Revenue contracted by 36.4% in 2026Q1 to $519.2K, while the company struggled to maintain profitability with an operating margin of -172.3%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 3.07M | 3.37M | 3.68M | 3.1M | 1.9M | 0 | 7.15M | 4.52M | 106.98K | 93.47K | 278.92K | 111.61K | 32.47K | 1.94B | 1.77B | 1.42B | 1.82B | 5.83B | 5.65B | 2.37B | 2.54B | 1.98B |
| Revenue Growth % | -14.88% | -8.41% | 18.69% | 63.1% | - | -100% | 58.23% | 4122.72% | 14.45% | -66.49% | 149.91% | 243.73% | -100% | 9.79% | 24.65% | -22.02% | -68.81% | 3.11% | 138.4% | -6.83% | 28.39% | - |
| Cost of Goods Sold | 1.3M | 1.45M | 1.62M | 1.44M | 1.86M | 0 | 7.6M | 2.78M | 32.01K | 0 | 482.01K | 482.01K | 482.01K | 0 | 0 | 0 | 0 | 3.84B | 3.79B | 1.4B | 842.72M | 485.42M |
| COGS % of Revenue | - | 43.03% | 43.98% | 46.43% | 98.16% | - | 106.33% | 61.52% | 29.92% | - | 172.81% | 431.87% | 1484.49% | - | - | - | - | 65.86% | 67.11% | 59.28% | 33.13% | 24.5% |
| Gross Profit | 1.77M | 1.92M | 2.06M | 1.66M | 34.97K | 0 | -452.2K | 1.74M | 74.97K | 93.47K | -203.09K | -370.4K | -449.54K | 1.94B | 1.77B | 1.42B | 1.82B | 1.99B | 1.86B | 964.89M | 1.7B | 1.5B |
| Gross Margin % | 57.77% | 56.97% | 56.02% | 53.57% | 1.84% | - | -6.33% | 38.48% | 70.08% | 100% | -72.81% | -331.87% | -1384.49% | 100% | 100% | 100% | 100% | 34.14% | 32.89% | 40.72% | 66.87% | 75.5% |
| Gross Profit Growth % | - | -6.87% | 24.13% | 4643.65% | - | 100% | -126.01% | 2218.92% | -19.8% | 146.03% | 45.17% | 17.6% | -100.02% | 9.79% | 24.65% | -22.02% | -8.65% | 7.02% | 92.6% | -43.27% | 13.71% | - |
| Operating Expenses | 5.96M | 5.51M | 2.89M | 2.08M | 2.35M | 189.24K | 3.33M | 2M | 2.17M | 1.38M | 1.97M | 906.18K | 1.09M | 2.73B | 1.86B | 2.09B | 3.01B | 7.14B | 3B | 2.63B | 2.37B | 1.43B |
| OpEx % of Revenue | - | 163.66% | 78.71% | 67.29% | 123.99% | - | 46.63% | 44.24% | 2026.55% | 1473.68% | 706.24% | 811.92% | 3350.59% | 140.72% | 105.59% | 147.81% | 165.76% | 122.63% | 53.06% | 111.11% | 93.09% | 72.13% |
| Selling, General & Admin | 5.9M | 5.45M | 2.85M | 2.06M | 2.21M | 189.24K | 926.66K | 526.91K | 271.28B | 256.3M | 231.4M | 356.65M | 212.65M | 296.49M | 230.85M | 257.27M | 357.87M | 518.96M | 553.49M | 448.65M | 423.18M | 421.16M |
| SG&A % of Revenue | - | 162.04% | 77.64% | 66.43% | 116.19% | - | 12.96% | 11.66% | 99999900% | 274194.17% | 82963.99% | 319547.53% | 654909.15% | 15.29% | 13.07% | 18.16% | 19.7% | 8.91% | 9.8% | 18.93% | 16.64% | 21.26% |
| Research & Development | 62.69K | 54.46K | 39.25K | 26.73K | 148.15K | 0 | 0 | 1.01M | 948.33K | 833.2K | 1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.62% | 1.07% | 0.86% | 7.8% | - | - | 22.45% | 886.48% | 891.36% | 386.36% | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 2.41M | 457.63K | -271.28B | -255.76M | -230.51M | -355.74M | -211.56M | 2.43B | 1.63B | 1.84B | 2.65B | 6.62B | 2.44B | 2.18B | 1.94B | 1.01B |
