February 19th, 2026

The call mixed positive operational and product progress (new SDK, device launches, Apple event interest, Japan certification, sequential revenue and margin improvement) against material financial challenges (year-over-year revenue decline, widened net losses and EPS deterioration, a $10.7M valuation allowance, negative full-year adjusted EBITDA and low cash balance). While product and market validation provide potential upside, the near-term financial and liquidity pressures and ongoing revenue declines dominate the narrative.

Company Guidance

Guidance on the call was largely qualitative: management said they got off to a “reasonably good start” in January and are “on track for a reasonable Q1,” and they plan to spend a significant portion of 2026 pursuing high‑value opportunities surfaced by the December Apple Connected Worker event (including follow‑up activity and enterprise pipeline work); supporting metrics provided on the call include Q4 revenue of $4.0M (‑18% YoY, +28% sequential), Q4 gross margin 50% (vs 51% in Q4‑2024 and 48% in Q3‑2025), Q4 operating expenses $2.6M (‑10% YoY, +2% sequential), Q4 operating loss $0.73M (vs $0.513M loss in Q4‑2024 and $1.2M loss in Q3), a one‑time $10.7M valuation allowance on deferred tax assets, Q4 net loss per share $1.43 (vs $0.00 in Q4‑2024 and ‑$0.15 in Q3‑2025), Q4 adjusted EBITDA loss $94k (vs +$140k in Q4‑2024 and ‑$540k in Q3‑2025); full‑year metrics cited were revenue $50M (reported, down 20% YoY), full‑year gross margin 49.7% (vs 50.4% in 2024), operating expenses $10.7M (‑10% YoY), full‑year operating loss $3.7M (vs $2.8M), net loss per share $1.81 (vs $0.30), adjusted EBITDA ‑$1.2M (vs ‑$320k), year‑end cash $2.0M, cash used in operations $1.4M, capex $5.5M, proceeds from subordinated convertible notes $1.5M, and inventory net of reserves $4.2M (vs $4.9M prior year).