Cost Reductions Contribute to $3.4M Increase to Net Income from Q1 2026; Company Acquires ConnectAndSell, Expected to Increase FY2026 Revenue to $17M and FY2027 Revenue to $26M

Management to Host Second Quarter 2026 Results Conference Call Today, Friday, August 14, 2026 at 4:30 p.m. Eastern Time

SEATTLE, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Banzai International, Inc. $(PARA)$ (d/b/a "Parabolic" or the "Company"), a leading AI-powered agentic applications technology company, today reported financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 and Subsequent Key Financial & Operational Highlights

   -- Company expands vision to Agentic Applications for enterprise with 
      Parabolic rebrand 
 
   -- Net Loss for Q2 2026 was $5.0 million, compared to Q1 2026 Net Loss of 
      $8.4 million. 
 
   -- The Company achieved net dollar retention in its core customer base of 
      91% in Q2 2026, an all-time high. 
 
   -- Revenue of $2.3 million for Q2 2026, which represented a decrease of $0.4 
      million from Q1 2026, due to one-time non-recurring revenue in Q1 2026. 
 
   -- Gross profit of $1.8 million for Q2 2026, a decrease of $0.4 million 
      compared to Q1 2026. Gross margin was 80.2% for Q2 2026 compared to 80.7% 
      in Q1 2026. 
 
   -- Q2 2026 Adjusted EBITDA Loss improved to $1.7 million, compared to an 
      Adjusted EBITDA Loss of $1.9 million in Q1 2026. 
 
   -- Reduced net debt by $3.8 million compared to December 31, 2025, bringing 
      net debt to an all-time low. 
 
   -- Stockholder's Equity increased to an all-time high of $12.2 million as 
      of June 30, 2026; converted $7.0 million of debt to equity and raised an 
      additional $8.1 million of equity since December 31, 2025. 
 
   -- Customer base includes over 150,000 total customers who have purchased or 
      subscribed to Parabolic products. 
 
   -- Closed the acquisition of the assets of ConnectAndSell, expected to 
      increase annual revenue and expand AI Platform capabilities beginning in 
      third quarter 2026. 

"Our proposed name change to Parabolic represents more than a new brand. This change reflects where we believe the future of software is headed, and the path to strategic growth through investment in high potential businesses. Our continued aim is to build a business that delivers profitable growth both organically and strategically. For example, the recently announced acquisition of ConnectAndSell, an AI sales acceleration platform, will begin contributing to company results in the third quarter of this year and will transform the scale of our business in 2H 2026 and FY 2027 when we estimate 2027 revenue growth of 50% year-over-year.

"ConnectAndSell serves approximately 250 B2B organizations such as Intuit, RingCentral, Truckstop, and SAP across financial services, healthcare, technology, and other industries. ConnectAndSell's FY 2025 revenue was $14.7 million, with a gross margin of 86%, and an average revenue per customer of approximately $59,000.

"I am pleased to report the second quarter operating losses have decreased primarily from executing on the cost management plan that we announced in May. Additionally, I am pleased that Parabolic's management is making further cost reductions, which we expect will meaningfully reduce operating expenses within this calendar year.

"Overall, our revenue trend was influenced by one-time non-recurring revenue recognized in Q1 2026. We saw many bright spots including all-time high NRR in and growing bookings in our enterprise segment, consistently high gross margin, and meaningful decreases in operating expenses as a result of the management actions announced in May. Additionally, we are seeing improvements in leading indicators within the sales pipeline and strong customer retention statistics," said Joe Davy, Founder and CEO of Parabolic.

"During the quarter, we strengthened our balance sheet by retiring debt totaling $4.5 million through cash payments and share conversions and improving Stockholder's Equity by $4.1 million.

"Looking ahead, we have announced a rebranding and have aligned our business units to align leadership and go-to-market execution with our evolved vision. The Company's operations are now organized into three business units: ConnectAndSell, the Company's AI sales acceleration platform, Banzai, our enterprise video business, and CreateStudio, our AI-powered video content creation platform. These business units are supported by a cost-efficient shared service function.

"We also maintain an active pipeline of potential acquisition opportunities across key industries where we have strong sector experience and can leverage our AI platform and experience to add value and strategic operational acceleration. The recent acquisition of ConnectAndSell is a demonstration of a successful execution of our strategic growth goal," concluded Davy.

