{"success":true,"data":{"pressRelease":{"id":"129104","rtpr_id":"nPn4dR16Ca","ticker":"MYND","exchange":"NYSE American","all_tickers":["MYND","WK6Y"],"title":"MYND.AI REPORTS FIRST HALF 2026 RESULTS AS TURNAROUND GAINS MOMENTUM; ADJUSTED EBITDA IMPROVES 52%, OPERATING EXPENSES REDUCED 35%","author":"PR Newswire","published_at":"2026-08-27T11:00:03.492Z","article_body":"MYND.AI REPORTS FIRST HALF 2026 RESULTS AS TURNAROUND GAINS MOMENTUM; ADJUSTED EBITDA IMPROVES 52%, OPERATING EXPENSES REDUCED 35%\n\nPR Newswire\n\nALPHARETTA, Ga., Aug. 27, 2026\n\nCompany Demonstrates Meaningful Progress on Strategic Transformation While\nExpanding Recurring Revenue Streams\n\nALPHARETTA, Ga., Aug. 27, 2026 /PRNewswire/ -- Mynd.ai, Inc. (the \"Company\" or\n\"Mynd.ai\") (NYSE American: MYND), a global leader in interactive technology\nsolutions for education and enterprise, today reported financial results for\nthe first half of 2026, highlighting continued progress on its operational\ntransformation, improved profitability metrics, and strengthened liquidity\nflexibility.\n\nThe first half of 2026 reflected continued execution against Mynd.ai's\noperating transformation: stronger gross margin, materially lower operating\nexpenses, improved Adjusted EBITDA, and reduced cash used to fund operations,\nwhile the Company continued to build recurring revenue through services and\nsoftware-as-a-service (\"SaaS\"). Management believes these actions are creating\na more efficient operating model and positioning the Company to pursue\nsustainable growth as market conditions improve.\n\nKey highlights for the first half of 2026 compared with the first half of\n2025:\n\n * Gross margin expanded 220 basis points to 24% from 22% in the prior-year\nperiod\n * Total operating expenses reduced 35% to $31.5 million from $48.5 million in\nthe prior-year period\n * Net loss narrowed 30% to $20.2 million from $28.9 million in the prior-year\nperiod\n * Adjusted EBITDA(1) improved 52% to a loss of $9.1 million from a prior-year\nloss of $19.0 million\n * Net cash used in operating activities improved 36%, or $14.8 million, compared\nto the prior-year period\n * Free cash flow(1) improved 36%, or $15.4 million, compared to the prior-year\nperiod\n * Service and SaaS revenue grew year-over-year, demonstrating continued momentum\nin recurring revenue streams despite lower total revenue in the period\n\"Our first half results show that our structural transformation is delivering\nmeasurable progress,\" said Arthur Giterman, Chief Executive Officer and Chief\nFinancial Officer. \"Despite a challenging demand environment across the\neducation technology sector, we expanded gross margins, reduced operating\nexpenses by 35%, narrowed net loss by 30%, improved Adjusted EBITDA by 52%,\nand significantly reduced operating cash usage. We remain focused on\ndisciplined execution, liquidity management, and continued growth in our SaaS\nand services businesses.\"\n\nStrategic Updates\n\nDuring the first half of 2026, the Company enhanced its financial flexibility\nthrough a strategic inventory financing arrangement with its majority\nshareholder, NetDragon Websoft Holdings Limited, providing access to up to\n$50.0 million in revolving inventory financing. As of the date of this\nrelease, approximately $25.7 million remained available under the facility. In\nApril 2026, the Company fully paid off the Bank of America revolving facility\nand in July 2026, the Company finalized the termination of the facility,\neliminating all associated obligations and guarantees and simplifying the\nCompany's financing structure.\n ____________________________\n (1 )  Non-GAAP financial measure. Reconciliations to the most directly comparable\n       U.S. GAAP financial measure are provided in \"Supplemental Financial\n       Information\" section below. Also see \"Discussion of Non-GAAP Financial\n       Measures\" below.\n\nAbout Mynd.ai, Inc.\n\nAlpharetta-based Mynd.ai is a global leader in interactive technology offering\nbest-in-class hardware and software solutions that help organizations create\nand deliver dynamic content; simplify and streamline teaching, learning, and\ncommunication; and facilitate real-time collaboration. Our award-winning\ninteractive displays and software can be found in more than 1 million learning\nand training spaces in over 125 countries. Our global distribution network of\nmore than 1,000 reseller partners and our dedicated sales and support teams\naround the world enable us to deliver the highest level of service to our\ncustomers. Learn more at www.mynd.ai\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4760243-1&h=831065366&u=https%3A%2F%2Fwww.mynd.ai&a=www.mynd.ai)\n.\n\nForward-Looking Statements\n\nThis press release contains \"forward-looking statements,\" within the meaning\nof Section 27A of the Securities Act of 1933, as amended and Section 21E of\nthe Securities Exchange Act of 1934, as amended. Forward-looking statements\nreflect Mynd's current expectations and projections about future events at the\ntime, and thus involve uncertainty and risk. The words \"believe,\" \"expect,\"\n\"anticipate,\" \"will,\" \"could,\" \"would,\" \"should,\" \"may,\" \"plan,\" \"estimate,\"\n\"intend,\" \"predict,\" \"potential,\" \"continue,\" \"optimistic,\" and the negatives\nof these words and other similar expressions generally identify forward\nlooking statements. Such forward-looking statements are subject to various\nrisks and uncertainties, including those described under the section entitled\n\"Risk Factors\" in Mynd's Annual Report on Form 20-F, filed with the Security\nand Exchange Commission (\"SEC\") on May 29, 2026, as such factors may be\nupdated from time to time in Mynd's periodic filings with the SEC, which are\naccessible on the SEC's website at www.sec.gov (http://www.sec.gov) and on the\nCompany's website at www.mynd.ai (http://www.mynd.ai) . Accordingly, there are\nor will be important factors that could cause actual outcomes or results to\ndiffer materially from those indicated in these statements, including, but not\nlimited to, statements regarding the Company's compliance plan, expected\nliquidity, anticipated cost savings, and future performance. While\nforward-looking statements reflect Mynd's good faith beliefs, they are not\nguarantees of future performance. Mynd.ai disclaims any obligation to publicly\nupdate or revise any forward-looking statement to reflect changes in\nunderlying assumptions or factors, new information, data or methods, future\nevents or other changes after the date of this press release, except as\nrequired by applicable law.