LANGHORNE, PA — TEN Holdings, Inc. (Nasdaq: XHLD) has announced its financial results for the first quarter ending March 31, 2025, alongside updates on its strategic initiatives aimed at fostering growth and innovation.
The company reported total revenue of $739,000 for Q1 2025, reflecting a 34.5% decline from $1,128,000 in the same period last year. This decrease was attributed to reduced revenues in the Virtual and Hybrid events segment, which saw a $368,000 drop due to a major client event that occurs biennially, and a $21,000 decline in Physical events revenue caused by fewer repeat customer events. Despite these challenges, gross profit margin held steady at 74.8%, compared to 74.9% in Q1 2024.
TEN Holdings’ net loss for Q1 2025 widened to $4,836,000, or $(0.18) per share, compared to a net loss of $405,000, or $(0.02) per share, in Q1 2024. This increase was primarily driven by a significant rise in selling, general, and administrative (SG&A) expenses, which soared to $5,166,000. The rise was largely due to stock compensation expenses tied to the company’s IPO, increased payroll costs, and marketing investments.
“Our focus during the first quarter was on building a foundation for future growth,” said Randy Jones, CEO of TEN Holdings. “We believe our efforts to enhance our infrastructure, invest in digital marketing, and expand our sales force will position us to achieve key strategic objectives.”
The company outlined its vision to strengthen its platform-as-a-service (PaaS) model, particularly through innovations in its proprietary Xyvid Pro Platform. Planned upgrades include the addition of interactive features, advanced data analytics, and conversational AI to boost user engagement and scalability.
Further strategic priorities include exploring partnerships, acquisitions, and investments in complementary businesses to enhance overall competitiveness. “These steps will enable us to deliver margin expansion, customer growth, and predictable cash flows, all driving sustainable revenue growth,” Jones explained.
Looking ahead, TEN Holdings plans to continue realigning its sales strategies and increasing its focus on recurring revenue streams. The company also intends to actively seek opportunities to acquire businesses that provide strategic advantages in the competitive digital events market.
Despite its challenges, TEN Holdings remains committed to its mission of strengthening its offerings and driving long-term value for stakeholders through strategic innovation and investment.
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