OMNIQ Corp.

What they do

OMNIQ builds and integrates computer-vision and data-collection solutions: hardware, internally and third-party developed software, communications, and automated management and support services. Its technology covers license plate and vehicle recognition, passenger and people counting, real-time surveillance, access control, and traffic and parking management. Customers include government agencies, municipalities, airports, healthcare systems, universities and enterprise campuses.

Revenue drivers

• AI service contracts, software and related services — The 10-K states revenue is generated from sales of AI service contracts, software and related services; total 2025 revenue was $32.95 million versus $34.88 million in 2024.
• Safe City / machine vision deployments — Management cites the Global Safe City and Ticketless Safe Parking markets as the growth markets it targets, with four municipalities added to the Safe City footprint during and shortly after Q2 2026.
• High-occupancy vehicle recognition — A newer solution that identifies and counts vehicle occupants; the Q2 2026 shareholder letter says it is live at sites handling more than 30,000 vehicles annually.

Recent performance

Q2 2026 revenue was $7.4 million versus $7.8 million a year earlier, and six-month revenue was $15.1 million versus $15.8 million. Q2 2026 gross profit was $1.5 million against $2.0 million, and the loss from operations widened to $(2.2 million) from $(480,000). Q2 2026 net loss was $(528,000), or $(0.03) per share, compared with net income of $2.1 million a year earlier, which the company attributes almost entirely to $3.6 million of other income and debt-settlement gain in the prior-year quarter. The revenue decline is attributed to project deployment timing; the operating loss widened on higher SG&A.

Strategy

Management describes a simplified, focused company following the July 2025 divestiture of the Quest Solution division. Stated priorities are increasing sales with the largest customers, prioritizing the most profitable product lines, cutting operating expenses, and strengthening the balance sheet. The company is investing in patents as durable value and continues to work with vendors, debt holders, secured lenders and related parties on settlements and restructurings. It notes ongoing financial support from a related party, whose advances rose to $7.3 million as of June 30, 2026.

Risks

• Going concern — The 10-K cites a $13.2 million working capital deficit, a $124 million accumulated deficit, multiple years of operating losses, declining sales and debt covenant noncompliance as raising substantial doubt about the ability to continue as a going concern.
• Negative equity and leverage — At June 30, 2026 total liabilities were $40.0 million against $25.1 million of assets and shareholder equity of $(14.9) million.
• Thin liquidity — Cash and equivalents were $1.1 million at June 30, 2026, and the company relies in part on related-party advances that reached $7.3 million.
• Revenue concentration and timing — The 10-K attributes the 2025 revenue decline partly to a delay in timing of a significant customer project, and management cites project deployment timing for the 2026 declines.

Outlook

Management's priorities for the balance of 2026 are to grow sales with the largest customers, favor the most profitable product lines, reduce operating expenses without compromising delivery, and continue strengthening the balance sheet. The company says it expects related-party financial support to remain available as it executes that plan. It intends to expand investor communications, beginning with a presentation at LD Micro in October 2026.