KIDZ AI Inc. Reports Third Quarter 2026 Financial Results

Rhea-AI Summary

KIDZ AI (KIDZ) reported a third-quarter 2026 net loss of $654,057, reversing net income in the prior-year quarter. Prior-year net income was $2,520,989. Revenue increased 40% sequentially, its first quarterly increase in 2026, while gross margin rose to 65.9% from 43.9% in the second quarter.

At September 30, non-GAAP net cash was $14,888,425, or approximately $14.53 per share, including USDC holdings and deducting notes payable principal. This was approximately 12.4 times market capitalization based on the November 11 closing price of $1.17. Compared with December 31, 2025, equity increased approximately 349% to $16.9 million and liabilities fell approximately 54% to $5.4 million. Notes payable fell approximately 69% to $2.6 million. Quarterly share repurchases totaled approximately $249,194. Initial hardware procurement and deployment planning are underway for the company's planned GPU computing infrastructure expansion.

10 points · 2 major

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1 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNon-GAAP net cash of $14,888,425 at September 30 equaled approximately $14.53 per share.
• Major pointStockholders' equity increased approximately 349% to $16.9 million versus December 31, 2025.
• Moderate pointRevenue increased 40% sequentially, the first quarter-over-quarter increase in 2026.
• Moderate pointGross margin reached 65.9%, up from 43.9% in the second quarter of 2026.
• Moderate pointTotal liabilities decreased approximately 54% to $5.4 million versus December 31, 2025.
• Moderate point74,082 Class B shares repurchased during the quarter for approximately $249,194, averaging approximately $3.36 per share. 25% of market cap

4 minor points

• Minor pointNet cash was approximately 12.4 times market capitalization using the November 11 closing price of $1.17.
• Minor pointNotes payable decreased approximately 69% to $2.6 million versus December 31, 2025.
• Minor pointLiabilities-to-equity improved to approximately 0.32x from 3.12x at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.GPU computing infrastructure expansion is planned, with initial hardware procurement and deployment planning underway.

Negative

• Major pointThird-quarter net loss of $654,057 reversed net income of $2,520,989 in the prior-year quarter.

Key Figures

Sequential revenue growth: 40% Net loss: $654,057 Net cash position: Approximately $14.9 million +5 more

Sequential revenue growth

40%

Third quarter 2026 versus second quarter 2026

Net loss

$654,057

Third quarter 2026; prior-year quarter reported net income of $2,520,989

Net cash position

Approximately $14.9 million

As of September 30, 2026; includes USDC holdings less notes payable principal

Share repurchases

Approximately $249,194

Aggregate purchase price during the quarter

Gross margin

65.9%

Compared with 43.9% in the second quarter of 2026

Stockholders' equity

Approximately $16.9 million, up approximately 349%

Compared with December 31, 2025

Total liabilities

$5.4 million, down approximately 54%

Compared with December 31, 2025

Notes payable

$2.6 million, down approximately 69%

Third-quarter financial highlights

Previous Earnings,AI Reports

1 past event · Latest: Aug 13

Same Type 1 event

1. Aug 13

   Q2 earnings report

   24h Move

   +0.8%

   Net loss narrowed and the balance sheet strengthened despite lower service revenue.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, stablecoin, form 10-q

3 terms

gaap financial

"not a financial measure calculated in accordance with U.S. generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

stablecoin financial

"cash and cash equivalents and USDC stablecoin holdings"

A stablecoin is a type of digital currency designed to keep its value steady, often by being backed by traditional assets like money or commodities. For investors, stablecoins offer a reliable way to move money quickly across digital platforms without the value fluctuations common with other cryptocurrencies, making them useful for saving, trading, or transferring funds with less risk of sudden losses.

form 10-q regulatory

"see the Company's Quarterly Report on Form 10-Q"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

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NEW YORK CITY, NY / ACCESS Newswire / November 12, 2026 / KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW) ("KIDZ AI" or the "Company"), an education technology company advancing AI infrastructure and GPU compute initiatives alongside its core EdTech operations, today reported its financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights

