Aura Reports Third Quarter 2026 Results, Highlights Sustained Business Momentum and Transformative Platform Innovation

• Q3 revenue grew 24% YoY to $87.9 million, corresponding to Q3 ARR of $355.0 million, also a 24% increase year over year.
• Generated positive Adjusted FCF of $12.4 million, a $15.5 million improvement year over year.
• Reaffirming full-year 2026 outlook for 20%+ ARR growth and positive Adjusted Free Cash Flow from Transaction Close through year-end.
• Introduced Solstice, an in-house AI engine built to protect families, and the new Aura running on it.

BOSTON, Nov. 11, 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 third quarter of 2026, the first quarter since completing the acquisition of Qoria on July 17, 2026 ("Transaction Close").

On a pro forma basis, Aura exited the quarter with $355.0 million in annual recurring revenue ("ARR"), up 24% year over year, and generated positive Adjusted FCF of $12.4 million, a $15.5 million improvement year over year. The Company reaffirmed its full-year 2026 guidance of 20%+ ARR growth and positive Adjusted Free Cash Flow from Transaction Close to year-end.

Reflecting on the achievements in Q3'26, Aura's Founder and CEO, Hari Ravichandran, said:

 "This quarter, we laid the foundation for our expanded long-term vision for Aura while delivering sustained revenue growth and positive free cash flow. At the same time, we are accelerating our pace of innovation, and earlier this week introduced Solstice, our in-house AI engine, along with an updated Aura experience, the first product built on that foundation.

"For decades, consumer security has pushed the hard work back onto the user. We're reimagining protection from the ground up with Solstice and will unlock what no consumer security product has had: a deep understanding of the family, and the ability to help take action when the family asks."

Aura's Chief Financial Officer, Brian DeCenzo, added, "As generative AI fuels more frequent and sophisticated scams and new risks to children online, more families, schools, and employers are turning to Aura as their trusted source of protection. We are translating broad-based customer growth and strong product uptake into robust, sustainable revenue growth. That momentum, paired with our ongoing focus on operational efficiency, leaves us well positioned to deliver on both our 20%+ ARR growth and positive free cash flow targets this year, while building toward our medium-term financial objectives."

Continued innovation

• Introduced Solstice, an in-house AI engine built to protect families. Solstice will serve as the foundation under every Aura product, and it has five parts: data collectors, a household knowledge graph, a machine learning stack, a proprietary foundation model, and an action plane. The result: deep understanding of the family, and the means to take action when the family asks.
• Unveiled a new Aura experience, built on Solstice. The new Aura replaces alerts and to-do lists with a cohesive safety system that works for the family. Specialized AI agents monitor the household's digital activity, decide what matters, and take action when directed. The new Aura is available in limited beta, with broader availability expected in early 2027.
• Launched Trusted Family Access, a consent-based offering that helps families protect aging parents and adult loved ones from scams and fraud.
• Data removal coverage surpassed 500 data brokers, a major milestone for privacy protection.
• Recognition for Aura Parents as one of TIME's Best Inventions of 2026.

Cost reductions

Aura is executing ahead of plan on the $55 million cost-out program outlined in February 2026, with year-to-date and planned Q4 actions representing approximately $66 million in total savings. This includes $42 million in annualized direct and operating cost savings, driven by organizational realignment that significantly reduced the Company's fixed cost base. Direct-to-Consumer ("D2C") marketing spend is expected to decline $24 million in 2026 compared with 2025, while continuing to support investment in efficient growth.

Q3'26 pro forma financial highlights

Aura's acquisition of Qoria became effective on July 17, 2026. As such, Q3'26 unaudited statutory financials reflect Aura's full-quarter results, together with Qoria's post-close results from July 17, 2026 through September 30, 2026. To provide a more representative view of the combined group's performance and facilitate period-over-period comparability, this release and the related materials focus on unaudited pro forma results, combining Aura and Qoria for the full duration of each period presented. All dollar amounts are reported in U.S. currency unless otherwise noted.

• Q3 revenue was $87.9 million, an increase of 24% year over year.
• ARR^[1] was $355.0 million, an increase of 24% year over year.
• Adjusted FCF was $12.4 million, up $15.5 million year over year. From Transaction Close to September 30, consistent with Aura's guidance framework, Adjusted FCF was $13.7 million.^[2]
• Adjusted EBITDA of negative $14.9 million reflects a 45% year-over-year improvement.
• As of September 30, 2026, net debt was $2.6 million, a $7.3 million improvement since Transaction Close.

