Monitor Q3 2026 for government revenue ramp and integration of ZTC acquisition. The company's strong balance sheet ($11.9M cash, no debt) supports investment, but product revenue decline and widening losses warrant caution. The 100% sequential revenue growth signals recovery from Q1 government shutdown effects.
Price Chart
Executive Summary
ROC reported Q2 2026 revenue of $5.1M, up 2% YoY and 100% sequentially, with gross margin expanding to 90% from 80%. However, net loss widened to $0.8M from net income of $0.6M a year ago, and product revenue declined 26% YoY. The company announced an acquisition of Zuccaro Technical Consulting to accelerate ROC Evidence commercialization and expects government revenue to increase in H2 2026.
Key Financial Metrics
Key Facts
- Revenue $5.1M, up 2% YoY and 100% sequentially
- Gross margin 90% vs 80% in prior year
- Net loss $0.8M vs net income $0.6M in Q2 2025
- EPS ($0.04) vs $0.04 in Q2 2025
- Government R&D contract revenue up 41% YoY to $3.0M
- Product revenue down 26% YoY to $2.1M
- Cash $11.9M, no debt outstanding
- Definitive agreement to acquire Zuccaro Technical Consulting (ZTC) for digital forensics
- ROC Watch received DT&E designation under DHS SAFETY Act
Financial Impact
Revenue growth of $0.1M YoY and gross margin improvement of 10pp, but net loss increased by $1.4M YoY. Acquisition of ZTC expected to close in Q3 2026 with undisclosed terms.
Risk Factors
- Product revenue decline of 26% YoY, driven by completion of a large ROC Watch deployment
- Net loss widened to $0.8M from net income of $0.6M, with operating expenses up 68% YoY
- Cash burn from operations of $6.0M in H1 2026 vs $0.1M in H1 2025
- Reliance on government contracts for 59% of revenue
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-350585 |
| Document: 0001193125-26-350585-index.html | 0001193125-26-350585 |
| Document: 0001193125-26-350585.txt | 0001193125-26-350585 |
| 8-K Data (Synthetic) | 0001193125-26-350585 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 6, 2026 20d ago | 8-K | $3.73 $3.55 | ▼ −4.83% | ▼ −4.40% | $3.51 (−5.90%) |
Oct 6, 2026 20d ago | 3 | $3.73 $3.55 | ▼ −4.83% | ▼ −4.40% | $3.51 (−5.90%) |
Sep 30, 2026 26d ago | 8-K | $4.05 $4.09 | ▲ +0.99% | ▲ +0.25% | $3.51 (−13.33%) |
Sep 2, 2026 7w ago | 8-K | $4.10 $4.15 | ▲ +1.22% | ▲ +0.17% | $3.51 (−14.39%) |
Sep 1, 2026 8w ago | Press Release | $4.12 $4.10 | ▼ −0.49% | ▼ −0.93% | $3.51 (−14.81%) |
Aug 19, 2026 9w ago | 8-K | $4.36 $4.20 | ▼ −3.67% | ▼ −2.83% | $3.51 (−19.50%) |
Aug 14, 2026 10w ago | 8-K | $4.34 $4.41 | ▲ +1.61% | ▲ +2.09% | $3.51 (−19.12%) |
Jun 16, 2026 19w ago | 8-K | $4.67 $4.72 | ▲ +1.07% | ▲ +2.32% | $3.51 (−24.84%) |
May 15, 2026 23w ago | 8-K | $5.77 $4.86 | ▲ +15.77% | ▲ +15.71% | $3.51 (+39.17%) |
US Market Status
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