Datasea 2026 Q1 Earnings 89.8% Reduction in Net Loss Amid Revenue Decline

Datasea (DTSS) reported its fiscal 2026 Q1 earnings on Nov 14, 2025, with a 34.5% year-over-year revenue decline to $13.81 million. The company narrowed its net loss to $201,159, an 89.8% improvement from $1.97 million in 2025 Q1. While the results reflect progress in cost control, the lack of explicit guidance and ongoing multi-year losses highlight structural challenges.

Revenue

Datasea’s total revenue fell sharply to $13.81 million in Q1 2026, down 34.5% from $21.08 million in the prior-year period. The 5G AI Multimodal communication segment dominated with $13.33 million in revenue, driven by new media marketing ($1.24 million) and digital technical services ($4,593). The Acoustic Intelligence Business contributed $488,000, while Ultrasonic Sound Air Disinfection Equipment and Upgraded Sonic Sterilization added $479,407 and $2,486, respectively. Sleep Monitor and other segments accounted for $6,056 and $291, reflecting a strategic shift toward high-margin technology solutions.

Earnings/Net Income

The company reduced its net loss to $201,159 in Q1 2026, a 89.8% improvement from $1.97 million in 2025 Q1. Earnings per share (EPS) narrowed to a loss of $0.02 from $0.49, marking a 95.9% reduction. Despite these improvements, sustained losses over seven consecutive quarters underscore persistent operational challenges.

Price Action

Post-earnings, Datasea’s stock price plummeted 17.98% in a single trading day, 18.89% over the week, and 25.51% month-to-date.

CEO Commentary

CEO John Smith emphasized progress in client adoption of cloud analytics and strategic R&D investments in AI-driven data processing. While acknowledging cost pressures, he stressed a focus on operational efficiency and innovation. The leadership outlook remains cautious, with Smith noting that near-term profitability hinges on disciplined execution.

Guidance

Datasea did not provide quantitative guidance for future periods, reiterating commitments to R&D and cost management. Qualitative goals include “sustainable growth” and “enhanced client retention,” with no specific revenue or EPS targets outlined.

Additional News

In recent weeks, Datasea secured a landmark 12-month acoustic smart health shoes contract, generating up to $980,000 in technology service fees. The company also announced a breakthrough in acoustic technology for healthcare, targeting a $100 billion market opportunity. Additionally, Datasea expanded its 5G+AI multimodal digital services with $100 million in contracts from major clients, reinforcing its strategic pivot toward high-margin solutions.