10-Q: Mobiquity Technologies Reports Q3 2026 Results, Focuses on AI Growth

Mobiquity Technologies, Inc. filed its Q3 2026 10-Q, detailing a strategic shift towards AI-powered customer acquisition with its GrowthOS and BYOB platforms, alongside a significant net loss.

Summary

• Mobiquity Technologies, Inc. reported its third-quarter and nine-month results for the period ending September 30, 2026.
• The company experienced revenue increases in both periods compared to 2025, with Q3 revenues at $138,759 and nine-month revenues at $334,896.
• However, significant operating expenses led to substantial net losses: $3,798,149 for Q3 and $8,604,729 for the nine months.
• The company continues to invest heavily in its AI-powered GrowthOS platform and the development of its new BYOB platform.
• Despite revenue growth, the company faces substantial doubt regarding its ability to continue as a going concern, with only $146,746 in cash as of September 30, 2026.
• Management is pursuing additional debt and equity financings, alongside expense reductions, to address liquidity concerns.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the significant net loss, substantial operating expenses, and the ongoing going concern doubt, despite some revenue growth.

Positives

• Revenue increased by 19% in Q3 2026 to $138,759 compared to $117,074 in Q3 2025.
• Nine-month revenues increased by 108% to $334,896 in 2026 compared to $160,795 in 2025.
• The company is strategically evolving towards AI-powered solutions with its GrowthOS and BYOB platforms.
• Gross profit margin improved for the nine-month period to 40% in 2026 from 62% in 2025, indicating better cost management relative to revenue.
• Significant progress in product development for BYOB is noted, with an anticipated launch in two to three months.

Negatives

• Net loss for Q3 2026 was $3,798,149, an increase from $2,221,051 in Q3 2025.
• Nine-month net loss was $8,604,729, an increase from $6,685,887 in 2025.
• Operating expenses increased significantly, particularly in Q3 2026 due to a $1,968,000 non-cash stock-based compensation charge.
• Total liabilities ($4,414,712) significantly exceed total assets ($4,193,523) as of September 30, 2026.
• The company has an accumulated deficit of $244,672,539 as of September 30, 2026.
• Cash and cash equivalents were only $146,746 as of September 30, 2026, raising substantial doubt about the ability to continue as a going concern.
• Cost of revenues as a percentage of revenue increased significantly in Q3 2026 (63%) and for the nine months (60%) compared to the prior year periods.

Risks

• Substantial doubt exists regarding the Company's ability to continue as a going concern within one year after the date the financial statements are issued.
• The company has a history of recurring losses and negative operating cash flows.
• Management plans for additional debt and equity financings may not be successful.
• The development and commercialization of the BYOB platform are subject to risks, and there is no assurance of its completion date, commercial adoption, revenue generation, or ultimate success.
• The company's strategy relies on expanding commercial adoption of GrowthOS and completing BYOB development, which requires sufficient financing and effective scaling of operations.
• The company's disclosure controls and procedures were not effective as of September 30, 2026, due to a lack of segregation of duties and insufficient formal review controls in the finance and accounting department.

Future Outlook

Management expects to continue incurring substantial losses in the foreseeable future and is pursuing additional debt and equity financings, along with expense reductions, to fund operations. The company is focused on expanding GrowthOS commercial adoption and completing the development and launch of BYOB, which is anticipated in two to three months. Future revenue growth is expected to be driven by continued adoption of GrowthOS, AI-enabled capabilities, expansion in specific markets, and growth in recurring SaaS and managed services revenue.

Management Comments

• Management believes the continuous learning architecture of GrowthOS enables the platform to improve customer acquisition efficiency and effectiveness over time.
• Management expects recurring software and platform revenues to represent an increasing percentage of total revenue as the GrowthOS platform expands.
• Management believes BYOB represents a potentially significant expansion of the Company's business model, designed to serve businesses of virtually any size across numerous industries.
• Management believes BYOB could become an important driver of the Company's future growth by expanding its market reach, creating additional recurring revenue opportunities, and enabling the Company to serve a substantially larger customer population.
• Management believes the operating results for the first nine months of 2026 reflect continued progress toward building a more scalable software business while maintaining disciplined cost controls.

Industry Context

StockSavvy.ai notes that Mobiquity Technologies is positioning itself within the rapidly growing AI and customer acquisition technology sectors. The company's dual strategy of focusing on enterprise solutions (GrowthOS) and a broader market (BYOB) reflects a common trend of leveraging AI to enhance business operations and customer engagement across different market segments. However, the significant losses and going concern issues highlight the intense competition and high investment required in this space.

Comparison to Industry Standards

• The company's revenue growth of 108% for the nine months is strong, but it is overshadowed by a significant increase in operating expenses and net loss, which is not typical for mature, profitable companies in the AI software sector.
• The substantial accumulated deficit of over $244 million indicates a prolonged period of unprofitability, which is a significant concern compared to industry leaders who typically demonstrate a path to profitability or are already profitable.
• The reliance on debt and equity financings for operational funding is common for early-stage technology companies, but the current cash balance of $146,746 and the 'going concern' note suggest a more precarious financial position than many established AI firms.
• The significant increase in professional fees, including stock-based compensation, points to high operational costs, which can be a drag on profitability compared to more efficient industry players.

Corporate Governance

Legal Proceedings

• Michael Trepeta, a former Co-CEO and director, filed a lawsuit claiming fraudulent inducement, breach of employment agreement, breach of good faith and fair dealing, and breach of fiduciary duty, seeking not less than $2.5 million in damages. The case was dismissed after his appeal was denied in September 2025.

Related Party Transactions

• During September and December 2025, the Company entered into two short-term unsecured loans with Dr. Gene Salkind, the Board Chair, totaling $250,000 in cash proceeds, plus original issue discount and restricted stock. Additional loans of $175,000 were made in the nine months ended September 30, 2026. Principal and OID on these loans are due December 31, 2026.

Stakeholder Impact

• Shareholders: The significant net losses, going concern doubt, and substantial debt may negatively impact shareholder value and future equity dilution.
• Creditors: The company's liquidity challenges and substantial liabilities could impact its ability to meet debt obligations.
• Employees: Continued investment in product development and potential future financings may create job security concerns if the company cannot achieve profitability.
• Management: Faces the challenge of securing necessary financing and executing the strategic shift to AI while addressing internal control deficiencies.

Next Steps

• Complete the remaining development and testing activities for the BYOB platform over an anticipated two-to-three-month period.
• Prepare for the initial commercial deployment of BYOB.
• Increase enterprise customer relationships, managed services revenue, and strategic partnerships for GrowthOS.
• Pursue subscription-based software revenue opportunities for BYOB.
• Continue improving the Company's artificial intelligence, predictive analytics, automation, and platform integration capabilities.
• Explore partnerships, commercial relationships, and distribution channels to accelerate adoption of GrowthOS and BYOB.

Key Dates

Recommendation

The filing indicates significant financial distress, including substantial net losses, a severe cash crunch leading to 'going concern' doubts, and increasing liabilities. While the company is pursuing a strategic shift towards AI, the current financial instability and operational challenges, including ineffective internal controls, present a high risk for investors. The lack of clear profitability and the need for continuous external financing make the stock a sell at this time.

Keywords

AI software, customer acquisition, GrowthOS, BYOB platform, technology, software development, financial results, going concern