Vertiqal Studios Reports Second Quarter 2026 Results with Revenue Up 13% Year over Year, and Announces Changes to Its Board of Directors
Rhea-AI Summary
Vertiqal Studios (OTC: VERTF) reported Q2 2026 revenue of $881,792, up 13.4% year over year and 21.4% sequentially. Six‑month 2026 revenue reached $1,607,883, up 8.4% from 2025, with direct media revenue for the period rising 130% year over year.
Q2 2026 gross profit was $401,486 with gross margin of 45.5%, down from 64.4% a year earlier. Net loss widened year over year to $914,515, though it improved 19.9% versus Q1 2026. Operating expenses before depreciation, finance costs and non‑cash items fell 29.2% sequentially. Cash increased to $389,830 at June 30, 2026, supported by a US$1,948,000 secured debenture financing completed April 13, 2026.
The company appointed media executive Jay Kovitz to its Board of Directors effective August 12, 2026, and announced the departure of board member PJ Bujouves.
Positive
- Revenue +13.4% YoY to $881,792 in Q2 2026
- Sequential revenue growth of 21.4% versus Q1 2026
- Direct media revenue +130% for six months ended June 30, 2026
- Operating expenses down 29.2% sequentially before depreciation, finance and non-cash items
- Cash balance more than doubled to $389,830 after US$1,948,000 debenture financing
Negative
- Gross margin declined to 45.5% from 64.4% year over year in Q2
- Net loss +68.7% YoY to $914,515 in Q2 2026
- Adjusted loss increased 9.2% YoY in Q2 and 56.3% for six months
- Cost of sales +73.5% YoY in Q2 2026, outpacing revenue growth
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - August 14, 2026) - Vertiqal Studios Corp. (TSX: VRTS) (FSE: 9PY0) ("Vertiqal" or "the Company") Vertiqal Studios, a leading digital-channel network and video-production studio, as well as the owner of North America's largest gaming and lifestyle network on social media, is pleased to announce its financial results for the three and six months ended June 30, 2026. The Company also announced the appointment of Jay Kovitz to its Board of Directors and the resignation of PJ Bujouves.
Key Financial Highlights for Second Quarter 2026:
- Second quarter revenue of
$881,792 increased13.4% from$777,766 in the second quarter of 2025 and21.4% from$726,091 in the first quarter of 2026. - For the six months ending June 30, 2026, the direct media revenue stream increased by
130% in comparison to the six months ending June 30, 2025. - Net loss for the quarter narrowed
19.9% sequentially to$914,515 from$1,142,045 in the first quarter. - Operating expenses before depreciation, finance costs and non-cash items of
$1,347,914 , down29.2% from the first quarter of 2026 and down2.3% year over year. - Cash of
$389,830 at June 30, 2026, up from$171,619 at December 31, 2025, following the closing of a US$1,948,000 secured debenture financing on April 13, 2026. - Trade receivables at June 30, 2025, reduced to
$1,124,812 from$3,212,891 at December 31, 2025, reflecting collection of prior-period balances.
Selected Financial Results:
| Q2 2026 | Q2 2025 | Change | 6M 2026 | 6M 2025 | Change | |
| Revenue | + | + | ||||
| Cost of sales | 480,306 | 276,769 | + | 673,646 | 415,428 | + |
| Gross profit | 401,486 | 500,997 | - | 934,237 | 1,068,183 | - |
| Gross margin % | -18.9 pts | -13.9 pts | ||||
| Net loss | (914,515) | (541,967) | + | (2,056,560) | (1,855,380) | + |
| Comprehensive loss | (1,193,165) | (462,446) | n/m | (2,271,050) | (1,816,978) | + |
| Loss per share - basic and diluted | — | — | ||||
| Adjusted loss (non-GAAP) | (967,502) | (885,726) | + | (2,285,229) | (1,461,772) | + |
Sequential comparison: revenue of
Management Commentary:
"Our second quarter marked a second consecutive period of sequential revenue growth, with particular strength in our United States multi-channel network operations, where six-month revenue grew 36 percent. We also reduced our operating cost base meaningfully during the quarter. We are managing the business with a clear focus on converting revenue growth into improved margins and reducing our cash burn, and we recognize there is substantial work ahead on both fronts," said Max Desmarais, Interim Chief Executive Officer and President of Vertiqal Studios Corp.
Changes to the Board of Directors:
The Company announced the appointment of Jay Kovitz to its Board of Directors, effective August 12, 2026. Kovitz is a Los Angeles-based media and entertainment executive with more than two decades of experience creating, producing, and building businesses across television, streaming, digital media, and branded entertainment. Kovitz began his career as the founder of Keyhole Media, where he created 23, an innovative NHL documentary series that provided unprecedented behind-the-scenes access to the Calgary Flames during the 2003-04 season. He later founded Interior Day Entertainment, building the company into a full-service production business that developed and produced unscripted programming for networks including Bravo, E!, and Slice, while securing a first-look deal with T-Group Productions, which later became part of SK Global Entertainment.
From 2020 to 2025, Kovitz served as President of Highgate Entertainment, Myst Music, and HYBE X MYST, where he oversaw international content initiatives and a joint venture with global entertainment company HYBE focused on opportunities in the U.S. and Indian markets. Kovitz has also built and operated consumer-facing businesses, including EKBH Beauty/Beverly Hills Microblading, a premium aesthetics company with two Beverly Hills studios, and The Tanning Boutique in Westwood Village. Most recently, Kovitz founded The Joint Venture, a collectible art company that transforms authentic celebrity-used items into signed, limited-edition works of art, launching with an initial collaboration with Snoop Dogg.
Vertiqal Studios also announces that PJ Bujouves has departed from the Board of Directors. The Company extends its sincere gratitude for PJ's service, guidance, and commitment throughout his tenure. His contributions have played an important role in Vertiqal's progress, and the Company wishes him the very best in his future endeavors.
Max Desmarais, Interim CEO and President of Vertiqal Studios, stated, "Jay Kovitz joins our Board at a point where experience in media is exactly what we need around the table. His track record across facets of media will strengthen our oversight as we work to convert revenue growth into sustainable margins and put the Company on firmer financial footing. I would also like to thank PJ Bujouves for his service and counsel."
"I'm excited to join the Board of Vertiqal Studios at an important stage in the company's growth. I look forward to bringing my experience across media, entertainment and partnerships to help Vertiqal capitalize on the opportunities ahead and create long-term value for shareholders," said Jay Kovitz.
About Vertiqal Studios Corp.
Vertiqal Studios is a scaled digital-channel network and video-production studio that owns North America's largest gaming and lifestyle network. The Company helps global brands reach Gen Z and Millennial audiences through data-driven creative, always-on digital campaigns, and performance-oriented distribution. Vertiqal manages 200+ channels across TikTok, Instagram, YouTube, and Snapchat, producing over 100 pieces of content per day for a community of more than 52 million followers. Revenue is generated through a mix of direct brand partnerships, agency relationships, and platform monetization across its owned and operated channels.
For more information, please visit www.vertiqalstudios.com
For media inquiries, please contact:
Press Inquiries Email: info@vertiqalstudios.com
Investor Relations Email: ir@vertiqalstudios.com
Forward-Looking Information
This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this news release.
The forward‐looking statements and information contained in this news release are made as of the date hereof, and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309709