ROC posts $5.1M in Q2 revenue, doubling sequentially on gov't contracts

Rank One Computing Corporation (NASDAQ: ROC), a Denver-based Vision AI company, reported second-quarter 2026 revenue of $5.1 million, roughly double the $2.5 million recorded in the first quarter of 2026, according to a company press release. Revenue was up 2% from $5.0 million in the same period a year earlier.

Gross margin expanded to 90% for the quarter ended June 30, 2026, from 80% in the second quarter of 2025. The improvement was attributed to a higher proportion of software license revenue and lower cost of sales.

Government R&D contract revenue reached approximately $3.0 million, a 41% year-over-year increase from $2.1 million. The sequential revenue gain was largely driven by a $4.9 million government contract expansion that had been delayed due to a slower funding environment in late 2025 and early 2026. ROC was also awarded a separate $4.9 million follow-on R&D contract with a U.S. Department of War agency during the quarter.

Product revenue was $2.1 million, down 26% from $2.8 million a year earlier, reflecting the completion of a ROC Watch deployment that had commenced in early 2025. ROC SDK revenue rose 84% year over year to $1.6 million, while ROC ABIS revenue increased 723% to $164,000. ROC Evidence generated its first commercial revenue of approximately $18,000 through a deployment with the U.S. Drug Enforcement Administration.

Operating expenses totaled $5.3 million, up from $3.2 million in the prior-year quarter, reflecting spending following the company's initial public offering in February 2026. The net loss for the quarter was $816,513, or ($0.04) per share, compared with net income of $581,204, or $0.04 per share, in the second quarter of 2025.

As of June 30, 2026, ROC held $11.9 million in cash and $14.8 million in working capital, with no debt outstanding after fully repaying its revolving credit facility. The company also announced a definitive agreement to acquire Zuccaro Technical Consulting LLC, a digital forensics firm, with closing expected in the third quarter of 2026.

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