| Operating Income | -4.19M | -3.59M | -833.83K | -425.02K | -2.32M | -189.24K | 14.87K | -15.5M | -2.68M | -1.77M | -3.16M | -2.97M | 5.06M | -789.53M | -47.24M | -692.71M | -924.26M | -1.2B | -1.16B | -1.43B | -667.09M | 123.01M |
| Operating Margin % | -136.52% | -106.69% | -22.69% | -13.72% | -122.15% | - | 0.21% | -343.22% | -2507.39% | -1896.46% | -1131.15% | -2656.75% | 15593.1% | -40.72% | -2.68% | -48.9% | -50.87% | -20.65% | -20.48% | -60.44% | -26.23% | 6.21% |
| Operating Income Growth % | - | -330.74% | -96.18% | 81.67% | -1125.56% | -1372.71% | 100.1% | -478.02% | -51.31% | 43.81% | -6.4% | -158.57% | 100.64% | -1571.21% | 93.18% | 25.05% | 23.18% | -4.01% | 19.24% | -114.71% | -642.32% | - |
| EBITDA | -3.43M | -2.93M | -485.48K | -114.97K | -2.26M | 6.38M | 564.64M | -14.96M | -2.68M | -1.77M | -2.67M | -2.48M | 5.55M | -784.84M | -42.49M | -684.93M | -889.02M | -1.13B | -1.1B | -1.37B | -667.09M | 168.95M |
| EBITDA Margin % | -111.6% | -87.14% | -13.21% | -3.71% | -119.03% | - | 7899.28% | -331.13% | -2502.14% | -1892.1% | -957.05% | -2221.77% | 17088.28% | -40.48% | -2.41% | -48.35% | -48.93% | -19.4% | -19.45% | -57.83% | -26.23% | 8.53% |
| EBITDA Growth % | -464.46% | -504.25% | -322.25% | 94.91% | -135.45% | -98.87% | 3874.79% | -458.82% | -51.34% | 33.74% | -7.65% | -144.69% | 100.71% | -1747.21% | 93.8% | 22.96% | 21.33% | -2.86% | 19.83% | -105.44% | -494.85% | - |
| D&A (Non-Cash Add-back) | 764.94K | 658.15K | 348.35K | 310.05K | 59.24K | 0 | 564.63M | 546.27K | 5.61K | 4.07K | 485.58K | 485.48K | 485.48K | 4.69M | 4.75M | 7.77M | 35.24M | 73.12M | 58.13M | 61.89M | 0 | 45.94M |
| EBIT | -10.46M | -7.04M | -833.83K | -425.02K | -2.32M | 6.38M | 14.87K | -15.5M | -2.68M | -1.77M | -3.16M | -2.97M | 5.06M | -789.53M | -47.24M | -692.71M | -924.26M | -1.2B | -1.16B | -1.43B | 0 | 68.85M |
| Net Interest Income | -940.17K | 15.73K | -9.22K | -8.03K | -6.66K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5.53K | 15.73K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 945.7K | 0 | 9.22K | 8.03K | 6.66K | 0 | 0 | 0 | 0 | 0 | 0 | 16.3K | 7.73M | -128K | 51.4M | -15.46M | 270.48M | 115.19M | 0 | 0 | 0 | 2.22M |
| Other Income/Expense | -6.74M | -3.45M | -9.22K | -8.03K | -6.66K | 6.56M | 0 | 0 | 0 | 0 | 0 | -16.3K | -7.73M | 128K | -51.4M | 15.46M | -270.48M | -115.19M | 17.67M | -235.68M | 0 | -56.38M |
| Pretax Income | -10.94M | -7.04M | -843.05K | -433.06K | -2.33M | 6.38M | 14.87K | -15.5M | -2.68M | -1.77M | -3.16M | -2.98M | -2.67M | -789.4M | -98.64M | -677.25M | -1.19B | -1.32B | -1.14B | -1.67B | -667.09M | 66.63M |
