Key Highlights

  • Harland Group, a long-standing Shareholder controlled by Michael Giles, purchased shares in the open market to cross the 10% ownership threshold, a Schedule 13D filer status that keeps open the possibility of future board engagement rather than passive investment.
  • First-quarter Revenue grew 15% to $5.53 million, the strongest growth rate in several quarters, but net loss widened and adjusted EBITDA fell to $42,904 from $368,269 a year earlier as software development costs shifted to the income statement.
  • The Balance Sheet carries a $4.65 million Working Capital Deficit and negative stockholders' Equity of $1.46 million, with cash of just $521,684 and no bank Credit Facility to fall back on.

QuoteMedia, Inc. (OTCQB:QMCI) rarely generates headlines. It is a small Arizona-based supplier of stock quotes, market data feeds and portfolio tools to brokerages, Fintech platforms and corporate websites. This month it has drawn attention for a different reason: a long-standing outside shareholder has crossed the 10% ownership threshold.

The purchase, disclosed in an amended Schedule 13D filed with the Securities and Exchange Commission on 5 August 2026, came shortly before QuoteMedia is due to report second-quarter results. The timing matters, because the company's record is a study in contrasts: revenue that keeps climbing, profitability that keeps slipping.

With a Market Value of roughly $13.6 million and a share price near $0.15 in late July, according to MarketBeat, QMCI is a microcap where a single 11% holder matters.

What Happened

Harland Group LLC, a Washington Limited Liability company controlled by its sole member and manager Michael H. Giles, bought 1,051,000 QuoteMedia common shares in the open market on 3 August 2026 at $0.157 a share. The filing states the roughly $165,007 outlay came from working capital, with no borrowed funds.

That lifted the holding to 10,007,735 shares, or 11.1% of the class, up from 8,956,735 shares and about 9.9% reported in November 2024. Crossing 10% triggered a further obligation: on 12 August, Harland and Giles filed a Form 3, checking the box for ten percent owner rather than director or officer.

Amendment No. 3 was narrow. It reported the trade and updated position but said it did not modify information previously disclosed, so no new plans or proposals were placed on the record. Harland has been on the register since its original 13D in December 2022.

Why It Matters

A Schedule 13D is not the filing a purely passive investor uses. Passive holders generally report on Schedule 13G; the 13D route keeps the door open to engaging with the board, and any change in intent must be disclosed in a further amendment.

There is also a signalling point. Giles paid cash, in the open market, close to where the stock has been trading, shortly before a results period. A purchase is not a forecast, but it is real money from an investor who has followed the company for close to four years, and it thins an already small float.

The Numbers

The most recent reported quarter is the three months to 31 March 2026. Revenue reached $5,530,272, up 15% or $705,916 from $4,824,356 a year earlier, the strongest growth rate in several quarters. Fourth-quarter 2025 revenue was $5,345,795, a 14% rise.

Below the revenue line the picture is harder. QuoteMedia recorded a net loss of $620,612, wider than the $499,811 loss a year earlier, at one cent a share in both periods. Adjusted EBITDA, which strips out interest, tax, Depreciation and amortisation, fell to $42,904 from $368,269 a year earlier.

For full-year 2025, revenue was $20,253,917, an 8% increase, while the net loss widened to $2,317,424 from $1,327,037 and adjusted EBITDA roughly halved to $1,018,485. Management attributes much of the pressure to capitalising a smaller share of software development spending, pushing cost through the income statement immediately.

The balance sheet is thin. Cash stood at $521,684 at 31 March 2026, up from $319,889 at the end of 2025. Current liabilities of $6,603,584 against current Assets of $1,957,096 leave a working capital deficit of $4,646,488, shareholders' equity is negative at $1,460,954, and the accumulated deficit is $24,125,915. The filing discloses no bank loans or credit facility. Operations generated $384,672 of cash in the quarter.

What It Means for the Company

QuoteMedia's Investment case rests on recurring, contracted data revenue from products such as its streaming feeds and Quotestream Professional terminals. Chairman Robert J. Thompson said in May that the company had completed several significant new agreements expected to contribute through 2026 and beyond. Those customers have not been named, so their scale cannot be verified from filings.

If revenue keeps compounding at low-to-mid teens rates while Amortisation of previously capitalised software rolls off, the gap between reported losses and cash generation should narrow. The first-quarter Cash Flow Statement is consistent with that.

The counterweight is that QuoteMedia is growing without a cash cushion, funding development from operations while carrying negative equity. Management states that cash on hand and cash from operations should fund the Business for at least twelve months.

Risks Investors Should Watch

The negative working capital position and a cash balance of barely half a million dollars are the clearest financial risks. There is no drawn credit facility to fall back on: little interest burden, but no committed Liquidity either.

Customer concentration is modest but real: one client accounted for 11% of revenue in both the first quarter of 2026 and the same period of 2025.

Reporting history deserves attention. QuoteMedia filed a Form NT 10-K in March 2026 flagging a late Annual Report before lodging the 10-K on 7 April, and filed a late-notice NT 10-Q the previous November. In April it dismissed MNP LLP as auditor and engaged GreenGrowth CPAs; the related 8-K states there were no disagreements or reportable events.

Competition is unrelenting, with QuoteMedia selling against far larger global data vendors. Trading over the counter also means lighter analyst coverage and thinner liquidity than a Nasdaq-listed peer.

What Comes Next

Second-quarter results are the near-term event. As at 14 August 2026 QuoteMedia had not issued a conference-call notice, and no Form 10-Q for the June quarter had appeared on EDGAR. Third-party reports point to a release on or around 19 August, but the company has not confirmed that date.

Three things are worth watching: whether the 15% first-quarter growth rate held into the June period, whether adjusted EBITDA recovered as amortisation eased, and whether new contracts are named or quantified.

On ownership, any change in Harland Group's intentions would require a further 13D amendment, and above 10% its trades must be reported on Form 4 within two business days.

Conclusion

The Harland Group purchase is a real signal from an investor with nearly four years of history watching this company closely, buying in the open market near the trading price shortly before results is meaningfully different from a passive institutional stake. But it doesn't resolve the tension that's defined QuoteMedia for several quarters running: revenue keeps growing at healthy mid-teens rates while profitability keeps slipping, as software development costs that used to be capitalized now flow straight through the income statement. With negative equity, a working capital deficit, and no credit facility to lean on, the upcoming second-quarter report needs to show whether the 15% growth rate held and whether adjusted EBITDA stabilizes, since the company is currently funding its own growth from operations with no cash cushion behind it.