\n\nDiscussion of Non-GAAP Financial Measures\n\nWe believe that providing the non-GAAP (\"Generally Accepted Accounting\nPrinciples\") information to investors, in addition to the GAAP presentation,\nallows investors to view the financial results in the way management views the\noperating results. We further believe that providing this information allows\ninvestors not only to better understand our financial performance, but more\nimportantly, to evaluate the efficacy of the methodology and information used\nby management to evaluate and measure such performance. The non-GAAP\ninformation included in this press release should not be considered superior\nto, or a substitute for, financial statements prepared in accordance with\nGAAP.\n\nWe utilize a number of different financial measures, both GAAP and non-GAAP,\nin analyzing and assessing the overall performance of the business, for making\noperating decisions and for forecasting and planning for future periods. Our\nannual financial plan is prepared both on a GAAP and non-GAAP basis, and the\nnon-GAAP annual financial plan is approved by our board of directors.\nContinuous budgeting and forecasting for revenue and expenses are conducted on\na consistent non-GAAP basis, in addition to GAAP, and actual results on a\nnon-GAAP basis are assessed against the non-GAAP annual financial plan. In\naddition, and as a consequence of the importance of these measures in managing\nthe business, we use non-GAAP measures and results in the evaluation process\nto establish management's compensation. For example, our annual bonus program\npayments are based in part upon the achievement of consolidated revenue and\nAdjusted earnings before interest, taxes, depreciation and amortization\n(\"EBITDA\") targets.\n\nReconciliations with respect to the Non-GAAP figures included in this press\nrelease to such Non-GAAP figure's most comparable GAAP figure are included in\nthe financial tables below.\n\nFinancial Tables Follow\n Mynd.ai, Inc.\n UNAUDITED CONSOLIDATED BALANCE SHEETS\n (in thousands of U.S. dollars, except share and per share data, or otherwise\n noted)\n\n \n                                                                                  June 30, 2026                           December 31, 2025\n ASSETS\n Current assets:\n Cash and cash equivalents, including restricted cash of $220 and $0,             $               7,040                   $              18,481\n respectively\n Accounts receivable, net of allowance for credit losses of $232 and $614,        26,630                                  24,849\n respectively\n Inventories                                                                      23,030                                  29,713\n Prepaid expenses and other current assets                                        8,120                                   7,971\n Due from related parties                                                         3,626                                   3,095\n Total current assets                                                             68,446                                  84,109\n\n Non-current assets:\n Goodwill                                                                         44,622                                  44,961\n Property, plant, and equipment, net                                              9,801                                   11,767\n Intangible assets, net                                                           36,149                                  36,185\n Right-of-use assets, net                                                         1,938                                   2,073\n Deferred tax assets, net                                                         89                                      87\n Other non-current assets                                                         3,260                                   3,345\n Total non-current assets                                                         95,859                                  98,418\n\n Total assets                                                                     164,305                                 182,527\n\n LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)\n Current liabilities:\n Accounts payable                                                                 32,064                                  37,947\n Accrued expenses and other current liabilities                                   25,286                                  34,836\n Loans payable, current                                                           —                                       2,897\n Contract liabilities, current                                                    12,062                                  12,272\n Accrued warranties                                                               13,696                                  15,918\n Lease liabilities, current                                                       896                                     1,011\n Due to related parties                                                           23,980                                  5,343\n Total current liabilities                                                        107,984                                 110,224\n\n Non-current liabilities:\n Loans payable, non-current                                                       64,261                                  61,083\n Contract liabilities, non-current                                                18,095                                  17,971\n Lease liabilities, non-current                                                   1,652                                   1,751\n Deferred tax liabilities                                                         9,000                                   9,000\n Total non-current liabilities                                                    93,008                                  89,805\n\n Total liabilities                                                                200,992                                 200,029\n Shareholders' deficit:\n Ordinary Shares par value of $0.001; 990,000,000 shares authorized.              474                                     465\n 475,122,370 shares issued and 471,446,050 shares outstanding as of June 30,\n 2026; 465,868,720 shares issued and 462,192,400 shares outstanding as of\n December 31, 2025.\n\n10,000,000 shares, $0.001 par value, without designation; none authorized,\n issued and outstanding as of June 30, 2026 and December 31, 2025.\n Treasury shares, at cost, 3,676,320 as of June 30, 2026 and December 31, 2025    (454)                                   (454)\n Additional paid-in capital                                                       488,275                                 487,481\n Accumulated other comprehensive income                                           3,810                                   3,648\n Accumulated deficit                                                              (528,792)                               (508,642)\n Total shareholders' deficit                                                      (36,687)                                (17,502)\n\n Total liabilities and shareholders' equity                                       $            164,305                    $            182,527\n\n \n Mynd.ai, Inc.