Oblong (OBLG -1.03%), a developer of collaboration technology, reported its second quarter 2025 earnings on August 14, 2025. The most significant news was a steady revenue figure compared to the same period last year, but a substantial improvement in key financial measures. Net loss (GAAP) narrowed to $0.61 million from $0.98 million year-over-year in Q2 2025, and Gross profit (GAAP) rose sharply to $228,000 from $120,000 year-over-year in Q2 2025. There are no analyst estimates or consensus forecasts for this period. Overall, despite flat revenue, the quarter marked a turning point as the company pivoted away from its traditional technology business toward a new strategy in digital assets and decentralized artificial intelligence.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| Revenue | $0.59 million | $0.61 million | (3.1%) |
| Gross Profit | $0.23 million | $0.12 million | 91.7% |
| Cash and Cash Equivalents | $10.8 million | N/A | N/A |
About Oblong: Business Model and Recent Focus
Oblong is a technology company with a legacy in collaboration hardware and software. Its Mezzanine product line provides visual collaboration systems for meeting rooms and distributed teams. These solutions are designed to allow multiple participants to share and work on content together across different locations.
In the past year, the company’s primary focus has shifted dramatically. It is moving away from selling traditional technology products and is building a digital asset treasury centered on TAO tokens, which are part of the Bittensor decentralized artificial intelligence ecosystem. Key factors for its future success include its ability to generate income from digital assets, manage costs, and navigate the risk of relying on both a new strategy and a highly concentrated customer base.
Q2 2025: Key Developments and Performance Drivers
The quarter’s financial story centered on expense reduction and a move toward digital asset investment. Net loss (GAAP) narrowed as operating costs—particularly in sales, marketing, and research and development—declined sharply year-over-year in Q2 2025. Research and development spending (GAAP) fell to $3,000 from $65,000 year-over-year in Q2 2025. Sales and marketing expenses (GAAP) dropped to $6,000 from $57,000 year-over-year in Q2 2025. General and administrative costs decreased to $902,000 from $1,016,000 year-over-year in Q2 2025, supporting a lower overall cost base and helping reduce operating loss.
Gross profit (GAAP) nearly doubled year-over-year in Q2 2025. This increase in profitability was achieved even as revenue remained unchanged, with a net loss of $0.7 million for Q1 2025 (GAAP) compared to $1.1 million for Q1 2024, and revenue of $0.6 million in both periods. Revenue performance showed stagnation, highlighting continued headwinds for the legacy Mezzanine product family in a declining in-person collaboration technology market. The company remains exposed to a highly concentrated customer base; in 2024, a single customer accounted for 84.9% of all revenue.
Oblong made a substantial investment in digital assets during the quarter, shifting its strategy. By June 30, 2025, it had purchased $1.7 million worth of TAO tokens, all of which were staked—committed to support the Bittensor network and, in return, earn yield. As of Q2 2025, $1.7 million in TAO tokens was reported on the balance sheet. This move is aimed at creating a new source of revenue and value as the company seeks to establish itself in the world of decentralized artificial intelligence.
On the capital markets front, the company strengthened its financial footing by raising $6.9 million through a private placement and $1.3 million from warrant exercises in Q2 2025, plus an additional $0.9 million from warrant exercises after Q2 2025. As of June 30, 2025, Oblong held $10.8 million in cash and cash equivalents, and $1.7 million in TAO holdings. This increase in cash contrasts with the company’s position at the end of 2024, when cash and cash equivalents (GAAP) stood at $4.97 million as of December 31, 2024. With no debt and total stockholders’ equity rising from $4.0 million as of December 31, 2024, to $11.3 million as of June 30, 2025, the company enters the next quarter in a more stable financial state.
Looking Forward: Management Outlook and Investor Watchpoints
Management did not provide quantitative financial guidance for either revenue or profit. Instead, it indicated a continued commitment to growing its digital asset strategy, particularly within the Bittensor ecosystem. Weekly TAO purchases and exploration of new partnerships are the main initiatives mentioned for the near future.
No outlook was offered on expected operating results or dividend policy for upcoming quarters and the year. Oblong does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
