Beijing – October 05, 2026 -- Datasea Intelligent Technology Ltd. (Nasdaq: DTSS) narrowed its net loss by 57.0% to approximately $2.19 million in fiscal year 2026, as operating cash flow turned positive at approximately $1.98 million, the company reported for the year ended June 30, 2026.
Revenue fell 43.17% to $40.70 million as Datasea cut lower-margin digital services
Revenue declined to approximately $40.70 million from $71.62 million in fiscal 2025, a drop the company attributed to a deliberate reduction of standardized, lower-margin AI multimodal and traffic-related services under a business-mix optimization strategy.
Gross profit rose 70.09% despite the revenue decline, lifting margin to 10.21%
Gross profit increased to approximately $4.16 million from $2.44 million, while gross margin expanded to 10.21% from 3.41%, an improvement of roughly 6.8 percentage points. Cost of revenues fell 47.2% year-over-year, outpacing the 43.17% revenue decline.
Operating expenses dropped 15.0% while R&D spending jumped 180.3%
Total operating expenses fell to $6.46 million from $7.60 million, with selling expenses down 38.5% and general and administrative expenses down 43.1%. Research and development spending rose to $2.57 million from $0.91 million, directed toward acoustic intelligence, the NeuroVibe platform, biofeedback and brain-computer-interface technologies, acoustic signal enhancement, and AI multimodal and AI-agent capabilities.
Operating loss narrowed 55.3% and cash flow swung $4.35 million year-over-year
Operating loss narrowed to approximately $2.30 million from $5.15 million. Net cash provided by operating activities reached $1.98 million, compared with net cash used of $2.37 million in fiscal 2025 — a year-over-year swing of approximately $4.35 million.
Nasdaq grants Datasea a further 180 days to meet minimum bid price rule
Datasea also received an additional 180-calendar-day compliance period from Nasdaq to regain adherence to the minimum bid price requirement, extending the deadline to March 22, 2027 under Nasdaq Listing Rule 5550(a)(2).
CEO Zhixin Liu said the company's cost of revenues declined faster than revenue, and that reduced selling and administrative spending alongside higher R&D investment reflected a shift in capital allocation toward technologies the company believes can support long-term growth.
Datasea said it will continue advancing its two platforms — acoustic intelligence, including healthcare and medical applications under the NeuroVibe brand, and AI multimodal and AI-agent solutions aimed at enterprise customer operations, marketing and data analysis.