TEN Holdings Reports Second Quarter 2026 Financial Results

Rhea-AI Summary

TEN Holdings (Nasdaq: XHLD) reported second quarter 2026 revenue of $731,000, down 34.5% from $1.1 million a year earlier, mainly due to lower revenue from one large customer and deals shifting into Q3 2026. Platform usage revenue fell 45.1% to $469,000, while professional and managed services revenue was stable at $262,000.

Cost of revenue declined 40.6% to $104,000, lifting gross margin to 85.8% from 84.3%. SG&A expenses rose 67.6% to $3.6 million, largely from public-company compliance and advisory costs. Net loss was $3.0 million, or $(0.70) per share, versus a $2.8 million loss, or $(1.95) per share, in Q2 2025.

Cash increased to $5.8 million as of June 30, 2026 from $1.6 million at year-end 2025, driven by a $7.5 million common stock offering of 7,500,000 shares at $1.00 per share closed on June 30. For the first half of 2026, net cash used in operating activities improved to $2.7 million from $7.6 million. TEN Holdings plans to use the new capital to strengthen working capital, accelerate product and AI development, pursue acquisitions by December 2026, and recognize revenue from opportunities that shifted into Q3.

Positive

• Revenue $731,000 in Q2 2026 with 85.8% gross margin
• Gross margin improved to 85.8% from 84.3% year over year
• Operating cash outflow improved to $2.7 million from $7.6 million for first half
• Cash balance rose to $5.8 million from $1.6 million at year-end 2025
• Equity financing raised $7.5 million via 7,500,000 shares at $1.00
• Interest expense decreased 65.0% to $28,000

Negative

• Revenue declined 34.5% year over year to $731,000
• Platform usage revenue decreased 45.1% to $469,000
• SG&A expenses increased 67.6% to $3.6 million
• Net loss widened to $3.0 million from $2.8 million
• Operating cash burn was $2.7 million for the first six months of 2026

News Explained

The completed June 30 offering issued new common shares, so existing holders’ percentage ownership is reduced absent offsetting changes.

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LANGHORNE, Pa., Aug. 10, 2026 /PRNewswire/ -- TEN Holdings, Inc. (Nasdaq: XHLD), through its subsidiary, Ten Events, Inc. ("Ten Events" or the "Company"), an event technology company powering virtual, hybrid, and webinar experiences for enterprise customers, supported by production and managed services, today announced its financial results for the quarter ended June 30, 2026.

Management Commentary

"Second quarter revenue reflected the timing of customer activity rather than a change in underlying demand for our services," said Virgilio Torres, Chairman, Chief Executive Officer and Chief Financial Officer of TEN Holdings. "A number of opportunities we expected to close during the quarter shifted into the third quarter of 2026, and we expect the related revenue to be recognized as those events are delivered.

"The completion of our $7.5 million offering on June 30, 2026 was an important milestone for the Company. It strengthened our balance sheet, with cash and cash equivalents increasing to $5.8 million at quarter end from $1.6 million at the start of the year and gives us the capital to execute the strategic priorities we outlined in July: strengthening working capital, expanding product development, building artificial intelligence capabilities, and pursuing key strategic acquisitions.

"We are advancing our platform roadmap, including new AI-driven analytics, automated captioning, and workflow capabilities, while continuing to build on our partnership with Webinar.net to expand our technology ecosystem. At the same time, we are pursuing a disciplined acquisition strategy targeting complementary, accretive businesses that can broaden our recurring revenue base.

"We remain committed to prudent capital allocation and financial discipline as we scale, and we believe the combination of an improving cost structure, a strengthened balance sheet, and a clear strategic roadmap positions TEN Holdings to build long-term value for our shareholders."

Financial Results

The Company's second quarter 2026 revenue decreased by $385,000, or 34.5%, to $731,000, compared to $1.1 million in the second quarter of 2025. The decrease was primarily driven by lower revenue from one of the Company's largest customers, together with a number of opportunities that shifted into the third quarter of 2026.

• Platform usage revenue decreased by $0.4 million, or 45.1%, to $469,000, primarily due to lower revenue from one of the Company's largest customers.
• Professional and managed services revenue was largely unchanged, increasing by $1,000, or 0.4%, to $262,000.
• Cost of revenue decreased by $71,000, or 40.6%, to $104,000, consistent with the decrease in related revenue. Gross profit margin was 85.8%, compared to 84.3% in the prior-year period.
• Selling, general and administrative expenses increased by $1.5 million, or 67.6%, to $3.6 million, primarily due to an increase in professional fees, consistent with the compliance, audit, and advisory costs the Company has incurred as a public company since its February 2025 initial public offering. Because these costs are largely fixed while the Company's revenue remains relatively small, quarter-to-quarter changes in revenue can have an outsized effect on reported operating results.
• Net loss was $3.0 million, or $(0.70) per share, compared to a net loss of $2.8 million, or $(1.95) per share, during the three months ended June 30, 2025. The year-over-year increase in net loss was primarily driven by higher SG&A expenses, partially offset by the absence of a $1.4 million non-operating settlement charge recorded in the second quarter of 2025.
• Interest expense decreased by $52,000, or 65.0%, to $28,000, primarily due to a lower outstanding short-term loan balance.
• Weighted average number of common shares outstanding was 4,279,641 for the three months ended June 30, 2026, compared to 1,428,399 for the three months ended June 30, 2025.

