Datasea Reports Record Fiscal Year 2025 Revenue of $71.62 Million, Up 199% Year-over-Year

Rhea-AI Summary

Datasea (NASDAQ: DTSS) reported remarkable financial results for fiscal year 2025, with revenue surging 198.7% to $71.62 million from $23.97 million in FY2024. The company achieved significant milestones, including a 415.5% increase in gross profit to $2.44 million and reaching net income breakeven in Q4 FY2025 (adjusted for non-cash items).

The growth was driven by two core segments: AI Multimodal Digitalization, which generated $70.68 million in revenue (199.49% YoY increase), and Acoustic High-Tech solutions. The company expanded its core client base from 8 to 15 large enterprises and deployed acoustic products across 463 beauty and health stores. Datasea's intangible assets grew 540.3% to $3.50 million, reflecting successful strategic transformation.

Positive

• None.

Negative

• Still reported full-year net loss of $5.09 million despite Q4 breakeven
• Heavy reliance on AI Multimodal segment with 98.7% of total revenue
• Limited revenue contribution from Acoustic segment at only $0.5 million

News Market Reaction – DTSS

-10.17% 4.6x vol

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-17.8% Trough in 1 hr 31 min

-$2M Valuation Impact

$19M Market Cap

4.6x Rel. Volume

On the day this news was published, DTSS declined 10.17%, reflecting a significant negative market reaction. Argus tracked a trough of -17.8% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $19M at that time. Trading volume was very high at 4.6x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

DTSS Achieves Fourth Quarter Net Income Breakeven Driven by
Cutting-Edge Acoustics and AI Multimodal Digitalization; 
Ongoing Commercialization Updates in the Coming Weeks

BEIJING, Sept. 26, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), a Nevada-based high-tech enterprise engaged in acoustic high-tech products and services and AI multimodal digitalization, today announced its financial results for the fiscal year ended June 30, 2025.

The Company reported record revenue of $71.62 million, an increase of 198.7% from $23.97 million in fiscal year 2024. Gross profit reached $2.44 million, up 415.5% from $0.47 million year-over-year. In the fourth quarter of fiscal year 2025, the Company achieved net income breakeven as adjusted for non-cash depreciation and amortization.

Management Commentary

Ms. Zhixin Liu, Chief Executive Officer of Datasea, stated, "Our operating and financial results for fiscal year 2025 represents a milestone in Datasea's corporate growth. We nearly tripled our revenue due to the success of our dual-engine business segments of AI multimodal digitalization and acoustic high-tech. Further, in the fourth quarter, we achieved adjusted net income breakeven for the first time, signaling a transition from building scale to achieving profitability and sustainable growth."

"On the business side, AI Multimodal Digitalization continues to expand through long-term customer contracts, while Acoustic + AI Solutions achieved significant progress, especially in delivering comprehensive solutions. These results reflect recognition from the marketplace as well as the resilience and viability of our innovation-driven business model. We believe that we have established a solid foundation for achieving long-term goals and maximizing shareholder value."

Fiscal Year 2025 Financial Highlights

• Revenue: $71.62 million, an increase of 198.7% compared to $23.97 million for fiscal year 2024, through innovative technology and cost advantages in AI multimodal digitalization, a stable client base, and scaled growth that minimizes costs and increases margins.
• Gross Profit: $2.44 million, an increase of 415.5% compared to $0.47 million in fiscal year 2024, with gross margin improvement primarily attributable to the delivery of highly effective margin solutions in our core businesses.
• Net Income: Breakeven in the fourth quarter of fiscal 2025, as adjusted for non-cash amortization and depreciation. Net loss for the year was $5.09 million compared to $15.7 in fiscal year 2024, a year-over-year decrease of 67.6%.
• Intangible Assets: $3.50 million, an increase of 540.3% from $0.55 million in the prior year, mainly due to significant growth in the value of core intellectual property, such as patents, which reflect the success of the Company's "asset-light, high-value" strategic transformation.

Business Highlights

AI Multimodal Digitalization Segment

• As one of the Company's core businesses, AI multimodal services delivered strong growth in fiscal year 2025 with revenue increasing by 199.49% year-over-year to $70.68 million, contributing significantly to overall performance.
• Powered by its proprietary AI platform, the Company provided standardized platform offerings and customized solutions for clients across numerous industries.
• Newly developed high-margin customized solutions including SME services, digital rural platforms, and new media marketing systems, were commercialized at scale, contributing revenue of approximately RMB 8.9 million (US$ 1.24 million) and emerged as a new driver of growth.
• The number of core clients increased from eight to 15 large enterprises with several clients contributing over $10 million in annual revenue.

