Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Gross revenue remained flat at approximately $3 million due to macro factors including World Cup spending, tariff uncertainty, and evolving Roblox brand policies.
Net revenue increased 16% sequentially to $1.24 million, reflecting a strategic shift toward higher-quality revenue streams and improved gross margins of 41%. Operational efficiency improved through a 30% increase in implementation team utilization for billable client activity compared to the first quarter. The Misfits Ads acquisition was integrated without increasing the overall cost base, successfully adding programmatic capabilities and turnkey media solutions.
Commercial momentum is evidenced by weighted pipeline per seller increasing to $2.8 million from $1.78 million at the end of the first quarter. Strategic positioning shifted from selling specific products to offering cross-channel audience optimization across mobile, CTV, Roblox, and web platforms. Financial foundation was strengthened by eliminating all outstanding preferred stock and maintaining a cash position of $6.7 million.
Management reaffirmed the target of achieving adjusted EBITDA profitability in the fourth quarter of 2026. Future growth is dependent on converting the expanded commercial pipeline and leveraging the upgraded sales team under new leadership. The company anticipates that existing liquidity is sufficient to fund operations for the foreseeable future without needing additional capital raises.
Strategic focus remains on maintaining a flat cost structure while scaling revenue through higher-margin programmatic and managed services. Management intends to explore digital asset sector opportunities only when they present meaningful value for shareholders through a disciplined approach. Completed the integration of Misfits Ads assets, resulting in a total company headcount that remains below pre-acquisition levels.
Successfully simplified the capital structure by removing the final layers of preferred stock, following the elimination of debt in the prior year. Identified geopolitical events, such as the Iran war, as specific macro headwinds impacting broader advertising budgets during the period. Launched a youth and family marketplace to provide advertisers with a single point of access to kids-safe media within gaming channels.
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