TEN Holdings Reports Third Quarter 2026 Financial Results

Services growth offset lower platform usage revenue, but gross profit declined and the quarterly net loss widened.

Rhea-AI Summary

TEN Holdings (Nasdaq: XHLD) reported third-quarter revenue of $640,000, reflecting completed customer engagements and contributions from new customers. Revenue rose 17.9% year over year, with services growth offsetting lower platform usage revenue. Gross margin fell to 59.2% from 74.6%. Net loss widened to $3.734 million from $1.987 million, while loss per share narrowed to $0.31 from $0.84 as weighted average shares increased.

SG&A expenses rose 88.2% to $4.113 million, including a $1.8 million service-contract write-off and approximately $0.5 million in legal expenses. Cash and equivalents were $3.5 million at September 30, versus $5.8 million at June 30. Related-party short-term loans fell to $0.1 million from $4.6 million at year-end. TEN Holdings plans to expand its subscription-based software business and pursue acquisitions. Ian M. Lawson became interim CFO effective September 30, 2026.

13 points · 2 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 11 points

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

Positive

• Major pointAnnual operating cost structure reduced approximately $2.5 million over the past 12 months, the company said. 36% of market cap
• Major pointJune common stock offering raised $7.5 million gross, supporting investments that accelerated TEN development. 1.1× market cap
• Moderate pointRevenue rose 17.9% year over year to $640,000 in the third quarter.
• Moderate pointTotal liabilities declined to $2.0 million from $7.7 million at December 31, 2025.
• Moderate pointNine-month operating cash use decreased to $5.4 million from $9.0 million in the prior-year period.
• Moderate pointThird-quarter option exercises generated approximately $0.73 million in cash proceeds. 10% of market cap

7 minor points

• Minor pointProfessional and managed services revenue increased 307.7% year over year to $212,000.
• Minor pointRelated-party short-term loans fell to $0.1 million from $4.6 million at December 31, 2025.
• Minor pointDepreciation and amortization expense decreased to $10,000 from $147,000 in the prior-year quarter.
• Minor pointInterest expense fell to $2,000 from $59,000 in the prior-year quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.TEN subscription transition planned, while retaining managed production services for customers wanting them.
• Minor point. Forward-looking: it has not happened yet and may not happen.TEN expansion planned beyond events and webinars, including AI, automation, integrations and analytics.
• Minor point. Forward-looking: it has not happened yet and may not happen.Acquisition strategy targets accretive businesses adding revenue and EBITDA, scalable products and complementary technology.

Negative

• Major pointQuarterly net loss widened 87.9% to $3.734 million; loss per share narrowed to $0.31 from $0.84.
• Major pointJune common stock offering issued equity, diluting existing holders.
• Moderate pointGross profit fell to $379,000 from $405,000; margin declined to 59.2% from 74.6%.
• Moderate pointCash and equivalents declined $2.3 million from June 30 to $3.5 million at September 30, 2026.
• Moderate pointThird-quarter operating activities used $2.7 million in cash.
• Moderate point89,405 common shares issued through third-quarter option exercises diluted existing holders.

5 minor points

• Minor pointSG&A rose 88.2% to $4.113 million, including a $1.8 million write-off and approximately $0.5 million legal expenses.
• Minor pointCost of revenue increased 89.1% year over year to $261,000, primarily reflecting more on-site events.
• Minor pointPlatform usage revenue decreased 12.8% year over year to $428,000.
• Minor pointWeighted average shares increased to 11,999,366 from 2,359,622 in the prior-year quarter.
• Minor pointNine-month financing cash inflows decreased to $7.4 million from $10.1 million in the prior-year period.

News Explained

At September 30, cash equaled 117.3 days of reported operating cash use; completed option exercises also reduced existing holders’ percentage ownership.

In its third-quarter results, TEN Holdings reported that holders exercised options for 89,405 common shares, bringing approximately $0.73 million to the company; issuing additional shares increases the share count and reduces existing holders’ percentage ownership absent offsetting changes.

At September 30, 2026, the company’s $3.505 million in cash equaled 117.3 days of the latest reported quarterly operating cash use.

