Revenue growth remains highly unstable with a 36.5% decline in 2026Q2, while gross margins have failed to exceed 9.2% in any recent quarter due to a reliance on low-margin hardware.
| Sales/Revenue | 56.89M | 71.62M | 23.98M | 3.64M | 17.08M | 175.14K | 1.41M | 0 | 10.57K | 140.77K | 0 | 0 |
| Revenue Growth % | 20.31% | 198.7% | 558.55% | -78.69% | 9652.83% | -87.62% | - | -100% | -92.49% | - | - | - |
| Cost of Goods Sold | 52.7M | 69.17M | 23.5M | 3.51M | 16.13M | 81.14K | 146.38K | 36.31K | 4.82K | 85.4K | 29.82K | 0 |
| COGS % of Revenue | - | 96.59% | 98.02% | 96.28% | 94.41% | 46.33% | 10.35% | - | 45.59% | 60.66% | - | - |
| Gross Profit | 4.19M | 2.44M | 474.11K | 135.48K | 955.67K | 94K | 1.27M | -36.31K | 5.75K | 55.38K | -29.82K | 0 |
| Gross Margin % | 7.37% | 3.41% | 1.98% | 3.72% | 5.59% | 53.67% | 89.65% | - | 54.41% | 39.34% | - | - |
| Gross Profit Growth % | - | 415.49% | 249.94% | -85.82% | 916.64% | -92.59% | 3593.64% | -731.19% | -89.61% | 285.67% | - | - |
| Operating Expenses | 6.88M | 7.6M | 12.6M | 8.32M | 8.19M | 4.96M | 3.17M | 1.5M | 1.67M | 1.31M | 1.12M | 486.58K |
| OpEx % of Revenue | - | 10.61% | 52.55% | 228.52% | 47.97% | 2829.36% | 224.31% | - | 15771.25% | 929.84% | - | - |
| Selling, General & Admin | 4.9M | 6.68M | 12.24M | 7.75M | 6.93M | 4.1M | 2.06M | 1.33M | 1.31M | 1.11M | 1.12M | 486.58K |
| SG&A % of Revenue | - | 9.33% | 51.05% | 212.87% | 40.59% | 2342.98% | 145.53% | - | 12350.42% | 785.21% | - | - |
| Research & Development | 1.98M | 915K | 359.34K | 569.63K | 1.26M | 851.84K | 1.11M | 168.25K | 361.62K | 203.6K | 73.08K | 0 |
| R&D % of Revenue | - | 1.28% | 1.5% | 15.65% | 7.38% | 486.38% | 78.77% | - | 3420.83% | 144.63% | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.73K | 0 | 0 | 0 | 0 |
| Operating Income | -2.69M | -5.15M | -12.13M | -8.18M | -7.24M | -4.86M | -1.91M | -1.5M | -1.66M | -1.25M | -1.12M | -486.58K |
| Operating Margin % | -4.73% | -7.2% | -50.57% | -224.8% | -42.37% | -2775.69% | -134.65% | - | -15716.84% | -890.5% | - | - |
| Operating Income Growth % | - | 57.49% | -48.16% | -13.08% | -48.88% | -155.18% | -27.06% | 9.76% | -32.53% | -11.7% | -130.65% | - |
| EBITDA | -829.75K | -4.02M | -11.63M | -7.48M | -6.66M | -4.66M | -1.79M | -1.46M | -1.63M | -1.2M | -1.09M | -481.85K |
| EBITDA Margin % | -1.46% | -5.61% | -48.51% | -205.53% | -38.99% | -2661.93% | -126.86% | - | -15407.56% | -854.91% | - | - |
| EBITDA Growth % | 93.16% | 65.48% | -55.44% | -12.36% | -42.84% | -159.76% | -22.67% | 10.18% | -35.33% | -10.16% | -126.73% | - |
| D&A (Non-Cash Add-back) | 1.86M | 1.14M | 494.48K | 701.43K | 577.82K | 199.23K | 110.32K | 36.31K | 32.69K | 50.1K | 29.82K | 4.72K |
| EBIT | -2.69M | -5.15M | -12.13M | -8.18M | -7.24M | -4.86M | -1.91M | -1.5M | -1.66M | -1.25M | -1.12M | -486.58K |
| Net Interest Income | 162 | 5.02K | 1.98K | 148 | 50.5K | 2.52K | 49.45K | 0 | -274 | 1.01K | 0 | 0 |
| Interest Income | 162 | 5.02K | 1.98K | 148 | 50.5K | 2.52K | 49.45K | 75.86K | 0 | 1.01K | 198 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 75.86K | 274 | 0 | 0 | 0 |
| Other Income/Expense | -29.96K | 75.19K | -95.92K | -24.38K | 125.57K | -23.03K | 46.96K | 74.13K | 57.29K | 60.37K | -2.54K | 0 |
| Pretax Income | -2.72M | -5.08M | -12.22M | -8.21M | -7.11M | -4.88M | -1.86M | -1.43M | -1.6M | -1.19M | -1.12M | -486.58K |
| Pretax Margin % | -4.78% | -7.09% | -50.97% | -225.47% | -41.64% | -2788.84% | -131.33% | - | -15174.92% | -847.61% | - | - |
| Income Tax | 6.6K | 6.6K | 0 | 0 | 0 | 0 | 5.16K | 0 | 0 | 0 | 2.54K | 0 |
| Effective Tax Rate % | -0.24% | -0.13% | 0% | 0% | 0% | 0% | -0.28% | 0% | 0% | 0% | -0.23% | 0% |
| Net Income | -2.73M | -5.09M | -11.38M | -9.48M | -6.52M | -4.65M | -1.86M | -1.43M | -1.6M | -1.19M | -1.12M | -486.58K |
| Net Margin % | -4.79% | -7.1% | -47.45% | -260.38% | -38.18% | -2654.18% | -131.7% | - | -15174.92% | -847.61% | - | - |
| Net Income Growth % | 78.39% | 55.3% | -20.02% | -45.36% | -40.3% | -149.48% | -30.74% | 11.16% | -34.44% | -6.08% | -131.18% | - |
| Net Income (Continuing) | -2.73M | -5.09M | -12.22M | -8.21M | -7.11M | -4.88M | -1.86M | -1.43M | -1.6M | -1.19M | -1.12M | -486.58K |
| Discontinued Operations | 0 | 0 | 833.55K | -1.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -10.24K | -10.01K | -71.53K | -60.85K | -854.27K | -241.94K | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.30 | -0.77 | -4.38 | -5.70 | -4.08 | -3.28 | -1.33 | -1.06 | -1.26 | -0.96 | -1.16 | -1.09 |
