LANGHORNE, PA — TEN Holdings (Nasdaq: XHLD) reported higher first-quarter revenue and a narrower net loss as cost-cutting efforts offset margin pressure and continued cash burn at the event production and broadcasting company.
Revenue rose 15.4% to $853,000 for the quarter ended March 31, driven largely by increased business from one major customer, while the company’s net loss narrowed 37.6% to $3.0 million, or $0.76 per share, from $4.8 million, or $2.68 per share, a year earlier.
The results indicate progress in reducing operating losses, though the company continues to face profitability challenges and ended the quarter with significantly lower cash reserves than a year ago.
Virtual and hybrid event revenue increased approximately 11%, while physical event revenue rose 139%, reflecting higher-value in-person projects during the quarter.
Cost of revenue climbed 65.1% to $307,000, contributing to a decline in gross margin to 64.0% from 74.8% a year earlier. The company attributed the margin pressure to a labor-intensive customer event that occurred during the quarter.
Selling, general and administrative expenses fell 34.6% to $3.4 million, primarily due to lower staffing costs.
Chief Executive Officer Virgilio Torres said the company’s operational changes implemented during 2025 contributed to both revenue growth and expense reductions.
“Our 37.6% reduction of our quarterly net loss is a direct result of these improved operations, which allowed us to slash SG&A expenses by nearly a third over first quarter of 2025,” Torres said.
Cash totaled approximately $79,000 as of March 31, down from $1.6 million a year earlier.
Net cash used in operating activities improved to $1.1 million from $6.8 million in the prior-year period, largely because first-quarter 2025 results included expenses associated with the company’s initial public offering.
Interest expense increased 11.6% to $61,000 due to outstanding borrowings.
During the quarter, TEN Holdings completed a SOC 2 examination covering its broadcast media production and distribution systems, a certification commonly used by enterprise customers to assess operational controls and security standards.
The company said it plans to focus on expanding its software platform, Ten Events Pro, growing sales and marketing efforts, increasing utilization of its partnership with Webinar.net, and raising additional capital to support future investments, partnerships, and acquisitions.
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