Quick Verdict
FDCTech Q2 2026 Earnings report showed FDCTech reported Q2 2026 revenue of $17.47 million, diluted EPS of $0.03, and net income attributable to shareholders of $7.71 million. Revenue rose 222.4% year over year, primarily on brokerage growth. No verified post-release after-hours reaction was disclosed; the latest available OTC close was $1.95 on August 18.
About FDCTech
FDCTech, Inc. (OTC: FDCT) is an Irvine, California-based financial technology company founded in January 2016. It develops and supplies regulatory-oriented trading infrastructure, including its proprietary Condor Trading Technology, to regulated and over-the-counter brokerages, proprietary trading firms, and algorithmic traders. Its technology supports multi-asset markets including foreign exchange, equities, commodities, indices, ETFs, precious metals, and digital assets.
The group’s operating model has broadened beyond software into three reported revenue lines: brokerage trading, wealth management, and technology & software. Its acquisition-led expansion has created regulated operations across Australia, Malta, the United Kingdom, Seychelles, Mauritius, Cyprus, and the Cayman Islands. FDCTech’s Australian wealth-management subsidiary oversees roughly $770 million in funds under advice through 26 advisers. The company trades on the OTC Pink market rather than a national exchange and is pursuing a potential national-exchange uplisting, subject to SEC review, financing, exchange standards, and market conditions. A market-data source placed FDCT’s market capitalization near $8.3 million as of August 18, 2026; the data should be treated cautiously given the recent 1-for-100 reverse split and subsequent preferred-share conversion.
Top Financial Highlights
- Q2 2026 total revenue was $17.47 million, up 222.4% from $5.42 million in Q2 2025.
- Net income attributable to FDCTech shareholders was $7.71 million, compared with a $437,923 net loss a year earlier.
- Basic EPS was $1.82, versus a $0.10 loss per share in Q2 2025.
- Diluted EPS was $0.03, versus a $0.10 loss per share in the prior-year quarter. The large basic-versus-diluted discrepancy reflects the assumed conversion of Series B preferred shares.
- Gross profit reached $11.87 million, a 415.0% year-over-year increase.
- Gross margin expanded to 68.0%, from 42.5% in Q2 2025—an improvement of approximately 2,540 basis points.
- Operating income was $7.38 million, reversing an operating loss of $166,545 in the comparable 2025 quarter.
- Operating margin was 42.3% in Q2 2026.
- Brokerage revenue totaled $14.26 million, up 451.2% year over year, and represented 81.6% of quarterly revenue.
- Technology & Software revenue was $1.39 million, up 18.3%, supported by wider adoption of the Condor platform.
- Wealth Management revenue was $1.81 million, up 9.7%, generated through Australian subsidiary AD Advisory Services.
- Cash and cash equivalents were $18.18 million at June 30, 2026, while restricted client funds were $7.70 million, for combined cash and restricted cash of $25.88 million.
- Operating cash flow was negative $21.14 million for the first six months of 2026, mainly reflecting working-capital movements, including a rise in related-party receivables.
- Total stockholders’ equity increased to $39.31 million, from $22.69 million at December 31, 2025, while total liabilities fell to $15.78 million..
Beat or Miss?
FDCTech’s release and related filing did not provide Wall Street consensus estimates for revenue, EPS, or earnings. As an OTC Pink micro-cap company, FDCT appears to have limited published analyst coverage, so a conventional estimate comparison is not available.
| Metric | Reported | Difference/Analysis |
| Q2 revenue | $17.47 million | Consensus estimate not disclosed; revenue increased 222.4% year over year |
| Basic EPS | $1.82 | Consensus estimate not disclosed |
| Diluted EPS | $0.03 | Consensus estimate not disclosed; dilution from Series B preferred shares materially reduced diluted EPS |
| Net income attributable to shareholders | $7.71 million | Swung from a $437,923 loss in Q2 2025 |
| Gross margin | 68.00% | Expanded from 42.5%, reflecting a higher brokerage-revenue mix |
| Operating income | $7.38 million | Reversed from a $166,545 operating loss |
Rather than an earnings “beat” relative to consensus, the key takeaway is operational: the company reported a strong year-over-year earnings reversal and much higher gross margin, but it also reported negative operating cash flow for the first half, making cash conversion an important item to monitor in later quarters.
What Leadership Is Saying
The August 17 earnings release did not include attributable, verbatim remarks from either the CEO or CFO. Accordingly, it would not be accurate to manufacture executive quotes.
“The Company continues to pursue a potential listing of its Common Stock on a national securities exchange in connection with a proposed public offering of equity securities.” — FDCTech’s corporate statement in the Q2 2026 release.
“The completion of the proposed offering and uplisting is subject to, among other things, SEC review and declaration of effectiveness of the registration statement, satisfaction of applicable exchange listing requirements, market conditions, and other factors.” — FDCTech’s corporate statement in the Q2 2026 release.
Historical Performance
| Category | Q2 2026 | Q2 2025 | Change (%) |
| Revenue | $17.47 million | $5.42 million | 222.40% |
| Net income attributable to FDCTech shareholders | $7.71 million | $(0.44) million | NM — swung to profit |
| Gross profit | $11.87 million | $2.31 million | 415.00% |
| Operating expenses | $4.49 million | $2.47 million | 81.60% |
| Operating income (loss) | $7.38 million | $(0.17) million | NM — swung to profit |
| Gross margin | 68.00% | 42.50% | +25.5 percentage points |
The main driver was the brokerage segment, where quarterly revenue rose to $14.26 million from $2.59 million. FDCTech attributed that acceleration principally to the full-quarter contribution of Alchemy International Ltd., acquired in Q4 2025, along with operations at Alchemy Markets Ltd. in Malta and Alchemy Prime Limited in the United Kingdom.
Competitor Comparison
A precise, like-for-like Q2 2026 competitor table is not available from FDCTech’s release because it does not identify a peer group, and several potential OTC fintech or brokerage peers do not report on the same quarterly timetable or use comparable segment accounting. To avoid presenting unsupported peer figures, the following table compares FDCTech’s own major operating businesses rather than unrelated public companies.
| Segment / Operating Business | Q2 2026 Revenue | Q2 2025 Revenue | Change (%) |
| Brokerage trading | $14.26 million | $2.59 million | 451.20% |
| Technology & Software | $1.39 million | $1.18 million | 18.30% |
| Wealth Management | $1.81 million | $1.65 million | 9.70% |
| Total company revenue | $17.47 million | $5.42 million | 222.40% |
Brokerage was the clear growth engine, accounting for 81.6% of total Q2 sales. Technology and wealth management grew at slower but positive rates, providing a more diversified revenue base than the brokerage figure alone suggests.
How the Market Reacted?
The earnings release did not disclose an intraday, after-hours, or next-session stock-price reaction, so there is no company-supplied basis to claim that investors bid shares up or down specifically because of the report. The most recent independently reported data point available was an August 18 close of $1.95, up 10.17% for that session, with an indicated market capitalization of approximately $8.3 million; it should not be interpreted as a verified earnings-only reaction.
Fundamentally, the quarterly report was bullish on reported income and margins: revenue more than tripled, gross margin reached 68%, and FDCTech moved from a prior-year loss to significant profit. The key counterweight is the six-month operating-cash outflow of $21.14 million, as well as prospective dilution and execution risk related to the post-quarter preferred-share conversion, acquisitions, public offering, and uncertain uplisting process.
