RedCloud Holdings reported first-half 2026 revenue of $24 million, increasing 34% from the prior-year period as transaction volume across its trade infrastructure continued to grow.
Total trading volume increased 30% to $1.56 billion during the six months ended June 30.
Operating loss narrowed 15% to $17.1 million as higher revenue more than offset an 8% increase in operating expenses associated primarily with promotional spending, commissions tied to transaction activity and data acquisition.
Net loss declined 30% to $18.5 million, reflecting the improvement in operating performance and lower stock-based compensation expense.
RedCloud also generated $9.8 million of net cash from financing activities during the first half.
Following June 30, the company raised approximately $2.1 million through private placements with existing shareholders and sales under its at-the-market program.
Scheduled repayments and holder conversions reduced the outstanding principal under certain senior convertible notes issued in February to approximately $1.8 million.
Alongside the financial results, RedCloud provided updates on its expansion of RedAI, its AI-driven infrastructure for consumer-goods trade.
RedCloud Technologies entered into agreements to create a joint venture that will deploy and operate RedAI infrastructure in Saudi Arabia and Bahrain.
RedCloud plans to retain a 51% interest in the venture and charge it up to 10% of collected net revenue under a 20-year platform license and infrastructure agreement.
In India, RedCloud signed a joint venture agreement and a 20-year licensing arrangement valued at up to $120 million with Dheer and Klakshya.
The company also signed two memoranda of understanding to deploy its RAID and CORE technologies across 11 apparel brands, more than 25,000 SKUs and over 1,250 buyer locations.
In Argentina, RedCloud signed a three-year agreement that the company forecasts could generate $20 million in revenue and facilitate $1.2 billion in consumer-goods trade through RedAI over the term.
RedAI CORE, the company’s Compounding Operating and Runtime Engine, also made its commercial debut alongside the RedAI Sales application with an initial group of 30 distributor customers.
RedCloud said more than $8.4 billion of consumer-goods transactions have passed through its infrastructure since 2023. The company is using that proprietary transaction data to develop RAID, or Real-time AI for Distribution.
KEY QUOTES:
“The global FMCG trade pays $2 trillion a year for bad prediction. AI models are trained on public data from the internet. The data that predicts trade has never been on it. More than $8.4 billion of FMCG transactions have passed through RedCloud’s infrastructure since 2023: data that cannot be scraped, synthesized or recreated. This is the foundation of RAID, our prediction model. Our expected joint ventures are RedCloud’s first trade infrastructure deployment with local data and infrastructure controls. We plan to improve our capital structure and sources of liquidity to grow our business and add scale across more countries. Trade has never had a shared intelligence. RedCloud is building it.”
Justin Floyd, Founder and Chief Executive Officer of RedCloud
