TEN Holdings Reports 34.5% Revenue Decline in Q2 2026, Net Loss Increases

TEN Holdings, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenue of $731,000, down 34.5% from $1.1 million in the same period last year. For the first half of 2026, revenue totaled $1.6 million, a decrease of 14.6% compared to $1.9 million in the first half of 2025. The company attributed this decline primarily to reduced revenue from one of its largest customers and a shift of several opportunities to the third quarter. The gross profit for the second quarter was $627,000, reflecting a decrease of 33.4% year-over-year.

Operating expenses increased significantly, with selling, general, and administrative expenses rising to $3.6 million in the second quarter, a 67.6% increase from $2.2 million in the prior year. This increase was largely due to higher professional fees. The company reported a net loss of $2.99 million for the second quarter, compared to a net loss of $2.78 million in the same quarter of 2025. For the first half of 2026, the net loss was $5.89 million, an improvement from a loss of $7.62 million in the first half of 2025.

In terms of strategic developments, TEN Holdings completed a registered direct offering of 7.5 million shares at $1.00 per share on June 30, 2026, generating net proceeds of approximately $6.64 million. This capital infusion is expected to support the company's operations and growth initiatives. The company also incorporated a new subsidiary, Apexmind Solutions Inc., in May 2026, although it has not yet commenced substantive operations.

Operationally, TEN Holdings reported a significant increase in cash and cash equivalents, which rose to $5.83 million as of June 30, 2026, compared to $1.63 million at the end of 2025. The company’s total assets decreased to $9.47 million from $11.97 million, primarily due to a reduction in current liabilities, which fell to $3.07 million from $7.27 million. The company’s employee headcount and customer engagement metrics were not disclosed in the filing.

Looking ahead, TEN Holdings faces challenges in maintaining its operations due to ongoing losses and negative cash flows. The company emphasized the need to attract and retain revenue-generating customers, secure additional financing, and implement cost control measures to ensure its viability as a going concern. Management is actively exploring various financing options, although there is no guarantee that such financing will be available on favorable terms.