The company’s restructuring efforts yielded a gross margin of 10.21%, up from 3.41% in the prior fiscal year. By shedding standardized traffic-related services, Datasea significantly reduced its cost of revenues, which fell by 47.2%. This efficiency drive extended to operating expenses, which decreased by 15% even as the firm aggressively funneled resources into innovation. Research and development spending jumped 180.3% to $2.57 million, targeting advancements in NeuroVibe, biofeedback, and brain-computer interface technologies.
In section Releases
Datasea Pivots to High-Margin Tech as Revenue Drops 43%
Datasea Intelligent Technology reported a 43.17% decline in fiscal 2026 revenue to $40.7 million, a contraction driven by the company’s strategic decision to exit low-margin digital services. Despite the top-line slide, gross profit surged 70.1% as the firm shifted focus toward specialized acoustic intelligence and AI-agent solutions.
These adjustments improved the bottom line, with net loss narrowing 57% to $2.19 million. Operating cash flow also turned positive, reaching $1.98 million compared to a $2.37 million outflow in 2025. CEO Zhixin Liu noted that while revenue volume decreased, the underlying quality of the business has strengthened. Alongside these financial results, the company secured a 180-day extension from Nasdaq to regain compliance with minimum bid price requirements, setting a new deadline of March 22, 2027.
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