Big Tree Cloud Holdings (DSY) investor relations material

Executive summary

• FY26 continuing-operations revenue fell to $644,792 from $1.27 million YoY; net loss narrowed to $3.66 million from $32.53 million, which included $34.23 million of non-cash share-based compensation in FY25.

• Results reflect a sharp decline in product sales and a new, early-stage AI services business; gross margin fell to 7.0% as lower-margin inventory was sold to optimize inventory.

Financial highlights

• Revenue was $644,792, down 49.3% YoY; cost of revenue rose 2.1% to $599,495 and gross profit declined to $45,297 from $683,944.

• Operating loss was $3.73 million versus $38.21 million in FY25; FY25 selling expense included $34.23 million in non-cash share-based compensation.

• Net loss was $3.66 million versus $32.53 million; FY26 income tax benefit was $562,631, compared with FY25 tax expense of $228,903.

• FY26 basic and diluted loss per share from continuing operations was $0.7666; FY25 was $8.0008, retroactively adjusted for the 1-for-20 share consolidation.

Outlook and guidance

• Management expects AI services to become a growth driver as staffing, technical R&D and market expansion progress; AI initiatives beyond customized enterprise platform work remain under development and have not generated material revenue.

• Current cash and anticipated operating and financing cash flows are expected to cover working capital and commitments for at least 12 months after issuance; additional financing may be needed if conditions change.

• Selling, G&A and R&D expenses are expected to increase as AI development and business expansion advance.