New York, November 6, 2026 / PRNewswire / -- TEN Holdings, Inc. (Nasdaq ticker: XHLD) Today, the company announced its quarterly financial results for September 30, 2026. The company operates through its subsidiaries Ten Events and Inc, the latter being the technology company behind TEN. TEN is a digital experience platform designed to support the next generation of corporate digital interactions.

Management Commentary

TEN Holdings Chairman and CEO Virgilio Torres stated: "Revenue in the third quarter increased by 17.9% year-on-year to $640,000, due to the completion of customer projects initiated in previous periods and the recognition of income from new customers. Our performance reflects the ongoing demand for digital interaction solutions in the market, as well as our ability to serve both existing and new customers. Looking ahead, we will continue to focus on expanding recurring revenue, strengthening our technical platform, and accelerating our transition to a scalable business model driven by SaaS."

He stated, "Our third-quarter results reflect two significant expenses that we consider to be non-recurring: one is the write-off of $1.8 million from previously capitalized service contracts, and the other is legal expenses amounting to approximately $500,000. Excluding these items, our core sales, general, and administrative expenses decreased compared to the same period last year, which indicates the progress we have made in improving operational efficiency. Over the past 12 months, we have simplified our engineering processes and accelerated product development by strategically cutting costs, improving procedures, and integrating AI drive tools, resulting in a reduction of annual operating costs by about $2.5 million. Now that these efficiency improvements have been largely implemented and a more streamlined operational structure is in place, we are shifting our focus to accelerating revenue growth, expanding customer relationships, and scaling up our new platform TEN."

He also stated, "We have made significant progress in strengthening our balance sheet as well. Short-term loans from related parties have decreased from $4.6 million at the beginning of the year to approximately $100,000 as of September 30, 2026. Total liabilities have fallen from $7.7 million at the end of 2025 to $2 million, a reduction of about 74%, which reflects our ongoing efforts to simplify our capital structure and improve our financial condition."

Torres This year, one of our most important milestones is the launch of a new generation of digital experience platform, TEN. The development of this platform was accelerated by the funds obtained from our common stock issuance in June, which is in line with our previous commitments regarding product development. TEN marks an important step in our evolution towards a scalable business model driven by SaaS, integrating the tools necessary for creating, managing, delivering, and measuring digital experiences into a unified platform.

He stated that TEN provided self-service solutions for webinars, virtual events, and continuing education programs when it was launched, supporting up to 50,000 concurrent participants. Based on the long-term relationships established with corporate clients, many of whom rely on its technology for regular digital interaction projects, the company saw an important opportunity to transition these relationships to a subscription-based model. The company believes that this approach will bring greater flexibility and value to customers, while also creating a more predictable and regular source of revenue for TEN Holdings.

Torres Looking to the future, we focus on three priority tasks: continuing to drive the business transformation from a managed services provider to a SaaS company; investing in TEN to maintain its competitiveness; and implementing an acquisition strategy aimed at acquiring products that can increase revenue and EBITDA, as well as technologies that complement our own. With TEN now on the market, having a more streamlined cost structure, and a simplified balance sheet, we believe TEN Holdings is ready to build a more scalable business with stronger recurring revenue and create long-term value for shareholders.

Financial Performance

• Revenue for the three months ending September 30, 2026, was $640,000, an increase of $97,000 from $543,000 for the same period in 2025, representing a growth of 17.9%. The growth mainly came from the confirmation of revenue from customer transactions initiated during previous periods, as well as income contributed by new customers acquired during this period.
• Platform usage revenue decreased by $63,000, a decline of 12.8%, to $428,000.
• Professional and managed services revenue increased by $160,000, representing a growth of 307.7% to $212,000.
• The revenue cost for the three months ending September 30, 2026, was $261,000, which is an increase of $123,000 from $138,000 in the same period of 2025, representing a growth of 89.1%. The increase is mainly due to a higher number of on-site events this quarter compared to the same period last year. The gross profit was $379,000, compared to $405,000 in the same period last year; the gross margin was 59.2%, compared to 74.6% last year.
• Selling, general and administrative expenses ( SG &A) amounted to $4.113 million, an increase of $1.928 million or 88.2% from $2.185 million in the same period of the previous year. The growth was mainly due to the write-off of $1.8 million related to service contracts that had been capitalized earlier and were originally intended to be amortized, as well as approximately $500,000 in legal expenses associated with ongoing litigation. Excluding these expenses, SG &A would have decreased by about $400,000, or approximately 18%, compared to the same period of the previous year. In the third quarter of 2026, SG &A also included a reduction of about $300,000 due to the reversal of share-based payment expenses previously recognized that corresponded to rewards that were later invalidated.
• Depreciation and amortization expenses decreased from $147,000 in the same period of the previous year to $10,000, mainly because the company's capitalized software was fully impaired in 2025, and there were no software assets to amortize this quarter.
• The interest expense for the three months ending September 30, 2026, was $2,000, compared to $59,000 in the same period of the previous year. The decrease is mainly due to a reduction in the outstanding balance of short-term loans.
• The net loss for the three months ending September 30, 2026, was $3.734 million, equivalent to a loss of $0.31 per share; in the same period last year, the net loss was $1.987 million, equivalent to a loss of $0.84 per share. The net loss increased by $1.747 million, representing a growth of 87.9%, mainly due to the aforementioned higher SG &A expenses, including write-offs and legal fees.
• As of September 30, 2026, the weighted average number of outstanding common shares for the three-month period was 11,999,366 shares, compared to 2,359,622 shares in the same period of the previous year. The share count and per-share data for the earlier periods have taken into account the company's 1:15 reverse stock split, which became effective on December 1, 2025.

