Banzai International, Inc. Class A (PARA) Earnings

Management highlights

### Corporate Strategy and Acquisitions - Parabolic's core strategy is to build, acquire, and scale B2B agentic AI applications, targeting undervalued businesses with durable revenue that can be enhanced with additional AI capabilities. - Closed the acquisition of Connect and Sell, an AI-powered sales acceleration platform serving B2B organizations in financial services, healthcare, and technology, on July 2, 2026 (post-quarter end). The acquisition adds 250 enterprise customers, 10 issued and pending patents, extends Parabolic's platform from marketing engagement into outbound sales execution, and creates cross-selling opportunities across the combined customer base. - Maintains an active pipeline of future targeted acquisitions aligned with the company's agentic AI focus and customer profile. ### Balance Sheet and Cost Management - Achieved an all-time high stockholders' equity of $12.2 million as of June 30, 2026, up from $8.1 million at the end of 2025, driven by rapid debt paydown as part of the company's Fortress Balance Sheet initiative. - Ended Q2 2026 with $600,000 in cash, up from $300,000 at the end of 2025. - Implemented a cost management plan in May 2026 that reduced Q2 2026 operating expenses by 16% year-over-year, with a 22% run-rate decrease in operating expenses from Q1 to Q2 2026; professional fees fell 51% and marketing expenses fell 29% quarter-over-quarter. Full cost savings will materialize in Q3 2026. - Closed an additional $1.1 million tranche from its existing $11 million funding facility post-quarter to support acquisitions and operations. ### Operational and Product Highlights - Grew total cumulative customers across all products to over 150,000, including new blue-chip enterprise clients such as RingCentral, Intuit, SAP, PwC, KPMG, and Shopify, serving customers in over 90 countries across multiple industries. - Achieved an all-time high 91% net dollar retention rate for the core customer segment in Q2 2026, indicating strong customer retention and upsell momentum. - Made significant product improvements to Superblocks, acquired in November 2025, launching an updated version with new starting templates that allow users to generate websites, landing pages, and simple web apps via natural language conversational AI. - On track to obtain ISO 27001 certification by the end of Q3 2026, which will unlock additional operational cost savings and support expansion into regulated verticals including financial services and healthcare. - Bookings grew quarter-over-quarter in Q2 2026, and net loss improved 37% year-over-year, driven by operating discipline and cost reduction.

Guidance

- Management expects significant revenue growth in the second half of 2026, driven by a projected 10% organic revenue improvement in legacy products and $6.5 million in contribution from the newly acquired Connect and Sell business. - Expected a 50% improvement in EBITDA and a 40% reduction in operating losses from the first half to the second half of 2026, resulting from completed cost reduction actions and incremental new revenue. - Projects 50% to 55% total revenue growth for full-year 2027, driven by continued organic growth of existing products and the full-year revenue contribution from Connect and Sell. - Expects ongoing profitability improvements throughout 2026 and into 2027 from additional targeted cost reduction actions.

Segment performance

The transcript does not provide separate standalone financial performance data (absolute revenue figures or revenue contribution percentages) for Parabolic's five individual product segments (Demio, Open Reel, Create Studio, Superblocks, and the newly acquired Connect and Sell). The only segment-specific note is that the 2026 year-to-date revenue decline was driven by the absence of non-recurring Create Studio revenue that was recognized in the first half of 2025. Connect and Sell, acquired post-quarter on July 2, 2026, is expected to add $15 million in annual revenue when fully realized and contribute $6.5 million to 2026 full-year revenue, with a gross margin of approximately 86%. Aggregate company-level Q2 2026 total revenue is $2.5 million, gross profit is $1.8 million with an 80.2% gross margin.

Risks & headwinds

No specific risks or operational failures were explicitly discussed during the call. Management only included the standard standard disclaimer that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections, and directed investors to review risk factor disclosures in the company's recent Form 10-Q and Form 10-K filings.

Analyst Q&A

• Q: Are there more acquisitions planned in the near term? /

  A: Management does not disclose details of pending acquisition negotiations before closing. The company maintains a robust acquisition evaluation process and is currently seeing many attractive prospective targets aligned with its strategic goals. No further details were provided on timing or target industries.

• Q: What is the latest progress on the strategic alliance with Ingram Micro? /

  A: The partnership, announced a couple of months before the call, gives Parabolic access to Ingram Micro's large sales network. The collaboration has gone smoothly to date, with upcoming milestone milestones planned. Management notes the partnership has significant potential as a new high-impact sales channel for Parabolic and will provide updates as progress is made.

• Q: What is the current quality of Parabolic's sales pipeline? /

  A: Management reports the current pipeline is high quality. New demand generation initiatives launched in Q1 2026 have already resulted in closed deals, and these efforts have been executed without the expected increase in marketing costs. The company is also investing to grow Connect and Sell's existing strong pipeline and testing new go-to-market channels, with early results positive so far.