• Revenue Growth and Strategic Transition: Third-quarter revenue increased 40% sequentially, marking the Company's first quarter-over-quarter revenue increase in 2026. The Company continues to advance its GPU computing infrastructure strategy, with initial hardware procurement and deployment planning underway.
• Net Loss: Net loss of $654,057 compared to net income of $2,520,989 in the prior year quarter.
• Net Cash Position: Net cash position of approximately $14.9 million - comprised of cash and cash equivalents and USDC stablecoin holdings, less principal amount of notes payable or approximately $14.53 per share as of September 30, 2026. Based on the November 11, 2026 closing price of $1.17 per share, the Company's net cash position represented approximately 12 times its market capitalization.
• Share Repurchases: During the quarter, the Company repurchased an aggregate of 74,082 shares of its Class B common stock at an average purchase price of approximately $3.36 per share, for an aggregate purchase price of approximately $249,194.
• Improved Profitability: Gross margin improved to 65.9% from 43.9% in the second quarter of 2026.
• Strengthened Balance Sheet: Stockholders' equity increased approximately 349% to $16.9 million, while total liabilities decreased approximately 54% to $5.4 million compared with December 31, 2025. Notes payable decreased approximately 69% to $2.6 million. The total liabilities-to-equity ratio improved from 3.12x to approximately 0.32x.

Management Commentary

"2026 marks an important transition for KIDZ AI as we expand beyond our traditional education technology business into AI computing infrastructure and Physical AI," said Stephanie Luo, Chief Executive Officer of KIDZ AI Inc. "We are focused on building a foundation across these areas through infrastructure investments, technology development, and strategic industry relationships, while continuing to advance our core education business."

"We are pursuing this transformation while strengthening our financial position. Our improved balance sheet, increased stockholders' equity, and reduced liabilities provide a stronger financial foundation as we evaluate and pursue new business opportunities. Our focus remains on responsible capital allocation and building sustainable long-term value for shareholders."

For the Company's complete financial results for the third quarter ended September 30, 2026, see the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 filed with the Securities and Exchange Commission at www.sec.gov.

Use of Non-GAAP Information

"Net cash position" is not a financial measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company defines "net cash position" as cash plus USDC stablecoin holdings, less the outstanding principal amount of notes payable. Management believes this measure provides useful supplemental information regarding the Company's liquidity, but it should not be considered in isolation or as a substitute for the most directly comparable GAAP measures.

September 30, 2026
Cash	$14,384,888
USDC stablecoin holdings	$3,003,537
Less: principal of notes payable	($2,500,000)
Net cash position	$14,888,425
Common shares outstanding	1,024,389
Net cash position per share	≈ $14.53
Closing price (Nov 11, 2026)	$1.17
Market capitalization	≈ $1,198,535
Net cash position / Market capitalization	≈ 12.4x

About KIDZ AI Inc.

KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW) is an AI-driven education technology company developing proprietary learning systems that combine artificial intelligence, AI agents and robotics. The Company is also pursuing opportunities in AI compute infrastructure, GPU cloud platforms and related data-center ecosystems.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on KIDZ AI's current beliefs, expectations and assumptions regarding the future of KIDZ AI's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of KIDZ AI's control including, but not limited to: KIDZ AI's ability to execute its business model, including obtaining market acceptance of its products and services; KIDZ AI's ability to successfully expand its business into related areas, including but not limited to the autonomous fleet industry; KIDZ AI's financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; KIDZ AI's ability to obtain and deploy the GPUs and related equipment necessary to perform its obligations under existing agreements and achieve its goals and expected results; KIDZ AI's ability to maintain the listing of its securities on Nasdaq; changes in KIDZ AI's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects and plans; KIDZ AI's ability to attract and retain a large number of customers; KIDZ AI's future capital requirements and sources and uses of cash; KIDZ AI's ability to attract and retain key personnel; KIDZ AI's expectations regarding its ability to obtain and maintain intellectual property protection and not infringe on the rights of others; changes in applicable laws or regulations; risks associated with international operations, including political, regulatory, currency and enforcement risks; and the possibility that KIDZ AI may be adversely affected by other economic, business, and/or competitive factors. These risks and uncertainties also include those risks and uncertainties indicated in KIDZ AI's filings with the SEC. KIDZ AI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

Any forward-looking statement made by KIDZ AI in this press release is based only on information currently available to KIDZ AI and speaks only as of the date on which it is made. KIDZ AI undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.

Contacts

KIDZ AI Inc.
ir@kidzai.com
800-345-9588

SOURCE: KIDZ AI Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were KIDZ AI's third-quarter 2026 financial results?

KIDZ AI reported a $654,057 net loss, compared with net income of $2,520,989 in the prior-year quarter. Revenue increased 40% sequentially, and gross margin improved to 65.9% from 43.9% in the second quarter of 2026.

How does KIDZ AI calculate its September 30, 2026 net cash position?

KIDZ AI calculates net cash as cash plus USDC stablecoin holdings, less outstanding notes payable principal. At September 30, 2026, those amounts were $14,384,888, $3,003,537 and $2,500,000, respectively, producing $14,888,425. This non-GAAP measure is supplemental and is not a substitute for comparable GAAP measures.