What's Going On With Software Developer Paltalk Stock Today?

Paltalk, Inc. PALT shares are trading lower on Friday.

The company was awarded $65.7 million in a District Court verdict against Cisco Systems, Inc. CSCO, which remains subject to post-trial proceedings.

As previously reported, on July 23, Paltalk Holdings, a wholly owned subsidiary of the company, initiated a patent infringement lawsuit against Cisco in the U.S. District Court for the Western District of Texas.

The lawsuit alleges that Cisco’s products infringe on U.S. Patent No. 6,683,858 and seeks damages for the infringement.

On August 29, the jury awarded the company $65.7 million in connection with the lawsuit, though this amount is subject to post-trial processes, including possible appeals by Cisco and final judgment by the Court.

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Due to substantial litigation costs, including legal fees, the actual amount the company will receive may be less than one-third of the gross award. Susman Godfrey LLP and Waco-based Cherry Johnson Siegmund James represented Paltalk in the lawsuit.

According to Benzinga Pro, PALT stock has gained over 71% in the past year.

Earlier this month, Paltalk reported a 24.7% decrease in second-quarter revenue, totaling $2.2 million.

Subscription revenue declined by 26.1% to $2.1 million, while advertising revenue increased by 29.2% to $0.1 million. The company experienced a net loss of $0.9 million, a sharp contrast to the net income of $0.1 million from the previous period, marking a 788.8% decline.

Adjusted EBITDA also showed a loss of $0.9 million, compared to a minimal loss of $14,945 in the prior period. Additionally, the cash balance fell by $0.2 million from the first quarter of 2024, ending at $12.8 million.

Price Action: PALT shares are trading lower by 33.3% to $3.64 at last check Friday.

Photo by WESTOCK PRODUCTIONS on Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.