\n UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS\n (in thousands of U.S. dollars, except share and per share data, or otherwise\n noted)\n\n \n                                                           Six Months Ended June 30,\n                                                           2026                                            2025\n Revenue                                                   $            73,369                             $            89,272\n Cost of revenue                                           55,831                                          69,884\n Gross profit                                              17,538                                          19,388\n Operating expenses, net:\n General and administrative                                9,671                                           14,928\n Research and development                                  4,888                                           7,782\n Sales and marketing                                       15,941                                          21,399\n Transaction-related costs                                 —                                               53\n Restructuring and other expenses                          985                                             4,353\n Total operating expenses                                  31,485                                          48,515\n Operating loss                                            (13,947)                                        (29,127)\n\n Other income (expense):\n Interest expense                                          (5,139)                                         (4,913)\n Interest income                                           30                                              637\n (Loss) gain on embedded derivative                        (22)                                            2,143\n Other (expense) income                                    (992)                                           2,409\n Total other (expense) income                              (6,123)                                         276\n\n Net loss before income taxes                              (20,070)                                        (28,851)\n Income tax expense                                        (80)                                            (41)\n Net loss                                                  $           (20,150)                            $           (28,892)\n\n Net loss per share, basic and diluted                     $              (0.04)                           $              (0.06)\n Weighted average shares outstanding, basic and diluted    469,301,078                                     456,872,902\n\n \n Mynd.ai. Inc.\n UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS\n (in thousands)\n\n \n                                                   Six Months Ended June 30,\n                                                   2026                                      2025\n Net loss                                          $          (20,150)                       $          (28,892)\n Other comprehensive loss, net of tax of nil:\n Change in foreign currency translation reserve    162                                       256\n Total comprehensive loss                          $          (19,988)                       $          (28,636)\n\n \n Mynd.ai, Inc.\n UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS\n (in thousands)\n\n \n                                                                                Six Months Ended June 30,\n                                                                                2026                                             2025\n CASH FLOWS FROM OPERATING ACTIVITIES:\n Net loss                                                                       $          (20,150)                              $          (28,892)\n Adjustments to reconcile net loss to net cash used in operating activities:\n Depreciation and amortization                                                  2,878                                            4,697\n Deferred taxes                                                                 —                                                (113)\n Non-cash lease expense                                                         565                                              766\n Non-cash interest expenses                                                     3,259                                            2,799\n Loss (gain) on embedded derivative                                             22                                               (2,143)\n Share-based compensation                                                       967                                              1,037\n Amortization of RDEC credit                                                    (1,345)                                          (1,005)\n Net realizable value adjustments to inventory                                  887                                              396\n Changes in accounts receivable provision                                       10                                               479\n Other                                                                          53                                               24\n Change in operating assets and liabilities:\n Accounts receivable                                                            (284)                                            1,030\n Inventories                                                                    5,649                                            811\n Prepaid expenses and other assets                                              175                                              3,062\n Due from related parties                                                       (556)                                            (857)\n Accounts payable                                                               (5,698)                                          (5,075)\n Accrued expenses and other liabilities                                         (9,824)                                          (17,545)\n Accrued warranties                                                             (2,126)                                          (375)\n Due to related parties                                                         —                                                445\n Contract liabilities                                                           23                                               (129)\n Lease obligations - operating leases                                           (945)                                            (681)\n Net cash used in operating activities                                          (26,440)                                         (41,269)\n\n CASH FLOWS FROM INVESTING ACTIVITIES:\n