Acoustic High-Tech Segment

• Positioned 'Acoustics + AI + Application Scenarios' with AI embedded acoustic technologies serving as a technical base for an array of products and services spanning multiple industry sectors.
• Continuous technological breakthroughs and scenario implementations advanced the Company's R&D in 'Acoustics + Neuro-Regulation,' with progress achieved in brain-computer interfaces, cardiac signal intervention, and foot acupoint stimulation.
• The Company recorded revenue of RMB 3.7 million (US$ 0.5 million) from comprehensive acoustic solutions, marking a strategic shift from single hardware sales to high-margin solution products and services.
• Beyond traditional enterprises and retail clients, the Company expanded its base and deployed its acoustic products into 463 beauty and health stores, evolving beyond its B2C focus and building a robust B2B sales network.

Business Outlook

Looking ahead to fiscal year 2026 and beyond, Datasea will continue to advance its dual growth engines of AI Multimodal Digitalization + Acoustic High-Tech to drive diversified high-tech growth:

1. The Deepening of the AI Multimodal Platform
   As a pioneer in China's AI multimodal digital field, Datasea will continue to upgrade its proprietary AI multimodal platform, focusing on delivering more high-margin solutions in SME digitalization and new media marketing, and expanding recurring revenue from 'SaaS Subscriptions + Customized Solutions'.
2. Acoustic Empowerment in Healthcare
   In acoustics, the Company will accelerate R&D in 'acoustics + neuro-regulation', advancing applications in brain-computer interfaces, neural signal intervention, and foot stimulation. Combined with its retail presence in over 500 beauty and health stores across China, Datasea aims to build a closed-loop system of 'Detection – Analysis – Diagnosis – Intervention' for non-pharmacological health management. The Company has also entered the health intelligent wearables market, further extending the depth and diversity of acoustic applications in healthcare.
3. M&A Strategy
   In China, Datasea will seek to promote acoustic product penetration into the healthcare, medical beauty, agriculture, and industrial fields, and accelerate its capabilities and market channels through acquisitions. In the United States, through its wholly owned subsidiary, Datasea Acoustics LLC, the Company is planned in promoting the distribution of acoustic products and patent deployment, and is working with US partners to expand local channels. Internationally, the Company will advance patent collaboration and technology acquisitions with partners in North America, creating dual barriers of global patent protection and market penetration.

About Datasea Inc.

Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in two innovative industries, acoustic high tech and 5G-AI multimodal digitalization. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal digital segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing, and ultrasonic, infrasound and directional sound technology in its acoustics business to combat viruses and prevent human infections, and it is also developing applications in medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to enter the U.S. markets and to mark its global expansion plan. For additional information, please visit www.dataseainc.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the SEC, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

FINANCIAL TABLES TO FOLLOW
DATASEA INC.
CONSOLIDATED BALANCE SHEETS
		June 30, 2025				June 30, 2024
ASSETS
CURRENT ASSETS
Cash		$	620,807			$	181,262
Accounts receivable			1,374,180				718,546
Inventory, net			206,610				153,583
Value-added tax prepayment			137,025				107,545
Prepaid expenses and other current assets			583,650				1,486,956
Total current assets			2,922,272				2,647,892
NONCURRENT ASSETS
Property and equipment, net			25,560				48,466
Intangible assets, net			3,495,984				546,001
Right-of-use assets, net			292,065				49,345
Total noncurrent assets			3,813,609				643,812
TOTAL ASSETS		$	6,735,881			$	3,291,704
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	420,038			$	1,075,641
Unearned revenue			150,088				49,239
Accrued expenses and other payables			547,706				596,714
Due to related parties			6,126				654,560
Operating lease liabilities			128,525				53,530
Bank loan payable			2,374,767				1,170,298
Total current liabilities			3,627,250				3,599,982
NONCURRENT LIABILITIES
Operating lease liabilities			166,436				-
Total noncurrent liabilities			166,436				-
TOTAL LIABILITIES			3,793,686				3,599,982
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value, 25,000,000 shares authorized,      8,128,127 and 3,589,620 shares issued and outstanding as of June 30,      2025 and 2024, respectively			8,128				3,589
Additional paid-in capital			47,331,510				38,957,780
Accumulated comprehensive income			138,586				242,208
Accumulated deficit			(44,526,016)				(39,440,322)
TOTAL COMPANY STOCKHOLDERS' EQUITY (DEFICIT)			2,952,208				(236,745)
Noncontrolling interest			(10,013)				(71,533)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)			2,942,195				(308,278)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)		$	6,735,881			$	3,291,704
The accompanying notes in the Company's 10-K as filed with the SEC are an integral part of these consolidated financial statements.

