Youxin Technology Ltd Reports First Half of Fiscal Year 2026 Financial Results
Rhea-AI Summary
Youxin Technology (Nasdaq: YAAS) reported unaudited results for the first half of fiscal 2026 ended March 31, 2026. Revenue rose 444% to $1.88 million, mainly driven by consolidation of Celnet and growth in customized CRM development. Professional services revenue increased 662% to $1.75 million, while subscription revenue declined 8% to $0.09 million. Gross profit grew 496% to $0.77 million and gross margin improved to 41% from 37%.
Operating expenses rose to $2.65 million (from $1.40 million), including higher G&A of $2.05 million, partly due to Celnet and $0.64 million of share-based compensation. Net loss attributable to ordinary shareholders widened to $1.93 million (loss per share $0.20). Cash decreased to $4.55 million from $9.91 million as of September 30, 2025, with higher investing outflows and lower financing inflows.
Positive
- Revenue +444% YoY to $1.88 million for six months ended March 31, 2026
- Professional services revenue +662% YoY to $1.75 million
- Gross profit +496% YoY to $0.77 million; margin improved to 41% from 37%
- New service lines (data/workflow migration, staff outsourcing, O&M) generated about $0.91 million
- Operating cash outflow improved to $1.21 million from $2.26 million
- Net other result turned positive to $0.03 million from a $0.46 million net expense
Negative
- Net loss attributable to shareholders widened to $1.93 million from $1.74 million
- Operating expenses +89% YoY to $2.65 million, driven by G&A and R&D
- Cash balance fell to $4.55 million from $9.91 million at September 30, 2025
- Net cash from financing dropped to $0.09 million from $7.24 million
- Subscription revenue -8% YoY to $0.09 million
- Total liabilities increased to $3.87 million from $2.59 million, including higher bank loans and new deferred acquisition consideration
News Explained
A 1-for-5 reverse split of Class A ordinary shares became effective on
Market reaction after 1H FY26 earnings report: YAAS +42.46%
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | FY2025 earnings | Negative | -7.9% | Revenue growth accompanied by substantial net loss and one-time offering-related expenses. |
| Jul 14 | H1 FY2025 earnings | Negative | -3.5% | Revenue increased, but gross margin declined and net loss widened year over year. |
| Jan 30 | FY2024 earnings | Positive | +1.3% | Gross margin improved and net loss declined despite lower annual revenue. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions averaged -3.38%, with prior earnings announcements generally aligning with the reported direction of the stock reaction.
Key Terms
saas technical
paas technical
non-controlling interests financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Mr. Shaozhang Lin, Chief Executive Officer of Youxin Technology Ltd, commented, "We delivered strong revenue growth for the first half of fiscal year 2026, with revenue increasing
"We are encouraged by the growing recognition of our third-generation PaaS platform as we expand partnerships with distributors, leading more customers to adopt and pay for our services. As we expand our distributor network and customer base, we anticipate additional opportunities to generate revenue from platform licenses and professional services. At the same time, as of March 31, 2026, we had continued advancing our PaaS platform from the third to fifth generation, incorporating an AI-powered digital enablement solution ("AI + PaaS") while enhancing its functionality and performance in response to customer feedback and evolving market demand.
"Looking ahead, we will continue to strengthen relationships with distributors, prospective customers, government agencies, and industry partners to support the adoption of our platform. We also plan to continue investing in research and development to advance our AI-enabled digital solutions and support the commercialization and market development of our fifth-generation AI-powered PaaS platform. We believe these efforts will further strengthen our platform capabilities, broaden our customer and distribution network, and position us for long-term business growth."
First Half of Fiscal Year 2026 Financial Overview
- Revenue was
$1.88 million 444% from$0.35 million - Gross profit was
$0.77 million 496% from$0.13 million - Gross margin was
41% for the six months ended March 31, 2026, an increase from37% for the same period of last year.