| Pretax Margin % | -356.24% | -209.27% | -22.94% | -13.98% | -122.5% | - | 0.21% | -343.22% | -2507.39% | -1896.46% | -1131.15% | -2671.36% | -8225.12% | -40.72% | -5.59% | -47.81% | -65.76% | -22.63% | -20.16% | -70.39% | -26.23% | 3.36% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -850.28K | -89.52K | -30.76K | 1.29K | 480 | 848 | -1.67M | -1.01M | -3.69M | -45.29M | -15.15M | 17.67M | -235.68M | 0 | 2.22M |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 5.48% | 3.34% | 1.74% | -0.04% | -0.02% | -0.03% | 0.21% | 1.02% | 0.55% | 3.79% | 1.15% | -1.55% | 14.13% | 0% | 3.33% |
| Net Income | -10.94M | -7.04M | -843.05K | -433.06K | -2.33M | 6.38M | 14.87K | -14.65M | -2.59M | -1.74M | -3.16M | -2.98M | -2.67M | -787.74M | -97.63M | -673.56M | -1.15B | -1.3B | -1.16B | -1.43B | -667.09M | 64.41M |
| Net Margin % | -356.24% | -209.27% | -22.94% | -13.98% | -122.5% | - | 0.21% | -324.4% | -2423.7% | -1863.55% | -1131.61% | -2671.79% | -8227.73% | -40.63% | -5.53% | -47.55% | -63.27% | -22.37% | -20.48% | -60.44% | -26.23% | 3.25% |
| Net Income Growth % | -1023.67% | -735.64% | -94.67% | 81.38% | -136.48% | 42775.28% | 100.1% | -465.18% | -48.85% | 44.81% | -5.85% | -11.62% | 99.66% | -706.84% | 85.51% | 41.4% | 11.8% | -12.66% | 19.24% | -114.71% | -1135.68% | - |
| Net Income (Continuing) | -10.94M | -7.04M | -843.05K | -433.06K | -2.33M | 6.38M | 14.87K | -14.65M | -2.59M | -1.74M | -3.16M | -2.98M | -2.67M | -787.74M | -97.63M | -673.56M | -1.15B | -1.3B | -1.16B | -1.43B | -667.09M | 64.41M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -20.92 | -14.31 | -2.39 | -0.98 | -5.50 | 7.50 | 0.01 | -6.00 | -1.80 | -1.41 | -2.71 | -2.67 | -1.92 | -586.50 | -76.00 | -527.00 | -1050.50 | -1609.00 | -1648.00 | -2184.50 | -1223.00 | 123.50 |
| EPS Growth % | -890.45% | -498.74% | -143.88% | 82.18% | -173.33% | - | 100.08% | -233.33% | -27.66% | 47.97% | -1.5% | -39.06% | 99.67% | -671.71% | 85.58% | 49.83% | 34.71% | 2.37% | 24.56% | -78.62% | -1090.28% | - |
| EPS (Basic) | - | -14.31 | -2.39 | -0.98 | -5.50 | 7.50 | 0.01 | -6.00 | -1.80 | -1.41 | -2.71 | -2.67 | -1.92 | -586.50 | -76.00 | -527.00 | -1050.50 | -1609.00 | -1648.00 | -2184.50 | -1223.00 | 123.50 |
| Diluted Shares Outstanding | 522.8K | 492.39K | 443.68K | 442K | 442K | 862.5K | 2.62M | 2.42M | 1.44M | 1.23M | 1.16M | 1.12M | 1.39M | 1.34M | 1.28M | 1.28M | 1.09M | 809.88K | 701.85K | 655.69K | 545.51K | 521.33K |
| Basic Shares Outstanding | 522.8K | 492.39K | 443.68K | 442K | 442K | 862.5K | 2.62M | 2.42M | 1.44M | 1.23M | 1.16M | 1.12M | 1.39M | 1.34M | 1.28M | 1.28M | 1.09M | 809.88K | 701.85K | 655.69K | 545.51K | 521.33K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and solvency crisis
As reported in recent financial filings, KIDZW experienced a sharp revenue decline to $519.2K in 2026Q1, representing a significant -36.4% year-over-year contraction that suggests the company's curated education model is failing to maintain its competitive relevance in a post-pandemic landscape.
