LANGHORNE, PA — TEN Holdings, Inc. (Nasdaq: XHLD) posted a 34.5% decline in second-quarter revenue and a wider $3 million net loss as lower business from a major customer and higher public-company costs weighed on results, while a $7.5 million stock offering increased liquidity for technology investments and potential acquisitions.
Revenue fell to $731,000 for the three months ended June 30 from about $1.1 million a year earlier, according to the event-technology company. Management attributed the decline to reduced revenue from one of its largest customers and business opportunities that shifted into the third quarter.
Platform usage revenue dropped 45.1% to $469,000, accounting for substantially all of the year-over-year revenue decline. Professional and managed-services revenue was essentially unchanged at $262,000.
TEN Holdings operates through its Ten Events subsidiary, which provides technology and managed services for virtual, hybrid and webinar events.
Cost of revenue declined 40.6% to $104,000 as revenue fell. Gross margin increased to 85.8% from 84.3% a year earlier.
Selling, general and administrative expenses, however, climbed 67.6% to $3.6 million, driven primarily by professional fees associated with compliance, auditing and advisory work following the company’s February 2025 initial public offering.
Those expenses are largely fixed against TEN Holdings’ relatively small revenue base, increasing the effect that quarterly revenue fluctuations can have on operating results, according to the company.
The quarterly net loss widened to $3 million from $2.8 million a year earlier. On a per-share basis, the loss narrowed to 70 cents from $1.95 as the weighted average share count increased to about 4.28 million from 1.43 million.
The higher net loss primarily reflected increased SG&A expenses, partially offset by the absence of a $1.4 million nonoperating settlement charge recorded in the second quarter of 2025.
Interest expense declined 65% to $28,000 because of a lower outstanding short-term loan balance.
TEN Holdings completed an offering of 7.5 million common shares at $1 each on June 30, generating approximately $7.5 million in gross proceeds before placement-agent fees and other offering costs.
The financing lifted cash to approximately $5.8 million at quarter-end, compared with $1.6 million at Dec. 31 and $700,000 at June 30, 2025.
Net cash used in operating activities declined to $2.7 million during the first half of 2026 from $7.6 million a year earlier, primarily because of a lower net loss and reduced advances to a related party.
The company used no cash for investing activities during the six-month period, compared with $500,000 a year earlier, reflecting the absence of capitalized software purchases.
Financing activities provided $7 million during the first half, down from $8.8 million in the comparable 2025 period.
Chairman, Chief Executive Officer and Chief Financial Officer Virgilio Torres characterized the revenue decline as a timing issue rather than a deterioration in demand, with several expected second-quarter opportunities moving into the third quarter.
“A number of opportunities we expected to close during the quarter shifted into the third quarter of 2026, and we expect the related revenue to be recognized as those events are delivered,” Torres stated.
TEN Holdings plans to use capital from the offering to bolster working capital, accelerate product development and build artificial intelligence capabilities, including analytics, automated captioning and intent-data tools.
The company is also pursuing acquisitions intended to expand its technology capabilities, recurring revenue and customer base, with its current consolidation strategy targeting transactions by December.
TEN Holdings additionally plans to expand its partnership with Webinar.net and expects to recognize revenue in the third quarter from customer opportunities that were delayed from the second quarter.
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