Selected Balance Sheet and Cash Flow Results

• As of June 30, 2026, the Company had total cash of approximately $5.8 million, compared to $0.7 million at the same date in 2025 and $1.6 million at December 31, 2025. The increase was primarily driven by the completion of the Company's $7.5 million offering, which closed on June 30, 2026.
• Net cash used in operating activities was $2.7 million for the six months ended June 30, 2026, compared to $7.6 million during the same period of 2025. The decrease was primarily due to a lower net loss and a decrease in advances to a related party, partially offset by lower non-cash adjustments for stock-based compensation and loss on extinguishment of debt.
• Net cash used in investing activities was zero for the six months ended June 30, 2026, compared to $0.5 million during the same period of 2025, due to the absence of capitalized software purchases.
• Net cash provided by financing activities was $7.0 million for the six months ended June 30, 2026, compared to $8.8 million during the same period of 2025. The decrease was primarily driven by lower proceeds from the issuance of shares and related-party short-term loans during the current period, partially offset by lower repayments of related-party short-term loans.

Recent Corporate Highlights

• On June 30, 2026, the Company closed an offering of 7,500,000 shares of common stock at a price of $1.00 per share, for gross proceeds of approximately $7.5 million, before deducting placement agent fees and offering expenses.

Company Outlook

Mr. Torres added that TEN Holdings plans to:

• Strengthen working capital by deploying net proceeds from the Company's recently completed offering to enhance liquidity, improve financial flexibility, and position the Company to capitalize on future growth opportunities.
• Expand product development by accelerating the Company's technology platform through enhanced functionality, automation, analytics, and workflow capabilities designed to improve customer engagement and scalability.
• Build artificial intelligence capabilities by investing in AI-powered technologies, including AI-driven analytics, automated captioning, and intent data, to enhance content creation, audience insights, and operational efficiency across the platform.
• Pursue key strategic acquisitions that expand the Company's technology capabilities, recurring revenue base, customer relationships, and overall market presence, as part of a disciplined consolidation strategy targeted for completion by December 2026.
• Continue to maximize its partnership with Webinar.net to penetrate new market opportunities and strengthen its technology ecosystem.
• Recognize revenue from the opportunities that shifted from the second quarter into the third quarter of fiscal year 2026.

About TEN Holdings, Inc.

The Company, through its subsidiary, Ten Events, Inc., is a technology company headquartered in Pennsylvania that provides a virtual and hybrid event and webinar platform, supported by production and managed services for enterprise customers. The Company's event technology platform enables organizations to plan, produce, and broadcast virtual and hybrid events, including webinars, town halls, investor communications, and continuing education programs, while its production and managed services support customers throughout the event lifecycle. To learn more, visit www.tenholdingsinc.com.

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 U.S. Securities and Exchange Commission (the "SEC") and other filings with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and TEN Holdings, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

For more information, please contact:

Investor Relations Inquiries:

Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: IR@skylineccg.com

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SOURCE TEN Holdings, Inc.

FAQ

How did TEN Holdings (XHLD) perform financially in Q2 2026?

TEN Holdings reported Q2 2026 revenue of $731,000 and a net loss of $3.0 million. According to TEN Holdings, revenue fell 34.5% year over year, mainly from lower activity with a large customer and deals shifting into the third quarter.

Why did TEN Holdings (XHLD) revenue decline 34.5% in the second quarter of 2026?

TEN Holdings revenue declined mainly due to reduced revenue from one large customer and delayed opportunities. According to TEN Holdings, several deals moved from Q2 into Q3 2026, with revenue expected to be recognized as those events are delivered.

What was the impact of the $7.5 million offering on TEN Holdings (XHLD) balance sheet?

The $7.5 million offering significantly increased TEN Holdings’ cash position to $5.8 million at June 30, 2026. According to TEN Holdings, the 7,500,000-share offering at $1.00 per share strengthened liquidity and supports working capital, product development, AI initiatives, and acquisitions.

How did TEN Holdings (XHLD) operating cash flow change in the first half of 2026?

Operating cash outflow improved to $2.7 million for the six months ended June 30, 2026. According to TEN Holdings, this compares with $7.6 million used in the prior-year period, reflecting lower net loss and reduced advances to a related party.

What are TEN Holdings (XHLD) strategic priorities after its Q2 2026 results?

TEN Holdings plans to strengthen working capital, expand product development, and build AI capabilities. According to TEN Holdings, it also intends to pursue strategic acquisitions by December 2026, deepen its Webinar.net partnership, and recognize revenue from Q2 opportunities that shifted into Q3.

How did expenses and margins trend for TEN Holdings (XHLD) in Q2 2026?

Gross margin improved to 85.8%, while SG&A expenses rose to $3.6 million. According to TEN Holdings, higher SG&A reflected public-company compliance and advisory costs, while cost of revenue dropped 40.6%, supporting the year-over-year gross margin increase.

What share issuance and EPS figures did TEN Holdings (XHLD) report for Q2 2026?

TEN Holdings reported a net loss of $(0.70) per share on 4,279,641 weighted-average shares in Q2 2026. According to TEN Holdings, this compares with $(1.95) per share on 1,428,399 shares for Q2 2025, reflecting the larger share count after recent offerings.