Acquisition of property, plant and equipment                                   (63)                                             (33)\n Internal-use software development costs                                        (833)                                            (1,467)\n Net cash used in investing activities                                          (896)                                            (1,500)\n\n CASH FLOWS FROM FINANCING ACTIVITIES:\n Repayment of Revolver                                                          (3,000)                                          (11,000)\n Proceeds from Revolver                                                         —                                                8,000\n Proceeds from related party inventory financing agreement                      18,637                                           —\n Repayment of Paycheck Protection Program Loan                                  —                                                (82)\n Share repurchase                                                               —                                                (110)\n Taxes withheld and paid related to net share settlement of share-based         (173)                                            (49)\n compensation awards\n Net cash provided by (used in) financing activities                            15,464                                           (3,241)\n\n Net change in cash, cash equivalents, and restricted cash                      (11,872)                                         (46,010)\n\n Cash, cash equivalents, and restricted cash, beginning of period               18,481                                           75,317\n Exchange rate effects                                                          431                                              (245)\n\n Cash, cash equivalents and restricted cash, end of period                      $             7,040                              $           29,062\n\n Supplemental disclosure of non-cash investing and financing transactions:\n Lease assets acquired in exchange for lease liabilities                        $                392                             $                  —\n Forgiveness of related party payables                                          $                  —                             $             5,217\n Convertible notes issued in exchange for accrued PIK interest                  $             1,789                              $             1,703\n\n Supplemental disclosure of cash transactions:\n Cash paid for interest                                                         $             3,397                              $             1,841\n Cash (paid for taxes) received for tax refunds, net                            $              (410)                             $             1,450\n\n \n Mynd.ai. Inc.\n SUPPLEMENTAL FINANCIAL INFORMATION\n\n \n\n Reconciliation of Adjusted EBITDA to Net Loss\n\n \n                                         Six Months Ended June 30,\n                                         2026                                             2025\n                                         (in thousands)\n Net loss                                $             (20,150)                           $             (28,892)\n Interest expense                        5,139                                            4,913\n Interest income                         (30)                                             (637)\n Income tax expense                      80                                               41\n Depreciation and amortization           2,878                                            4,697\n Share-based compensation                967                                              1,037\n Loss (gain) on embedded derivative      22                                               (2,143)\n Other expense (income), net             992                                              (2,409)\n Transaction-related costs               —                                                53\n Restructuring and other expenses ((1))  985                                              4,353\n Adjusted EBITDA                         $              (9,117)                           $             (18,987)\n\n ((1)) Refers to employee severance costs, contract termination costs,\n facility restructuring, and business restructuring efforts undertaken by\n management.\n\n \n Reconciliation of Free Cash Flow to Net Cash Used in Operating Activities\n\n \n                                                                          Six Months Ended June 30,\n                                                                          2026                                            2025\n                                                                          (in thousands)\n Net cash used in operating activities                                    $             (26,440)                          $             (41,269)\n Internal-use software development costs                                  (833)                                           (1,467)\n Acquisition of property and equipment, other than internal-use software  (63)                                            (33)\n development costs\n Free Cash Flow                                                           $             (27,336)                          $             (42,769)\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/myndai-reports-first-half-2026-results-as-turnaround-gains-momentum-adjusted-ebitda-improves-52-operating-expenses-reduced-35-302860855.html\n(https://www.prnewswire.com/news-releases/myndai-reports-first-half-2026-results-as-turnaround-gains-momentum-adjusted-ebitda-improves-52-operating-expenses-reduced-35-302860855.html)\n\nSOURCE Mynd.ai\n\n\n\nFor investor and media inquiries, please contact: Investor Relations - Mynd.ai, Inc., E-mail: investorrelations@mynd.ai | Arthur Giterman, Chief Financial Officer, officeoftheCFO@mynd.ai, Tel: (206) 393-4443\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1858390/MIND-ai-Logo.jpg?id=OA2913768\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn4dR16Ca","title":"MYND.AI REPORTS FIRST HALF 2026 RESULTS AS TURNAROUND GAINS MOMENTUM; ADJUSTED EBITDA IMPROVES 52%, OPERATING EXPENSES REDUCED 35%","author":"PR Newswire","ticker":"MYND","created":"2026-08-27T11:00:03.492Z","tickers":["MYND","WK6Y"],"exchange":"NYSE American","article_body":"MYND.AI REPORTS FIRST HALF 2026 RESULTS AS TURNAROUND GAINS MOMENTUM; ADJUSTED EBITDA IMPROVES 52%, OPERATING EXPENSES REDUCED 35%\n\nPR Newswire\n\nALPHARETTA, Ga., Aug. 27, 2026\n\nCompany Demonstrates Meaningful Progress on Strategic Transformation While\nExpanding Recurring Revenue Streams\n\nALPHARETTA, Ga., Aug. 27, 2026 /PRNewswire/ -- Mynd.ai, Inc. (the \"Company\" or\n\"Mynd.ai\") (NYSE American: MYND), a global leader in interactive technology\nsolutions for education and enterprise, today reported financial results for\nthe first half of 2026, highlighting continued progress on its operational\ntransformation, improved profitability metrics, and strengthened liquidity\nflexibility.