CISO Global Reports 14% Revenue Decline and $1.61 Million Net Loss in Q2 2026

CISO Global, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenue of $5.79 million, down 14% from $6.71 million in the same period last year. The decrease was primarily driven by a 15% drop in revenue from security managed services, which fell to $5.13 million from $6.05 million. Professional services revenue also decreased by 11% to $464,525, while cybersecurity software revenue saw a 35% increase to $194,133. For the first half of 2026, total revenue was $12.01 million, down from $13.88 million in the prior year, reflecting ongoing challenges in customer retention and project volume.

The company's net loss for the second quarter was $1.61 million, an improvement from a loss of $3.01 million in the same quarter of 2025. For the first half of 2026, the net loss was $3.20 million, significantly reduced from $8.39 million in the previous year. This reduction in losses was attributed to lower operating expenses, which decreased to $6.18 million for the first half of 2026 from $7.46 million in 2025. Notably, stock-based compensation expenses dropped by 88% year-over-year, contributing to the overall decrease in costs.

CISO Global has also made strategic moves to enhance its operational capabilities. The company is focused on expanding its cybersecurity talent pool and service offerings, emphasizing a technology-agnostic approach to differentiate itself from competitors. The firm has been actively working to improve customer retention and expand its client base, although it acknowledges that new engagements may not fully offset lost revenue in the near term. As of June 30, 2026, the company reported a working capital deficit of $8.52 million, up from $4.47 million at the end of 2025, indicating ongoing liquidity challenges.

Operationally, CISO Global's customer base has been affected by the loss of several high-revenue clients, which has impacted revenue generation. The company is also facing substantial debt obligations, including a monthly redemption payment of approximately $155,575 related to its Series B Preferred Stock. The firm is exploring various financing strategies to address its liquidity needs, including potential equity financing and restructuring operations to enhance revenue and reduce expenses.

Looking ahead, CISO Global anticipates continued losses through the end of 2026, with substantial doubt about its ability to continue as a going concern. The company is actively evaluating strategies to secure additional funding and improve its financial position. It remains committed to regaining compliance with Nasdaq listing requirements, particularly concerning its stock price, which has fallen below the minimum threshold. The firm is considering a reverse stock split as a potential measure to meet compliance standards.