 

DATASEA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
		YEARS ENDED JUNE 30,
		2025				2024
Revenues		$	71,616,820			$	23,975,867
Cost of revenues			69,172,872				23,501,762
Gross profit			2,443,948				474,105
Operating expenses
Selling			1,980,224				3,279,627
General and administrative			4,703,443				8,960,523
Research and development			914,996				359,342
Total operating expenses			7,598,663				12,599,492
Loss from operations			(5,154,715)				(12,125,387)
Non-operating income (expenses)
Other income (expenses), net			70,169				(97,893)
Interest income			5,016				1,975
Total non-operating income (expenses), net			75,185				(95,918)
Loss before income tax			(5,079,530)				(12,221,305)
Income tax			6,596				-
Loss before noncontrolling interest from continuing operations			(5,086,126)				(12,221,305)
Income before noncontrolling interest from discontinued operations			-				833,546
Less: loss attributable to noncontrolling interest from continuing operations			(432)				(10,695)
Less: loss attributable to noncontrolling interest from discontinued operations			-				-
Net loss attribute to noncontrolling interest			(432)				(10,695)
Net loss to the Company from continuing operations			(5,085,694)				(12,210,610)
Net income to the Company from discontinued operations			-				833,546
Net loss to the Company			(5,085,694)				(11,377,064)
Other comprehensive item
Foreign currency translation gain (loss) attributable to the Company			(103,622)				(151,044)
Foreign currency translation gain attributable to noncontrolling interest			60,588				10
Comprehensive loss attributable to the Company		$	(5,189,316)			$	(11,528,108)
Comprehensive income attributable to noncontrolling interest		$	60,156			$	(10,685)
Basic and diluted net loss per share		$	(0.77)			$	(4.38)
Weighted average shares used for computing basic and diluted loss per share *			6,610,842				2,597,077
*     retroactively reflect 1-for-15 reverse stock split effective on January 19, 2024
The accompanying notes the Company's 10-K as filed with the SEC are an integral part of these consolidated financial statements.

 

 

DATASEA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
		YEARS ENDED JUNE 30,
		2025				2024
Cash flows from operating activities:
Loss including noncontrolling interest		$	(5,086,126)			$	(11,387,759)
Adjustments to reconcile loss including noncontrolling interest to net      cash used in operating activities:
Gain on disposal of subsidiary			-				(833,546)
Bad debt expense			18,855				-
Inventory impairment			99,478				-
Depreciation and amortization			1,139,264				494,480
Loss on disposal of fixed assets			17,196				2,979
Operating lease expense			136,506				167,969
Investment loss			-				56,081
Loan forgiveness by shareholder			105,356				-
Stock compensation expense			1,892,842				6,749,326
Changes in assets and liabilities:
Accounts receivable			(658,711)				(717,220)
Inventory			(153,179)				91,076
Value-added tax prepayment			(29,953)				(51,078)
Prepaid expenses and other current assets			877,711				(810,421)
Accounts payable			(651,887)				597,744
Unearned revenue			101,051				(472,584)
Accrued expenses and other payables			(45,306)				(108,736)
Payment on operating lease liabilities			(137,777)				(177,194)
Net cash used in operating activities			(2,374,680)				(6,398,883)
Cash flows from investing activities:
Acquisition of property and equipment			(8,129)				(6,868)
Acquisition of intangible assets			(4,077,068)				(161,054)
Cash disposed due to disposal of subsidiary			-				(35)
Net cash used in investing activities			(4,085,197)				(167,957)
Cash flows from financing activities:
Proceeds from (repayment to) related parties			(203,218)				360,804
Proceeds from loan payables			2,374,350				-
Repayment of loan payables			(1,164,895)				(1,582,513)
Net proceeds from issuance of common stock			5,939,133				8,061,286
Net cash provided by financing activities			6,945,370				6,839,577
Effect of exchange rate changes on cash			(45,948)				(111,203)
Net increase in cash			439,545				161,534
The accompanying notes the Company's 10-K as filed with the SEC are an integral part of these consolidated financial statements.

 

Investor and Media Contact: 

Datasea Investor Relations
Email:  investorrelations@shuhaixinxi.com 
             sunhezhi@shuhaixinxi.com 

Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

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SOURCE Datasea Inc.

FAQ

What was Datasea's (DTSS) revenue growth in fiscal year 2025?

Datasea reported record revenue of $71.62 million in FY2025, representing a 198.7% increase from $23.97 million in FY2024.

Did Datasea (DTSS) achieve profitability in fiscal year 2025?

Datasea achieved net income breakeven in Q4 FY2025 (adjusted for non-cash items), but still reported a full-year net loss of $5.09 million, improved from $15.7 million loss in FY2024.

How much revenue did Datasea's AI Multimodal segment generate in 2025?

The AI Multimodal segment generated $70.68 million in revenue, representing a 199.49% increase year-over-year and accounting for the majority of total revenue.

What is Datasea's expansion strategy for 2026?

Datasea plans to upgrade its AI multimodal platform, accelerate R&D in acoustics and neuro-regulation, expand healthcare applications, and pursue M&A opportunities in both China and the United States.

How many core enterprise clients does Datasea (DTSS) have?

Datasea increased its core client base from 8 to 15 large enterprises, with several clients contributing over $10 million in annual revenue.