Datasea(US:DTSS) Prnewswire·2026-01-21 14:30Core Insights - Datasea Inc. reported a significant increase in gross profit and gross margin for the second quarter of fiscal year 2026, with gross profit rising by 278% year-over-year and gross margin expanding to 8.7% [4][7]. Financial Performance - Revenue for the six months ended December 31, 2025, is expected to be approximately $26.68 million [7]. - Gross profit is anticipated to be around $2.32 million, marking a 278% increase compared to the same period in fiscal year 2025 [7]. - Gross margin is projected to be approximately 8.70%, a notable improvement from 1.48% in the prior-year period [7]. Strategic and Operational Review - The company is transitioning towards profitability optimization and technology-driven value creation, moving away from a revenue scale-focused growth model [3]. - Key initiatives contributing to the improvement in gross profit and margin include a reduction in low-margin services, an increased focus on high-margin customized solutions, and enhanced cost controls [8]. Management Commentary - The CEO highlighted that the period ended December 31, 2025, represents a milestone in the company's strategic transformation, emphasizing the effectiveness of the shift towards high-value, technology-driven businesses [4][5]. Technology and Innovation - Datasea is advancing its core acoustic technologies and exploring applications in health management and intelligent devices, including non-invasive acoustic modulation and related health robot solutions [6]. - The company aims to deepen the application of high-margin 5G+AI multimodal digital solutions and increase the contribution of technology-oriented offerings within its business mix [5].