The consistent downward trend in quarterly revenue since 2025Q3 indicates that the platform's value proposition is struggling to retain its user base. This persistent erosion suggests that the company's niche focus on certified US educators may be insufficient to offset broader market headwinds or competitive pressures from more scalable, open-marketplace alternatives.
Based on the provided income statement data, KIDZW's gross margin fluctuated to 50.3% in 2026Q1, highlighting the inherent difficulty in scaling a service-heavy model where direct instructor compensation remains a primary and largely inflexible cost component of the business.
The inability to consistently expand gross margins suggests that the company lacks the pricing power necessary to pass rising labor costs onto its customer base. Investors should monitor whether this margin volatility reflects an inability to optimize class sizes or if it indicates a fundamental mismatch between instructor pay and revenue generation.
According to the latest quarterly results, KIDZW reported an operating margin of -172.3%, a figure that underscores the company's failure to achieve operational efficiency as SG&A expenses continue to dwarf gross profit, creating a widening gap between revenue and core profitability.
The decoupling of operating expenses from revenue growth suggests that the current cost structure is unsustainable at the company's present scale. This extreme operating leverage implies that the business requires a massive, unlikely surge in volume to reach even a break-even point, warranting significant caution regarding future viability.
As indicated by the financial statements, the company's net income remains deeply negative, with a net loss of $4.2M in 2026Q1, further complicated by inconsistent stock-based compensation patterns that make assessing the true underlying operational performance of the business increasingly difficult for outside observers.
The presence of significant net losses relative to total revenue suggests that the company is currently reliant on external capital to fund its ongoing operations. The volatility in net income, occasionally punctuated by non-operating items, implies that reported earnings are not currently reflective of a sustainable or predictable business model.
Based on the reported figures, the company's cash reserves of $2.75M appear insufficient to cover the current burn rate, suggesting that the business may face a liquidity crunch within the next twelve months unless a radical operational pivot or capital injection occurs.
Short-sellers would likely focus on the disconnect between the company's stated reach and its inability to convert that presence into profitable growth. The reliance on a high-cost, certified-teacher model in a shrinking revenue environment suggests that the company may be fundamentally misaligned with the current market demand for supplemental education.
Quick answers to the most common questions about buying KIDZW stock.
For fiscal year 2025, KIDZ AI Inc. Warrant 2025 - 04.03.30 on KIDZ AI (KIDZW) reported total revenue of $3.4M. This represents a 99.8% decline compared to $1.98B in 2005.
KIDZ AI Inc. Warrant 2025 - 04.03.30 on KIDZ AI (KIDZW) reported a net loss of $7.0M for the fiscal year ending 2025.
KIDZ AI Inc. Warrant 2025 - 04.03.30 on KIDZ AI (KIDZW) reported an operating income of $-3.6M, resulting in an operating profit margin of -106.7%. This margin reflects the operational efficiency of the business before interest and taxes.
KIDZ AI Inc. Warrant 2025 - 04.03.30 on KIDZ AI (KIDZW) generated $1.9M in gross profit for the year, representing a gross profit margin of 57.0%. This demonstrates the company's core pricing power and production efficiency.