Classover (KIDZ) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $519,198, down 36% year-over-year due to reduced customer traffic and lower engagement, as management focused on compliance and AI-driven strategic initiatives.

• Gross profit decreased 36% to $260,898, with gross margin steady at 50%.

• Net loss widened significantly to $4,187,534 from $297,207 in Q1 2025, driven by increased operating expenses and large fair value losses on crypto assets and convertible debt.

• Registered users grew to 73,881 (up from 65,614), and educator partners increased to 1,229 (from 977) year-over-year.

Financial highlights

• Revenue: $519,198 (Q1 2026), down from $816,016 (Q1 2025).

• Gross profit: $260,898 (Q1 2026), down from $405,366 (Q1 2025).

• Operating expenses: $1,155,713, up 65% year-over-year, mainly due to higher stock compensation, employee costs, amortization, and professional fees.

• Net loss: $4,187,534 (Q1 2026) vs. $297,207 (Q1 2025).

• Cash and equivalents: $2,116,631 as of March 31, 2026.

Outlook and guidance

• Management believes current working capital, cash, and available convertible notes are sufficient for the next twelve months.

• Strategic focus on AI-powered education initiatives and operational efficiency to support long-term growth.