third quarter 2026
Filed Oct 26, 2026OpenWorld Provides Preliminary Third Quarter 2026 Estimated Financial Results and Announces Appointment of Gerard Hernandez as Chief Financial Officer Expected Q3 2026 Revenue of $6.9 Million to $7.2 Million; Gross Margin of 80% to 82%, Net Loss of Approximately $10.0 Million, Inclusive of Non-recurring Stock-Based Compensation and Merger-Related Transaction Fees, and Adjusted EBITDA of $1.7 Million to $2.0 Million
The preliminary estimate indicates positive Adjusted EBITDA of $1.7 million to $2.0 million and gross margin of 80% to 82%, while also indicating an approximately $(10.0) million GAAP net loss that includes approximately $11.9 million of non-recurring stock-based compensation expense and merger-related transaction fees.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, estimated, for the three months ended September 30, 2026other | $6.9 million – $7.2 million | – | – |
| Gross margin, estimated, for the three months ended September 30, 2026other | 80% – 82% | – | – |
| Net loss, estimated, for the three months ended September 30, 2026GAAP | Approximately $(10.0) million | – | – |
| Adjusted EBITDA, estimated, for the three months ended September 30, 2026non-GAAP | $1.7 million – $2.0 million | – | – |
| Interest expense, net, for the three months ended September 30, 2026GAAP | $ 0.1 | – | – |
| Income tax expense, for the three months ended September 30, 2026GAAP | $ 0.0 | – | – |
| Depreciation and amortization, for the three months ended September 30, 2026GAAP | $ 0.0 | – | – |
| Nonrecurring stock-based compensation, for the three months ended September 30, 2026other | $ 5.9 | – | – |
| Merger-related transaction fees, for the three months ended September 30, 2026other | $ 6.0 | – | – |
third quarter ended September 30, 2026 preliminary estimated financial results outlook
- Revenue$6.9 million – $7.2 million
- Gross margin80% – 82%
- NoteNet Loss (GAAP) Including Nonrecurring Stock-Based Compensation and Merger-Related Transaction Fees: Approximately $(10.0) million
- NoteAdjusted EBITDA (non-GAAP): $1.7 million – $2.0 million
What drove it
- Revenue is expected to reflect the Company’s results, reported primarily as OpenWorld.
- The Company stated that revenue from real-world assets (“RWA(s)”) ramped to this level within just three quarters from zero at the start of the year.
- The September 30, 2026 consolidated balance sheet will reflect the combined entities following the reverse takeover transaction completed on September 30, 2026.
Concerns
- The financial information is preliminary, unaudited and based on management’s estimates as of the release date.
- The Company’s financial closing procedures for the quarter ended September 30, 2026 are not yet complete, and actual results may differ materially from these estimates.
- The approximately $(10.0) million net loss includes approximately $11.9 million in non-recurring stock-based compensation expense and merger-related transaction fees.
- The third-quarter operating results will reflect OpenWorld's historical operations rather than those of VerifyMe, Inc., while the September 30, 2026 consolidated balance sheet will reflect the combined entities.
What to watch
- Actual third quarter 2026 results, which the Company expects to report on November 12, 2026.
- The final reported revenue, gross margin, GAAP net loss and Adjusted EBITDA relative to the preliminary estimated ranges.
- The completion of quarter-end closing procedures and the magnitude of any difference between actual and preliminary results.
- Integration of the businesses following the reverse takeover transaction.
- Execution under Gerard Hernandez, appointed Chief Financial Officer effective October 23, 2026.
Analysis
OpenWorld issued preliminary, unaudited estimates for the third quarter ended September 30, 2026 rather than completed quarterly results. Revenue is expected to be $6.9 million – $7.2 million, with gross margin expected at 80% – 82%. Management described the revenue as primarily reported as OpenWorld and linked the revenue ramp to real-world assets.
The expected earnings profile is mixed between GAAP and non-GAAP measures. The Company expects an approximately $(10.0) million GAAP net loss, but expects Adjusted EBITDA of $1.7 million – $2.0 million. The reconciliation identifies $5.9 million of nonrecurring stock-based compensation and $6.0 million of merger-related transaction fees, alongside $0.1 of interest expense, net, $0.0 of income tax expense, and $0.0 of depreciation and amortization.
The release places the period in the context of the reverse takeover transaction with VerifyMe, Inc., which closed on September 30, 2026. Third-quarter operating results will reflect OpenWorld's historical operations, whereas the September 30, 2026 consolidated balance sheet will reflect the combined entities. This distinction is material for assessing comparability, and the release provides no prior-year or prior-quarter financial comparisons.
There were no reported cash balances, debt balances, operating cash flow, free cash flow, repurchases, dividends, operating income, net income per share, or segment revenue figures. The key near-term event is the planned November 12, 2026 report of third-quarter results and conference call, when the Company expects to provide finalized information after completing its quarter-end closing procedures.
Leadership also changed during the reporting period aftermath, with Gerard Hernandez appointed Chief Financial Officer effective October 23, 2026. The Company stated that he will oversee finance, accounting, reporting and investor relations as operations transition to primarily focus on OpenWorld. The preliminary nature of all reported financial estimates, the substantial GAAP loss, and integration following the RTO remain the central reported considerations.
Management, verbatim
Even as we are in the early stages of scaling operations, our estimated third-quarter financial results demonstrate the strength of OpenWorld’s business model as we move forward as a public company.
Matthew Shaw, Chairman and CEO of OpenWorld
Our initial revenue performance, high-margin profile and positive Adjusted EBITDA* provide an excellent indication of the early progress we are making, and we believe we are well positioned to build on this momentum.
Matthew Shaw, Chairman and CEO of OpenWorld
I am excited to step into the CFO role at such an important time for OpenWorld.
Gerard Hernandez, Chief Financial Officer
Not in the filing
stated, not guessed- Completed and audited third quarter 2026 financial results
- Prior-year revenue, gross margin, net loss and Adjusted EBITDA for the same period
- Prior-quarter revenue, gross margin, net loss and Adjusted EBITDA
- Revenue growth rates
- Gross profit
- Operating expenses
- Operating income or loss
- Net income or loss per share
- Cash and cash equivalents
- Debt
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Segment revenue and segment profitability
- Forward guidance beyond the preliminary third quarter 2026 estimates
- Prior guidance for comparison
- Tax rate
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.