Mobiquity Technologies (MOBQW) Financials

Mobiquity Technologies’ Q2 2026 results showed a sharp rebound in revenue, but the company remains deeply unprofitable and dependent on external financing. Revenue increased to $177,697 from $18,440 in Q1 2026 and $31,108 in Q2 2025. However, revenue remains well below the $566,044 reported in Q3 2024 and the $989,253 recorded in Q4 2024. The Q4 2025 negative revenue figure also suggests that comparisons across periods should be treated cautiously, particularly because several historical statements were restated.

Gross profit improved to $66,662 in Q2 2026, producing a gross margin of approximately 37.5%. Despite the revenue recovery, selling, general and administrative expense remained elevated at $1.72 million. The company posted an operating loss of $1.83 million and a net loss attributable to common shareholders of $2.27 million, or $0.08 per share.

• Revenue recovered materially. Q2 2026 revenue rose approximately 863% sequentially and 471% year over year, indicating improved sales activity compared with the very weak first half of 2025.
• Gross profit returned to positive territory. Mobiquity generated $66,662 of gross profit in Q2 2026, compared with $14,086 in Q1 2026 and a gross loss of $75,845 in Q4 2025.
• Operating and net losses narrowed sequentially. The operating loss improved from $1.99 million in Q1 2026 to $1.83 million in Q2, while the net loss declined from $2.54 million to $2.27 million.
• Short-term debt declined. Short-term debt fell to $994,262 at June 30, 2026, from $2.00 million at March 31, 2026, supported by $216,583 of debt repayments during the quarter.
• Financing activity offset most of the cash burn during Q2. The company raised $1.41 million through common equity issuance and generated $1.34 million of net financing cash flow, limiting the quarterly decline in cash to $14,593.

• Amortization continues to materially affect reported results. Q2 2026 included $550,661 of amortization expense in operating cash flow adjustments. This is noncash, but it highlights the importance of the company’s sizable intangible-asset balance.
• The balance sheet is dominated by intangible assets and goodwill. Goodwill and intangible assets totaled approximately $3.46 million, or nearly 80% of total assets at June 30, 2026. The value of these assets may depend on the company’s ability to generate future business growth.
• Historical comparisons are difficult. Several 2024 and 2025 income statements were identified as restated, and reported quarterly revenue has been highly volatile, ranging from negative revenue in Q4 2025 to nearly $1 million in Q4 2024.

• Mobiquity remains structurally unprofitable. The company has reported substantial net losses in every supplied quarter from Q3 2023 through Q2 2026. Retained earnings were negative $240.9 million at June 30, 2026.
• Operating expenses remain far above revenue. Q2 2026 operating expenses totaled $1.90 million, more than 10 times quarterly revenue of $177,697. SG&A alone was $1.72 million, limiting the benefit of the recent revenue rebound.
• Cash flow remains heavily negative. Net cash used in operating activities was $1.35 million in Q2 2026, following $1.25 million in Q1 and $1.25 million in Q2 2025. The business is not currently funding operations from internally generated cash.
• Liquidity is extremely weak. Cash and equivalents declined to just $123,340, compared with $137,933 in Q1 2026 and $361,894 in Q3 2025. Current assets of $391,838 were far below current liabilities of $3.73 million, implying a current ratio of roughly 0.1.
• Accounts payable represents a significant obligation. Accounts payable increased to $2.69 million at June 30, 2026 and accounted for most of the company’s current liabilities, creating pressure to raise additional capital or improve collections.
• Shareholder dilution is a continuing risk. Weighted-average basic shares increased to 28.1 million in Q2 2026 from 20.6 million in Q2 2025. Repeated equity issuance has provided needed cash but reduces existing shareholders’ ownership percentage.
• Interest expense remains substantial. Q2 2026 interest expense was $413,310, consuming more than twice the quarter’s gross profit and further widening the pretax loss.

Overall, the latest quarter provides evidence of a potential revenue recovery, but the financial trend remains high risk. Investors should watch whether revenue growth continues, whether SG&A falls as a percentage of sales, and whether operating cash burn improves before viewing the Q2 rebound as a sustainable turnaround.