Callan JMB Inc. Reports 24% Revenue Decline and Increased Net Loss in Q1 2026

Callan JMB Inc. reported its financial results for the first quarter of 2026, revealing a revenue of $1.1 million, a 24% decrease from $1.45 million in the same period last year. The decline in revenue was attributed primarily to the non-renewal of a government contract and reduced sales from non-government customers. The company's cost of revenue also decreased to $678,908 from $833,437, leading to a gross profit of $427,235, down 31% from $615,940 in the prior year. The net loss for the quarter was $3.22 million, significantly higher than the $1.24 million loss reported in the first quarter of 2025.

In terms of operational changes, Callan JMB's selling, general, and administrative expenses rose by 15% to $2.13 million, compared to $1.85 million in the previous year. This increase was driven by higher payroll costs, additional consulting fees, and increased facility rental expenses associated with the company's new corporate office. The company also recognized a significant increase in stock-based compensation expenses. The overall loss from operations widened to $1.7 million, up from $1.24 million in the same quarter last year.

The company’s balance sheet as of March 31, 2026, showed total assets of $5.71 million, a slight decrease from $5.78 million at the end of 2025. Total liabilities increased to $4.11 million, up from $3.45 million, primarily due to a rise in long-term liabilities, including a derivative liability related to the company's Equity Line of Credit (ELOC) facility. The company has raised $1.55 million under this facility, with $23.45 million remaining available. As of the end of the quarter, Callan JMB had cash and cash equivalents of $1.42 million, down from $2.13 million at the end of 2025.

Looking ahead, Callan JMB faces challenges regarding compliance with Nasdaq listing requirements, as it received a deficiency letter indicating it did not meet the minimum stockholders' equity requirement of $2.5 million. The company has until May 22, 2026, to submit a plan to regain compliance. Management has expressed confidence in its ability to secure additional funding and improve operational performance, but acknowledges that substantial doubt remains regarding its ability to continue as a going concern without further financial support. The company plans to explore various strategic initiatives and cost reduction strategies to enhance its financial position moving forward.