Altigen Technologies Reports Second Quarter Fiscal 2026 Results

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Altigen Technologies Reports Second Quarter Fiscal 2026 Results

TECHNOLOGY 07.05.2026

NEWARK, CA / ACCESS Newswire / May 7, 2026 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the second quarter ended March 31, 2026.

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"We are continuing to advance our goal of transforming Altigen to become a leading provider of enterprise AI-powered Customer Experience (CXaaS) solutions," said Jeremiah Fleming, CEO of Altigen Technologies. "As expected, this transformation has caused some customer churn as we retire legacy platforms in favor of our new CXaaS suite."

"Nearly 60% of our customers have now been migrated to our next-generation CXaaS platforms", according to Fleming. "Over the next several quarters, as we continue our customer migrations along with new customer acquisitions, we expect to see a return to cloud revenue growth. Just as importantly, we continue to remain profitable throughout the transition, delivering our eighth consecutive profitable quarter."

Key Financial Highlights (2Q 2026 versus 2Q 2025)

Net Revenue of $3.1 million vs $3.5 million
Gross margin stayed at 62% for both quarters;
GAAP net income was $201 thousand, compared with $287 thousand.
Non-GAAP net income was $488 thousand, compared with $487 thousand
Adjusted EBITDA was $529 thousand, compared with $314 thousand
Cash of $3.2 million vs $2.8 million
Earnings per share was $0.01 vs $0.01

Trended Financial Information

(in thousands, except for EPS and percentages)

Fiscal

2Q26

1Q26

4Q25

3Q25

2Q25

1Q25

Total Revenue

3,123

3,173

3,472

3,517

3,500

3,378

Cloud Services

1,385

1,429

1,635

1,666

1,856

1,720

Services and Other

1,557

1,493

1,602

1,596

1,362

1,366

Legacy Products

181

252

235

256

282

292

GAAP Operating Income / (Loss)

199

198

125

283

Operating Margin

GAAP Net Income/(Loss)

201

101

254

110

287

Adjusted EBITDA(1)

187

Non-GAAP Net Income / (Loss)

488

296

455

350

487

275

Adjusted EBITDA (1)

529

257

356

645

314

291

Non-GAAP net income excludes stock-based compensation expense, amortization of acquired intangible assets, impairment of assets, and depreciation and amortization expenses.
Adjusted EBITDA excludes one-time litigation costs and other non-recurring or unusual charges that may arise from time to time that we do not consider to be directly related to core operating performance.

Conference Call

Altigen will be discussing its financial results and outlook on a conference call today at 1:00 p.m. Pacific Time (4:00 p.m. ET). The conference call can be accessed by dialing (877) 545-0523 (domestic) or (973) 528-0016 (international), conference ID #125781. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #53878. The audio replay will be available until May 14, 2026. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.

About Altigen Technologies

Altigen Technologies (OTCQB:ATGN) is focused on driving digital transformation in today's modern workplace.  Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We're headquartered in Silicon Valley with operations strategically located in five countries spanning three continents. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com.

Safe Harbor Statement

This press release contains forward‐looking information. The statements are based on reasonable assumptions, beliefs, and expectations of management, and the Company provides no assurance that actual events will meet management's expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company's views of future events and financial performances, which are subject to known and unknown risks and uncertainties, including, but not limited to, statements regarding the Company's operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. There can be no assurances that the Company will achieve the expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements.

Please refer to the Company's most recent Annual Report filed with the OTCQB over-the-counter market for a further discussion of risks and uncertainties. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company does not undertake any obligation to update any forward-looking statements.

Contact:

Altigen Communications, Inc.
Investor Relations - [email protected]

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and per share data)
	March 31,		September 30,
	2026		2025
ASSETS
Current assets:
Cash and cash equivalents	$	3,200	$	2,750
Accounts receivable, net	1,706	2,428
Other current assets	200	183
Total current assets	5,106	5,361

Operating lease right-of-use assets	31	40
Goodwill	2,725	2,725
Property, plant, and equipment, net	47	57
Intangible assets, net	994	1,074
Capitalized software development cost, net	1,754	1,621
Deferred tax asset	5,362	5,347
Other long-term assets	12	20
Total assets	16,031	16,245

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	320	$	608
Accrued compensation and benefits	430	625
Accrued expenses	157	221
Deferred consideration	372	372
Operating lease liabilities - current	26	24
Deferred revenue - current	607	563
Total current liabilities	1,912	2,413
Operating lease liabilities - long-term	12	25
Deferred revenue - long-term	48	77
Total liabilities	1,971	2,515