Q3'26 business highlights

• Completed the Qoria acquisition and began integrating the two businesses, uniting protection across home, school, and work.
• Demonstrated strength across channels:
  • D2C: Grew subscribers 13% year over year to 1.1 million and drove an 11% increase in ARPU alongside an 18% reduction in marketing spend.
  • Enterprise: Reached approximately 2,300 employers, up 31% year over year, and approximately 7,000 K-12 districts, up 5%, with net revenue retention of 103%.

Capital markets update

Aura continuously evaluates strategic opportunities to optimize its business. As part of that ongoing assessment, management is evaluating a potential dual listing on a U.S. stock exchange alongside its ASX listing. While the Company remains secure in its capital position, management believes a dual listing could support its objective of maximizing long-term shareholder value through an expanded investor base and improved trading liquidity. Any potential dual listing remains subject to approval by Aura's Board of Directors and the completion of required regulatory and other processes.

Investor conference call

A conference call will be held today as follows:

• November 12, 2026 10:30am AEDT | November 11, 2026 6:30pm EST
• Link to register: https://events.q4inc.com/attendee/159132282

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, which 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 this release and the related 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, 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 the forward-looking statements, 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. See section 7.3 of the Qoria Scheme Booklet from May 2026 for further information.

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 Adjusted Free Cash Flow (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 loss from operations, loss before income taxes, or any other measure calculated in accordance with GAAP as indicators of financial performance or liquidity, and should be considered together with the Company's GAAP financial measures.

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 measures as presented may not be comparable to other similarly titled measures of other companies. Please refer to the earnings presentation for additional information.

Pro forma Adjusted EBITDA GAAP to non-GAAP reconciliation

Adjusted 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.

Pro forma Adjusted FCF GAAP to non-GAAP reconciliation

Adjusted Free Cash Flow ("FCF") is defined as operating cash flow less capital expenditures (including capitalized software development), excluding IPO readiness and acquisition-related costs paid in cash during the period.

Prior disclosures defined Adjusted FCF using accrual-based adjustments for IPO readiness and acquisition-related expenses. Please refer to the earnings presentation for additional information.

Key operating metrics

The Company monitors several key operational and business metrics to measure performance, identify trends, prepare financial forecasts, and make strategic decisions. Operating metrics are derived from internal company systems and have not been audited or reviewed by the Company's independent auditor. Due to the recency of the Transaction Close, certain operational data from legacy Qoria business lines have not yet been fully integrated into Aura's systems and may be revised as integration progresses and methodologies are further aligned. Please refer to the earnings presentation for additional information on Aura's key operating metrics.

ARPU: Average revenue per user ("ARPU") is defined as total revenue attributable to the service period, including upsells and net of refunds, from all D2C subscribers active during a given period, divided by the total number of active D2C subscribers at the close of that same period, and expressed as a monthly figure.

ARR: Annualized recurring revenue ("ARR") reflects annualized recurring GAAP revenue recognized in the final month of a given period. 

D2C subscriber: An active, paid subscription acquired through a D2C channel, as of period end.

Employer: A company accessed via the Employee Benefits channel that offers Aura as a workplace benefit.

Enterprise NRR: Defined as revenue attributable to a fixed cohort of K-12 districts and employers identified as active one year prior to the end of the measurement period, measured in the final quarter of the measurement period, divided by revenue attributable to those same K-12 districts and employers measured in the final quarter of the prior-year period. 

K-12 district: Defined as an administrative unit that manages and operates one or more primary or secondary schools serving kindergarten through 12th grade ("K–12") within a specific geographic area, that is under an active contract to receive Aura's student safety solutions.

¹ Q3'26 ARR was updated following the Company's Appendix 4C filing (previously reported as $357.4 million) to reflect updated reporting received from a partner post-quarter end and identified during the auditor's review, which resulted in the reclassification of approximately $200,000 of September revenue from recurring to non-recurring.

² Adjusted FCF reflects a revised definition compared to prior disclosures. Please refer to the "Forward-looking statements," "Non-GAAP financial information," and "Pro forma Adjusted FCF GAAP to non-GAAP reconciliation" sections of this release for additional information about Adjusted FCF.

CATEGORY: Financial News

SOURCE Aura