Aura Reports Second Quarter 2026 Financial Results, Highlights Strong Momentum Following Qoria Acquisition

• Q2 pro forma ARR and pro forma revenue both grew 27% year over year
• Q2 pro forma Adjusted EBITDA improved 51% year over year
• Reaffirming calendar year 2026 outlook for 20%+ ARR growth and positive free cash flow from transaction close to year-end

BOSTON, Aug. 5, 2026 /PRNewswire/ -- Aura Consolidated Group, Inc. ARBN 695 488 843 (ASX: AXQ) ("Aura" or "the Company"), a global leader in online safety and wellbeing, today announced its financial results for the second quarter of 2026, its first earnings announcement following the completion of its July 17 acquisition of Qoria Limited ("Qoria") (formerly ASX: QOR), a global leader in student safety and wellbeing.

On a pro forma basis, the Company exited the quarter with approximately US$339.7 million in annual recurring revenue ("ARR"), representing 27% year-over-year growth, and remains on track to generate positive free cash flow in 2026 from acquisition completion. With a $100 million equity raise and an upsized $100 million debt facility completed in connection with the transaction close, Aura enters its next phase of growth with a strengthened capital position and enhanced financial flexibility.

"It has been a momentous few months for Aura. We posted very strong second quarter financial results on a pro forma basis, completed the previously announced acquisition of Qoria, enhancing our mission to be a global leader in online safety, and began trading on the ASX under the ticker symbol AXQ. These milestones align with our mission and strategic priorities and further the vision we have for this Company," said Hari Ravichandran, Founder and CEO of Aura. "All of this, while we continue to invest in the innovation that has differentiated Aura from the rest of the industry. I could not be more proud of the position we are in and excited about the vision we have as we enter the second half of 2026."

Aura's Chief Financial Officer, Brian DeCenzo, added, "Our second-quarter results highlight the strength and increasing efficiency of our model, with ARR and GAAP revenue each growing 27% year over year and Adjusted EBITDA improving substantially. At the same time, we have actioned $27 million in direct and operating cost savings year to date and increased the efficiency of our marketing investments. This combination of growth and operating discipline gives us confidence in our ability to achieve our strategic and financial goals."

Aura continues to execute its integration roadmap and remains on track to achieve full product integration by the second quarter of 2027.

Cost Reductions

Aura is executing ahead of plan on the $55 million cost-out program outlined to investors in February 2026. The Company has actioned $27 million in annualized run-rate direct and operating cost reductions to date, ahead of its $25 million target. In addition, the Company achieved a $7 million reduction in brand and performance marketing spend in the first half of 2026, with a further $28 million reduction planned for the second half. These cost actions, combined with expanding operating leverage and consistent top-line growth, support Aura's path to achieving its free cash flow goals in the second half of 2026.

Q2'26 Pro Forma Financial Highlights

Because the acquisition closed after the end of the second quarter, Aura's statutory financial statements reflect Aura on a standalone basis. To provide context on the combined company as it will operate going forward, Aura is presenting unaudited pro forma summary financial results for the merged group, reflecting Aura's historical financial information combined with Qoria's historical financial information prepared in accordance with U.S. GAAP accounting standards.

• GAAP revenue was $85.1 million, an increase of 27% year over year.
• ARR¹ was $339.7 million, an increase of 27% year over year.
• Adjusted EBITDA² loss of $12.6 million represents a 51% year-over-year improvement.
• As of the transaction close on July 17, 2026, Total Liquidity³ was $124.0 million, fortified by a $100 million equity raise and an upsized $100 million debt facility, leaving the business well-capitalized to execute on its plan and reach profitability.

