Second-quarter revenue rose 2% year over year to $5.1 million, nearly doubling from the first quarter, as a 41% increase in government R&D contract revenue offset lower product revenue after a major ROC Watch deployment ended. Several products showed strong momentum, including ROC SDK revenue up 84%, ROC ABIS up 723%, and ROC Enroll up 125%; ROC Evidence also generated its first commercial revenue. The company is targeting larger, multiyear "beachhead" contracts and expects its ZTC acquisition to strengthen digital evidence capabilities.
Gross margin expanded to 90%, but operating expenses increased significantly, resulting in a $0.8 million net loss versus year-earlier profit. Rank One ended the quarter with $11.9 million in cash, $14.8 million in working capital and no debt. These 3 Small-Cap Stocks Are Built to Weather a Slowdown Rank One Computing (NASDAQ:ROC) reported second-quarter 2026 revenue of $5.1 million, up 2% from the prior-year period and nearly double its first-quarter revenue, as higher government research-and-development contract revenue offset a decline in product revenue tied to the completion of a prior ROC Watch deployment.
Chief Executive Officer Scott Swann said the quarter marked the company's first full quarter as a public company and reflected progress in government contracting activity and commercialization across its Vision AI product portfolio. He said the company had monetized its full Vision AI platform ahead of plan, with ROC Evidence recording its first commercial revenue during the quarter. → Lumentum Just Delivered the AI Growth Investors Wanted R&D contract revenue increased 41% year over year to approximately $3 million, from $2.1 million in the second quarter of 2025. Chief Financial Officer Cody Barnes said the increase reflected revenue from the exercise of an option that significantly expanded an existing government R&D contract.
Swann said the company saw signs that government funding and program activity were returning toward more normal levels after a slower period. During the question-and-answer session, he pointed to increasing customer interactions, requests for quotes and pricing, and solicitations as indications of improved activity. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal "The revenue is a good indicator. The award of the R&D contract is a good indicator that the government is back in more of a normal operation," Swann said.
He added that government agencies are working toward obligating fiscal 2026 funds by Sept. 30, though the timing of awards and deployments can create quarterly variability. Swann said some funds may flow through third-party integrators before reaching technology providers. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be The company's strategy for its R&D business is to convert government research work into deployments and proof-of-concepts that can lead to larger, longer-duration programs and recurring revenue. Product revenue fell 26% to $2.1 million from $2.8 million in the prior-year quarter.
The decrease was primarily attributed to the completion of a significant ROC Watch deployment that had contributed revenue in the comparable 2025 period. ROC Watch revenue declined 87% year over year. Swann described that ROC Watch engagement as a successful, finite government mission with revenue concentrated around program and deployment milestones.
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