Compa y Successfully Scaled AI-D ive Secu ity Platfo m Ac oss Multiple La ge I dust y Ve ticals as Recu i g Reve ue a d E te p ise Adoptio Accele ated
Adva ci g the Shift f om Reactive Su veilla ce to Auto omous, AI-Powe ed Secu ity
Co fe e ce Call to be Held o July 17, 2026 at 12:00 PM ET
PALO ALTO, Calif., July 17, 2026 (GLOBE NEWSWIRE) — Cloudast uctu e, I c. (“Cloudast uctu e” o “the Compa y”) (Nasdaq: CSAI), a leade i cloud- ative AI su veilla ce a d emote gua di g, today epo ted its fi a cial esults fo the fi st qua te e ded Ma ch 31, 2026 a d is p ovidi g a busi ess update.
“Ou fi st qua te 2026 fi a cial esults eflect the co ti ued scali g of ou AI-d ive tech ology platfo m ac oss multiple la ge ma ket ve ticals a d g owi g custome dema d ac oss mode secu ity e vi o me ts,” said James McCo mick, Chief Executive Office of Cloudast uctu e. “We a e seei g st o g adoptio i multifamily alo gside i c easi g t actio i t a spo tatio a d logistics, whe e the ability to detect, espo d, a d p eve t i cide ts i eal time is c itical fo the safety of te a ts, employees a d othe stakeholde s.”
“We believe secu ity is u de goi g a fu dame tal t a sfo matio , movi g f om passive systems to i tellige t platfo ms that ope ate co ti uously a d auto omously. Cloudast uctu e is positio ed at the i te sectio of that shift, combi i g AI, cloud i f ast uctu e, a d eal-time i te ve tio to delive a mo e p oactive sta da d fo physical secu ity. As we co ti ue to scale the platfo m a d exte d its capabilities ac oss ew e vi o me ts, we a e buildi g a system desig ed ot just to mo ito activity, but to actively p eve t it.”
Reve ue G owth: 78% yea -ove -yea i c ease i Q1 2026 to app oximately $1.3 millio .Recu i g Reve ue Expa sio : Co ti ued g owth i subsc iptio a d emote gua di g eve ue, suppo ti g a a ualized u ate of app oximately $2.6 millio based o ecu i g eve ue as of the e d of Ma ch 2026.Multifamily Leade ship: Now se vi g eight of the top te NMHC- a ked multifamily p ope ty ma age s i the U ited States, ei fo ci g Cloudast uctu e’s positio as a t usted pa t e fo la ge-scale secu ity deployme ts.Platfo m I ovatio : Co ti ued deployme t of AI-powe ed secu ity e closu es a d sola -powe ed systems, expa di g the platfo m i to co st uctio , i f ast uctu e, a d off-g id e vi o me ts.Tech ology I teg atio : O goi g developme t of mobile a d auto omous capabilities, fu the e ha ci g platfo m flexibility ac oss dive se use cases.Leade ship St e gthe i g: Appoi ted Ed Bu ett, fo me UPS secu ity executive, as Chief Secu ity a d Ope atio s Office , addi g ove 30 yea s of e te p ise secu ity expe tise to suppo t ope atio al scale a d expa sio i to logistics a d e te p ise ma kets.Ma ket Expa sio : G owi g t actio ac oss t a spo tatio , logistics, comme cial p ope ties, a d c itical i f ast uctu e, expa di g beyo d the co e multifamily ve tical.Accou ti g Matte Resolved: Ame ded the te ms of its Se ies 2 Co ve tible P efe ed Stock, elimi ati g the va iable co ve sio p ice featu e, a d excha ged a po tio of those sha es fo a u secu ed p omisso y ote, esolvi g the p eviously disclosed tech ical accou ti g matte .
I multifamily housi g, the Compa y eached a key milesto e, ow se vi g eight of the te la gest NMHC- a ked multifamily p ope ty ma ageme t compa ies i the U ited States, which eflects i c easi g adoptio amo g la ge-scale ope ato s. Withi these accou ts, custome s co ti ue to expa d deployme ts f om i itial pilot sites to b oade po tfolio ollouts as the platfo m demo st ates measu able esults.
To suppo t co ti ued g owth, the Compa y st e gthe ed its leade ship team with the appoi tme t of Ed Bu ett as Chief Secu ity a d Ope atio s Office , b i gi g mo e tha 30 yea s of e te p ise secu ity expe ie ce to ove see ope atio s, emote gua di g, a d deployme t st ategy.
Ac oss its ma kets, the Compa y co ti ues to see i c easi g dema d fo p oactive, AI-d ive secu ity solutio s that e able custome s to detect th eats ea lie , espo d i eal time, a d p eve t i cide ts befo e they escalate.
O July 6, 2026, the Compa y a ou ced a esolutio whe eby it ame ded the te ms of its Se ies 2 Co ve tible P efe ed Stock to, amo g othe thi gs, elimi ate the va iable co ve sio p ice featu e a d excha ged 1,170 of those sha es with the sole holde of Se ies 2 Co ve tible P efe ed Stock fo a u secu ed p omisso y ote. The Fo m 10-Q fo the fi st qua te of 2026 will eflect a evised, o -cash accou ti g p ese tatio fo both se ies affecti g o ly bala ce sheet classificatio , with o impact o the Compa y’s cash positio , ope atio s, total assets, o et assets.