First Half of Fiscal Year 2026 Financial Results
Revenues
Total revenues were
For the six months ended March 31, | |||||||||||||||||||||||||||||
2026 | 2025 | ||||||||||||||||||||||||||||
($) | Revenue | Cost of | Gross | Revenue | Cost of | Gross | |||||||||||||||||||||||
Professional services | 1,751,139 | 1,015,595 | 42 | % | 229,665 | 142,405 | 38 | % | |||||||||||||||||||||
Subscription service | 88,879 | 63,976 | 28 | % | 97,128 | 70,812 | 27 | % | |||||||||||||||||||||
Payment channel services and others | 43,236 | 31,203 | 28 | % | 19,220 | 3,169 | 84 | % | |||||||||||||||||||||
Total | 1,883,254 | 1,110,774 | 41 | % | 346,013 | 216,386 | 37 | % | |||||||||||||||||||||
Revenue from professional services was
- Revenue from customized CRM system development services was
$0.83 million 274% from$0.22 million - Revenue from the data and workflow migration service, staff outsourcing service and operations and maintenance service was
$0.36 million $0.49 million $0.06 million $21,935 138% from$9,211
Revenue from subscription service was
Revenue from payment channel services and others was
Cost of Revenues
Cost of revenues was
Gross Profit
Gross profit was
Gross margin was
Operating Expenses
Operating expenses were
- Selling expenses were
$0.26 million 156% from$0.10 million $0.21 million $0.04 million - General and administrative expenses were
$2.05 million 76% from$1.16 million $0.25 million $0.64 million - Research and development expenses were
$0.34 million 143% from$0.14 million
Other Income (Expense), Net
Total net other income was
Net Loss
Net loss was
Net Loss Attributable to Ordinary Shareholders
Net loss attributable to ordinary shareholders was
Basic and Diluted Loss per Share
Basic and diluted loss per share was
Financial Condition
As of March 31, 2026, the Company had cash of
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About Youxin Technology Ltd
Youxin Technology Ltd is a SaaS and PaaS provider committed to helping retail enterprises digitally transform their businesses through its cloud-based SaaS product and PaaS platform. The Company provides customized, comprehensive and fast-deployment omnichannel digital solutions to its customers. For more information, please visit the Company's website: https://ir.youxin.cloud.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. References and links (including QR codes) to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
For investor and media inquiries, please contact:
Youxin Technology Ltd
Investor Relations Department
Email: ir@youxin.cloud
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
YOUXIN TECHNOLOGY LTD UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2026 AND SEPTEMBER 30, 2025 (Expressed in | ||||||||
March 31, 2026 | September 30, 2025 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 4,552,381 | $ | 9,912,327 | ||||
Restricted cash | 25,077 | 24,298 | ||||||
Accounts receivable, net | 491,723 | 213,772 | ||||||
Contract assets | 592,412 | - | ||||||
Deferred contract costs | 24,124 | 13,103 | ||||||
Amount due from a related party | 22,251 | 17,486 | ||||||
Prepaid expenses and other current assets | 792,249 | 295,559 | ||||||
Total current assets | 6,500,217 | 10,476,545 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | 44,280 | 2,518 | ||||||
Intangible assets, net | 432,300 | - | ||||||
Operating lease right-of-use assets | 149,120 | 78,862 | ||||||
Other non-current assets | 10,792 | 10,457 | ||||||
Long-term prepayments | 3,004,769 | - | ||||||
Prepayment for acquisition | - | 210,704 | ||||||
Goodwill | 1,223,018 | - | ||||||
Deferred tax assets, net | 133,834 | - | ||||||
Total non-current assets | 4,998,113 | 302,541 | ||||||
