Cloudastructure Inc.

What they do

The company sells a full-stack security platform combining cloud video surveillance, AI/ML analytics, remote guarding software, and 24/7 live remote guarding personnel. It targets multifamily residential property management, with growing presence in commercial real estate, construction, critical infrastructure, and transportation/logistics. The platform detects events in real time and routes alerts to live guards for intervention.

Revenue drivers

• Subscription services (cloud video surveillance and remote guarding) — Recurring revenue from cloud video surveillance and live remote guarding; was approximately $764,000 in Q2 2026, or about 62% of total revenue, up 164% year-over-year.
• Hardware and installation — Non-recurring revenue from camera infrastructure design and installation; declined year-over-year and represented the remainder of total revenue.
• Multifamily property management — Largest vertical; contracts with six of the top ten NMHC 2025 property managers as of December 31, 2025, including Greystar, Asset Living, Avenue5, Cushman & Wakefield, FPI Management, and Bozzuto.
• Adjacent verticals (construction, critical infrastructure, logistics) — Growth initiatives supported by engagements with a leading national builder and a trucking/logistics partner; smaller contributors than multifamily.

Recent performance

Q2 2026 revenue was approximately $1.2 million, up 13% year-over-year, with subscription services at approximately $764,000, or 62% of total revenue. Gross profit rose 53% to approximately $610,000, and gross margin reached approximately 49%, versus 37% in the prior-year period. Net loss narrowed to approximately $1.7 million from approximately $2.2 million. For the first half of 2026, revenue was approximately $2.5 million, up approximately 39%, with gross profit up approximately 80%. Full-year 2025 revenue was $5.1 million with a net loss of $8.5 million.

Strategy

Management is deliberately shifting the revenue mix toward recurring subscription services and away from lower-margin hardware and installation. The company is expanding within existing multifamily customers via a land-and-expand model, while pursuing new verticals such as commercial real estate, construction, and critical infrastructure. Recent deployments include a third project with a luxury multifamily operator in Houston and a five-building Southern California office portfolio replacing onsite guards. Capital raised under Regulation A (over $35 million) and the January 2025 Nasdaq listing support sales, marketing, and support infrastructure.

Risks

• Nasdaq delisting risk — The company received a Nasdaq notice that its Class A common stock may be delisted, which could reduce liquidity and impair its ability to raise additional financing.
• Continued losses and cash burn — Net loss was $8.5 million in 2025 and operating cash flow was negative $6.9 million, with Q2 2026 still showing a $1.7 million net loss.
• Small revenue base and customer concentration — Full-year 2025 revenue was only $5.1 million, and the business depends on a limited number of large multifamily property management customers.
• Technology and data security risk — The company states its technology requires ongoing development and that a breach of security measures or unauthorized access to personally identifiable information could harm reputation and create liabilities.

Outlook

Management says the revenue mix shift toward higher-margin recurring subscriptions establishes a more predictable, scalable business and targets continued expansion in existing top-tier customer locations and new property management accounts. The company anticipates entering additional new markets in 2026 and cites a customer retention rate of approximately 99%. It also reported regaining compliance with a Nasdaq listing requirement as of the August 17, 2026 earnings release.