DSC Holdings (DSC) Q2 2026 earnings summary

Executive summary

• Revenue grew 3.7% year-over-year to RMB167.0 million in Q2 2026, driven by customer engagement solution projects for OEMs, partially offset by discontinued OEM-facing marketing services.

• Adjusted net loss (non-GAAP) narrowed by 61.5% to RMB7.4 million, reflecting improved operating efficiency and cost discipline.

• GAAP net loss was RMB240.5 million, mainly due to RMB227.8 million in share-based compensation and IPO-related expenses following the Nasdaq listing in June 2026.

• The company completed its Nasdaq IPO, strengthening liquidity and placing it on the global stage.

• AI-powered products and services were further developed and integrated, with new AI agents deployed to used car dealers, creating new monetization opportunities and operational efficiencies.

Financial highlights

• Revenue: RMB167.0 million in Q2 2026, up from RMB161.1 million in Q2 2025.

• GAAP net loss: RMB240.5 million, compared to RMB25.0 million in Q2 2025, due to IPO-related share-based compensation.

• Adjusted net loss (non-GAAP): RMB7.4 million, down from RMB19.2 million year-over-year.

• Cost of revenue increased 15.0% to RMB108.0 million, reflecting higher costs from customer engagement solutions.

• Cash and cash equivalents reached RMB451.3 million as of June 30, 2026, post-IPO.

Outlook and guidance

• Focus remains on quality growth, expanding monetization across the dealer-centric ecosystem, especially through AI applications.

• Continued emphasis on improving profitability and leveraging AI for operational efficiency, with management expecting to test new AI-driven monetization opportunities.

• Exploring opportunities in China's rapidly expanding used-car export market.