TOTAL ASSETS | $ | 11,498,330 | $ | 10,779,086 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loan | $ | 608,872 | $ | 318,865 | ||||
Accounts payable | 76,407 | 34,190 | ||||||
Contract liabilities | 253,659 | 30,024 | ||||||
Accrued expenses and other current liabilities | 72,363 | 87,439 | ||||||
Payroll payable | 1,429,372 | 1,134,532 | ||||||
Warrant liabilities | 335,852 | 902,287 | ||||||
Amount due to related parties | 582,748 | - | ||||||
Long-term bank loan - current | 51,740 | - | ||||||
Operating lease liabilities - current | 103,299 | 46,190 | ||||||
Deferred acquisition consideration - current | 156,101 | - | ||||||
Total current liabilities | 3,670,413 | 2,553,527 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Operating lease liabilities - non-current | 44,421 | 35,306 | ||||||
Deferred acquisition consideration - non-current | 151,116 | - | ||||||
Total non-current liabilities | 195,537 | 35,306 | ||||||
TOTAL LIABILITIES | $ | 3,865,950 | $ | 2,588,833 | ||||
COMMITMENTS AND CONTINGENCIES (NOTE 19) | - | - | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Class A ordinary shares, ( | 21,820 | 18,604 | ||||||
Class B ordinary shares, ( | 895 | 895 | ||||||
Additional paid-in capital | 33,261,226 | 32,614,603 | ||||||
Accumulated deficit | (26,997,783) | (25,065,907) | ||||||
Accumulated other comprehensive income | 594,179 | 622,058 | ||||||
Total Youxin Technology Ltd shareholders' equity | 6,880,337 | 8,190,253 | ||||||
Non-controlling interests | 752,043 | - | ||||||
Total shareholders' equity | 7,632,380 | 8,190,253 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 11,498,330 | $ | 10,779,086 | ||||
(1) | All per share amounts and shares outstanding for all periods have been retroactively adjusted to reflect the 1-for- |
YOUXIN TECHNOLOGY LTD UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025 (Expressed in | ||||||||
Six Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
REVENUES | $ | 1,883,254 | $ | 346,013 | ||||
COST OF REVENUES | (1,110,774) | (216,386) | ||||||
GROSS PROFIT | 772,480 | 129,627 | ||||||
OPERATING EXPENSES | ||||||||
Selling expenses | (257,887) | (100,558) | ||||||
General and administrative expenses | (2,047,803) | (1,162,739) | ||||||
Research and development expenses | (341,420) | (140,261) | ||||||
Total operating expenses | (2,647,110) | (1,403,558) | ||||||
LOSS FROM OPERATIONS | (1,874,630) | (1,273,931) | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Other income | 44,152 | 184 | ||||||
Other expense | (61,425) | (6,711) | ||||||
Investment loss | (518,235) | (457,242) | ||||||
Change in fair value of warrant liabilities | 560,596 | - | ||||||
Total other income (expense), net | 25,088 | (463,769) | ||||||
LOSS BEFORE TAXES | (1,849,542) | (1,737,700) | ||||||
Income tax expense | (19,655) | - | ||||||
NET LOSS | (1,869,197) | (1,737,700) | ||||||
Less: Net income attributable to non-controlling interests | 62,679 | - | ||||||
Net loss attributable to ordinary shareholders | $ | (1,931,876) | $ | (1,737,700) | ||||
NET LOSS | $ | (1,869,197) | $ | (1,737,700) | ||||
Other comprehensive loss: | ||||||||
Foreign currency translation (loss) income | (24,315) | 89,206 | ||||||
TOTAL COMPREHENSIVE LOSS | (1,893,512) | (1,648,494) | ||||||
Less: Comprehensive income attributable to non-controlling interests | 66,243 | - | ||||||
Total comprehensive loss attributable to ordinary shareholders | $ | (1,959,755) | $ | (1,648,494) | ||||
Basic and diluted loss per share | $ | (0.20) | $ | (0.19) | ||||
Weighted average number of ordinary shares outstanding - basic and | 9,441,459 | 9,004,167 | ||||||
(1) | All per share amounts and shares outstanding for all periods have been retroactively adjusted to reflect the 1-for- |
