial instruments – related party | 43 | 64 | ||||||
| Change in fair value of convertible notes, carried at fair value | (551 | ) | 238 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 345 | 77 | ||||||
| Prepaid expenses and other current assets | (307 | ) | (114 | ) | ||||
| Other assets | — | (3 | ) | |||||
| Accounts payable | (28 | ) | (199 | ) | ||||
| Deferred revenue | (564 | ) | (151 | ) | ||||
| Accrued expenses | (207 | ) | 162 | |||||
| Operating lease liabilities | (15 | ) | (11 | ) | ||||
| Earnout liability | (491 | ) | 448 | |||||
| Deferred revenue – long-term | 7 | (2 | ) | |||||
| Deferred tax liability | (133 | ) | (355 | ) | ||||
| Net cash used in operating activities | (9,366 | ) | (9,023 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash paid for acquisition of Vidello, net of cash acquired | — | (2,677 | ) | |||||
| Net cash used in investing activities | — | (2,677 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Payment of GEM commitment fee promissory note | — | (215 | ) | |||||
| Repayment of convertible notes (Yorkville) | (1,218 | ) | (3,640 | ) | ||||
| Proceeds from term notes, net of issuance costs | 1,594 | 4,250 | ||||||
| Repayment of term notes | (1,006 | ) | (5,933 | ) | ||||
| Partial repayment of convertible notes - related party | — | (870 | ) | |||||
| Proceeds from issuance of convertible notes, net of issuance costs | 2,121 | 5,302 | ||||||
| Proceeds from issuance of shares to Yorkville under the SEPA | 5,505 | 13,593 | ||||||
| Proceeds from shares issued to Verista | — | 50 | ||||||
| Proceeds from issuance of common stock and pre-funded warrants under private placement | — | 330 | ||||||
| Proceeds from issuance of common stock and warrants | 2,726 | — | ||||||
| Net cash provided by financing activities | 9,722 | 12,867 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 31 | — | ||||||
| Net decrease in cash | 387 | 1,167 | ||||||
| Cash at beginning of period | 259 | 1,087 | ||||||
| Cash at end of period | $ | 646 | $ | 2,254 | ||||