Sources and calculations

• TEN Holdings third-quarter 2026 results release (2026-11-06)
• Dilution definition (versioned reference)
• TEN Holdings third-quarter 2026 fundamentals (2026Q3)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate $3,505,000 / ($2,749,000 / 92) = 117.3 days

Key Figures

Revenue: $640,000; +17.9% year over year Gross profit margin: 59.2%, compared to 74.6% SG&A expenses: $4,113,000; +88.2% year over year +5 more

Revenue

$640,000; +17.9% year over year

Third quarter 2026

Gross profit margin

59.2%, compared to 74.6%

Third quarter 2026 versus prior-year period

SG&A expenses

$4,113,000; +88.2% year over year

Third quarter 2026

Service-contract write-off

$1.8 million

Previously capitalized service contracts; included in third-quarter SG&A

Net loss

$3,734,000; $(0.31) per share

Third quarter 2026; net loss increased 87.9% year over year

Cash and cash equivalents

$3.5 million

As of September 30, 2026; excludes restricted cash

Related-party short-term loans

$0.1 million, down from $4.6 million

As of September 30, 2026 versus December 31, 2025

Net cash used in operating activities

$5.4 million

Nine months ended September 30, 2026

Previous Earnings Reports

2 past events · Latest: Aug 10

Same Type 2 events

1. Aug 10

   Q2 2026 earnings

   24h Move

   +14.8%

   Revenue declined year over year and net loss widened, while first-half operating cash use improved.

2. Nov 10

   Q3 2025 earnings

   24h Move

   -3.3%

   Revenue grew modestly, but net loss widened and SG&A increased year over year.

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

Key Terms

saas, ebitda, stock-based compensation, reverse stock split

4 terms

saas technical

"transition toward a scalable, SaaS-driven business model"

SaaS, or Software as a Service, is a way of delivering computer programs over the internet, allowing users to access and use them through a web browser without needing to install or maintain the software themselves. For investors, it highlights a business model where companies generate recurring revenue by providing ongoing access to their software, often leading to predictable income and growth potential.

ebitda financial

"accretive businesses that add revenue and EBITDA"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

stock-based compensation financial

"reduction in expense resulting from the reversal of previously recognized stock-based compensation"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

reverse stock split financial

"reflect the Company's 1-for-15 reverse stock split"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Nov. 6, 2026 /PRNewswire/ -- TEN Holdings, Inc. (Nasdaq: XHLD), through its subsidiary, Ten Events, Inc., the technology company behind TEN, a Digital Experience Platform that powers the next generation of enterprise digital engagement, today announced its financial results for the quarter ended September 30, 2026.

Management Commentary

"Third quarter revenue increased 17.9% year over year to $640,000, as we completed customer engagements that had been initiated in prior periods and added revenue from new customers," said Virgilio Torres, Chairman and Chief Executive Officer of TEN Holdings. "Our performance reflects continued demand for our digital engagement solutions and our ability to serve both existing and new customers. As we look ahead, our focus remains on expanding recurring revenue, strengthening our technology platform, and accelerating our transition toward a scalable, SaaS-driven business model."

"Our third-quarter results reflect two significant expenses that we consider non-recurring: a $1.8 million write-off of previously capitalized service contracts and approximately $0.5 million in legal expenses. Excluding these items, our underlying selling, general and administrative expenses declined compared to the same period last year, reflecting the progress we have made in improving operational efficiency. Over the past 12 months, we have reduced our annual operating cost structure by approximately $2.5 million through strategic cost reductions, process improvements, and the integration of AI-driven tools to streamline engineering and accelerate product development. With these efficiencies largely implemented and a leaner operating structure in place, we are now shifting our focus toward accelerating revenue growth, expanding customer relationships, and scaling TEN, our new platform."

"We also made significant progress in strengthening our balance sheet, reducing short-term related-party borrowings from $4.6 million at the beginning of the year to approximately $0.1 million as of September 30, 2026. Total liabilities declined by approximately 74%, from $7.7 million at year-end 2025 to $2.0 million, reflecting our continued efforts to simplify our capital structure and improve our financial position."

"One of our most significant milestones this year was the launch of TEN, our next-generation Digital Experience Platform, whose development was accelerated by investments made possible through the proceeds of our June common stock offering, consistent with our previously communicated commitment to product development. TEN represents an important step in our evolution toward a scalable, SaaS-driven business model, bringing together the tools organizations need to create, manage, deliver, and measure digital experiences within a unified platform.