\n\nThe first half of 2026 reflected continued execution against Mynd.ai's\noperating transformation: stronger gross margin, materially lower operating\nexpenses, improved Adjusted EBITDA, and reduced cash used to fund operations,\nwhile the Company continued to build recurring revenue through services and\nsoftware-as-a-service (\"SaaS\"). Management believes these actions are creating\na more efficient operating model and positioning the Company to pursue\nsustainable growth as market conditions improve.\n\nKey highlights for the first half of 2026 compared with the first half of\n2025:\n\n * Gross margin expanded 220 basis points to 24% from 22% in the prior-year\nperiod\n * Total operating expenses reduced 35% to $31.5 million from $48.5 million in\nthe prior-year period\n * Net loss narrowed 30% to $20.2 million from $28.9 million in the prior-year\nperiod\n * Adjusted EBITDA(1) improved 52% to a loss of $9.1 million from a prior-year\nloss of $19.0 million\n * Net cash used in operating activities improved 36%, or $14.8 million, compared\nto the prior-year period\n * Free cash flow(1) improved 36%, or $15.4 million, compared to the prior-year\nperiod\n * Service and SaaS revenue grew year-over-year, demonstrating continued momentum\nin recurring revenue streams despite lower total revenue in the period\n\"Our first half results show that our structural transformation is delivering\nmeasurable progress,\" said Arthur Giterman, Chief Executive Officer and Chief\nFinancial Officer. \"Despite a challenging demand environment across the\neducation technology sector, we expanded gross margins, reduced operating\nexpenses by 35%, narrowed net loss by 30%, improved Adjusted EBITDA by 52%,\nand significantly reduced operating cash usage. We remain focused on\ndisciplined execution, liquidity management, and continued growth in our SaaS\nand services businesses.\"\n\nStrategic Updates\n\nDuring the first half of 2026, the Company enhanced its financial flexibility\nthrough a strategic inventory financing arrangement with its majority\nshareholder, NetDragon Websoft Holdings Limited, providing access to up to\n$50.0 million in revolving inventory financing. As of the date of this\nrelease, approximately $25.7 million remained available under the facility. In\nApril 2026, the Company fully paid off the Bank of America revolving facility\nand in July 2026, the Company finalized the termination of the facility,\neliminating all associated obligations and guarantees and simplifying the\nCompany's financing structure.\n ____________________________\n (1 )  Non-GAAP financial measure. Reconciliations to the most directly comparable\n       U.S. GAAP financial measure are provided in \"Supplemental Financial\n       Information\" section below. Also see \"Discussion of Non-GAAP Financial\n       Measures\" below.\n\nAbout Mynd.ai, Inc.\n\nAlpharetta-based Mynd.ai is a global leader in interactive technology offering\nbest-in-class hardware and software solutions that help organizations create\nand deliver dynamic content; simplify and streamline teaching, learning, and\ncommunication; and facilitate real-time collaboration. Our award-winning\ninteractive displays and software can be found in more than 1 million learning\nand training spaces in over 125 countries. Our global distribution network of\nmore than 1,000 reseller partners and our dedicated sales and support teams\naround the world enable us to deliver the highest level of service to our\ncustomers. Learn more at www.mynd.ai\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4760243-1&h=831065366&u=https%3A%2F%2Fwww.mynd.ai&a=www.mynd.ai)\n.\n\nForward-Looking Statements\n\nThis press release contains \"forward-looking statements,\" within the meaning\nof Section 27A of the Securities Act of 1933, as amended and Section 21E of\nthe Securities Exchange Act of 1934, as amended. Forward-looking statements\nreflect Mynd's current expectations and projections about future events at the\ntime, and thus involve uncertainty and risk. The words \"believe,\" \"expect,\"\n\"anticipate,\" \"will,\" \"could,\" \"would,\" \"should,\" \"may,\" \"plan,\" \"estimate,\"\n\"intend,\" \"predict,\" \"potential,\" \"continue,\" \"optimistic,\" and the negatives\nof these words and other similar expressions generally identify forward\nlooking statements. Such forward-looking statements are subject to various\nrisks and uncertainties, including those described under the section entitled\n\"Risk Factors\" in Mynd's Annual Report on Form 20-F, filed with the Security\nand Exchange Commission (\"SEC\") on May 29, 2026, as such factors may be\nupdated from time to time in Mynd's periodic filings with the SEC, which are\naccessible on the SEC's website at www.sec.gov (http://www.sec.gov) and on the\nCompany's website at www.mynd.ai (http://www.mynd.ai) . Accordingly, there are\nor will be important factors that could cause actual outcomes or results to\ndiffer materially from those indicated in these statements, including, but not\nlimited to, statements regarding the Company's compliance plan, expected\nliquidity, anticipated cost savings, and future performance. While\nforward-looking statements reflect Mynd's good faith beliefs, they are not\nguarantees of future performance. Mynd.ai disclaims any obligation to publicly\nupdate or revise any forward-looking statement to reflect changes in\nunderlying assumptions or factors, new information, data or methods, future\nevents or other changes after the date of this press release, except as\nrequired by applicable law.\n\nDiscussion of Non-GAAP Financial Measures\n\nWe believe that providing the non-GAAP (\"Generally Accepted Accounting\nPrinciples\") information to investors, in addition to the GAAP presentation,\nallows investors to view the financial results in the way management views the\noperating results. We further believe that providing this information allows\ninvestors not only to better understand our financial performance, but more\nimportantly, to evaluate the efficacy of the methodology and information used\nby management to evaluate and measure such performance. The non-GAAP\ninformation included in this press release should not be considered superior\nto, or a substitute for, financial statements prepared in accordance with\nGAAP.\n\nWe utilize a number of different financial measures, both GAAP and non-GAAP,\nin analyzing and assessing the overall performance of the business, for making\noperating decisions and for forecasting and planning for future periods. Our\nannual financial plan is prepared both on a GAAP and non-GAAP basis, and the\nnon-GAAP annual financial plan is approved by our board of directors.