Cyabra approves restructuring to eliminate preferred stock

Cyabra, an artificial intelligence (AI)-powered platform that helps governments and enterprises detect coordinated manipulation and protect digital trust, has completed a significant restructuring that will eliminate its existing preferred stock. At its special stockholders meeting on September 2, 2026, the firm's stockholders overwhelmingly approved the conversion and/or exchange of all outstanding preferred stock, with approximately 98% of votes cast in favor. This milestone follows a robust second-quarter performance, where the company reported a 39% year-over-year increase in quarterly revenue to $1.9 million and an 84% gross margin. Additionally, annual recurring revenue reached $8.1 million, up 29% year over year.

The restructuring, which also included the approval of an amendment to the company’s 2026 Equity Incentive Plan, marks the most significant change to Cyabra’s capital structure since its initial public offering (IPO) on March 27, 2026. Upon completion of the transactions, Cyabra will have a simplified, single-class stock structure, free of preferred stock and conversion price reset provisions. This move comes after the company completed a $6.0 million private placement in July 2026, which was priced at a premium and included participation from new and existing institutional investors, management, and board members.

Dan Brahmy, Cyabra’s Co-Founder and Chief Executive Officer, stated, "Yesterday’s vote makes real the changes we announced in July, removing a structural overhang from our capital structure. We are grateful to our stockholders for their support. This will serve us well as we scale our business."

The approval of the transactions also addresses key concerns related to the company’s preferred stock. Specifically, the conversion price reset provisions, which could have lowered the conversion price and increased the number of common shares issuable upon conversion during an 18-month protection period, will be eliminated. This means that certain securities issuances below the applicable conversion price will no longer impact the conversion price and the number of shares issuable.

Cyabra’s second-quarter performance further underscores the company’s growth and market demand. Revenue increased by 39% year over year, with new customer wins contributing $700,000 to the quarter. The company also secured a significant government contract in Europe and a multi-year agreement with an Asia-Pacific intelligence agency, valued at over $500,000. Cyabra’s platform is used by governments, defense and intelligence agencies, law enforcement bodies, and global enterprises to identify coordinated inauthentic behavior and fake accounts across public digital channels.

Brahmy continued, "With the capital structure question behind us, our focus is now squarely on the business. We are delivering record revenue and growing at a rate that reflects the expanding demand for narrative intelligence. Our priorities are clear: grow the business, expand the adoption of our technology, and execute on the opportunities in front of us."

While the transactions are subject to certain closing conditions, Cyabra will announce their completion once they are met. The company also filed an amendment to a registration statement earlier in the week, which does not issue new shares or raise capital but is required under the terms of the preferred stock conversion and exchange agreements.

Cyabra’s narrative intelligence platform is designed to help organizations restore trust and authenticity online by analyzing manipulated content, coordinated behaviors, and inauthentic actors. The company aims to provide clear mitigation steps by reducing ambiguity and misdirected response, enabling proportionate and evidence-led action when clarity is critical.