PARALLAX CLOUD / FP&A Q2 FY26 CLOSE ACTUALS v BUDGET

Variance Analysis
Q2 '26 flux.

Verdict: NI miss of $520K — 1 line drives 80%
Period: Apr 1 – Jun 30, 2026 (consolidated)
Prepared: D. Okoro · FP&A Manager
Materiality: ±$150K or ±5% of line
Revenue
$18.92M
+$520K vs $18.40M plan · +2.8%
Gross Profit
$11.41M
−$370K vs plan · 60.3% margin (−3.7 pts)
Operating Income
($20K)
−$510K vs $490K plan · margin −0.1%
Net Income
($210K)
−$520K vs $310K plan · swung to loss

Net income bridge

BUDGET +$310K → ACTUAL −$210K · 5 STEPS
START
Budget NI
Baseline
Board plan v3+$310K
ApprovedJan 14 '26
+ FAV
Revenue Δ
Favorable
Running+$830K
+$520K+2.8%
− UNFAV
COGS Δ
Material
Running−$60K
−$890K−13.4%
− UNFAV
Opex & Other Δ
Minor
Running−$210K
−$150K−1.3%
END
Actual NI
Reported
vs plan−$210K
−$520K miss−168%
WD+1WD+2WD+3WD+4WD+5WD+6WD+7WD+8
Subledgers & AP cut-off
Accruals & JEs posted
Flux analysis & commentary
Recon review (1 open)
Controller / CFO sign-off

Material variance lines

4 > $150K
Cloud infrastructure / hosting — $790K unfavorable (COGS)
Actual $3.71M vs $2.92M plan. Compute hours +31% on two enterprise tenants migrated without reserved-instance coverage; spot pricing spiked in May. This single line is 152% of the total NI miss — everything else nets close to noise.
GL 5110PRICE + VOLUME80% OF MISS
R. MehtaInfra Ops
Recurring 2nd qtr
Subscription revenue — Enterprise tier — $640K favorable
Actual $14.21M vs $13.57M plan. Two expansion deals (Northwind, Calder Logistics) closed a quarter early; ARR pulled forward, not net-new to FY. Partially offsets the infra overage it directly caused.
GL 4010TIMINGFAVORABLE
S. ParedesRevOps
Validated
Sales commissions — $215K unfavorable (S&M)
Actual $1.39M vs $1.18M plan. Accelerator tiers triggered by the early enterprise closes above; plan modeled linear attainment. Mechanically linked to the revenue beat — recommend re-baselining H2 commission assumptions.
GL 6210RATELINKED TO REV
S. ParedesRevOps
Explained
Professional services revenue — $165K unfavorable
Actual $1.02M vs $1.19M plan. Three implementation SOWs slipped to Q3 pending customer security review. Hours are staffed and in WIP; expect full recovery next quarter — flag as timing, not loss.
GL 4020TIMINGRECOVERABLE
J. TamServices
Deferred
Reconciliation & sign-off

Open items before lock

$280Kunreconciled
AWS accrual does not tie to vendor portal FLAGGED
GL accrual $3.71M vs consolidated billing export $3.43M. Gap is likely the May true-up invoice posted to June — Accounting to confirm cut-off and repost or document.
$42Kimmaterial
Deferred revenue roll-forward off by rounding
Beginning + billings − recognized ≠ ending by $42K across 1,100 contracts. Below threshold; logged for Q3 cleanup.
WD+6Jul 8
Controller review of flux commentary
This deck plus line-level appendix. Controller to challenge infra explanation and approve H2 reforecast trigger.
WD+7Jul 9
CFO certification & book close
Sub-cert from Infra and RevOps owners required. NetSuite period locks at 5:00 PM PT.
WD+8Jul 10
Board flash distributed
One-pager: NI bridge, infra remediation plan, reaffirm or revise FY guidance. Current lean: hold FY revenue, cut FY NI by ~$400K.

Review chain

6
FP&A prepares, cost-center owners sub-certify, Controller challenges, CFO signs. Infra Ops added as mandatory reviewer this quarter given the overage.
DO RM SP JT LH MK CFO

NI miss composition

−$520K net
Infra Comm PS rev Offsets
Gross unfavorable $1.26M, gross favorable $735K. Story is one line; don't let the noise distract the board.

Reconciliation status

Amber
23 of 24 balance-sheet recons signed. The $280K AWS accrual gap is the lone holdout — must clear before CFO cert. If it reverses, COGS variance drops to −$610K and NI miss to −$240K. Either way the headline holds: infra blew the quarter.
Revenue Payroll AP/Accrual Cash