The company’s revenue climb to $3.07 million from $2.01 million in the same period last year highlights the growing footprint of its integrated businesses, including the Percentil resale platform and the Ten Peacks distribution arm. However, this growth has come at a cost to profitability. The consolidated gross margin compressed to 31.7% from 56% in the prior-year period, a shift management attributes to a change in revenue mix as commerce activities—which carry lower margins than the company’s SaaS solutions—account for a larger share of the total income.
Operating expenses have ballooned, with sales and marketing costs rising to $1.23 million, largely driven by Amazon-related fees and the integration of new business units. Consequently, the net loss for the quarter widened to $1.75 million, up from $1.47 million a year earlier. CEO Ronen Luzon noted that while the initial phase of building a diversified platform is complete, the focus for the second half of 2026 will shift toward improving contribution margins and extracting greater operating leverage. With $453,000 in cash and $258,000 in restricted cash as of June 30, the company acknowledges it will require additional capital to sustain its operations and growth strategy.

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