Merlin

Q2 FY2026 EarningsQ2 FY26 results significantly missed revenue and earnings expectations, with revenue of $2.19M falling -41.88% below the $3.78M consensus. GAAP EPS of -$1.40 was substantially worse than the -$0.375 expected, driven by a $60.8M deemed dividend and heavy non-cash warrant liability charges. While the company successfully extinguished all long-term debt following a $80M PIPE in May 2026, severe material weaknesses in internal controls and the transition between contract phases highlight significant operational risks.