Banzai International (NASDAQ:BNZI), which recently rebranded as Parabolic Technologies, reported second-quarter revenue of $2.3 million, down 27% from $3.1 million a year earlier, while narrowing its net loss through lower operating expenses and outlining growth expectations tied to its July acquisition of ConnectAndSell.
Chief Executive Officer Joe Davy said the company is positioning itself as a builder, buyer and investor in “agentic applications,” or AI-enabled business software designed to support autonomous, goal-driven workflows. Its current product lineup includes webinar platform Demio, remote video-production platform OpenReel, animation platform CreateStudio, website-building agent Superblocks, and sales-enablement platform ConnectAndSell.
Second-Quarter Results
The company reported a net loss of $5 million for the quarter, compared with a $7 million loss a year earlier. Adjusted EBITDA was a loss of $1.7 million, compared with a loss of $900,000 in the prior-year quarter.
Davy said revenue declined partly because the company allowed non-recurring revenue to trail off. He added that bookings increased in the second quarter from the first quarter and said the company saw “encouraging leading indicators” in its sales pipeline.
For the first six months of 2026, revenue was $5 million, down 24% from $6.5 million in the first half of 2025. The company attributed the decline primarily to one-time CreateStudio revenue recognized in the first half of 2025 that did not recur. Year-to-date gross margin was 80.5%, compared with 82.2% in the prior-year period.
The year-to-date net loss was $13.4 million, compared with $11.6 million a year earlier. Ditto said both periods included non-cash gains related to negotiated reductions in liabilities.
Cost Reduction and Balance Sheet Efforts
Management highlighted cost cuts initiated under a plan announced in May. Davy said operating expenses fell by $1.7 million from the first quarter and by $1.2 million from the second quarter of 2025. Ditto said professional fees declined 51% and marketing expense declined 29% on a second-quarter versus first-quarter run-rate basis.
The company expects the full effect of its $5.5 million cost-reduction plan to appear in third-quarter results. Management also said it intends to pursue further cost reductions during the year.
Cash at June 30 was $600,000, compared with approximately $300,000 at Dec. 31. Stockholders’ equity reached $12.2 million, which management described as an all-time high and up from $8.1 million at the end of 2025. Following the quarter, the company closed an additional $1.1 million tranche from an existing $11 million facility intended to support acquisitions and ongoing operations.
ConnectAndSell Acquisition Expected to Add Revenue
Parabolic closed its acquisition of ConnectAndSell’s assets on July 2, meaning the business was not included in second-quarter results. Davy said ConnectAndSell is an AI-powered sales acceleration platform serving about 250 enterprise customers, primarily in financial services and healthcare technology.
The acquired business is expected to add approximately $15 million of annual revenue when fully realized, bringing Parabolic’s annualized revenue to roughly $27 million, according to Davy. ConnectAndSell has an approximately 86% gross margin and 10 issued and pending patents, he said.
Management expects ConnectAndSell to contribute $6.5 million of revenue during 2026. Ditto said the company forecasts significant second-half revenue growth, supported by a projected 10% improvement in legacy products and ConnectAndSell’s contribution. The company expects EBITDA to improve 50% in the second half versus the first half, while operating losses are expected to decline 40%.
For 2027, management forecast revenue growth of 50% to 55%, driven by organic growth in legacy products and a full-year contribution from ConnectAndSell.
Product, Customer and Strategy Updates
Davy said Parabolic has more than 150,000 customers that have purchased or subscribed to its products, serving customers in more than 90 countries. The company cited recent additions including RingCentral, Intuit, Oppenheimer and SAP, while also naming Sage, PwC, Ernst & Young, Shopify, Ingram Micro, CAPTRUST and KPMG among its customers.
Net dollar retention for the company’s core customer segment reached 91% in the second quarter, an all-time high, according to Davy. He said the company sees financial services and healthcare as major prospective customer verticals.
The company also expects to obtain ISO/IEC 27001 certification by the end of the third quarter, which Davy said could support additional operating cost savings. He said the company continues to evaluate potential acquisitions but would not discuss specific opportunities before they are ready to close.
About Banzai International (NASDAQ:BNZI)
Banzai International, Inc, a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events.
