Datavault AI Inc. (DVLT) is having a rough Wednesday morning. The company's stock dropped more than 12% in premarket trading after its second-quarter 2026 results came in well below what Wall Street had hoped for.
Here's the headline number: revenue hit $6.72 million, up a whopping 287% from $1.74 million a year ago. That sounds great until you realize analysts were looking for $30.25 million. Ouch.
The earnings picture wasn't prettier. Datavault reported a loss of 12 cents per share, missing the 3-cent loss estimate. A year earlier, the company lost 54 cents per share. On a GAAP basis, the net loss ballooned to $88.03 million from $37.12 million.
Gross Profit Rises, Operating Loss Widens
There were some bright spots. Gross profit jumped to $2.88 million from just $35,000 in the same quarter last year. But operating losses also widened, going from $12.46 million to $26.46 million.
Revenue breakdown: $2.84 million came from live event production, $2.51 million from patent licensing, and $1.05 million from consumer audio products, components, and other sources.
The quarter also included some heavy one-time hits: an $8.09 million loss on crypto assets and a $56.37 million impairment of investments in non-marketable securities. Cash and cash equivalents at the end of June stood at just $1.4 million.
Datavault Secures New Financing
To shore up its balance sheet, Datavault entered into a securities purchase agreement with Streeterville Capital. The company issued an unsecured convertible promissory note with $25.03 million in principal for a $25 million purchase price. Streeterville also got the right to invest up to another $25 million through convertible notes over the next 12 months.
Acquisitions Expand Platform
This financing follows Datavault's Aug. 14 agreement to acquire CyberCatch Holdings Inc. (CYBHF) for $94.5 million in cash. The company has also signed a definitive agreement to acquire BankWyse, pending regulatory approval and customary closing conditions.
And there's Project Qestrel, a planned network of 1,000 cybersecure sovereign edge data centers across 100 U.S. cities and more than 30 states. Ambitious stuff.
Revenue Guidance Beats Estimate
Despite the rough quarter, Datavault reaffirmed its full-year 2026 revenue guidance of at least $200 million, which beats the $196.46 million estimate. That implies roughly 400% year-over-year growth. If they can pull that off, today's dip might look like a blip. But for now, investors are focused on the miss.
Shares were down 12.15% at 34 cents in premarket trading.
