Reading between the lines in the 2Q26 Management Discussion and Analysis of NForce Secure Public Company Limited (SECURE): Revenue down 32.6%. Net profit down 59.1%. And the largest customer group in 1Q26 down to 16.2% of product sales.
The numbers
Network security and monitoring pull revenue lower
NForce Secure is a value-added distributor of cybersecurity and network management products, selling to enterprise, financial, government, and telecom clients through system integrator partners. In 2Q26, total revenue fell 32.6% YoY to Bt197m. The MD&A attributes the decline in product sales to network security, down 31.2% YoY to Bt143m, and network performance and monitoring, which fell 98.8% to less than Bt1m.
Gross margin lower, net profit down by more than half
Gross margin fell to 19.6% in 2Q26 from 22.5% in 2Q25. Selling expenses rose 9.4% YoY to Bt14m, which the MD&A attributes to annual salary adjustments and higher advertising and promotional costs, while administrative expenses fell 2.9%. Net profit fell 59.1% YoY to Bt13m, a net margin of 6.6% against 10.8% in 2Q25.
Liabilities halve as trade payables fall
Total liabilities fell 49.4% to Bt195m from Bt386m at FY25. Trade and other payables fell by Bt195m, which the MD&A attributes to payments to product vendors. Trade and other receivables fell by Bt258m to Bt124m on customer repayments. Equity declined to Bt716m from Bt771m, which the MD&A attributes to the period’s performance and dividends paid.
What the numbers don’t show
Comparing the 2Q26 MD&A with 1Q26, a couple of things stand out.
Enterprise named the main customer group in 1Q26; 16.2% of product sales in 2Q26
The 1Q26 MD&A named Enterprise, the manufacturing-sector end-user group, as the main customer group, at 37.0% of product sales. The 2Q26 tables show it was also the largest group in 2Q24 and 2Q25. In 2Q26, Enterprise sales fell 65.2% YoY to Bt30m, or 16.2% of product sales, and the filing names BFSI as the main group. The 2Q26 MD&A explains the revenue decline by product category only.
Gross margin: a strategy credited in 1Q26, competition cited in 2Q26
In 1Q26, the MD&A credited a rise in gross margin to 22.1% to an adjusted strategy of expanding into products with profit potential. In 2Q26, gross margin fell to 19.6%, which the filing attributes to differences in the nature of the projects and products sold and to increased competition during the period. The strategy is not referenced in 2Q26, and competition does not appear in the 1Q26 filing.