Key Highlights

  • Aura reported Q2 2026 pro forma ARR of US$339.7 million and pro forma revenue of US$85.1 million, each up 27%.
  • Pro forma adjusted EBITDA was a loss of US$12.6 million, an improvement of 51% year on year.
  • The company reaffirmed calendar year 2026 guidance of 20%+ ARR growth and positive free cash flow from transaction close to year-end.

Aura Consolidated Group, Inc (ASX:AXQ) shares were priced at $3.265 during the trading session on 19 October 2026, down 0.76%. Aura provides online safety and wellbeing products for individuals, families, schools and businesses. On 6 August 2026, the company released its second quarter 2026 results, its first earnings announcement following completion of the acquisition of Qoria Limited on 17 July 2026, including pro forma figures for the combined group. The price data relates only to the 19 October 2026 session and is separate from the release date.

Q2 2026 pro forma results

All figures are in US dollars and unaudited. Because the acquisition closed after the end of the quarter, statutory statements show Aura on a standalone basis, and the company presented pro forma results for the merged group. Pro forma GAAP revenue was US$85.1 million, up 27%, and pro forma ARR was US$339.7 million, up 27%.

Pro forma adjusted EBITDA was a loss of US$12.6 million, a 51% improvement on the prior year. The company states that ARR methodologies were aligned after the transaction closed, and that on the methodology used in prior disclosures, Q2 ARR would have been US$354.0 million.

Acquisition, listing and capital position

Aura completed the acquisition of Qoria through a scheme of arrangement on 17 July 2026 and began unrestricted trading on the ASX under the ticker AXQ on 20 July 2026. As of the transaction close, total liquidity was US$124.0 million, supported by a US$100 million equity raise and an upsized US$100 million debt facility.

The company states that it expects to achieve full product integration by the second quarter of 2027.

Cost program and product activity

Aura is executing a US$55 million cost-out program outlined in February 2026 and reported US$27 million of annualised run-rate direct and operating cost reductions to date, compared with a US$25 million target. It also reported a US$7 million reduction in brand and performance marketing spend in the first half of 2026, with a further US$28 million reduction planned for the second half.

Product items in the quarter included the April 2026 launch of Aura Business, an enterprise security product aimed at managed service providers and small and mid-sized businesses, new AI capabilities including a self-harm detection model, and the appointments of a Global Chief Marketing Officer and a Chief Product Officer.

Definitions and executive appointments

Annualised recurring revenue is defined in the release as annualised recurring GAAP revenue recognised in the final month of a period. Adjusted EBITDA excludes interest, taxes, depreciation and amortisation, IPO readiness costs, acquisition-related costs, stock-based compensation, mark-to-market gains and losses, and foreign currency exchange gains and losses.

The company also reported the appointments of a Global Chief Marketing Officer and a Chief Product Officer during the quarter, and said it held an investor conference call on 6 August 2026 (AEST) to discuss the results.

Sector backdrop

Online safety and identity protection is a segment where subscription providers report ARR, customer acquisition costs and marketing efficiency, and where school-focused and consumer products are sometimes combined through acquisitions. US-domiciled companies listed on the ASX report under US GAAP and follow US reporting conventions, which can differ from Australian practice. The release also describes continuing investment in AI-based detection tools across the sector's consumer and enterprise products.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

  • Pro forma adjusted EBITDA remained a loss of US$12.6 million, and the company's goal is positive free cash flow rather than positive earnings in the near term.
  • Statutory financial statements show Aura on a standalone basis, so pro forma figures are unaudited and illustrative of the combined business.
  • ARR methodology was changed after the transaction, and the prior method would have produced US$354.0 million compared with US$339.7 million.
  • The company plans a US$28 million reduction in brand and performance marketing in the second half, while targeting 20%+ ARR growth.
  • Product integration is not expected to be complete until the second quarter of 2027, and the release includes forward-looking statements that carry risks and uncertainties.

What's next

The company reaffirmed calendar year 2026 guidance of 20%+ ARR growth and positive free cash flow from transaction close to year-end. Cost reductions continue under the US$55 million program, and the second-half marketing reduction of US$28 million is planned. Full product integration is expected by the second quarter of 2027.