Key Highlights

  • Third quarter 2026 Revenue rose 50% year over year to $8.0 million.
  • Software licensing revenue carried a gross Margin of 90% for a second consecutive quarter.
  • Net income was approximately $0.6 million, compared with a net loss of about $0.8 million a year earlier.
  • The company received a $64.3 million Department of Justice digital evidence contract award.

Rank One Computing Corporation, doing Business as ROC (NASDAQ:ROC), reported financial results for the third quarter ended September 30, 2026, on November 12, 2026. The Denver company describes itself as a U.S. provider of Vision AI, including biometric identification, video analytics and digital evidence solutions. Revenue grew both year over year and sequentially, and the company reported a profit for the period. Federal contract awards for its ROC ABIS and ROC Evidence products were central to the results.

Revenue Growth and Product Performance

Revenue for the third quarter was $8.0 million, an increase of 50% from a year earlier and 57% from the second quarter. Chief Executive B. Scott Swann said software licensing revenue drove a second consecutive quarter of 90% gross margin, and he attributed the growth to federal traction for ROC ABIS and expanded activity under an existing government Research and Development program.

Measured by product, ROC ABIS revenue grew 654% year over year to $2.2 million, and ROC SDK revenue grew 52% to $2.6 million. The release does not break out revenue for ROC Evidence or ROC Watch separately, and the company's growth figures reflect the combined performance of its product lines.

Profitability and Federal Contracts

ROC reported Net Income of approximately $0.6 million, or $0.03 per basic and diluted share, for the quarter. The same period a year earlier showed a net loss of about $0.8 million. Swann described the quarter as a profitable one for the company.

The company secured two foundational federal contracts, one for ROC ABIS and one for ROC Evidence. The largest, with the U.S. Department of Justice, is valued at $64.3 million and is the largest award in the company's history. Swann said the wins establish ROC's position as a competitor in the Vision AI market and that the company has an active federal pipeline for larger, longer-duration work.

Integration and Growth Priorities

Swann said the integration of ZTC is strengthening ROC Evidence and that the company is focusing on three products: ROC ABIS, ROC Evidence and ROC Watch. He said management believes the company is building a foundation for Long-term Growth across its commercial and federal markets.

The company's release describes its position in federal contracting as an early stage of a longer strategy. It does not provide a timetable for converting the Department of Justice award into recognized revenue, which will depend on contract performance over time.

Final Word

The third quarter shows ROC reporting higher revenue, a profit for the period and a large federal award that management expects to shape its growth. The company's ROC ABIS and ROC SDK results show different growth rates, and the timing of revenue from the Department of Justice contract is not yet set out. Future quarters will show whether federal programs and the ZTC integration add to revenue at the pace the company describes.