CID Holdco, Inc. Q1 FY2026 earnings call

Business Model and Core Strategy

• .ai offers full-stack asset intelligence solutions built on two core pillars: proprietary IoT hardware for in-process industrial data collection, and a cloud-based AI software platform that delivers real-time asset visibility and predictive analytics.
• The company completed its transition to commercial operations and public company reporting in 2025, and is strategically shifting from one-time hardware-led sales to a long-term recurring SaaS subscription model, which targets 3-5 year customer contracts with strong retention.

Q1 2026 Operational Progress

• As guided in prior communications, Q1 2026 saw low revenue as the company completed pilots and testing ahead of large-scale deployments scheduled for the second half of 2026. Hardware deployments act as a forward indicator of future recurring subscription revenue growth.
• The company finalized its commercial-grade Generation 3 multi-tenant SaaS platform in 2025, and delivered multiple incremental platform updates during Q1 2026 to prepare for enterprise-scale rollout. Development is supported by an efficient, AI-enabled engineering team based in Bangalore.
• Post-quarter end on April 1, the company co-hosted an industry webinar with Williott and Worth Industry North America to build market awareness, grow pipeline, and reinforce its positioning as a leading full-stack asset intelligence provider.

Market and Competitive Position

• The broader asset intelligence and real-time supply chain visibility market is growing rapidly, with strong industry tailwinds from increasing IoT adoption, AI-driven logistics optimization, and growing demand for real-time industrial asset tracking.
• The company's U.S.-based manufacturing positions it to benefit from current U.S. tariff policy, and its full-stack integrated hardware-software approach is a key competitive advantage that allows seamless integration with customers' existing infrastructure.
• Its channel partner model enables fast scaling and adaptation of its technology across multiple use cases and industry verticals.

Capital and Stakeholder Activities

• The company is currently pursuing a necessary capital raise to fund future operations, with enabling measures scheduled for a shareholder vote at the upcoming annual meeting.
• In Q1 2026, the company engaged MZ Group, an international investor relations firm, to expand its visibility to institutional, broker, analyst and private investor audiences, and will participate in upcoming microcap investment events in June to broaden its investor base.
• The company has already implemented labor reductions and additional cost controls to align spending with 2026 subscriber growth milestones.

The company does not report separate product segment financial performance in this call. Total company revenue for Q1 2026 was de minimis, down from $0.4 million in the year-ago Q1 2025. Gross margin for Q1 2026 revenue was 78.2%. Total operating expenses for Q1 2026 were $4.1 million, up from $2.1 million in the prior year quarter. Net loss for Q1 2026 was $4.5 million (15 cents per basic/diluted share), compared to a net loss of $1.3 million (11 cents per share) in Q1 2025. Adjusted EBITDA (non-GAAP) was negative $3.9 million in Q1 2026, compared to negative $1.3 million in the year-ago quarter.

• Management reaffirms full-year 2026 revenue guidance of $6 million to $7.5 million, maintaining the original guidance range provided in prior communications.
• Full-year 2026 revenue remains back-end weighted, with the vast majority of revenue expected to be recognized in the third and fourth quarters of 2026, consistent with prior guidance.
• The guidance reflects the company's strategic shift to recurring subscription revenue and annual recurring revenue (ARR), as well as management's confidence in its existing commercial pipeline, established partnerships, and current operational capacity.

• All forward-looking statements are inherently uncertain, and actual results may differ materially from forecasts due to unforeseen factors, as disclosed in the company's SEC filings including its 10-K.
• The company requires additional capital to fund its operations and growth plans, and there is uncertainty around the successful completion of its planned capital raise.
• A recent negative shift in the global semiconductor market (which supplies components for the company's hardware products) presents a potential risk, though management notes short-term impact is negligible due to sufficient existing component and finished goods inventory to meet 2026 deployment goals.
• Commercial project movement during Q1 2026 was slower than management originally expected, which creates execution risk for 2026 revenue conversion.

No investor or analyst questions were submitted during the Q&A portion of the call, so no exchanges occurred.