\nContinuous budgeting and forecasting for revenue and expenses are conducted on\na consistent non-GAAP basis, in addition to GAAP, and actual results on a\nnon-GAAP basis are assessed against the non-GAAP annual financial plan. In\naddition, and as a consequence of the importance of these measures in managing\nthe business, we use non-GAAP measures and results in the evaluation process\nto establish management's compensation. For example, our annual bonus program\npayments are based in part upon the achievement of consolidated revenue and\nAdjusted earnings before interest, taxes, depreciation and amortization\n(\"EBITDA\") targets.\n\nReconciliations with respect to the Non-GAAP figures included in this press\nrelease to such Non-GAAP figure's most comparable GAAP figure are included in\nthe financial tables below.\n\nFinancial Tables Follow\n Mynd.ai, Inc.\n UNAUDITED CONSOLIDATED BALANCE SHEETS\n (in thousands of U.S. dollars, except share and per share data, or otherwise\n noted)\n\n \n                                                                                  June 30, 2026                           December 31, 2025\n ASSETS\n Current assets:\n Cash and cash equivalents, including restricted cash of $220 and $0,             $               7,040                   $              18,481\n respectively\n Accounts receivable, net of allowance for credit losses of $232 and $614,        26,630                                  24,849\n respectively\n Inventories                                                                      23,030                                  29,713\n Prepaid expenses and other current assets                                        8,120                                   7,971\n Due from related parties                                                         3,626                                   3,095\n Total current assets                                                             68,446                                  84,109\n\n Non-current assets:\n Goodwill                                                                         44,622                                  44,961\n Property, plant, and equipment, net                                              9,801                                   11,767\n Intangible assets, net                                                           36,149                                  36,185\n Right-of-use assets, net                                                         1,938                                   2,073\n Deferred tax assets, net                                                         89                                      87\n Other non-current assets                                                         3,260                                   3,345\n Total non-current assets                                                         95,859                                  98,418\n\n Total assets                                                                     164,305                                 182,527\n\n LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)\n Current liabilities:\n Accounts payable                                                                 32,064                                  37,947\n Accrued expenses and other current liabilities                                   25,286                                  34,836\n Loans payable, current                                                           —                                       2,897\n Contract liabilities, current                                                    12,062                                  12,272\n Accrued warranties                                                               13,696                                  15,918\n Lease liabilities, current                                                       896                                     1,011\n Due to related parties                                                           23,980                                  5,343\n Total current liabilities                                                        107,984                                 110,224\n\n Non-current liabilities:\n Loans payable, non-current                                                       64,261                                  61,083\n Contract liabilities, non-current                                                18,095                                  17,971\n Lease liabilities, non-current                                                   1,652                                   1,751\n Deferred tax liabilities                                                         9,000                                   9,000\n Total non-current liabilities                                                    93,008                                  89,805\n\n Total liabilities                                                                200,992                                 200,029\n Shareholders' deficit:\n Ordinary Shares par value of $0.001; 990,000,000 shares authorized.              474                                     465\n 475,122,370 shares issued and 471,446,050 shares outstanding as of June 30,\n 2026; 465,868,720 shares issued and 462,192,400 shares outstanding as of\n December 31, 2025.\n\n10,000,000 shares, $0.001 par value, without designation; none authorized,\n issued and outstanding as of June 30, 2026 and December 31, 2025.\n Treasury shares, at cost, 3,676,320 as of June 30, 2026 and December 31, 2025    (454)                                   (454)\n Additional paid-in capital                                                       488,275                                 487,481\n Accumulated other comprehensive income                                           3,810                                   3,648\n Accumulated deficit                                                              (528,792)                               (508,642)\n Total shareholders' deficit                                                      (36,687)                                (17,502)\n\n Total liabilities and shareholders' equity                                       $            164,305                    $            182,527\n\n \n Mynd.ai, Inc.