Second Quarter 2026 Financial Results

Total revenue for the three months ended June 30, 2026 decreased $0.9 million to $2.3 million compared to the prior year quarter, with declines split evenly between our consumer direct products and enterprise products. On a sequential basis, total revenue for the three months ended June 30, 2026 decreased 15.7% compared to the three months ended March 31, 2026.

Total cost of revenue for the three months ended June 30, 2026 was $0.5 million, compared to $0.6 million in the prior year quarter, a decrease of 18.8%. On a sequential basis, total cost of revenue decreased by $0.1 million, or 13.6% compared to the three months ended March 31, 2026.

Gross profit for the three months ended June 30, 2026 was $1.8 million, compared to $2.6 million in the prior year quarter. Gross margin was 80.2% in second quarter 2026 compared to 82.3% in second quarter 2025. On a sequential basis, gross profit decreased by $0.4 million from $2.2 million for the three months ended March 31, 2026. Gross margin was 80.7% in first quarter 2026.

Total operating expenses for the three months ended June 30, 2026 were $6.2 million, compared to $7.4 million in the prior year quarter. Operating expenses decreased primarily driven by professional fees, partially offset by higher people expenses and stock-based compensation. On a sequential basis, total operating expenses decreased $1.7 million from $8.0 million in the three months ended March 31, 2026. Operating expenses decreased primarily driven by professional fees, sales and marketing, and people expenses.

Net Loss for three months ended June 30, 2026 was $5.0 million. Q2 2025 Net Loss of $7.9 million included a one-time expense of $1.4 million related to the termination fee from the Act-On acquisition. Adjusting for this one-time expense, Q2 2025 Net Loss would have been $6.5 million, compared to $5.0 million for Q2 2026. On a sequential basis, Net Loss for Q1 2026 was $8.4 million. The decrease in Net Loss was driven by general and administrative expense reduction and Other (Income) Expense items, primarily loss on private placement issuance.

Adjusted EBITDA Loss for the three months ended June 30, 2026 increased to $1.7 million, compared to an Adjusted EBITDA Loss of $0.9 million in the prior year quarter. On a sequential basis, Adjusted EBITDA Loss for the three months ended June 30, 2026 improved by $0.2 from $1.9 million in first quarter 2026.

First Half Financial Results

Total revenue for the six months ended June 30, 2026 decreased 23.6% to $5.0 million compared to the prior year period. Our consumer direct products showed the largest declines compared to our enterprise products.

Total cost of revenue for the six months ended June 30, 2026 was $1.0 million, compared to $1.2 million in the prior year period, an decrease of 16.3%.

Gross profit for the six months ended June 30, 2026, was $4.0 million, compared to $5.3 million in the prior year period. Gross margin was 80.5% for the six months ended June 30, 2026, compared to 82.2% in the prior year period.

Total operating expenses for the six months ended June 30, 2026 were $14.2 million, compared to $15.1 million in the prior year period. The decrease in operating expenses were primarily driven by professional fees and technology expenses, partially offset by higher people expenses and stock-based compensation expense.

Net loss for the six months ended June 30, 2026 was $13.4 million, compared to $11.6 million in the prior year period. Both periods included non-cash gains related to a negotiated reduction of liabilities. Adjusting for these gains, year to date Q2 2026 Net Loss would have been $14.1 million compared to $16.1 million for year to date Q2 2025.

Adjusted EBITDA Loss for the six months ended June 30, 2026, was $3.5 million, compared to Adjusted EBITDA Loss of $1.7 million for the prior year period.

Net cash used in operating activities for the six months ended June 30, 2026, was $9.4 million, compared to $9.0 million for the six months ended June 30, 2025.

Cash totaled $0.6 million as of June 30, 2026, compared to $0.3 million as of December 31, 2025.

During the six months ended June 30, 2026, we continued to fund our operations through a combination of equity and debt financings, and most notably, closed an additional tranche of convertible debt, totaling approximately $2.3 million, and raised an additional $8.1 million of equity.

Management has continued to strengthen the balance sheet and reduced net debt by $3.8 million in line with our strategic priorities. Stockholder's Equity increased to $12.2 million as of June 30, 2026.

2026 and 2027 Outlook

The addition of the ConnectAndSell business will more than double the company's revenue, on an annualized basis. Full year effect of this acquisition will be realized in 2027.

Combined with cost reduction actions, Management expects operations to generate operating income, excluding non-cash expenses, on a monthly run rate basis starting during Q2 2027.

Second Quarter 2026 Results Conference Call