Pointerra Ltd (ASX:3DP) provides a powerful cloud-based solution (Pointerra3D) for managing, visualising, analysing, using and sharing massive 3D point clouds and geo-spatial datasets. Pointerra3D is a proprietary digital twin Software-as-a-Service (SaaS) platform which delivers predictive digital insights and definitive answers to complex physical asset management questions. Pointerra has reported Q2 FY26 cash receipts of $2.61m, down 39% on the previous corresponding period (pcp) but up 32% on Q1 FY26. Cash receipts were below our forecast for $4.43m for the quarter. Pointerra returned to positive cash flow in Q2 reporting Q2 operating cash flow of $0.472m assisted by continued good cost containment, which declined 24% on the pcp and 93% on the previous quarter. The company says invoicing and cash collections for certain large US customer programmes commenced in Q2 and are expected to continue for the balance of FY26. Pointerra’s cash position increased to $1.96m at the end of December up from $1.51m at the end of Q1. The company says it expects its cash position to improve during Q3, underwritten by more than $2.5m in receivables and contracted work at the end of Q2. We have not changed our forecasts following this result but expect to make adjustments when the H1 results are released later this month. Our base-case valuation remains unchanged at $0.25/share, representing 420% potential capital upside on the current share price.