Core Insights - Datasea Inc. reported significant growth in gross profit and gross margin, with gross profit increasing by 284.4% year-over-year to $2.36 million and gross margin rising to 8.8% from 1.5% in the same period last year, driven by a shift towards high-margin 5G+AI multimodal solutions [1] - Revenue for the six months ended December 31, 2025, was approximately $26.81 million, a decrease of 35.46% compared to $41.54 million in the same period last year, attributed to the company's strategic plan to reduce low-margin services [1] Financial Performance - Gross Profit: $2.36 million, up from $0.61 million year-over-year, reflecting a $1.75 million increase [1] - Gross Margin: 8.8%, an increase of 730 basis points from the previous year [1] - Revenue: Approximately $26.81 million, down $14.73 million or 35.46% from the same period last year [1] Management Commentary - The CEO emphasized a strategic shift from top-line growth to higher-quality revenue and improved profitability, highlighting the effectiveness of the company's focus on technology-driven, higher-value business lines [1] - The company aims to enhance its 5G+AI multimodal digitalization business with a focus on customized solutions and a selective customer mix [1] Operational Highlights - The 5G+AI multimodal digital business was the primary revenue contributor, with an emphasis on high-margin, customized AI solutions [1] - The acoustic high-tech segment is evolving towards integrated development, with ongoing R&D in areas such as acoustic medicine and brain-computer interface technologies [1] Business Outlook - Datasea plans to accelerate R&D in acoustic technologies and enhance its AI multimodal platform, aiming for stable and recurring cash flows [1] - The company is focused on building long-term, platform-based acoustic technology capabilities and exploring scalable service models [1]
Datasea Reports Second Fiscal Quarter 2026 Results