TEN Holdings (XHLD) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 17.9% YoY to $640k, driven by completed prior-period engagements and new customers; net loss widened to $3.734m from $1.987m, mainly on higher SG&A.

• 9M revenue declined 7.3% to $2.224m; net loss was $9.622m and operating cash use was $5.445m.

• Strategy is shifting toward recurring SaaS revenue through the TEN platform, while retaining managed production services for customers who want them.

• Operating costs were reduced by $2.5m over 12 months; priorities include revenue growth, customer expansion, platform investment and acquisitions.

Financial highlights

• Q3 SG&A rose 88.2% to $4.113m, including a $1.8m write-off of capitalized service contracts and ~$0.5m in legal costs; excluding these items, SG&A fell 18%.

• Q3 gross profit was $379k vs. $405k; operating loss was $3.744m vs. $1.927m.

• 9M gross profit was $1.551m vs. $1.899m; operating loss widened to $9.578m from $8.048m.

• Other income was $12k in Q3 vs. $1k expense; 9M other income was $47k vs. $1.351m expense, reflecting expense classification changes.

Outlook and guidance

• Priorities include shifting from managed services toward subscription SaaS, expanding recurring enterprise use cases and retaining managed production services where desired.

• Planned TEN capabilities include AI and automation, integrations, engagement and intent, reporting and analytics, and content studio; timing and availability depend on development.

• Acquisition strategy targets accretive businesses with revenue and EBITDA, scalable products and complementary technology.

• Liquidity plans include winning new contracts, cost controls and evaluating debt or equity financing; additional liquidity is required over the next 12 months.