Activated Units Increased 94%, Billed Units Increased 163 % Year-Over-Year
Progress Reflects 37 Properties and more than 10,000 New Units Signed Year-to-Date
10 New Properties Signed as Growth Continues in Third Quarter
"The second quarter of 2026 was
"This growth demonstrates that our sales focus on large, multi-property operators can generate significant repeat awards across an owner's portfolio. For example, we recently announced major wins with two large REIT owners, contracting more than 4,100 units across 14 properties and five states. These two operators plan to roll out managed services across their portfolios, which include hundreds of thousands of units of additional opportunity, and our sales pipeline has a number of similarly sized opportunities.
"Given this confirmation that large portfolios are rapidly converting properties to managed services, we are sharpening our sales focus on key markets where we have higher density. This also enables increased attention to smaller and middle-tier property owners in those markets for our Network-as-a-Service ("NaaS") product while doing so with greater operating efficiency.
"In summary, the well-documented message that choosing
To support its growth, the Company continues to invest in new enterprise resource planning and inventory platforms to drive greater visibility and cost control across its business.
Financial and Operating Highlights (unaudited)
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||
| (in $ millions) | ||||||||||||
| Revenues | $ | 2.9 | $ | 5.3 | $ | 7.3 | $ | 10.8 | ||||
| Gross Profit | $ | 0.4 | $ | 0.8 | $ | 1.3 | $ | 2.1 | ||||
| Operating Expenses | $ | 3.5 | $ | 1.5 | $ | 6. 6 | $ | 3.2 | ||||
| Net Loss | $ | (3.1 | ) | $ | (0.9 | ) | $ | (5.3 | ) | $ | (1.3 | ) |
| Adjusted EBITDA (Non-GAAP)1 | $ | (3.1 | ) | $ | (0.7 | ) | $ | (5.2 | ) | $ | (1.1 | ) |
| QoQ Change | YoY Change | ||||
| Contracted Units: waiting to be built or in the process of installation along with units we currently serve | 32,094 | 36,720 | 42,687 | 16% | 33% |
| Activated Units: fully installed and on, but may not be fully billing yet due to onboarding | 13,960 | 24,530 | 27,134 | 11% | 94% |
| Billed Units: fully generating revenue under our managed services or NaaS contracts | 8,733 | 20,059 | 22,967 | 15% | 163% |
- Total revenue for the second quarter decreased 46%, or
$2.5 million , to$2.9 million , year-over-year, reflecting the timing of client construction and installation project revenues, which are periodic and variable in nature, offset in part by increased contribution from billed units under the Company's long-lived services contracts. - New construction in 2026 is anticipated to be weighted to the second half of the year, and the Company anticipates an uptick in both construction revenue and recurring service revenue due to its growing base of activated and billed units over the balance of 2026.
- Activated units increased 94% and billed units increased 163% year over year at the end of the second quarter, driving increased recurring service revenue under long-lived managed service and NaaS.
- In
July 2026 , the Company announced contract awards for more than 4,100 units across 14 properties with two large multi-family property REIT owners. - Backlog as of
June 30, 2026 was$38.9 million , compared to$36 million as ofJune 30, 2025 . Backlog is comprised of new properties contracted for planned installation and the value of recurring service revenue on activated or billed units.
"The change in quarterly revenue reflected the timing of large construction projects to install networks into contracted properties, which are variable and weighted to the second half during 2026," said
Balance Sheet
As of
- Cash and cash equivalents totaled
$1.2 million . - Accounts receivable were
$3.6 million , and inventories were$2.9 million . - Deferred revenue was
$5.3 million . - Related party debt was
$1.6 million , and total debt was$2.2 million .
Conference Call
A webcast replay of the call will be available following the call on
Quarterly Report on Form 10-Q ("Form 10-Q")
About Elauwit
Elauwit is a publicly traded connectivity MSP dedicated to rental communities, including multifamily properties, student housing, and senior living. Elauwit designs, builds, and operates managed networks, backed by a service model that treats property teams and residents like a relationship, not an account number.
With dependable connections, exceptional resident support, and no-upfront-cost options, Elauwit helps owners deliver premium connectivity as a competitive advantage, supporting new revenue, resident retention and increased asset value.