Stockholders' equity:
Common stock	25	25
Treasury stock	(1,579	)	(1,579	)
Additional paid-in capital	73,268	73,240
Accumulated deficit	(57,654	)	(57,956	)
Total stockholders' equity	14,060	13,730
Total liabilities and stockholders' equity	$	16,031	$	16,245

The information in this column was derived from the Company's audited consolidated financial statements as of and for the year ended September 30, 2025.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2026		2025		2026		2025
Net revenue	$	3,123	$	3,500	$	6,297	$	6,878

Gross profit	1,946	2,165	3,900	4,295
Operating expenses:
Research and development	393	433	660	684
Sales, general & administrative	1,354	1,449	2,953	3,253
Operating income (loss)	199	283	287	358
Interest and other income	12	13	25	25
Interest expense and other expense	(5	)	-	(5	)	-
Net income (loss) before income taxes	206	296	307	383
Benefit (provision) for income taxes (1)	(5	)	(9	)	(5	)	(9	)
Net income (loss)	$	201	$	287	$	302	$	374

Net income (loss) per share
Basic	$	0.01	$	0.01	$	0.01	$	0.01
Diluted	$	0.01	$	0.01	$	0.01	$	0.01
Weighted average shares used in computing net income (loss) per share
Basic	25,880	25,601	25,880	25,601
Diluted	25,906	25,928	25,906	25,928

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

	Six Months Ended
	March 31,
	2026		2025
Cash flows from operating activities:
Net income (loss)	$	302	$	374

Adjustments to reconcile net income (loss) to net cash from operating activities:
Impairment of capitalized software	281	-
Deferred income tax expense	(15	)	-
Amortization of intangible assets	93	99
Amortization of capitalized software	74	(46	)
Stock-based compensation	22	31
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable	723	61
Prepaid expenses and other current assets	(17	)	(23	)
Other long-term assets	7	(12	)
Accounts payable	(289	)	192
Accrued expenses	(259	)	(410	)
Deferred revenue	15	132
Lease Liability	(2	)	(1	)
Net cash provided by operating activities	935	397

Cash flows from investing activities:
Capitalized software development costs	(488	)	(124	)
Purchase of property, plant, and equipment	(3	)	-
Net cash used in investing activities	(491	)	(124	)

Cash flows from financing activities:
Proceeds from exercise of stock options	6	-
Repurchase of common stock	-	(14	)
Net cash used in financing activities	6	(14	)
Net increase (decrease) in cash and cash equivalents	450	259
Cash and cash equivalents, beginning of year	2,750	2,575
Cash and cash equivalents, end of year	$	3,200	$	2,834

ALTIGEN COMMUNICATIONS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2026		2025		2026		2025
Reconciliation of GAAP to Non-GAAP Gross Profit:
GAAP gross profit	$	1,946	$	2,165	$	3,900	$	4,295
Amortization of capitalized software	28	42	66	71
Amortization of acquired customer relationships	-	40	-	80
Non-GAAP gross profit	$	1,974	$	2,247	$	3,966	$	4,446

Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses	$	1,747	$	1,882	$	3,613	$	3,937
Asset Impairment	(193	)	(88	)	(281	)	(88	)
Amortization of capitalized software	(4	)	(5	)	(7	)	(11	)
Amortization of intangible assets	(47	)	(12	)	(93	)	(19	)
Stock-based compensation	(15	)	(13	)	(22	)	(31	)
Non-GAAP operating expenses	$	1,488	$	1,764	$	3,210	$	3,788

Reconciliation of GAAP to Non-GAAP Net Income:
GAAP net profit / (loss)	$	201	$	287	$	302	$	374
Asset Impairment	193	88	281	88
Amortization of capitalized software	32	47	74	82
Amortization of intangible assets	47	52	93	99
Stock-based compensation	15	13	22	31
Non-GAAP net income	$	488	$	487	$	772	$	674

Per share data:
Basic	$	0.02	$	0.02	$	0.03	$	0.03
Diluted	$	0.02	$	0.02	$	0.03	$	0.03
Weighted average shares outstanding:
Basic	25,880	25,601	25,880	25,601
Diluted	25,906	25,928	25,906	25,928

Non-GAAP Financial Measures

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, depreciation and amortization expenses, acquisition-related costs, change in deferred tax asset valuation allowance, litigation costs and other non-recurring or unusual charges or benefits that may arise from time to time that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business and to perform financial planning. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: (i) the comparability of our on-going operating results over the periods presented and (ii) the ability to identify trends in our underlying business.

SOURCE: Altigen Technologies

View the original press release on ACCESS Newswire

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