NEWARK, CA / ACCESS Newswire / August 11, 2026 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the third quarter ended June 30, 2026.

“Our fiscal third quarter represented Altigen’s ninth consecutive quarter of profitability and, more importantly, marked a significant inflection point for the business,” said Jeremiah Fleming, Altigen CEO. “For the first time in several years, new contracted cloud recurring revenue exceeded revenue lost through customer churn. We expect this positive trend to continue, providing a strong foundation for renewed top-line growth in the quarters ahead.”

Key Financial Highlights (3Q 2026 versus 3Q 2025)

  • Net Revenue decreased 14% to $3.0 million;

  • GAAP net income was $15 thousand, compared with $110 thousand.

  • Non-GAAP net income was $190 thousand, compared with $350 thousand

  • EPS per share was $0.00 vs $0.00

Trended Financial Information

(in thousands, except for EPS and percentages)

Fiscal

Fiscal

Fiscal

Fiscal

Fiscal

Fiscal

Fiscal

3Q26

2Q26

1Q26

4Q25

3Q25

2Q25

1Q25
Total Revenue

$

3,019

$

3,123

$

3,173

$

3,472

$

3,517

$

3,500

$

3,378
Cloud Services

$

1,367

$

1,385

$

1,429

$

1,635

$

1,666

$

1,856

$

1,720
Services and Other

$

1,469

$

1,557

$

1,493

$

1,602

$

1,596

$

1,362

$

1,366
Legacy Products

$

183

$

181

$

252

$

235

$

256

$

282

$

292
GAAP Operating (Loss) / Income

$

24

$

199

$

88

$

198

$

125

$

283

$

75
Operating Margin

1

%

6

%

3

%

6

%

4

%

8

%

2

%
GAAP Net Income/(Loss)

$

15

$

201

$

101

$

254

$

110

$

287

$

87
Non-GAAP Net Income / (Loss) (1)

$

190

$

488

$

296

$

455

$

350

$

487

$

275
Adjusted EBITDA (2)

$

423

$

529

$

257

$

356

$

645

$

314

$

291

  1. Non-GAAP net income excludes stock-based compensation expense, amortization of acquired intangible assets, impairment of assets, and depreciation and amortization expenses.

  2. Adjusted EBITDA excludes one-time litigation costs and other non-recurring or unusual charges that may arise from time to time that we do not consider to be directly related to core operating performance.

Conference Call

Altigen will be discussing its financial results and outlook on a conference call today at 1:00 p.m. Pacific Time (4:00 p.m. ET). The conference call can be accessed by dialing (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #185707. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #54238. A web archive will be made available at www.altigen.com for 90 days following the call’s conclusion.

About Altigen Technologies

Altigen Technologies (OTCQB:ATGN) is focused on driving digital transformation in today’s modern workplace.  Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We’re headquartered in the Bay Area with operations in Europe. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com.

Safe Harbor Statement

This press release contains forward‐looking information. The statements are based on reasonable assumptions, beliefs and expectations of management and the Company provides no assurance that actual events will meet management’s expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company’s views of future events and financial performances which are subject to known and unknown risks and uncertainties, including, but not limited to, statements regarding the Company’s operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. There can be no assurances that the Company will achieve the expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements.

Please refer to the Company’s most recent Annual Report filed with the OTCQB over-the-counter market for a further discussion of risks and uncertainties. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company does not undertake any obligation to update any forward-looking statements.

Contact:

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

June 30,

September 30,

2026

2025

(1)
ASSETS
Current assets:
Cash and cash equivalents

$

3,390

$

2,750
Accounts receivable, net

1,627

2,428
Other current assets

153

183
Total current assets

5,169

5,361
Operating lease right-of-use assets

26

40
Goodwill

2,725

2,725
Property, plant, and equipment, net

72

57
Intangible assets, net

954

1,074
Capitalized software development cost, net

1,784

1,621
Deferred tax asset

5,362

5,347
Other long-term assets

30

20
Total assets

16,122

16,245
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$

306

$

608
Accrued compensation and benefits

384

625
Accrued expenses

139

221
Deferred consideration

372

372
Operating lease liabilities – current

27

24
Deferred revenue – current

766

563
Total current liabilities

1,994

2,413
Operating lease liabilities – long-term

5

25
Deferred revenue – long-term

32

77
Total liabilities

2,031

2,515
Stockholders’ equity:
Common stock

25

25
Treasury stock

(1,579

)

(1,579

)
Additional paid-in capital

73,284

73,240
Accumulated deficit

(57,638

)

(57,956

)
Total stockholders’ equity

14,091

13,730
Total liabilities and stockholders’ equity

$

16,122

$

16,245

  1. The information in this column was derived from the Company’s audited consolidated financial statements as of and for the year ended September 30, 2025.