For more information, visit www.elauwit.com.
Non-GAAP Financial Measures
In addition to net loss, which is a U.S. GAAP measure, Elauwit presents adjusted EBITDA, which is a non-GAAP measure. Management believes the presentation of adjusted EBITDA, reflecting non-GAAP adjustments, provides important supplemental information to investors and other users of its financial statements in evaluating the operating results of the Company. In particular, by excluding expenses that are not directly related to its operating performance, Elauwit is able to present a view of its underlying business that the management team uses to analyze its historical performance and plan for its future performance. Adjusted EBITDA is a key metric used by management and the Board of Directors to assess the Company's financial and operating performance. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for net loss determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Key Performance Indicators
Elauwit uses the following key performance metrics to analyze and measure the Company's financial performance and results of operations: recurring service revenue, contracted units, activated units, billed units and backlog. The Company's recurring service revenue, contracted units, activated units, billed units and backlog are not necessarily comparable to similarly titled measures reported by other companies.
Elauwit defines recurring service revenue as the monthly recurring service revenue initiated by network activation under our long-term service agreements. Management believes that the Company's ability to retain and expand revenue from existing customers is an indicator of the long-term value of its customer relationships and potential future business opportunities.
Elauwit defines contracted units as the total number of individual units waiting to be built or in the process of being installed across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of units the Company will serve once the construction process is complete.
Elauwit defines activated units as the total number of individual units that are fully installed and on, but not yet necessarily collecting full recurring service revenue due to onboarding process, across the properties using its networks. Management believes this metric is useful for investors because it illustrates the total number of individual units the Company will collect revenue on once the onboarding process is complete, and can be tracked over time to show the reach of its networks.
Elauwit defines billed units as the total number of individual units that it is currently collecting revenue on across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of individual units the Company collects revenue on and can be tracked over time to show the reach of its networks. Management believes it is more useful to compare total billed units as opposed to total customers or total subscribers because the Company's revenue is more closely tied to the number of units it serves than the total number of customers or subscribers.
Backlog is defined as the aggregate amount of a contract price allocated to remaining performance obligations. Total backlog can include network design and installation performance obligations and internet network services and hardware and internet services performance obligations. Management believes tracking backlog is useful to investors because it illustrates the remaining performance obligations under our contracts and the revenue we expect to recognize in the future.
Forward-Looking Statements
This press release contains forward-looking statements, including with respect to the Company's future financial results, the Company's growth strategies and pipeline, and its performance as a public company. The words "anticipate," "believe," "can," "continue," "estimate," "expect," "future," "may," "opportunity," "plan," "potential," "predict," "seek," "will," "would," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company's ability to improve its financial performance and achieve its growth objectives, and other factors set forth in the Company's filings with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 31, 2026, and subsequent quarterly reports on Form 10-Q. Actual results might differ materially from those explicit or implicit in the forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.
Contacts:
Investor Relations:
Darrow Associates
Matt Kreps, Managing Director
+1-214-597-8200
mkreps@darrowir.com
Media:
Elauwit Connection, Inc.
Katie Hayward, VP Marketing
+1-704-558-3099
sales-pr@elauwit.com
ELAUWIT CONNECTION, INC.
