10-Q: Investview Reports Steep Revenue Drop, Cites Legal Woes

Investview, Inc. disclosed a substantial decline in revenue for the third quarter of 2026, primarily driven by a contraction in its direct-to-consumer membership segment and ongoing legal challenges in Poland.

Summary

• Investview, Inc. reported a significant decrease in total revenue for the three months ended September 30, 2026, falling to $2.24 million from $8.13 million in the same period of 2025.
• The nine-month period also saw a substantial revenue decline, from $26.49 million in 2025 to $8.05 million in 2026.
• The company experienced a net loss from operations of $2.06 million for the third quarter of 2026, compared to a loss of $0.69 million in the prior year's quarter.
• For the nine months ended September 30, 2026, the net loss from operations was $6.36 million, a significant increase from $0.04 million in the comparable period of 2025.
• A substantial gain of $9.59 million was recognized from the sale of an investment in a special purpose vehicle organized by Dream Ventures LLC.
• The company is appealing a Polish regulatory decision imposing a fine of approximately $4 million for alleged pyramid-style promotional schemes.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to significant revenue declines across key segments and ongoing legal challenges, despite a notable gain from an investment sale.

Positives

• Successfully sold an investment in a special purpose vehicle for $12.84 million, generating a gain of $9.59 million.
• Cash and cash equivalents increased to $12.94 million as of September 30, 2026, from $9.99 million as of December 31, 2025.
• The company has implemented initiatives to expand its direct selling network and diversify its revenue base.
• The company is actively appealing a Polish regulatory decision and continues to operate in Poland, believing its operations comply with applicable laws.

Negatives

• Total revenue for the third quarter of 2026 decreased by 74% to $2.24 million compared to $8.13 million in the third quarter of 2025.
• Membership revenue, a key segment, saw a 74% year-over-year reduction in the third quarter of 2026, from $7.1 million to $1.8 million.
• Health and wellness product sales decreased by 77% year-over-year in the third quarter of 2026, from $1.0 million to $0.2 million.
• The company incurred a net loss from operations of $2.06 million in Q3 2026, widening from a $0.69 million loss in Q3 2025.
• For the nine months ended September 30, 2026, total revenue was $8.05 million, a 72% decrease from $26.49 million in the same period of 2025.
• The company is subject to a Polish regulatory decision imposing a fine of approximately $4 million and a cease-and-desist order.
• The company's bitcoin mining operations were discontinued in July 2026.

Risks

• The company's direct-to-consumer marketing platform revenue has significantly declined, particularly in Europe, due to a Polish regulatory decision and ongoing appeal.
• The company faces a potential risk of similar inquiries or proceedings from other regulators in the European Union or the United States.
• The company's ability to sustain operations in the long-term as a going concern may be subject to doubt if operating losses continue and additional capital cannot be accessed.
• The company is involved in litigation with Total Protection Plus (TPP) regarding a financial protection program for customers, with uncertain outcomes.
• The company is appealing a Polish regulatory decision imposing a fine of approximately $4 million and a cease-and-desist order, with potential adverse effects if the appeal is unsuccessful.
• The company has a contingent loss of approximately $3.81 million accrued related to the Polish regulatory decision.

Future Outlook

The company expects to expand its Conectiv network and grow its manufacturing and development segment, despite recent revenue contractions. It also plans to develop retail brokerage operations at Opencash. However, these forward-looking statements are contingent on successful strategic initiatives, potential access to capital, and overcoming regulatory and operational risks. The company's ability to continue as a going concern is subject to doubt if losses persist without additional capital.

Management Comments

• Management believes that the decline in membership revenue is directly attributable to a contraction of its European marketing network in response to the December 2025 formal administrative decision issued by UOKiK.
• Management believes that its direct selling business operating within Poland complies with all applicable legal standards and will continue to challenge the conclusions reached by UOKiK.
• Management believes that it will be able to sustain its operations for at least the next twelve months due to the monetization of private investments at appreciated values.
• Management believes that the company does not have any legal responsibility to cover potential claims of customers who participated in the TPP Program, as responsibility resides with TPP.

Industry Context

StockSavvy.ai notes that Investview's significant revenue decline in its direct-to-consumer (DTC) segment, particularly in Europe, highlights the challenges of navigating complex international regulations, as evidenced by the Polish UOKiK decision. The company's diversification efforts into health and wellness and its planned expansion into brokerage services reflect a strategy to mitigate risks associated with a single revenue stream, though the success of these ventures remains to be seen.

Comparison to Industry Standards

• The significant year-over-year revenue decline in the DTC membership segment (74% in Q3 2026) is substantially worse than typical industry performance for established DTC platforms, which often aim for steady growth or single-digit percentage declines in challenging markets.
• The company's health and wellness product sales also saw a sharp decline (77% in Q3 2026), which is concerning given the general growth trend in the health and wellness sector, suggesting specific operational or market challenges for Investview's offerings.
• While the gain from the sale of the Dream Ventures LLC investment is a positive financial event, it is an exceptional item and does not reflect the ongoing operational performance of the core business segments compared to industry peers.
• The company's struggle to achieve expected improvements from onboarding new selling networks contrasts with successful multi-level marketing companies that effectively leverage and expand their distributor bases.

Legal Proceedings

• The company is appealing a Polish regulatory decision imposing a fine of PLN 14,668,589 (approximately USD $4 million) and a cease-and-desist order related to alleged pyramid-style promotional schemes.
• The company is involved in litigation against Total Protection Plus (TPP) and related entities to compel TPP to fulfill commitments made to the company's customers under the TPP Program.
• The company has an outstanding issue regarding the repayment and potential conversion of a promissory note issued to former CEO Joseph Cammarata.

Related Party Transactions

• The company has outstanding related-party debt, including convertible promissory notes with DBR Capital, LLC, an entity controlled by a board member, bearing interest rates up to 38.5% per annum.
• The company has a Working Capital Promissory Note with SSA Technologies LLC, controlled by former CEO Joseph Cammarata, for which advances were made but repayment is pending legal review.
• Previous stock repurchase agreements with Mario Romano, Annette Raynor, Ryan Smith, and Chad Miller were paid in full during the year ended December 31, 2025.

Stakeholder Impact

• Shareholders are impacted by the significant decline in revenue and widening net losses, although a substantial gain from an investment sale provided a temporary boost.
• Customers in Poland may be affected by the ongoing legal proceedings and potential operational adjustments related to the UOKiK decision.
• Customers who participated in the Total Protection Plus (TPP) Program face uncertainty regarding promised payouts, with ongoing litigation to compel TPP to fulfill its obligations.
• Creditors may be concerned about the company's ability to sustain operations as a going concern if losses continue and additional capital is not secured.

Next Steps

• Continue to challenge the UOKiK decision through the Polish legal system.
• Evaluate operational adjustments in Poland to demonstrate compliance with laws.
• Continue to expand the direct selling network and diversify revenue base.
• Develop the infrastructure for retail brokerage operations at Opencash.
• Integrate the acquired algorithmic trading platform with the Opencash investment platform.

Key Dates

Recommendation

The filing indicates a severe downturn in core business revenues, a widening net loss, and significant ongoing legal and regulatory challenges, particularly the substantial fine from Polish authorities. While an investment sale provided a one-time gain, the fundamental business performance is deteriorating, raising concerns about the company's long-term viability and ability to operate as a going concern without additional capital. The risks associated with the legal proceedings and the continued operational headwinds outweigh the positive aspects of the investment sale.

Keywords

Investview, Quarterly Report, Revenue Decline, Direct-to-Consumer, Membership Revenue, Health and Wellness, Digital Assets, Regulatory Action