Octave Intelligence plc announced financial results for the second quarter 2026, ended June 30, 2026.
"Our second quarter results reflect the continued momentum we are building as a newly independent company, with ARR of $1,143 million, up 7% year-over-year, and SaaS revenue growth of 21%," said Mattias Stenberg, Chief Executive Officer of Octave.
"We are moving faster and investing with focus, delivering strong free cash flow in the quarter while executing on our go-to-market priorities and deepening the platform and agentic capabilities that make our customers' operating context more valuable to them. The deliberate shift in our business model means recurring revenue growth and ARR are the better indicators of underlying performance than reported total revenue. We remain confident in the path and the medium-term financial objectives we shared at our March investor day"
Recent Business Highlights
- In July, Octave launched Octave CoLabs, a collaborative innovation program that pairs Octave's product and technical leadership with customer teams to build agentic AI workflows on customers' own operational data. Initial participants include Bechtel and Fluor.
- In May, Octave completed its separation from Hexagon AB and its Class B ordinary shares commenced trading on the Nasdaq Global Select Market in New York under the ticker symbol "OCTV," and its Swedish Depositary Receipts commenced trading on the Nasdaq Stockholm under the ticker symbol “OCTV SDB”. This marked the culmination of a multi-year process to establish Octave as an independent, pure-play enterprise software company serving asset-intensive industries and the public sector.
- In May, Octave announced it acquired VXG Inc., a provider of enterprise-grade, cloud-native video management software, to strengthen its physical security portfolio and build upon AI-enhanced cloud capabilities in its Protect workflow environment, expanding its software offerings for protecting people, places, and assets.
Balance Sheet
At June 30, 2026, total cash and cash equivalents was $304 million and total debt was $644 million.
Second quarter financial results include non-cash impairment charges totaling $2,135 million, recorded in Other operating expense (income), net. Following the commencement of regular-way trading of the Company's Class B Ordinary Shares, Octave's market capitalization remained below the Company carrying value on its consolidated balance sheet at June 30, 2026. Management considered this to be a triggering event requiring an interim goodwill impairment assessment as of June 30, 2026, resulting in a $1,671 million non-cash goodwill impairment charge. Separately, in connection with the approval of the spin-off and the phase-out of legacy brands and the transition to a unified Octave brand, the Company reassessed the useful lives and fair value of its trademarks, resulting in a $464 million non-cash impairment charge and a change from indefinite to finite useful lives.
These charges did not result in any current cash expenditure and did not affect the Company's cash flows or compliance with the financial covenants under the Company's Credit Agreement, nor are they indicative of any changes to the operating outlook for the business.
Consistent with the Company's definitions of its non-GAAP measures, impairment charges are excluded from Adjusted income from operations, Adjusted operating margin, Adjusted net income and Adjusted earnings per share.