Q2'26 Business Highlights

• Completed the acquisition of Qoria and commenced unrestricted trading on the ASX under the ticker "AXQ" on July 20, 2026, following implementation of the scheme of arrangement on July 17, 2026.
• Launched Aura Business in April 2026, an enterprise security solution designed to address identity-based security risks for managed service providers and small and mid-sized businesses.
• Introduced new AI-powered capabilities, including the continued evolution of Aura Intelligence into an embedded, context-aware intelligence layer and the release of a new self-harm detection model to support child wellbeing.
• Strengthened executive leadership across marketing, product, and AI with the appointments of Steven Young as Global Chief Marketing Officer and Adam Medros as Chief Product Officer.

Investor Conference Call

A conference call will be held today as follows:

US EDT: Wednesday, August 5, 2026 at 8:30pm
AEST: Thursday, August 6, 2026 at 10:30am

Link to register: https://events.q4inc.com/attendee/280029693

This conference call and related materials will be publicly available and can be accessed at investors.aura.com. A replay will also be made available after the call.

The release of this announcement was authorized by the Aura Board of Directors.

About Aura

Aura (ASX: AXQ) is a global leader in online safety and wellbeing. Built on the belief that people deserve a trusted, always-on layer of protection, Aura's AI-powered platform delivers protection for individuals, families, and enterprises—from proactive protection against identity theft, financial fraud, and online threats to tools that help schools and parents protect children from cyberbullying, harmful content, and threats to their wellbeing. Aura's platform spans the environments that matter most—home, school, and work—empowering people of all ages with end-to-end protection for every aspect of online life. Learn more at aura.com.

Forward-looking statements

This announcement and the accompanying presentation and conference call include certain statements that constitute "forward-looking statements" and "forward-looking information" regarding possible or assumed future performance or potential growth of the Company that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "objective," "ongoing," "plan," "predict," "project," "potential," "should," "will," or "would" and/or the negative of these terms, or other comparable terminology intended to identify statements about the future. They appear in a number of places throughout these materials and include statements regarding management's intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, the industry in which the Company operates in, and other information that is not historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although management of the Company believes that it has a reasonable basis for each forward-looking statement contained in these materials, the Company cannot assure you that the Company will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Except as required by applicable regulations or by law, the Company does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events.

Non-GAAP financial information

This announcement and the accompanying presentation and conference call contain pro forma information and certain measures of financial performance not determined in accordance with U.S. generally accepted accounting principles ("GAAP"), such as Adjusted EBITDA and Total Liquidity at transaction close (the "non-GAAP financial measures"). The non-GAAP financial measures are used by Company management to evaluate financial performance of, and determine resource allocation for, the Company's operations. Items excluded from each of the non-GAAP financial measures are significant components in understanding and assessing financial performance. The non-GAAP financial measures should not be considered in isolation, or as alternatives to, or substitutes for, pro forma net income, pro forma general and administrative expense, or other financial statement data presented in the Company's consolidated financial statements as indicators of financial performance or liquidity. Because the non-GAAP financial measures are not measurements determined in accordance with GAAP and are thus susceptible to varying definitions, the non-GAAP financial measurements as presented may not be comparable to other similarly titled measures of other companies. Please refer to the accompanying presentation for additional information. The pro forma financial information has not been subject to audit or review by the Company's independent auditor.

Note: The financial information in this release is unaudited. All monetary figures are reported in U.S. dollars, unless otherwise noted.

¹Annualized Recurring Revenue ("ARR") reflects annualized recurring GAAP revenue recognized in the final month of a given period. Prior disclosures combined Aura and Qoria ARR as calculated under each company's historical methodology. Post-close, the methodologies were aligned, and the definition above will be used for future reporting. Using the methodology applied in prior disclosures, Q2'26 ARR would have been $354.0 million.

²Adjusted EBITDA is defined as net income (loss), adjusted to exclude interest, taxes, depreciation and amortization, IPO readiness costs, acquisition-related costs, stock-based compensation, mark-to-market gains/losses, and foreign currency exchange gains/losses.

³Total Liquidity represents available sources of funding, consisting of cash plus available borrowing capacity under the Company's revolving credit facility, assuming payment of estimated transaction costs.

CATEGORY: Financial News

SOURCE Aura