\n UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS\n (in thousands of U.S. dollars, except share and per share data, or otherwise\n noted)\n\n \n                                                           Six Months Ended June 30,\n                                                           2026                                            2025\n Revenue                                                   $            73,369                             $            89,272\n Cost of revenue                                           55,831                                          69,884\n Gross profit                                              17,538                                          19,388\n Operating expenses, net:\n General and administrative                                9,671                                           14,928\n Research and development                                  4,888                                           7,782\n Sales and marketing                                       15,941                                          21,399\n Transaction-related costs                                 —                                               53\n Restructuring and other expenses                          985                                             4,353\n Total operating expenses                                  31,485                                          48,515\n Operating loss                                            (13,947)                                        (29,127)\n\n Other income (expense):\n Interest expense                                          (5,139)                                         (4,913)\n Interest income                                           30                                              637\n (Loss) gain on embedded derivative                        (22)                                            2,143\n Other (expense) income                                    (992)                                           2,409\n Total other (expense) income                              (6,123)                                         276\n\n Net loss before income taxes                              (20,070)                                        (28,851)\n Income tax expense                                        (80)                                            (41)\n Net loss                                                  $           (20,150)                            $           (28,892)\n\n Net loss per share, basic and diluted                     $              (0.04)                           $              (0.06)\n Weighted average shares outstanding, basic and diluted    469,301,078                                     456,872,902\n\n \n Mynd.ai. Inc.\n UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS\n (in thousands)\n\n \n                                                   Six Months Ended June 30,\n                                                   2026                                      2025\n Net loss                                          $          (20,150)                       $          (28,892)\n Other comprehensive loss, net of tax of nil:\n Change in foreign currency translation reserve    162                                       256\n Total comprehensive loss                          $          (19,988)                       $          (28,636)\n\n \n Mynd.ai, Inc.\n UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS\n (in thousands)\n\n \n                                                                                Six Months Ended June 30,\n                                                                                2026                                             2025\n CASH FLOWS FROM OPERATING ACTIVITIES:\n Net loss                                                                       $          (20,150)                              $          (28,892)\n Adjustments to reconcile net loss to net cash used in operating activities:\n Depreciation and amortization                                                  2,878                                            4,697\n Deferred taxes                                                                 —                                                (113)\n Non-cash lease expense                                                         565                                              766\n Non-cash interest expenses                                                     3,259                                            2,799\n Loss (gain) on embedded derivative                                             22                                               (2,143)\n Share-based compensation                                                       967                                              1,037\n Amortization of RDEC credit                                                    (1,345)                                          (1,005)\n Net realizable value adjustments to inventory                                  887                                              396\n Changes in accounts receivable provision                                       10                                               479\n Other                                                                          53                                               24\n Change in operating assets and liabilities:\n Accounts receivable                                                            (284)                                            1,030\n Inventories                                                                    5,649                                            811\n Prepaid expenses and other assets                                              175                                              3,062\n Due from related parties                                                       (556)                                            (857)\n Accounts payable                                                               (5,698)                                          (5,075)\n Accrued expenses and other liabilities                                         (9,824)                                          (17,545)\n Accrued warranties                                                             (2,126)                                          (375)\n Due to related parties                                                         —                                                445\n Contract liabilities                                                           23                                               (129)\n Lease obligations - operating leases                                           (945)                                            (681)\n Net cash used in operating activities                                          (26,440)                                         (41,269)\n\n CASH FLOWS FROM INVESTING ACTIVITIES:\n Acquisition of property, plant and equipment                                   (63)                                             (33)\n Internal-use software development costs                                        (833)                                            (1,467)\n Net cash used in investing activities                                          (896)                                            (1,500)\n\n CASH FLOWS FROM FINANCING ACTIVITIES:\n Repayment of Revolver                                                          (3,000)                                          (11,000)\n Proceeds from Revolver                                                         —                                                8,000\n Proceeds from related party inventory financing agreement                      18,637                                           —\n Repayment of Paycheck Protection