TEN Holdings Reports First Quarter 2026 Financial Results
Rhea-AI Summary
TEN Holdings (Nasdaq:XHLD) reported first quarter 2026 revenue of $853,000, up 15.4% year-over-year, driven by higher contributions from a major customer. Gross margin declined to 64.0% from 74.8% as cost of revenue rose 65.1% to $307,000.
SG&A expenses fell 34.6% to $3.4 million, reducing net loss by 37.6% to $3.0 million or $(0.76) per share. Cash declined to $79,000, while operating cash outflow improved to $1.1 million. Management plans to grow Ten Events Pro SaaS, deepen the Webinar.net partnership, and continue raising capital.
AI-generated analysis. Not financial advice.
Positive
- Revenue rose 15.4% year-over-year to $853,000
- Net loss narrowed 37.6% to $3.0 million or $(0.76) per share
- SG&A expenses decreased 34.6% to $3.4 million
- Operating cash outflow improved to $1.1 million from $6.8 million
- SOC 2 examination completed for broadcast media systems
- Major customer increased revenue contribution by 100%
Negative
- Gross margin declined to 64.0% from 74.8%
- Cost of revenue increased 65.1% to $307,000
- Cash balance fell to approximately $79,000 from $1.6 million
- Interest expense increased 11.6% to $61,000
- Net cash used for financing was $450,000 versus $7.3 million generated in 2025
News Market Reaction – XHLD
On the day this news was published, XHLD gained 2.61%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.4% during that session. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $138K to the company's valuation, bringing the market cap to $5.42M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
XHLD gained 6.38% while key broadcasting peers were mostly negative (e.g., BBGI -6.05%, UONE -7.72%), suggesting a stock-specific reaction to its earnings release.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 18 | Full-year 2025 earnings | Negative | -3.5% | Revenue decline, lower gross margin, sharply wider full-year net loss. |
| Nov 10 | Q3 2025 earnings | Negative | -3.3% | Higher revenue but sharply higher SG&A and wider quarterly net loss. |
| Aug 14 | Q2 2025 earnings | Negative | -8.5% | Revenue growth offset by much larger net loss and higher operating expenses. |
| May 20 | Q1 2025 earnings | Negative | +2.7% | Sharp revenue decline and significant SG&A-driven loss expansion. |
| Mar 28 | Full-year 2024 earnings | Negative | -20.0% | Full-year revenue decline, lower margin, and wider net loss before IPO. |
Earnings releases have generally been followed by negative price reactions, with an average move of about -6.53%, suggesting a history of investor skepticism around results.
Over the past year, XHLD’s earnings reports have highlighted revenue pressure, rising costs, and widening net losses. Full-year 2024 and 2025 results both showed declining revenue and larger losses, while quarterly 2025 updates reported higher SG&A tied to public-company costs and platform investment. These announcements often led to share price declines, indicating that investors have historically focused on loss levels and expense growth when reacting to XHLD’s financial updates.
Historical Comparison
Past earnings headlines moved XHLD about -6.53% on average. Today’s +6.38% post–Q1 2026 gain contrasts with that pattern, marking a rare positive reaction to results.
Earnings releases from full-year 2024 through full-year 2025 and quarterly 2025 updates showed revenue softness, margin pressure, and rising losses as public-company costs ramped, framing Q1 2026 as a test of whether recent efficiency efforts translate into a more sustainable trajectory.
Market Pulse Summary
This announcement details Q1 2026 revenue growth to $853,000, a reduced net loss of $3.0 million, and SG&A cut to $3.4 million, alongside a much lower cash balance of $79,000. Historically, earnings updates have produced average moves of about -6.53%, reflecting sensitivity to loss levels, margins, and liquidity. Investors may watch future results for trends in gross margin, operating cash use, and customer concentration.
Key Terms
soc 2 technical
sg&a financial
software-as-a-service technical
ipo financial
AI-generated analysis. Not financial advice.
Management Commentary
"We are pleased with the
"Our
"During the first quarter of 2026, we also completed a key SOC 2 examination for Broadcast Media Production and Distribution Services Systems. This achievement will help support our provision of high-stakes corporate events including town halls, investor days, executive communications, and regulated broadcasts, where reliability, security, and operational discipline are essential.
"Throughout the balance of 2026, we will focus on leveraging last year's partnership with Webinar.net to strengthen our technology ecosystem. This relationship reflects the major cornerstone of our business plan to use best-in-class technologies to deliver scalable, enterprise-grade solutions for our customers.
"We are confident that the initiatives we completed in the last fiscal year, including strengthening strategic partnerships, advancing platform capabilities, enhancing enterprise security, expanding the customer base, and establishing a presence in the public capital markets, have positioned our business to pursue growth opportunities, increase market penetration, and, most importantly, continue to achieve the operational improvements that will drive long-term value for our shareholders."
Financial Results
The Company's first quarter of 2026 earnings reported a total revenue increase of
a.) Virtual & Hybrid events increased by
b.) Physical events increased by
- Cost of revenue in the quarter increased by
$121,000 65.1% , to$307,000 - Gross profit margin declined to
64.0% from74.8% due to higher costs from one specific event that took place from one of our customers which had a high labor intensive component. - Selling, general and administrative expenses decreased by
$1.8 million 34.6% , to$3.4 million - Net loss was
$3.0 million $(0.76) 37.6% reduction compared to a net loss of$4.8 million $(2.68) - Interest expenses increased by
$8,000 11.6% , to$61,000 - Weighted average number of common shares outstanding was 3,977,443 for the three months ended March 31, 2026 compared to 1,805,086 for the three months ended March 31, 2025.
Selected Balance Sheet and Cash Flow Results
- As of March 31, 2026, the Company had total cash of approximately
$79,000 $1.6 million - Net cash used in operating activities decreased to
$1.1 million $6.8 million - Net cash from investing activities was zero compared to
$273,000 - Net cash used for financing activity was
$450,000 $7.3 million
Company Outlook
Mr. Torres added that TEN Holdings plans to:
- Promote future business growth by strengthening customer relationships, improving customer loyalty, and increasing marketing and sales efforts with additional investment in digital marketing and sales team expansion.
- Increase product and market expansion of the software-as-a-service, Ten Events Pro, designed to provide professional-grade production quality for virtual and hybrid events with flexibility, speed, and control. Management anticipates that this strategic expansion will broaden the customer base, enhance market reach, and generate sustainable recurring revenue streams.
- Maximize partnership with Webinar.net to penetrate new market opportunities.
- Continue to raise capital to facilitate investments in, partnerships with, and acquisitions of appropriate businesses that offer complementary and strategic advantages to enhance overall competitiveness and growth.
About TEN Holdings, Inc.
The Company, through its subsidiary, Ten Events, Inc., is a provider of event technology, planning, production, and broadcasting services headquartered in
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to: the uncertainties related to market conditions and other factors discussed in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K filed with the
For more information, please contact:
Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott
1177 Avenue of the
Office: (646) 893-5835
Email: IR@skylineccg.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/ten-holdings-reports-first-quarter-2026-financial-results-302773826.html
SOURCE TEN Holdings, Inc.