EarningsQ2 2026 Earnings Report
MX:CRI Q2 2026 EPS Results
Actual EPS$4.76
Consensus EPS$1.12
Beat/MissBeat by +$3.64
One Year Ago EPS$3.11
MX:CRI Q2 2026 Revenue Results
Actual Revenue$11.26B
Expected Revenue$11.08B
Beat/MissBeat by +$179.54M
YoY Revenue Growth+5.16%
Earnings Announcement Details
QuarterQ2 2026
Date07/31/2026
TimeBefore Open
Conference CallFriday, July 31, 2026
MX:CRI Upcoming Earnings
Carter's's next earnings date is estimated for October 23, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:CRI Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call was constructive: the company reported strong top-line growth (23% YoY), materially improved adjusted EBITDA (+48% YoY) and margin expansion, substantial progress on platform adoption (AsureCentral majority migration) and AI/automation (Luna adoption), and provided tightened/upgraded guidance for 2026. Headline positives outweigh the negatives, though there are near-term headwinds and execution items to monitor—namely ongoing GAAP losses, cash/debt levels, expected reduction in non-recurring revenue versus prior-year comparables, a near-term revenue impact from Lathem's HaaS transition, and that some AI-driven cost benefits and salesforce productivity gains remain early in their ramp. On balance, momentum and profitability trajectory dominate the narrative.Company Guidance
Strong Revenue Growth
Total revenue of $37.1M in Q2 2026, up 23% year-over-year from $30.1M (Q2 2025).
High Recurring Revenue Mix
Recurring revenue of $34.0M (91% of total revenue), up 19% year-over-year, supporting revenue predictability.
Profitability Improvements
Adjusted EBITDA of $7.7M in Q2 2026, up 48% YoY from $5.2M; adjusted EBITDA margin improved 400 basis points to 21% (from 17%). Net loss narrowed to $4.4M from $6.1M a year ago.
Gross Margin Expansion
GAAP gross margin improved to 68% from 66% YoY; non-GAAP gross margin steady at 73%.
Platform and Customer Milestones
AsureCentral now hosts a majority of the company's ~30,000 direct clients; clients buying multiple products increased 6% YoY; new sales bookings for core HCM payroll grew 14% YoY; contracted backlog ~ $80M with ~41% expected to convert over 12 months.
Major Enterprise Payroll Tax Deployment
On the Enterprise Payroll Tax management platform, 2 million Vensure-supported employees are now live, marking a significant implementation milestone.
AI Adoption and Operational Traction
Luna AI platform adoption increased >30% since Q1 and interactions rose ~38% vs Q1; 147,000 voicemails transcribed and ~196,000 emails screened for sentiment—AI driving platform usage and automation.
Updated Guidance and Cash Flow Outlook
Full-year 2026 revenue guidance raised to $159M–$163M with adjusted EBITDA margin guidance of 24%–25%; Q3 revenue guide $38M–$40M and adjusted EBITDA $8M–$10M. Company expects positive levered free cash flow in the mid-to-high teens range (calculated from adjusted EBITDA less software capitalization and interest).
AsureWorks Early Traction
AsureWorks managed payroll/HR compliance offering gaining clients and pipeline; company notes managed-service clients can represent up to 5x revenue of payroll-only clients.
Lathem Integration Progress
Lathem acquisition performing at-or-above expectations with retention consistent, cost synergies realized, and roadmap to move hardware to HaaS to increase recurring revenue over time.
MX:CRI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed