Parabolic, the AI-powered agentic applications company that used to go by Banzai International, Inc. (NASDAQ:PARA), dropped some preliminary numbers on Wednesday, and they're the kind of numbers that make you sit up a little straighter. The company said it expects third-quarter revenue of approximately $4.7 million.
That's a 106% sequential jump from the $2.3 million it brought in during the second quarter, and a 65% increase from the $2.8 million it reported a year earlier. Not bad for a company that just closed a major acquisition a few months ago.
ConnectAndSell Starts Pulling Its Weight
Part of the credit goes to ConnectAndSell, the AI sales acceleration platform Parabolic picked up in July for $13.2 million. This is the first quarter where ConnectAndSell's financials are folded into the mix, and the company says the preliminary figure marks a record quarter.
ConnectAndSell came with $14.7 million in 2025 revenue and an 86% gross margin, so it's not exactly a fixer-upper. Parabolic expects cost synergies by year-end 2026 to support profitability and cash flow in 2027.
Cutting Costs to Get to Profitability
Speaking of costs, Parabolic recently took steps it expects will generate roughly $9.3 million in annualized savings following the ConnectAndSell integration and a business-unit realignment.
About $3.1 million of that comes from eliminating roughly 12 positions and trimming third-party contractor spending. The other $6.2 million is expected to come from operating efficiencies and lower administrative costs. The company expects to fully realize these savings on a run-rate basis by the end of fiscal 2026, and management says the measures support its profitability and cash-flow objectives for fiscal 2026 and 2027.
CEO Joe Davy on the Milestone
"Our preliminary third-quarter revenue demonstrates the clear operational scale we achieved following the close of our ConnectAndSell transaction. Reaching $4.7 million in top-line revenue for the quarter is a significant milestone and record-high quarterly revenue for Parabolic," CEO Joe Davy said.
"This expanded top-line scale, when paired with the $9.3 million cost savings measure we recently announced, strengthens our financial footing and supports our progress toward profitability," he added.
Parabolic plans to report full third-quarter results after market close on Nov. 16. The company noted the preliminary revenue figure remains unaudited and subject to quarter-end closing procedures.
PARA Price Action: Banzai International shares were trading down 7.85% at $0.6201 during premarket trading on Wednesday, according to market data.