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

Three Months Ended

Nine Months Ended

June 30,

June 30,

2026

2025

2026

2025
Net revenue

$

3,019

$

3,517

$

9,315

$

10,395
Gross profit

1,737

2,199

5,637

6,494
Operating expenses:
Research and development

183

411

872

1,095
Sales, general & administrative

1,530

1,663

4,453

4,924
Operating income (loss)

24

125

312

475
Interest and other income

19

15

43

41
Interest expense and other expense

0

(7

)

(5

)

–
Net income (loss) before income taxes

43

133

350

516
Benefit (provision) for income taxes (1)

(27

)

(23

)

(32

)

(32

)
Net income (loss)

$

15

$

110

$

318

$

484
Net income (loss) per share
Basic

$

0.00

$

0.00

$

0.01

$

0.02
Diluted

$

0.00

$

0.00

$

0.01

$

0.02
Weighted average shares used in computing net income (loss) per share
Basic

25,880

25,852

25,873

25,601
Diluted

25,911

26,246

25,922

25,601

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

Nine Months Ended

June 30,

2026

2025
Cash flows from operating activities:
Net income (loss)

$

317

$

484
Adjustments to reconcile net income (loss) to net cash from operating activities:
Impairment of capitalized software

363

–
Deferred income tax expense

(15

)

–
Amortization of intangible assets

140

150
Amortization of capitalized software

104

168
Stock-based compensation

38

41
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable

802

573
Prepaid expenses and other current assets

29

42
Other long-term assets

(10

)

(12

)
Accounts payable

(301

)

196
Accrued expenses

(323

)

(585

)
Deferred revenue

158

152
Lease Liability

(3

)

7
Net cash provided by operating activities

1,299

1,216
Cash flows from investing activities:
Capitalized software development costs

(630

)

(221

)
Purchase of property, plant, and equipment

(35

)

(85

)
Net cash used in investing activities

(665

)

(306

)
Cash flows from financing activities:
Proceeds from exercise of stock options

6

–
Repurchase of common stock

–

(14

)
Net cash used in financing activities

6

(14

)
Net increase (decrease) in cash and cash equivalents

640

896
Cash and cash equivalents, beginning of year

2,750

2,575
Cash and cash equivalents, end of year

$

3,390

$

3,471

ALTIGEN COMMUNICATIONS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, In thousands, except per share data)

Three Months Ended

Nine Months Ended

June 30,

June 30,

2026

2025

2026

2025
Reconciliation of GAAP to Non-GAAP Gross Profit:
GAAP gross profit

$

1,737

$

2,199

$

5,637

$

6,494
Amortization of capitalized software

26

87

92

158
Amortization of acquired customer relationships

–

40

–

122
Non-GAAP gross profit

$

1,763

$

2,326

$

5,729

$

6,774
Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses

$

1,713

$

2,074

$

5,325

$

6,012
Asset Impairment

(82

)

(88

)

(363

)

(264

)
Amortization of capitalized software

(4

)

–

(10

)

(11

)
Amortization of intangible assets

(47

)

(10

)

(139

)

(29

)
Stock-based compensation

(16

)

(9

)

(38

)

(40

)
Non-GAAP operating expenses

$

1,564

$

1,967

$

4,775

$

5,668
Reconciliation of GAAP to Non-GAAP Net Income:
GAAP net profit / (loss)

$

15

$

110

$

318

$

484
Asset Impairment

82

88

364

264
Amortization of capitalized software

30

87

102

169
Amortization of intangible assets

47

52

139

156
Stock-based compensation

16

13

38

39
Non-GAAP net income

$

190

$

350

$

961

$

1,112
Per share data:
Basic

$

0.01

$

0.01

$

0.04

$

0.04
Diluted

$

0.01

$

0.01

$

0.04

$

0.04
Weighted average shares outstanding:
Basic

25,880

25,852

25,873

25,601
Diluted

25,911

26,246

25,922

25,601

Non-GAAP Financial Measures

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, depreciation and amortization expenses, acquisition-related costs, change in deferred tax asset valuation allowance, litigation costs and other non-recurring or unusual charges or benefits that may arise from time to time that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business and to perform financial planning. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: (i) the comparability of our on-going operating results over the periods presented and (ii) the ability to identify trends in our underlying business.

SOURCE: Altigen Technologies

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