TEN Holdings Reports 15.4% Revenue Growth but $2.9 Million Net Loss in Q1 2026

TEN Holdings, Inc. reported its financial results for the first quarter of 2026, revealing a total revenue of $853,000, a 15.4% increase from $739,000 in the same period last year. The growth was primarily attributed to a significant increase in revenue from one of its major clients, which saw a 100% rise quarter-over-quarter. Despite the revenue increase, the company recorded a net loss of $2.9 million, an improvement from the $4.8 million loss reported in the first quarter of 2025. The loss per share for the quarter was $0.73, compared to $2.68 in the prior year.

The company's cost of revenue also increased, rising by 65.1% to $307,000, driven by expenses related to a major event that occurred during the quarter. Operating expenses decreased significantly, down 36.2% to $3.4 million, largely due to reduced headcount costs and lower stock-based compensation expenses. This reduction in operating expenses contributed to a loss from operations of $2.8 million, compared to a loss of $4.8 million in the previous year.

In terms of operational metrics, TEN Holdings reported a total of 3,977,443 shares of common stock outstanding as of March 31, 2026, following a reverse stock split that took effect in December 2025. The company’s cash and cash equivalents decreased to $79,000 from $1.6 million at the end of 2025, raising concerns about its liquidity. The accumulated deficit as of March 31, 2026, stood at $24.3 million, highlighting ongoing financial challenges.

Strategically, TEN Holdings has entered into a Corporate Support and Funding Agreement with V-Cube, Inc., its largest stockholder, which commits to providing $5.4 million in financial support throughout 2026. This funding is crucial for the company as it seeks to stabilize its operations and pursue new customer contracts. Management is also exploring additional financing options to enhance liquidity and support growth initiatives.

Looking ahead, TEN Holdings aims to continue expanding its customer base and enhancing its service offerings in the virtual and hybrid event space. However, the company acknowledges that its ability to sustain operations is contingent upon securing new contracts and financial support, as well as implementing effective cost control measures. The management's outlook remains cautious, given the current financial landscape and the need for additional liquidity to meet upcoming obligations.