| EPS Growth % | 90.77% | 82.42% | 23.16% | -39.71% | -24.39% | -146.62% | -25.47% | 15.87% | -31.25% | 17.24% | -6.42% | - |
| EPS (Basic) | - | -0.77 | -4.38 | -5.70 | -4.08 | -3.28 | -1.33 | -1.06 | -1.26 | -0.96 | -1.16 | -1.09 |
| Diluted Shares Outstanding | 9.15M | 6.61M | 2.6M | 1.66M | 1.6M | 1.42M | 1.4M | 1.34M | 1.28M | 1.24M | 969.56K | 444.44K |
| Basic Shares Outstanding | 9.15M | 6.61M | 2.6M | 1.66M | 1.6M | 1.42M | 1.4M | 1.34M | 1.28M | 1.24M | 969.56K | 444.44K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and Margin Sustainability
As reported in recent financial filings, Datasea Inc. experienced significant quarterly revenue fluctuations, with growth rates swinging from a 36.5% decline in 2026Q2 to an 85.3% surge in 2024Q2, highlighting the inherent instability of its project-based revenue model within the Chinese municipal infrastructure market.
The erratic top-line performance suggests that the company's revenue is heavily dependent on the timing of specific, non-recurring government contracts rather than a predictable, recurring software subscription base. Investors should monitor whether this volatility reflects genuine market demand or merely the lumpy nature of project-based accounting in the smart security and 5G messaging sectors.
Based on the company's reported income statements, gross margins have remained consistently thin, bottoming out at 0.7% in 2024Q3 and failing to exceed 9.2% in any recent quarter, which indicates a lack of pricing power and a high reliance on low-margin third-party hardware components.
The inability to expand gross margins despite revenue scaling suggests that the company is functioning more as a low-value-add integrator than a proprietary software developer. This cost structure leaves virtually no room for operational errors or supply chain disruptions, making the business highly sensitive to even minor increases in input costs.
According to the provided income statement data, Datasea Inc. has failed to achieve positive operating income in any of the last ten quarters, with operating margins reaching as low as -123.1% in 2024Q4, demonstrating a clear inability to scale overhead costs efficiently against gross profit generation.
The persistent negative operating income indicates that SG&A expenses are consistently outpacing the meager gross profits generated by the company's business segments. This trend suggests that the current business model may be fundamentally unscalable without a significant pivot toward higher-margin software offerings that do not require proportional increases in operating expenditures.
As evidenced by the historical income statements, the company frequently utilizes stock-based compensation, including a notable $3.9 million charge in 2024Q4, which significantly obscures the underlying cash-based operational performance and complicates the assessment of true economic profitability for shareholders.
The reliance on stock-based compensation to manage operating expenses may mask the severity of the company's cash burn and operational inefficiencies. Analysts should scrutinize the impact of these non-cash charges on the reported net loss, as they may be inflating the perceived cost-efficiency of the management team.
Based on the reported figures, the company's cash position of approximately $620,807 against substantial quarterly revenue suggests a precarious liquidity profile that warrants further investigation into the company's ability to sustain operations without recurring to dilutive equity financing or external debt.
The disconnect between the scale of revenue and the minimal cash on hand raises significant concerns regarding the quality of receivables and the company's actual cash collection cycle. Short-term investors should monitor the aging of trade receivables, as any delay in payments from municipal clients could lead to an immediate liquidity crisis.
Quick answers to the most common questions about buying DTSS stock.
For fiscal year 2025, Datasea Inc. (DTSS) reported total revenue of $71.6M.
Datasea Inc. (DTSS) reported a net loss of $5.1M for the fiscal year ending 2025.
Datasea Inc. (DTSS) reported an operating income of $-5.2M, resulting in an operating profit margin of -7.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Datasea Inc. (DTSS) generated $2.4M in gross profit for the year, representing a gross profit margin of 3.4%. This demonstrates the company's core pricing power and production efficiency.