10-Q · May 20, 2026
Mobix Labs, Inc. reported total revenue of $2.511 million for Q2 2026, a substantial decline of 61% compared to the same quarter last year. The company also recorded a net loss of $5.853 million, reflecting a 155%…
Earnings analysis · 10-Q
MOBX earnings analysis
Filed August 18, 2026 · Our reading of the company's report
The latest report
Mobix Labs reported approximately $970,000 of revenue, down from approximately $2.0 million in both the prior quarter and prior-year quarter. Gross margin declined to 19.0% and operating margin deteriorated to -627.9%,…
Read full summary
Mobix Labs reported approximately $970,000 of revenue, down from approximately $2.0 million in both the prior quarter and prior-year quarter. Gross margin declined to 19.0% and operating margin deteriorated to -627.9%, although diluted EPS improved to -$0.59 from -$1.60 sequentially. The company disclosed ineffective disclosure controls and multiple material weaknesses, while restrictive financing terms, potential cash redemption obligations, and substantial prospective dilution—including 4,800,000 shares for the SPD acquisition—remain significant concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.59
What stood out
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Revenue contracted sharply
Revenue was approximately $970,000, down from approximately $2.0 million in 2026 Q1 and $2.0 million in 2025 Q2, indicating a sharp sequential and year-over-year contraction.
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Gross margin deteriorated
Gross margin fell to 19.0% from 31.0% in the prior quarter and 57.4% in the prior-year quarter, a sequential decline of 12.0 percentage points and year-over-year decline of 38.4 points.
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Operating losses intensified
Operating margin was -627.9%, worse than -471.1% in the prior quarter and -343.4% in the prior-year quarter, reflecting continued heavy operating losses relative to revenue.
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EPS loss improved but remains severe
Diluted EPS was -$0.59 versus -$1.60 in the prior quarter and -$1.70 in the prior-year quarter; the loss per share improved, but remains deeply negative amid the revenue decline.
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SPD acquisition expands strategic scope
The company agreed to acquire SPD for 4,800,000 shares of Class A common stock with no cash consideration, subject to stockholder approval and other customary closing conditions.
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Control remediation is underway
Management stated that remediation of the identified control weaknesses is expected to result in significant future costs, including hiring additional accounting and IT personnel and implementing a more sophisticated IT system.
What to watch
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Material weaknesses threaten reporting quality
Management concluded that disclosure controls were not effective as of June 30, 2026 and identified material weaknesses affecting control environment, risk assessment, accounting policies, complex transactions, transaction authorization, and IT general controls. The weaknesses have resulted in adjustments to numerous accounts and disclosures, including purchase-price allocations for business combinations in the interim period ended June 30, 2026.
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Financing covenants constrain flexibility
The Series A 10% Convertible Preferred Stock and convertible notes impose restrictions on additional debt, securities issuance, dividends, repurchases, mergers, and asset sales. Certain notes are secured by liens on company assets, potentially constraining financing and liquidity.
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Convertible securities create dilution risk
The floating, discounted conversion terms and anti-dilution provisions could result in substantially more shares being issued than anticipated. The company has already issued 585,365 shares on August 5, 2026 and another 585,365 shares on August 13, 2026 from conversions at $2.05 per share.
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Potential cash redemption pressure
Upon specified triggering events or defaults, holders may require cash redemption or repayment at a premium, with penalties and default interest. The company stated it does not currently have sufficient cash on hand to fund redemption or repayment of the Series A 10% Convertible Preferred Stock and convertible notes.
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Acquisition strategy may strain resources
The SPD transaction would issue 4,800,000 shares, while the company also expects to pursue additional acquisitions under its NSM Initiative. The filing warns that acquisitions may require capital, cause substantial dilution, and strain management resources.
Management's outlook
No quantitative revenue or EPS guidance was provided in the extracted 10-Q. The filing does state that remediation of material weaknesses is expected to result in significant future costs.
Earlier filings 4
10-Q · February 12, 2026
Mobix Labs reported quarterly revenue of $1,875,000 (reported as $1,875 in the filing in thousands), down from $3,169,000 a year earlier, with gross profit of $581,000 and a net loss of $10,125,000 for the quarter.…
10-Q · August 13, 2025
Mobix Labs reported quarter net revenue of $2,350 (reported in the filing in thousands) vs $2,058 in the year-ago quarter, with gross profit rising to $1,349. The company remains unprofitable (net loss $8,272 for the…
10-Q · February 12, 2025
Mobix Labs reported quarterly revenue of $3,169,000 (vs. $285,000 a year ago) and GAAP loss per share of $(0.52). Gross profit turned positive at $1,687,000 (gross margin 53.2%), but the company recorded a large loss…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.