Despite maintaining robust gross margins above 75%, the company suffers from severe operating inefficiency, evidenced by operating margins that plummeted to -432.54% in recent periods.
| Sales/Revenue | 3.22M | 3.1M | 3.5M | 3.72M | 4.81M |
| Revenue Growth % | 1.59% | -11.42% | -5.78% | -22.63% | - |
| Cost of Goods Sold | 795K | 663K | 652K | 555K | 736K |
| COGS % of Revenue | - | 21.36% | 18.61% | 14.92% | 15.31% |
| Gross Profit | 2.42M | 2.44M | 2.85M | 3.16M | 4.07M |
| Gross Margin % | 75.3% | 78.64% | 81.39% | 85.08% | 84.69% |
| Gross Profit Growth % | - | -14.41% | -9.86% | -22.28% | - |
| Operating Expenses | 13.93M | 15.87M | 5.58M | 4.79M | 4.17M |
| OpEx % of Revenue | - | 511.18% | 159.25% | 128.88% | 86.83% |
| Selling, General & Admin | 13.49M | 15.28M | 5.39M | 4.74M | 4.13M |
| SG&A % of Revenue | - | 492.14% | 153.82% | 127.51% | 85.9% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 443K | 591K | 190K | 51K | 45K |
| Operating Income | -11.51M | -13.43M | -2.73M | -1.63M | -103K |
| Operating Margin % | -357.61% | -432.54% | -77.85% | -43.8% | -2.14% |
| Operating Income Growth % | - | -392.16% | -67.46% | -1481.55% | - |
| EBITDA | -11.05M | -12.84M | -2.54M | -1.58M | -58K |
| EBITDA Margin % | -343.51% | -413.5% | -72.43% | -42.43% | -1.21% |
| EBITDA Growth % | -62.8% | -405.71% | -60.84% | -2620.69% | - |
| D&A (Non-Cash Add-back) | 454K | 591K | 190K | 51K | 45K |
| EBIT | -17.3M | -19.23M | -2.76M | -1.6M | -113K |
| Net Interest Income | -276K | -284K | -210K | -52K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 276K | 284K | 210K | 52K | 0 |
| Other Income/Expense | -6.07M | -6.08M | -240K | -24K | -10K |
| Pretax Income | -17.58M | -19.51M | -2.97M | -1.65M | -113K |
| Pretax Margin % | -546.18% | -628.51% | -84.7% | -44.45% | -2.35% |
| Income Tax | 0 | 0 | 0 | 35K | 7.55M |
| Effective Tax Rate % | 0% | 0% | 0% | -2.12% | -6681.42% |
| Net Income | -17.58M | -19.51M | -2.97M | -1.69M | -7.66M |
| Net Margin % | -546.18% | -628.51% | -84.7% | -45.39% | -159.41% |
| Net Income Growth % | -137.8% | -557.31% | -75.83% | 77.97% | - |
| Net Income (Continuing) | -17.58M | -19.51M | -2.97M | -1.69M | -7.66M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -7.73 | -8.58 | -1.78 | -1.01 | -4.20 |
| EPS Growth % | -119.42% | -382.02% | -76.24% | 75.95% | - |
| EPS (Basic) | - | -8.58 | -1.55 | -1.01 | -4.20 |
| Diluted Shares Outstanding | 2.27M | 2.27M | 1.67M | 1.67M | 1.82M |
| Basic Shares Outstanding | 2.27M | 2.27M | 1.91M | 1.67M | 1.82M |
| Dividend Payout Ratio | - | - | - | - | - |
Unsustainable operating cash burn
As reported in recent financial filings, TEN Holdings, Inc. experienced a notable revenue decline, with quarterly figures fluctuating significantly and showing a -11.42% year-over-year contraction, suggesting that the firm is struggling to maintain its project-based volume within the highly competitive US broadcasting and event production landscape.
The inconsistent top-line performance appears to reflect a lack of recurring revenue stability, leaving the company exposed to the cyclicality of corporate event budgets. Investors should monitor whether this downward trend indicates a permanent loss of market share to larger, more scalable digital-first competitors.
Based on the provided income statement data, XHLD maintains a robust gross margin profile, frequently exceeding 75%, which suggests that the company's core service offering retains significant pricing power despite the broader operational challenges currently facing the organization in its primary US markets.
While the gross margin remains a bright spot, the inability to translate this into operating profit suggests that the cost of delivering these services is not being optimized. The disconnect between high gross profitability and negative operating margins implies that the company's pricing strategy is insufficient to cover its fixed overhead.
According to the company's income statements, XHLD suffers from a severe lack of operating leverage, as SG&A expenses frequently dwarf gross profit, leading to operating margins that have plummeted to as low as -432.54% in recent periods, indicating an unsustainable fixed-cost structure for its current scale.
The firm appears to be carrying a level of administrative and personnel overhead that is disproportionate to its $3.1M revenue base. This suggests that management has not successfully right-sized the organization to align with current demand, creating a structural drag on potential profitability.
Analysis of the reported figures reveals that stock-based compensation, which reached $1.3M in 2025Q4, significantly exacerbates net losses, suggesting that the quality of earnings is further diluted by non-cash expenses that do not reflect the underlying operational performance of the broadcasting and production business.
The reliance on equity-based incentives during a period of declining revenue and negative net income warrants further investigation into management's capital allocation priorities. This practice appears to be masking the true extent of the cash burn required to sustain the current business model.
Based on the provided financial data, the most significant challenge to the current narrative is the persistent operating loss, which suggests that the company may be functioning as a loss-leader for its parent entity rather than a viable, standalone commercial enterprise in the broadcasting sector.
Short-sellers would likely focus on the consistent cash burn and the lack of a clear path to breakeven, which may necessitate further capital injections from V-cube, Inc. The absence of a sustainable operating model suggests that the company's long-term survival may be entirely dependent on external support.
Quick answers to the most common questions about buying XHLD stock.
For fiscal year 2025, TEN Holdings, Inc. Common Stock (XHLD) reported total revenue of $3.1M. This represents a 35.4% decline compared to $4.8M in 2022.
TEN Holdings, Inc. Common Stock (XHLD) reported a net loss of $19.5M for the fiscal year ending 2025.
TEN Holdings, Inc. Common Stock (XHLD) reported an operating income of $-13.4M, resulting in an operating profit margin of -432.5%. This margin reflects the operational efficiency of the business before interest and taxes.
TEN Holdings, Inc. Common Stock (XHLD) generated $2.4M in gross profit for the year, representing a gross profit margin of 78.6%. This demonstrates the company's core pricing power and production efficiency.