At launch, TEN provides enterprises with a self-service solution for webinars, virtual events, and continuing education programs, with the capacity to support up to 50,000 concurrent attendees. Building on our longstanding relationships with enterprise customers, many of whom rely on our technology for recurring digital engagement initiatives, we see a meaningful opportunity to transition these relationships toward subscription-based arrangements. We believe this approach will deliver greater flexibility and value to our customers while creating a more predictable and recurring revenue stream for TEN Holdings."

"Looking ahead, we are focused on three priorities: continuing the transition of our business from a managed services provider to a SaaS company, investing in TEN so that it remains competitive, and executing an acquisition strategy aimed at accretive businesses that add revenue and EBITDA, products our sales team can scale, and technology that complements our own. With TEN now in the market, a leaner cost structure, and a simplified balance sheet, we believe TEN Holdings is positioned to build a more scalable, recurring revenue business and create long-term value for our shareholders."

Financial Results

• Revenue for the three months ended September 30, 2026 was $640,000, a $97,000 or 17.9% increase compared to revenue of $543,000 for the three months ended September 30, 2025. The increase was primarily driven by the completion of customer transactions initiated in prior periods, along with revenue contributions from new customers acquired during the current period.
  
  • Platform usage revenue decreased by $63,000, or 12.8%, to $428,000.
  • Professional and managed services revenue increased by $160,000, or 307.7%, to $212,000.
• Cost of revenue for the three months ended September 30, 2026 was $261,000, a $123,000 or 89.1% increase compared to $138,000 for the same period in 2025. The increase was primarily due to a higher number of on-site events held during the quarter compared to the same period last year. Gross profit was $379,000, compared to $405,000, and gross profit margin was 59.2%, compared to 74.6% in the prior-year period.
• Selling, general and administrative ("SG&A") expenses were $4,113,000, a $1,928,000 or 88.2% increase compared to SG&A expenses of $2,185,000 for the same period last year. The increase was primarily driven by a $1.8 million write-off of previously capitalized service contracts that had been subject to amortization, as well as approximately $0.5 million in legal expenses related to ongoing litigation. Excluding these expenses, SG&A expenses would have decreased by approximately $0.4 million, or approximately 18%, compared to the prior-year period. Third quarter 2026 SG&A also included an approximately $0.3 million reduction in expense resulting from the reversal of previously recognized stock-based compensation associated with forfeited awards.
• Depreciation and amortization expense decreased to $10,000 from $147,000 in the prior-year period, primarily because the Company's capitalized software was fully impaired during 2025 and no software assets were subject to amortization during the quarter.
• Interest expense for the three months ended September 30, 2026 totaled $2,000, compared to $59,000 for the three months ended September 30, 2025. The decrease was primarily due to a lower outstanding short-term loan balance.
• Net loss for the three months ended September 30, 2026 was $3,734,000, or $(0.31) per share, a $1,747,000 or 87.9% increase compared to a net loss of $1,987,000, or $(0.84) per share, for the same period in 2025. The increase in net loss was primarily driven by the higher SG&A expenses described above, including the write-off and legal expenses.
• Weighted average number of common shares outstanding was 11,999,366 for the three months ended September 30, 2026, compared to 2,359,622 for the three months ended September 30, 2025. Share and per share amounts for prior periods reflect the Company's 1-for-15 reverse stock split, which became effective on December 1, 2025.

Selected Balance Sheet and Cash Flow Results

• As of September 30, 2026, the Company had cash and cash equivalents of $3.5 million, plus $0.1 million of restricted cash, compared to $1.6 million as of December 31, 2025, and $0.3 million as of September 30, 2025. The increase from year-end was primarily driven by the gross proceeds of the Company's $7.5 million common stock offering, which closed on June 30, 2026, partially offset by cash used in operating activities. Compared to $5.8 million as of June 30, 2026, cash and cash equivalents decreased by $2.3 million, primarily reflecting $2.7 million of cash used in operating activities during the third quarter, partially offset by $0.7 million in proceeds from the exercise of stock options.
• Short-term loans from related parties declined to $0.1 million as of September 30, 2026, from $4.6 million as of December 31, 2025, primarily reflecting the settlement of $4.6 million of debt through offsetting against a receivable due from a related party, as well as cash repayments. Total liabilities declined to $2.0 million from $7.7 million at December 31, 2025.
• Net cash used in operating activities was $5.4 million for the nine months ended September 30, 2026, compared to $9.0 million during the same period of 2025. The decrease was primarily attributable to the absence of $4.7 million in advances to related parties made during the prior-year period, partially offset by a $2.9 million decrease in non-cash stock-based compensation expense and the absence of a $1.3 million non-cash loss on extinguishment of debt recognized in the prior-year period.
• Net cash used in investing activities was zero for the nine months ended September 30, 2026, compared to $0.8 million during the same period of 2025, due to the absence of expenditures for capitalized internal-use software.
• Net cash provided by financing activities was $7.4 million for the nine months ended September 30, 2026, compared to $10.1 million during the same period of 2025. The decrease was primarily attributable to lower proceeds from the issuance of shares and lower related-party loan proceeds received in the prior-year period, partially offset by lower repayments of related-party loans and $0.7 million in proceeds from the exercise of stock options.

