Beijing, October 5, 2026 / PRNewswire / -- Datasea Intelligent Technology Ltd, a technology company focused on acoustic intelligence and AI-driven multimodal and agent digital solutions. (Nasdaq ticker: DTSS; hereinafter referred to as “Datasea” or “the Company”), today announced its financial results for the fiscal year ending June 30, 2026. More details will be included in the Company’s 20-F annual report filed with the U.S. Securities and Exchange Commission.

Financial Highlights for the Fiscal Year 2026

• Revenue: Approximately $40.7 million, a decrease of 43.17% compared to approximately $71.62 million in the fiscal year 2025. The company stated that the decline mainly reflects its intention to reduce certain standardized, low-margin AI multimodal, transportation-related, and other digital service businesses in order to optimize the business structure.
• Gross profit: Approximately $4.16 million, an increase of 70.09% compared to approximately $2.44 million in the fiscal year 2025, despite a decline in overall revenue.
• Gross margin: Increased from 3.41% in the fiscal year 2025 to 10.21%, an increase of about 6.8 percentage points. The company stated that this mainly reflects a decrease in the proportion of low-gross-margin standardized services, as well as a relative increase in the contribution of customized solutions, acoustic-related products and services, and other businesses.
• Operating costs decreased by approximately 47.2% year-on-year, a faster decline than the 43.17% decrease in revenue, which led to a significant improvement in gross profit and gross margin.
• Operating expenses: Decreased by approximately 15.0% year-on-year to $6.46 million, and are expected to be around $7.6 million for the fiscal year 2025. Among them, selling expenses decreased by about 38.5%, and general and administrative expenses decreased by about 43.1%.
• R&D: Increased by approximately 180.3% year-on-year to $2.57 million, and is expected to be around $910,000 in the fiscal year 2025, reflecting the company's continuous investment in acoustic intelligence, NeuroVibe, biofeedback and brain-computer interface-related technologies, acoustic signal enhancement, product engineering, AI multimodal perception, and AI intelligent agent technologies.
• Operating loss: Narrowed to approximately $2.3 million, and for the fiscal year 2025 it is expected to be around $5.15 million, representing an improvement of about 55.3%.
• Net loss attributable to the company: narrowed to approximately $2.19 million, and for the fiscal year 2025 it is about $5.09 million, representing an improvement of approximately 57.0%.
• Operating cash flow: The net cash inflow from operating activities was approximately $1.98 million, while in the fiscal year 2025, the net cash outflow from operating activities was about $2.37 million, representing an improvement of approximately $4.35 million year-over-year.

Management Commentary

Datasea CEO Liu Zhixin stated:

The fiscal year 2026 is an important year in the evolution of Datasea's business model. Revenue reported in that year declined. However, we believe that looking solely at revenue does not fully reflect the progress in the underlying quality of the business. Operating costs decreased more rapidly than revenue, with gross profit growing by about 70%, and the gross margin also increased from 3.41% to 10.21%. These results reflect the financial impact of our efforts to improve the business structure, focus more on profitability, and create sustainable value.

"We also continued to improve operational efficiency. Sales expenses, as well as general and administrative expenses, decreased significantly, while R&D expenditures increased by about 180%. This reflects an important shift in our allocation of capital and operational resources: reducing inefficient expenditures while continuing to actively invest in technologies and products that we believe can support the long-term growth of Datasea."

More importantly, these changes have led to a significant improvement in our bottom line. Operating losses have narrowed by approximately 55%, and net losses have decreased by around 57%. Moreover, we have achieved positive operating cash flow this fiscal year. Although we have not yet turned a profit, we believe that the substantial reduction in losses, combined with higher gross margins and improved operating cash flow, represents an important step towards a more balanced and sustainable profit model.

The company has also recently been granted an additional 180 calendar days of compliance period from NASDAQ to meet the minimum purchase price requirement again by March 22, 2027. This additional compliance period provides the company with more time to comply with NASDAQ Listing Rule 5550(a)(2).

Technical Investment and Future Growth

Datasea has not made across-the-board cuts to its investments due to declining revenue; instead, it has continued to increase the resources allocated to core technology development.

R&D expenses for the fiscal year 2026 were approximately $2.57 million, compared to about $910,000 for the fiscal year 2025.

In that year, the company's R&D activities were mainly focused on acoustic intelligence, NeuroVibe and related biofeedback and brain-computer interface technologies, acoustic signal enhancement, product engineering, AI multimodal perception, as well as AI intelligent agent technologies and platform capabilities.

Datasea believes that this resource allocation supports its long-term strategy, which is to shift from scale-driven digital services to a product portfolio that is more technically differentiated, has stronger product capabilities, and holds greater potential for added value.

Business Outlook

Looking to the future, Datasea plans to continue to pursue disciplined growth around two core technology platforms:

• Acoustic Intelligence:Continue to advance the product development, engineering, regulatory progress, and commercialization of acoustic medical and acoustic health applications, including the NeuroVibe platform, while also expanding the potential application of the company's acoustic technology in more medical and industrial scenarios.
• AI Multimodal and AI Intelligent Agent Solutions:Continue to transform towards higher-value customized digital solutions and AI intelligent services to support the operations, marketing execution, customer interaction, data analysis, and other regular business processes of corporate clients.

The company believes that the fiscal year 2026 is an important stage in its transformation towards a more technology-driven business model with higher gross margins and greater operational efficiency. The speed and ultimate success of this transformation will depend on customer adoption, commercialization progress, operating costs, market conditions, as well as the company's ability to convert the technologies and products it is developing into sustainable revenue and cash flow.

Regarding Datasea Intelligent Technology Ltd.

Datasea Intelligent Technology Ltd (Nasdaq ticker: DTSS) is a technology company focused on acoustic intelligence and AI-powered multimodal and agent digital solutions.

The company is developing and commercializing acoustic technologies for healthcare, medical, and other application scenarios, while also continuing to advance AI multimodal technologies and AI intelligent agent solutions aimed at supporting enterprise digital operations and customer service applications.

By continuously investing in technology development, product engineering, and commercialization, Datasea aims to create scalable technical platforms and higher-value products and services for customers in China, the United States, and other markets.

For more information, please visit www.dataseainc.com.

Warning Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to the commercialization progress of the company's products in target markets, compliance with regulatory obligations, market validation results, product iteration plans, channel expansion, application extension, and future business prospects. Actual results may differ significantly from those explicitly or implicitly stated in these forward-looking statements. Investors should not rely excessively on these statements. For more information regarding risks and uncertainties, please refer to the documents submitted by the company to the U.S. Securities and Exchange Commission. Except as required by applicable laws, the company assumes no obligation to update any forward-looking statements.

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