Balance Sheet and Cash Flow Summary

• As of September 30, 2026, the company held $3.5 million in cash and cash equivalents, with an additional $100,000 in restricted cash; as of December 31, 2025, it was $1.6 million, and as of September 30, 2025, it was $300,000. The increase at the end of the period was mainly due to the total proceeds from the issuance of 7.5 million common shares completed by the company on June 30, 2026, which was partially offset by cash outflows from operating activities. Compared to $5.8 million as of June 30, 2026, cash and cash equivalents decreased by $2.3 million, primarily reflecting cash usage of $2.7 million in operating activities during the third quarter, which was partly offset by income of $700,000 from the exercise of stock options.
• Short-term loans to related parties decreased from $4.6 million as of December 31, 2025, to $100,000 as of September 30, 2026. This reduction mainly reflects the settlement of $4.6 million in debt through offsetting with accounts receivable from related parties, as well as partial repayment in cash. Total liabilities also decreased from $7.7 million as of December 31, 2025, to $2 million.
• The net cash outflow from operating activities for the nine months ending September 30, 2026, was $5.4 million, compared to $9 million in the same period of the previous year. The reduction is mainly due to the absence of advances of $4.7 million provided to related parties during the previous year, as well as a decrease of $2.9 million in non-cash share-based payment expenses, and the offsetting effect of the non-cash debt settlement loss of $1.3 million recognized in the previous year, which was not present this time.
• The net cash flow from investment activities for the nine months ending September 30, 2026, was zero, compared to a outflow of $800,000 in the same period last year. The reason is that there were no capitalized expenditures for internally used software during this period.
• The net cash inflow from financing activities for the nine months ending September 30, 2026, was $7.4 million, compared to $10.1 million in the same period of the previous year. The decrease was mainly due to a reduction in proceeds from share issuance, as well as higher loan income received from related parties in the same period last year; this was partially offset by a reduction in loan repayments from related parties and income of $700,000 from the exercise of stock options.

Recent Company News

• In the third quarter, option holders exercised their stock options to purchase 89,405 common shares, bringing in approximately $730,000 in cash revenue for the company.
• Launch of the company's new digital experience platform TEN. This platform integrates registration, live production, audience interaction, on-demand content, and continuing education certification into a single system, which can be used in a self-service manner, or hosting services can be purchased additionally.
• Appoint Ian M and Lawson as interim Chief Financial Officers, effective from September 30, 2026.
• The company's headquarters have been relocated to New York City, New York State.
• Submit a registration statement for 100 million US dollars in Universal Racks Form S -3.
• Completed the signing of several agreements related to the company's initial public offering (IPO) arrangements by management before termination. For details, please refer to the Form 8-K filing submitted by the company on July 24, 2026.

Company Outlook

Torres added that TEN Holdings plans:

• Continue to promote the transformation of business from a managed service model to a recurring, subscription-based SaaS model based on TEN, while also continuing to provide high-end managed production services for customers in need.
• Expand TEN to areas beyond events and webinars, including AI related to automation, integration, interaction and intent, reporting and analysis, as well as content studio capabilities.
• Promote prudent mergers and acquisitions, with the goal of acquiring products that can increase revenue and EBITDA, which can be scaled up for promotion by the company's sales team, as well as technologies that complement the existing intellectual property, as part of a broader integration strategy.

Regarding TEN Holdings, Inc.

TEN Holdings, Inc. (Nasdaq ticker: XHLD) is a technology company headquartered in New York that focuses on developing enterprise software solutions to help organizations create, manage, deliver, and measure digital experiences. Through its flagship digital experience platform TEN, the company provides technical solutions for corporate communications, virtual events, webinars, and continuing education, supporting digital experiences with up to 50,000 concurrent participants.

Leveraging over a decade of experience serving Fortune 500 companies, TEN Holdings is evolving its platform into a broader enterprise technology ecosystem empowered by AI. Its product roadmap includes marketing automation, CRM integration, advanced interactive analytics, AI driving capabilities, and content management solutions, all aimed at helping organizations streamline work processes, enhance customer interactions, and generate actionable business insights.

The company's strategy focuses on expanding SaaS products, increasing opportunities for recurring revenue, and providing scalable technical solutions to corporate customers. The planned features are still in the ongoing development process, and neither the timeline for their release nor their availability can be guaranteed at this time.

Forward-looking Statements

Certain statements in this press release may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Words such as “expect”, “believe”, “continue”, “may”, “estimate”, “forecast”, “intend”, “perhaps”, “plan”, “potential”, “predict”, “project”, “should”, “target”, “will”, “shall”, and similar expressions are used to identify forward-looking statements, but not all forward-looking statements contain these words. Due to a number of important factors, actual results may differ significantly from those indicated in these forward-looking statements. These factors include, but are not limited to: risks related to the company’s growth strategy; the development, availability, and adoption of TEN and its planned features, including AI and capabilities in automation, landing pages, integration, interaction, reporting and analysis, as well as content studios; the company’s recurring revenue strategy; potential acquisitions; and market conditions and other uncertainties discussed in the “Risk Factors” section of the company’s most recent Form 10-K annual report, subsequent Form 10-Q quarterly reports, and other documents submitted to the U.S. Securities and Exchange Commission (SEC). Therefore, among other reasons, the company reminds investors not to rely excessively on any forward-looking statements in this press release. Any forward-looking statements in this press release represent the situation as of the date of issuance of this press release. Except as required by law, TEN Holdings, Inc explicitly states that it has no obligation to update any forward-looking statements due to new information, future events, or other reasons.

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