YOUXIN TECHNOLOGY LTD UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025 (Expressed in | ||||||||
Six Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (1,869,197) | $ | (1,737,700) | ||||
Adjustments to reconcile net loss to cash used in operating | ||||||||
Expected credit loss of doubtful accounts | 43,163 | - | ||||||
Amortization of operating right-of-use assets | 29,167 | 24,524 | ||||||
Depreciation and amortization | 48,196 | 716 | ||||||
Investment loss | 518,235 | 457,242 | ||||||
Change in fair value of warrant liabilities | (560,596) | - | ||||||
Amortization of discount on deferred acquisition consideration | 4,118 | - | ||||||
Stock-based compensation | 644,000 | - | ||||||
Deferred income taxes | 19,655 | - | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | 342,521 | (33,923) | ||||||
Amount due from related parties | (4,764) | - | ||||||
Amount due to related parties | 14,682 | - | ||||||
Deferred contract costs | (11,021) | - | ||||||
Contract assets | (266,686) | - | ||||||
Prepaid expenses and other current assets | 55,004 | (510,774) | ||||||
Other non-current assets | - | 350 | ||||||
Accounts payable | 11,328 | 2,412 | ||||||
Operating lease liabilities | (28,713) | (24,151) | ||||||
Payroll Payable | (176,530) | (250,368) | ||||||
Accrued expenses and other current liabilities | (140,633) | 21,546 | ||||||
Contract liabilities | 114,636 | (206,570) | ||||||
Net cash used in operating activities | (1,213,435) | (2,256,696) | ||||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (38,642) | - | ||||||
Purchase of short-term investments | (619,031) | (3,440,000) | ||||||
Redemption of short-term investments | 100,915 | - | ||||||
Prepayment for purchase of property | (2,969,213) | - | ||||||
Acquisition of subsidiaries, net of cash acquired of | (155,497) | - | ||||||
Loan to a third party | (500,000) | - | ||||||
Net cash used in investing activities | (4,181,468) | (3,440,000) | ||||||
Cash flows from financing activities | ||||||||
Loan from a related party | 282,613 | - | ||||||
Repayment to a related party | (141,260) | (978,594) | ||||||
Proceeds from short-term bank loans | 285,467 | - | ||||||
Repayment of short-term bank loans | (324,006) | - | ||||||
Repayment of long-term bank loans | (15,881) | - | ||||||
Issuance of ordinary shares upon warrant series b exercise | 2 | - | ||||||
Issuance of ordinary shares upon IPO | - | 10,350,000 | ||||||
Payment of offering costs | - | (2,133,785) | ||||||
Net cash provided by financing activities | 86,935 | 7,237,621 | ||||||
Effect of exchange rates on cash | (51,199) | 76,811 | ||||||
Net (decrease) increase in cash and restricted cash | (5,359,167) | 1,617,736 | ||||||
Cash and restricted cash at beginning of period | 9,936,625 | 43,021 | ||||||
Cash and restricted cash at end of period | $ | 4,577,458 | $ | 1,660,757 | ||||
Reconciliation of cash and restricted cash with consolidated | ||||||||
Cash | $ | 4,552,381 | $ | 1,636,920 | ||||
Restricted cash | 25,077 | 23,837 | ||||||
Cash and restricted cash at end of period | $ | 4,577,458 | $ | 1,660,757 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | ||||||||
Cash paid for interest expenses | $ | 7,194 | $ | - | ||||
Cash paid for income tax | $ | - | $ | - | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOWS | ||||||||
Operating lease assets obtained in exchange for operating lease | $ | 7,423 | $ | - | ||||
Deduction of issuance proceeds of prior years deferred offering cost | $ | - | $ | 478,108 | ||||
Deferred consideration recognized for acquisition | $ | 298,561 | $ | - | ||||
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SOURCE Youxin Technology Ltd