Revenue growth is positive but is being more than offset by a sharp increase in operating expenses, particularly bonuses and selling costs, leading to a widening net loss and significant cash burn. With cash down to $1.3M and no financing activity, the company's ability to sustain its current spending trajectory is a key risk. Monitor the next quarter's revenue growth rate and expense discipline, as well as any potential need for capital raising.
Price Chart
Executive Summary
Kidoz Inc. filed its Q2 2026 interim financial statements, reporting revenue of $3.3M for the quarter (+37% YoY) and $6.3M for the first half (+22% YoY). However, net loss widened significantly to $1.6M for the quarter (vs. $1.2M loss in Q2 2025) and $2.4M for the first half (vs. $1.1M loss in H1 2025), driven by a large annual bonus expense of $863K and a 69% increase in selling and marketing costs. Cash burned through $3.1M in H1, dropping from $4.5M to $1.3M, raising liquidity concerns despite the revenue growth.
Key Facts
- Q2 2026 revenue was $3,334,835, up 37% from $2,430,216 in Q2 2025.
- H1 2026 revenue was $6,281,576, up 22% from $5,168,519 in H1 2025.
- Q2 2026 net loss was ($1,558,343), compared to a net loss of ($1,171,483) in Q2 2025.
- H1 2026 net loss was ($2,372,907), compared to a net loss of ($1,111,340) in H1 2025.
- Cash decreased to $1,328,558 at June 30, 2026, from $4,454,295 at December 31, 2025.
- Bonuses and incentive compensation of $862,863 were paid in Q2 2026, up from $687,728 in Q2 2025.
- Selling and marketing expenses increased 50% YoY to $665,828 in Q2 2026.
- Net cash used in operating activities was ($3,122,684) in H1 2026, vs. ($346,020) in H1 2025.
- Working capital decreased to $2,886,235 from $5,080,637 at year-end 2025.
- No shares were issued or acquired during the period; share count remains 131,304,499.
Financial Impact
Net loss widened by $1.26M in H1 2026 vs H1 2025; cash burn of $3.1M in H1 2026.
Risk Factors
- Cash burn rate is unsustainable at current levels; cash could be depleted within one quarter if operating losses continue.
- Annual bonus expense of $863K is non-recurring in nature but highlights compensation structure tied to prior-year performance.
- Reliance on a small number of customers for a significant portion of revenue and accounts receivable.
- No long-term customer commitments; campaigns can be cancelled without penalty.
- Historical stock performance shows poor correlation with positive filings, suggesting market skepticism.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001493152-26-040250 |
| Document: 0001493152-26-040250-index.html | 0001493152-26-040250 |
| Document: 0001493152-26-040250.txt | 0001493152-26-040250 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 17d ago | 6-K | $0.1100 | awaiting T+20 | — | $0.1100 (−0.00%) |
Oct 6, 2026 20d ago | 6-K | $0.1100 | awaiting T+20 | — | $0.1100 (−0.00%) |
Aug 26, 2026 8w ago | 6-K | $0.1100 $0.1000 | ▲ +9.09% | ▲ +8.99% | $0.1100 (+0.00%) |
May 20, 2026 22w ago | 6-K | $0.2000 $0.1600 | ▼ −20.00% | ▼ −20.74% | $0.1100 (−45.00%) |
May 12, 2026 23w ago | 6-K | $0.2000 $0.1500 | ▼ −25.00% | ▼ −23.27% | $0.1100 (−45.00%) |
Apr 29, 2026 25w ago | 20-F | $0.2200 $0.1600 | ▼ −27.27% | ▼ −32.50% | $0.1100 (−50.00%) |
Apr 24, 2026 26w ago | 6-K | $0.2300 $0.1700 | ▼ −26.09% | ▼ −31.04% | $0.1100 (−52.17%) |
Mar 30, 2026 30w ago | 6-K | $0.1800 $0.2300 | ▲ +27.78% | ▲ +15.18% | $0.1100 (−38.89%) |
US Market Status
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