Program Loan                                  —                                                (82)\n Share repurchase                                                               —                                                (110)\n Taxes withheld and paid related to net share settlement of share-based         (173)                                            (49)\n compensation awards\n Net cash provided by (used in) financing activities                            15,464                                           (3,241)\n\n Net change in cash, cash equivalents, and restricted cash                      (11,872)                                         (46,010)\n\n Cash, cash equivalents, and restricted cash, beginning of period               18,481                                           75,317\n Exchange rate effects                                                          431                                              (245)\n\n Cash, cash equivalents and restricted cash, end of period                      $             7,040                              $           29,062\n\n Supplemental disclosure of non-cash investing and financing transactions:\n Lease assets acquired in exchange for lease liabilities                        $                392                             $                  —\n Forgiveness of related party payables                                          $                  —                             $             5,217\n Convertible notes issued in exchange for accrued PIK interest                  $             1,789                              $             1,703\n\n Supplemental disclosure of cash transactions:\n Cash paid for interest                                                         $             3,397                              $             1,841\n Cash (paid for taxes) received for tax refunds, net                            $              (410)                             $             1,450\n\n \n Mynd.ai. Inc.\n SUPPLEMENTAL FINANCIAL INFORMATION\n\n \n\n Reconciliation of Adjusted EBITDA to Net Loss\n\n \n                                         Six Months Ended June 30,\n                                         2026                                             2025\n                                         (in thousands)\n Net loss                                $             (20,150)                           $             (28,892)\n Interest expense                        5,139                                            4,913\n Interest income                         (30)                                             (637)\n Income tax expense                      80                                               41\n Depreciation and amortization           2,878                                            4,697\n Share-based compensation                967                                              1,037\n Loss (gain) on embedded derivative      22                                               (2,143)\n Other expense (income), net             992                                              (2,409)\n Transaction-related costs               —                                                53\n Restructuring and other expenses ((1))  985                                              4,353\n Adjusted EBITDA                         $              (9,117)                           $             (18,987)\n\n ((1)) Refers to employee severance costs, contract termination costs,\n facility restructuring, and business restructuring efforts undertaken by\n management.\n\n \n Reconciliation of Free Cash Flow to Net Cash Used in Operating Activities\n\n \n                                                                          Six Months Ended June 30,\n                                                                          2026                                            2025\n                                                                          (in thousands)\n Net cash used in operating activities                                    $             (26,440)                          $             (41,269)\n Internal-use software development costs                                  (833)                                           (1,467)\n Acquisition of property and equipment, other than internal-use software  (63)                                            (33)\n development costs\n Free Cash Flow                                                           $             (27,336)                          $             (42,769)\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/myndai-reports-first-half-2026-results-as-turnaround-gains-momentum-adjusted-ebitda-improves-52-operating-expenses-reduced-35-302860855.html\n(https://www.prnewswire.com/news-releases/myndai-reports-first-half-2026-results-as-turnaround-gains-momentum-adjusted-ebitda-improves-52-operating-expenses-reduced-35-302860855.html)\n\nSOURCE Mynd.ai\n\n\n\nFor investor and media inquiries, please contact: Investor Relations - Mynd.ai, Inc., E-mail: investorrelations@mynd.ai | Arthur Giterman, Chief Financial Officer, officeoftheCFO@mynd.ai, Tel: (206) 393-4443\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1858390/MIND-ai-Logo.jpg?id=OA2913768\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-08-27T11:00:04.166243097Z","server_sent_at_ms":1787828404166},"received_at":"2026-08-27T11:00:04.317Z","source_url":"https://www.prnewswire.com/news-releases/myndai-reports-first-half-2026-results-as-turnaround-gains-momentum-adjusted-ebitda-improves-52-operating-expenses-reduced-35-302860855.html"},"analysis":{"id":"118024","press_release_id":"129104","analysis_json":{"industry":{"label":"Technology Hardware, Storage & Peripherals","sector":"Information Technology"},"redFlags":["Total revenue declined year-over-year","Company remains unprofitable with a net loss of $20.2 million"],"eventType":"earnings","narrative":"Mynd.ai reported first half 2026 financial results demonstrating significant operational improvements, with total operating expenses reduced 35% to $31.5 million and Adjusted EBITDA improving 52% to a loss of $9.1 million.\n\nDespite a decline in total revenue, gross margin expanded 220 basis points to 24%, and the 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half of 2026"},{"amount":"$28.9 million","context":"Net loss for first half of 2025"},{"amount":"$9.1 million","context":"Adjusted EBITDA loss for first half of 2026"},{"amount":"$19.0 million","context":"Adjusted EBITDA loss for first half of 2025"},{"amount":"$50.0 million","context":"Inventory financing facility limit"},{"amount":"$25.7 million","context":"Available capacity under inventory financing facility"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-27T11:12:48.535Z","global_importance":25,"audience_relevance":25,"importance_components":{"tickerTier":"small/mid-cap","eventGravity":"operational_turnaround","sectorWeight":"edtech_hardware"}},"durationMs":null,"modelName":"glm-4.7"}}