Unaudited Condensed Balance Sheets
(in thousands, except share and par value data)
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 1,180 | $ | 6,154 | ||||
| Accounts receivable, net of allowance for credit losses of | 3,559 | 2,407 | ||||||
| Inventories | 2,897 | 1,004 | ||||||
| Network financing receivable, current | 195 | 213 | ||||||
| Prepaid expenses and other current assets | 387 | 550 | ||||||
| Total current assets | 8,218 | 10,328 | ||||||
| Property and equipment, net | 52 | - | ||||||
| Network financing receivable, net of current | 990 | 1,078 | ||||||
| Lease right-of-use assets, net | 418 | 28 | ||||||
| Net investment in lease | 386 | 483 | ||||||
| Other non-current assets | 36 | 26 | ||||||
| TOTAL ASSETS | $ | 10,100 | $ | 11,943 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current Liabilities | ||||||||
| Deferred revenue | 5,307 | 2,886 | ||||||
| Accounts payable | 1,779 | 1,813 | ||||||
| Accrued expenses and other current liabilities | 806 | 495 | ||||||
| Operating lease liabilities, current | 54 | 29 | ||||||
| Related party debt, current | 973 | 804 | ||||||
| Note payable, current | 202 | 196 | ||||||
| Total current liabilities | 9,121 | 6,223 | ||||||
| Operating lease liabilities, net of current | 384 | - | ||||||
| Related party debt, net of current | 666 | 506 | ||||||
| Note payable, net of current | 393 | 490 | ||||||
| Deferred revenue, net of current | 293 | 308 | ||||||
| TOTAL LIABILITIES | 10,857 | 7,527 | ||||||
| Commitments and contingencies (see Note 13) | ||||||||
| STOCKHOLDERS' DEFICIT | ||||||||
| Common stock, | - | - | ||||||
| 19,129 | 19,009 | |||||||
| Accumulated deficit | (19,886 | ) | (14,593 | ) | ||||
| Total stockholders' equity (deficit) | (757 | ) | 4,416 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 10,100 | $ | 11,943 | ||||
Unaudited Condensed Statements of Operations
(in thousands, except share and par value data)
| For the three months ended | For the six months ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues | |||||||||||||||
| Revenues | $ | 2,856 | $ | 5,326 | $ | 7,286 | $ | 10,771 | |||||||
| Cost of revenues | - | ||||||||||||||
| Cost of revenues | 2,413 | 4,520 | 6,016 | 8,707 | |||||||||||
| Gross profit | 443 | 806 | 1,270 | 2,064 | |||||||||||
| Operating expenses | - | ||||||||||||||
| General and administrative | 3,393 | 1,503 | 6,277 | 3,109 | |||||||||||
| Sales and marketing | 150 | 42 | 293 | 64 | |||||||||||
| Total operating expenses | 3,543 | 1,545 | 6,570 | 3,173 | |||||||||||
| Operating loss | (3,100 | ) | (739 | ) | (5,300 | ) | (1,109 | ) | |||||||
| Other expense, net | |||||||||||||||
| Interest income (expense), net | (27 | ) | (113 | ) | 11 | (186 | ) | ||||||||
| Total other income (expense), net | (27 | ) | (113 | ) | 11 | (186 | ) | ||||||||
| Loss from operations before income taxes | (3,127 | ) | (852 | ) | (5,289 | ) | (1,295 | ) | |||||||
| Income tax expense | 4 | 4 | 4 | 4 | |||||||||||
| Net loss | $ | (3,131 | ) | $ | (857 | ) | $ | (5,293 | ) | $ | (1,299 | ) | |||
| Net loss per share, basic and diluted | $ | (0.47 | ) | $ | (0.17 | ) | $ | (0.80 | ) | $ | (0.26 | ) | |||
| Weighted average common shares used in computing net loss per share, basic and diluted | 6,619,796 | 5,000,000 | 6,619,796 | 5,000,000 | |||||||||||
Reconciliation from Net Loss to Adjusted EBITDA
(in thousands, except share and per value data)
(UNAUDITED)
| For the three months ended | For the three months ended | For the six months ended | For the six months ended | ||||||||||||
| Net Loss | $ | (3,131 | ) | $ | (857 | ) | $ | (5,293 | ) | $ | (1,299 | ) | |||
| Addback: | |||||||||||||||
| Income tax expense | 4 | 4 | 4 | 4 | |||||||||||
| Interest expense (income), net | 27 | 113 | (11 | ) | 186 | ||||||||||
| Depreciation and amortization | - | - | - | - | |||||||||||
| EBITDA | $ | (3,100 | ) | $ | (740 | ) | $ | (5,300 | ) | $ | (1,109 | ) | |||
| Addback: | |||||||||||||||
| Change in fair value of SAFE liability | - | - | - | - | |||||||||||
| Stock based compensation expense | 80 | - | 120 | - | |||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | (3,020 | ) | $ | (740 | ) | $ | (5,180 | ) | $ | (1,109 | ) |
? Depreciation and amortization was nil for the three and six months ended
1 Adjusted earnings before interest (income) expense, income taxes, depreciation and amortization ("EBITDA") is not a
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