TEN Holdings (XHLD) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026, was $1.6 million, down 14.6% year-over-year, mainly due to lower revenue from a major customer and timing shifts of opportunities to Q3 2026.

• Second quarter revenue declined due to timing of customer activity, with several deals shifting to Q3 2026.

• Completed a $7.5 million equity offering, boosting cash and enabling execution of strategic priorities.

• Platform usage accounted for 79.5% of total revenue, with professional and managed services making up 20.5%.

• Focused on expanding AI-driven analytics, automation, workflow capabilities, and pursuing strategic acquisitions.

Financial highlights

• Gross profit for the six months was $1.2 million, down 21.5% year-over-year.

• Revenue for Q2 2026 was $731,000, down 34.5% year-over-year from $1.1 million.

• Gross profit margin improved to 85.8% in Q2 2026 from 84.3% in Q2 2025.

• Net loss for the six months was $5.9 million, an improvement from $7.6 million in the prior year period.

• Adjusted EBITDA for the six months was $(4.9) million, compared to $(2.3) million in the prior year.

Outlook and guidance

• Management expects continued liquidity challenges and is evaluating additional debt or equity financing.

• Plans to deploy offering proceeds to strengthen working capital and enhance liquidity.

• Accelerating product development and AI capabilities to improve customer engagement and operational efficiency.

• Pursuing strategic acquisitions to expand technology and recurring revenue base, targeting completion by December 2026.

• Expects to recognize revenue from delayed opportunities in Q3 2026.