-- Total revenue of $398 million, a decrease of 4% on a quarterly
as-reported year-over-year basis and a decrease of 1% on an organic
constant currency basis
-- Recurring revenue of $283 million, an increase of 6% on a quarterly
as-reported year-over-year basis and organic constant currency basis
-- Annualized recurring revenue ("ARR") of $1,143 million, compared to
$1,066 million in the prior year, an increase of 7% year-over-year
-- Cash flow from operations of $125 million and Free cash flow of $93
million
HUNTSVILLE, Ala., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Octave Intelligence plc (Nasdaq New York: OCTV and Nasdaq Stockholm: OCTV SDB), today announced financial results for the second quarter 2026, ended June 30, 2026.
"Our second quarter results reflect the continued momentum we are building as a newly independent company, with ARR of $1,143 million, up 7% year-over-year, and SaaS revenue growth of 21%," said Mattias Stenberg, Chief Executive Officer of Octave.
"We are moving faster and investing with focus, delivering strong free cash flow in the quarter while executing on our go-to-market priorities and deepening the platform and agentic capabilities that make our customers' operating context more valuable to them. The deliberate shift in our business model means recurring revenue growth and ARR are the better indicators of underlying performance than reported total revenue. We remain confident in the path and the medium-term financial objectives we shared at our March investor day"
Second Quarter 2026 Financial Highlights and Key Business Metrics:
USD millions, except EPS and percentages Q2 2026 Q2 2025 Total revenue $398 $413 Annualized recurring revenue $(ARR)$ $1,143 $1,066 Income (loss) from operations $(2,070) $97 Operating margin (520)% 23% Adjusted income from operations $116 $129 Adjusted operating margin 29% 31% Net income (loss) $(1,971) $75 Adjusted net income $95 $98 Earnings per share $(7.34) $0.28 Adjusted earnings per share $0.36 $0.36 Cash flow from operations $125 $123 Cash flow from operations margin 31% 30% Free cash flow $93 $87 Free cash flow margin 23% 21%
Recent Business Highlights
-- In July, Octave launched Octave CoLabs, a collaborative innovation
program that pairs Octave's product and technical leadership with
customer teams to build agentic AI workflows on customers' own
operational data. Initial participants include Bechtel and Fluor.
-- In May, Octave completed its separation from Hexagon AB and its Class B
ordinary shares commenced trading on the Nasdaq Global Select Market in
New York under the ticker symbol "OCTV," and its Swedish Depositary
Receipts commenced trading on the Nasdaq Stockholm under the ticker
symbol "OCTV SDB". This marked the culmination of a multi-year process to
establish Octave as an independent, pure-play enterprise software company
serving asset-intensive industries and the public sector.
-- In May, Octave announced it acquired VXG Inc., a provider of
enterprise-grade, cloud-native video management software, to strengthen
its physical security portfolio and build upon AI-enhanced cloud
capabilities in its Protect workflow environment, expanding its software
offerings for protecting people, places, and assets.
Balance Sheet
At June 30, 2026, total cash and cash equivalents was $304 million and total debt was $644 million.
Second quarter financial results include non-cash impairment charges totaling $2,135 million, recorded in Other operating expense (income), net. Following the commencement of regular-way trading of the Company's Class B Ordinary Shares, Octave's market capitalization remained below the Company carrying value on its consolidated balance sheet at June 30, 2026. Management considered this to be a triggering event requiring an interim goodwill impairment assessment as of June 30, 2026, resulting in a $1,671 million non-cash goodwill impairment charge. Separately, in connection with the approval of the spin-off and the phase-out of legacy brands and the transition to a unified Octave brand, the Company reassessed the useful lives and fair value of its trademarks, resulting in a $464 million non-cash impairment charge and a change from indefinite to finite useful lives.
These charges did not result in any current cash expenditure and did not affect the Company's cash flows or compliance with the financial covenants under the Company's Credit Agreement, nor are they indicative of any changes to the operating outlook for the business.
Consistent with the Company's definitions of its non-GAAP measures, impairment charges are excluded from Adjusted income from operations, Adjusted operating margin, Adjusted net income and Adjusted earnings per share.
Third Quarter and Full Year 2026 Guidance
Octave provided initial third quarter and full year 2026 financial guidance and expectations for certain key business metrics as set out below.
Q3 2026 Full Year 2026
Total revenue $400 - $410 $1,635 - $1,665
Annualized recurring revenue (ARR) N/A $1,185 - $1,205
Total revenue growth y/y (organic, constant
currency) 2 - 4% 0 - 2%
ARR growth y/y (organic, constant currency) N/A 6 - 8%
Recurring revenue $285 - $290 $1,140 - $1,150
Recurring revenue growth y/y (organic,
constant currency) 3 - 5% 5 - 6%
Adjusted Operating Margin 27% 30%
Free Cash Flow Margin N/A 20%
See the section entitled "Explanation of Non-GAAP Financial Measures" and the reconciliation of GAAP measures to non-GAAP measures at the end of this release.
Conference Call Information
Octave will host a conference call today, August 12, 2026, to discuss its results at 8:00 a.m. Eastern time. The call will be available live via webcast on Octave's website at https://investors.octave.com. A webcast replay of the event will also be available at https://investors.octave.com
Date: August 12, 2026
Time: 8:00 a.m. ET; 14:00 CEST
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical fact, including, without limitation, statements regarding our financial guidance, expected revenue, annual recurring revenue, recurring revenue, Adjusted operating margin, Adjusted net income per share, weighted average shares outstanding, Free Cash Flow margin, future financial position, results of operations, business strategy, budgets, projected costs, plans and objectives of management for future operations, are forward-looking statements. Use of words such as "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "seeks," "intends," "anticipates," "continues," "forecasts," "target," "outlook," "objective," "goal" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.
Forward-looking statements are based on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term business operations and objectives and financial needs, and on a number of assumptions. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, among other things, customer demand for our software solutions, subscription license activity, SaaS adoption, pricing and packaging initiatives, macroeconomic conditions, our ability to identify, consummate and successfully integrate strategic acquisitions, our ability to successfully operate as an independent public company following the spin-off from Hexagon, the timing and costs associated with separation-related activities, our ability to generate sufficient cash flows and comply with the terms of our indebtedness, our ability to execute our growth strategies, and other risks and uncertainties included under the section titled "Risk Factors" in the Information Statement attached as Exhibit 99.1 to Octave's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 12, 2026 available on our investor relations website at investors.octave.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and those discussed in other documents we file with the SEC. All information provided in this press release and in the attachments is as of August 12, 2026. You should not rely upon forward--looking statements as predictions of future events. We cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward--looking statements will be achieved or occur, including any expected or targeted financial or operating results. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of
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