Exhibit
99.1
TEN
Holdings Reports Third Quarter 2026 Financial Results
NEW
YORK, NY, November 6, 2026 — 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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