MultiSensor AI — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $1.5 million for the quarter ended September 30, 2026, a decrease from $1.6 million in the same period of 2025; revenue for the nine months ended September 30, 2026 increased 16% to $4.8 million compared to $4.2 million in 2025.
• Software revenue was $0.9 million in the third quarter of 2026, up 43% from $0.6 million in the third quarter of 2025, representing 58% of total revenue; software revenue for the nine months ended September 30, 2026 increased 81% to $2.3 million.
• Net loss was $1.9 million for the quarter ended September 30, 2026, compared to $1.7 million in the third quarter of 2025; net loss for the nine months ended September 30, 2026 decreased 27% to $6.9 million from $9.4 million in 2025.
• Operating loss was $2.1 million for the quarter ended September 30, 2026, compared to $1.7 million in the prior year quarter; operating loss for the nine months ended September 30, 2026 was $7.3 million, a decrease from $9.6 million in 2025.
• Cash and cash equivalents were $20.4 million as of September 30, 2026, down from $24.4 million as of December 31, 2025.
• Contract liabilities (deferred revenue) totaled $3.2 million ($2.5 million current, $0.7 million noncurrent) as of September 30, 2026, compared to $2.0 million ($1.3 million current, $0.8 million noncurrent) as of December 31, 2025.
• The company reported no debt and had total liabilities of $4.3 million as of September 30, 2026, compared to $3.4 million as of December 31, 2025.
• Net cash used in operating activities was $4.5 million for the nine months ended September 30, 2026, compared to $5.8 million in the same period of 2025.

Business Segments and Product Lines:

• Revenue mix is shifting toward software subscriptions, which now constitute the majority of revenue for the quarter.
• The company discontinued inspection and training services in August 2025, contributing to lower hardware revenue in the current quarter.
• Programs in Europe continue to grow, with solar performance monitoring extending to additional European sites.
• A large global distributor began a 14-site rollout in North America, with hardware delivered in October 2026 and installations commencing; subsequent to quarter-end, purchase orders were received to extend the solution to nine additional sites.
• Manchester Airports Group expanded its deployment to an additional screening area at Manchester Airport, building on an initial deployment completed earlier in 2026.
• An initial proof-of-value deployment began at a national distribution center of a major Australian supply chain and logistics provider, expanding presence to the Asia-Pacific region.
• A data center pilot with a leading global cloud infrastructure provider focused on continuous monitoring of high-voltage electrical switch rooms and mechanical pump rooms advanced, with a proposal submitted to expand deployment across additional electrical infrastructure.

Management Commentary and Tone:

• CEO Asim Akram highlighted the scaling potential of the business, citing the relationship with the largest distribution customer and the replication of success from European sites to North America.
• CFO Robert Nadolny noted that the shift to software subscriptions provides better visibility into future periods and that disciplined spending combined with strong collections meaningfully slowed cash use in the third quarter.
• Management expressed confidence in the balance sheet, stating the company has no debt and is positioned to continue investing in recurring revenue.

Other Key Points:

• All share and per share amounts presented have been adjusted retroactively to reflect a 1-for-40 reverse stock split on April 13, 2026.
• The company's Form 10-Q for the quarter ended September 30, 2026, is available on the SEC website and the Investor Relations section of www.multisensorai.com.
• Share-based compensation expense was $0.2 million for the quarter ended September 30, 2026, compared to $0.2 million in the prior year quarter; for the nine months ended September 30, 2026, it was $0.6 million compared to $1.5 million in 2025.
• Capital expenditures were $0.6 million for the nine months ended September 30, 2026, compared to $1.3 million in the same period of 2025.
• Proceeds from issuances of common stock were $1.0 million for the nine months ended September 30, 2026, compared to $4.8 million in 2025.