Cost of goods sold fo the fi st qua te was $0.6 millio , compa ed to $0.4 millio i the p io yea pe iod, eflecti g i c eased i stallatio activity, hosti g costs, a d ope atio al suppo t equi ed to scale the platfo m.
G oss p ofit i c eased to $0.7 millio , compa ed to $0.3 millio i the fi st qua te of 2025, ep ese ti g app oximately 115% yea -ove -yea g owth. The i c ease eflects highe eve ue a d a g eate co t ibutio f om ecu i g se vice offe i gs.
Ope ati g expe ses fo the qua te totaled app oximately $3.3 millio , compa ed to app oximately $2.8 millio i the p io yea pe iod, eflecti g i c eased headcou t a d compe satio costs, highe sales a d ma keti g spe d, a d co ti ued i vestme t i ope atio al i f ast uctu e to suppo t g owth.
Ge e al a d admi ist ative expe ses fo the qua te we e app oximately $1.4 millio , compa ed to app oximately $1.1 millio i the p io yea pe iod, eflecti g i c eased pay oll, p ofessio al se vices, equipme t, a d public compa y- elated expe ses.
Net loss fo the fi st qua te was app oximately $2.8 millio , compa ed to app oximately $2.0 millio i the same pe iod i 2025, eflecti g co ti ued i vestme t i scali g the platfo m a d expa di g the busi ess, as well as a o -cash cha ge i the fai value of de ivative liabilities a d the evised p io -pe iod compa ative figu es desc ibed below. (The et loss f om the fi st qua te of 2025 has bee evised f om the p eviously epo ted $2.5 millio to $2.0 millio i co ectio with the tech ical accou ti g matte efe e ced above elated to the Compa y’s Se ies 1 a d Se ies 2 Co ve tible P efe ed Stock. The evisio did ot affect cash, ope atio s, total assets, o et assets.)
| Net I come / (Loss) | $ | (2,774 | ) | $ | (2,015 | ) | Add (less): | Stock compe satio expe se | 414 | 627 | Dep eciatio a d amo tizatio | 24 | 15 | Cha ge i fai value of de ivative liabilities | 128 | (415 | ) | Bad Debt expe se | 27 | (6 | ) | I te est (i come) / expe se | (40 | ) | (9 | ) | Taxes expe se | 83 | 2 |
The live webcast a d a y elated p ese tatio mate ials made available fo the call will be available th ough the Compa y’s i vesto elatio s website at https://www.cloudast uctu e.com/i vesto /home. Fo i te ested i dividuals u able to joi the co fe e ce call, a eplay will be available th ough July 31, 2026, by diali g 1-877-481-4010 (U.S. Toll F ee) o 1-919-882-2331 (I te atio al). Pa ticipa ts must use the followi g code to access the eplay of the call: 54039. A a chived ve sio of the webcast will also be available fo 365 days.
Ce tai stateme ts i this p ess elease may be co side ed fo wa d-looki g stateme ts withi the mea i g of the fede al secu ities laws. Fo wa d-looki g stateme ts may i clude, without limitatio , stateme ts ega di g the Compa y’s expectatio s, pla s, o p ospects; the timi g, completio , a d fili g of its Qua te ly Repo t o Fo m 10-Q; its ability to egai complia ce with Nasdaq listi g sta da ds; the expected effects of the Se ies 2 Co ve tible P efe ed Stock ame dme t a d elated excha ge; a d custome adoptio , ma ket expa sio , ecu i g eve ue g owth, p oduct capabilities, a d the Compa y’s ability to scale its platfo m. Fo wa d-looki g stateme ts a e typically ide tified by wo ds a d ph ases such as “a ticipate,” “estimate,” “believe,” “co ti ue,” “could,” “i te d,” “may,” “pla ,” “pote tial,” “p edict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “p ojectio ,” “fo ecast,” “goal,” “guida ce,” “outlook,” “effo t,” “ta get” o the egative of such wo ds a d othe compa able te mi ology. Fo wa d-looki g stateme ts a e based o cu e t expectatio s a d assumptio s, a e subject to isks a d u ce tai ties, a d a e ot gua a tees of futu e pe fo ma ce. Actual esults may diffe mate ially f om those exp essed o implied by fo wa d-looki g stateme ts due to multiple facto s i cludi g, amo g othe s, delays o cha ges i fi a cial epo ti g a d accou ti g t eatme t; liquidity a d capital eeds; custome co ce t atio ; competitio ; ma ket accepta ce of the Compa y’s solutio s; the Compa y’s ability to deploy a d scale its tech ology; p ivacy, secu ity, a d egulato y isks; a d the isks a d u ce tai ties discussed i the epo ts that the Compa y has filed with the SEC, i cludi g its A ual Repo t o Fo m 10-K a d subseque t fili gs. Fo wa d-looki g stateme ts speak o ly as of the date of this elease. Except as equi ed by applicable law, the Compa y u de takes o obligatio to update o evise a y fo wa d-looki g stateme ts.