Recent Corporate Highlights

• During the third quarter, holders exercised stock options to purchase 89,405 shares of common stock, providing the Company with aggregate cash proceeds of approximately $0.73 million.
• Launched TEN, the Company's new Digital Experience Platform, which combines registration, live production, audience engagement, on-demand content, and continuing education credentialing in a single system, available on a self-service basis or with managed services as an add-on.
• Appointed Ian M. Lawson as Interim Chief Financial Officer, effective September 30, 2026.
• Relocated the Company's headquarters to New York, New York.
• Filed a registration statement on Form S-3 for a $100 million universal shelf.
• Completed the termination of certain agreements entered into by former management in connection with the Company's initial public offering, as disclosed in the Company's Form 8-K filed on July 24, 2026.

Company Outlook

Mr. Torres added that TEN Holdings plans to:

• Continue transitioning its business from a managed services model to a recurring, subscription-based SaaS model built on TEN, while continuing to offer white-glove managed production services for customers who want them.
• Expand TEN beyond events and webinars, including AI and automation, integrations, engagement and intent, reporting and analytics, and content studio capabilities.
• Pursue disciplined acquisitions of accretive businesses that add revenue and EBITDA, products the Company's sales team can scale, and technologies that complement its existing intellectual property, as part of a broader consolidation strategy.

About TEN Holdings, Inc.

TEN Holdings, Inc. (Nasdaq: XHLD) is a New York-based technology company focused on developing enterprise software solutions that enable organizations to create, manage, deliver, and measure digital experiences. Through its flagship Digital Experience Platform, TEN, the Company provides technology solutions for enterprise communications, virtual events, webinars, and continuing education, supporting digital experiences with up to 50,000 concurrent attendees.

Building on more than a decade of experience serving Fortune 500 companies, TEN Holdings is evolving its platform into a broader, AI-enabled enterprise technology ecosystem. Its product roadmap includes marketing automation, CRM integrations, advanced engagement analytics, AI-powered capabilities, and content management solutions designed to help organizations streamline workflows, strengthen customer engagement, and generate actionable business insights.

The Company's strategy is centered on expanding its SaaS offerings, increasing recurring revenue opportunities, and delivering scalable technology solutions to enterprise customers. Planned capabilities remain subject to ongoing development, and there can be no assurance regarding their timing or availability.

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, risks regarding the Company's growth strategy, the development, availability and adoption of TEN and its planned expansion, including AI and automation, landing pages, integrations, engagement, reporting and analytics, and content studio capabilities, the Company's recurring-revenue strategy, potential acquisitions, and 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 and subsequent Quarterly Reports on Form 10-Q 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

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

What were TEN Holdings' third-quarter 2026 revenue and net loss?

TEN Holdings reported $640,000 in revenue and a $3.734 million net loss for the quarter ended September 30, 2026. Revenue increased 17.9% year over year, while net loss increased 87.9%. Loss per share was $0.31, compared with $0.84 in the prior-year quarter.

Why did TEN Holdings' related-party short-term loans decline?

The decline primarily reflected $4.6 million of debt settled by offsetting a related-party receivable, along with cash repayments. Related-party short-term loans stood at $0.1 million at September 30, 2026, compared with $4.6 million at December 31, 2025.

How did TEN Holdings describe adjusted third-quarter SG&A expenses?

Excluding the service-contract write-off and legal expenses, SG&A would have decreased by approximately $0.4 million, or approximately 18%, year over year. Reported third-quarter SG&A also included an approximately $0.3 million expense reduction from reversing previously recognized stock-based compensation associated with forfeited awards.