10-Q: T Stamp Inc. Q1 2026: Revenue Up, Net Loss Widens

T Stamp Inc. reported a 38.75% increase in net revenue for Q1 2026, driven by its S&P 500 bank customer, but also saw its net loss widen.

Summary

• Net revenue for the three months ended March 31, 2026, increased by 38.75% to $756,832, up from $545,471 in the same period of 2025.
• The company's net loss for the quarter was $2,231,396, an increase from $2,157,387 in the prior year's quarter.
• Operating expenses rose by 11.75% to $3,026,066 from $2,708,457, primarily due to increased R&D and SG&A costs.
• Cash and cash equivalents decreased to $3,894,181 as of March 31, 2026, from $6,040,996 as of December 31, 2025.
• The company completed the acquisition of Lexverify Ltd. on February 27, 2026, and subscribed to a 50% ownership interest in CyberFish CyberPsychology Solutions Ltd. on March 9, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the widening net loss and increasing cash burn, despite revenue growth. The substantial doubt about the company's ability to continue as a going concern is a significant concern.

Positives

• Net revenue increased by 38.75% to $756,832 in Q1 2026 compared to Q1 2025.
• The S&P 500 bank customer contract was amended, extending the term to May 31, 2031, with minimum gross revenue exceeding $12.7 million.
• Acquisition of Lexverify Ltd. and investment in CyberFish CyberPsychology Solutions Ltd. are expected to strengthen cybersecurity and risk management capabilities.
• The company received net proceeds of $4,022,706 from a warrant exercise and exchange inducement agreement in November 2025.
• Adjusted EBITDA loss decreased by $120,000 to $1.80 million in Q1 2026 from $1.92 million in Q1 2025.

Negatives

• Net loss attributable to T Stamp Inc. increased to $2,231,396 in Q1 2026 from $2,157,387 in Q1 2025.
• Operating expenses increased by 11.75% to $3,026,066 in Q1 2026.
• Cash and cash equivalents decreased by approximately $2.15 million to $3.89 million as of March 31, 2026.
• Net cash used in operating activities increased by 20.59% to $1.86 million in Q1 2026.
• The company's ability to continue as a going concern raises substantial doubt due to ongoing net losses and operating cash outflows.

Risks

• The company's ability to continue as a going concern is dependent on its ability to generate revenue and/or obtain financing sufficient to meet current and future obligations.
• There is substantial doubt about the company's ability to continue as a going concern for the next 12 months.
• The company has not yet generated profits and has an accumulated deficit of $72.01 million as of March 31, 2026.
• The company anticipates needing to raise additional capital from equity and/or debt financings within the next twelve months.
• The company is exposed to credit risk in the event of nonpayment by customers, although no significant losses have been experienced to date.

Future Outlook

The company anticipates needing to raise additional capital from equity and/or debt financings within the next twelve months to fund its operations, as it is not currently generating sufficient cash to meet its requirements. Management plans to generate revenue and raise capital as needed, with significant additional revenue negotiations well advanced but not yet finalized.

Management Comments

• Management has evaluated these conditions and plans to generate revenue and raise capital as needed to satisfy its capital needs.
• While the negotiation of significant additional revenue is well advanced, it has not reached a stage that allows it to be factored into a going concern evaluation.
• Although the Company has previously been successful in raising capital as needed and has already made plans to do so as well as restructuring expenses to meet the Companys cash needs, no assurance can be given that the Company will be successful in its capital raising efforts.
• Management believes that Adjusted EBITDA, when viewed with our results under U.S. GAAP and the accompanying reconciliations, provides useful information about our period-over-period results.
• Management believes that Adjusted EBITDA provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies.

Industry Context

StockSavvy.ai notes that T Stamp Inc.'s Q1 2026 results reflect a challenging environment for early-stage technology companies, balancing revenue growth with significant operating expenses and a continued need for capital. The company's strategic acquisitions in cybersecurity and AI, alongside its focus on emerging markets like stablecoins and Africa, position it to capitalize on evolving industry trends, though execution and profitability remain key challenges.

Comparison to Industry Standards

• The company's revenue growth of 38.75% in Q1 2026 is strong, but the increasing net loss and negative cash flow from operations are areas of concern when compared to more mature SaaS companies.
• The significant accumulated deficit of over $72 million is common for companies in the AI and cybersecurity sectors that require substantial R&D investment, but it highlights the ongoing need for external funding.
• The company's focus on identity verification and fraud prevention aligns with a growing global market, with industry reports indicating substantial losses from payment fraud and data breaches, suggesting a strong market need for T Stamp's solutions.
• The company's expansion into Africa and the stablecoin market reflects a strategic diversification trend seen in some tech companies seeking new growth avenues, though these markets can be volatile and require significant investment.

Management Changes

Legal Proceedings

• The Company is not currently involved with and does not know of any pending or threatening litigation against the Company or any of its officers or directors in connection with its business.

Related Party Transactions

• Related party receivables of $15,401 as of March 31, 2026, primarily related to amounts due from an employee loan and smaller amounts due from an employee.
• Related party payables of $47,613 as of March 31, 2026, primarily relating to amounts owed to contractors and smaller amounts to members of management.
• The company entered into a business arrangement with Qenta, forming QID Technologies, LLC, considered a related party transaction due to common ownership.
• Trust Stamp Malta Limited entered into a share purchase agreement with CyberFish CyberPsychology Solutions Ltd, where CyberFish's CEO also serves as T Stamp Inc.'s CEO, making CyberFish a related party.
• Trust Stamp Malta Limited entered into a Consulting Agreement with CyberFish, where CyberFish will provide consulting services for an annual fee of $87,000.
• The company has outstanding billings owed from QID of $359,836 as of March 31, 2026.
• Mutual Channel Agreement with Vital4Data, Inc., where one of the Company's Directors serves as CEO of Vital4Data, Inc.

Stakeholder Impact

• Shareholders: Increased net loss and continued cash burn may impact share value, while strategic acquisitions could offer long-term growth potential. The need for future capital raises could lead to dilution.
• Employees: Increased R&D and SG&A expenses, including stock-based compensation, indicate continued investment in personnel. The company's going concern status may create uncertainty.
• Customers: Revenue growth driven by key customers like the S&P 500 bank is positive. The company's focus on enhancing its AI and cybersecurity offerings may lead to improved solutions.
• Creditors: The company's liquidity position and ongoing need for financing could impact its ability to meet debt obligations.

Next Steps

• Continue to generate revenue and raise capital as needed to satisfy capital needs.
• Integrate Lexverify Ltd. and CyberFish CyberPsychology Solutions Ltd. to enhance capabilities.
• Focus on accelerating transaction volumes and implementation of the Orchestration Layer.
• Monitor and report on progress throughout 2026 regarding sales support and industry event participation.
• Pursue opportunities in the APAC region and South Korea.
• Finalize design of the WoW wallet pending clarity on stablecoin legislation.

Key Dates

Recommendation

While T Stamp Inc. shows promising revenue growth and strategic acquisitions in key areas like AI and cybersecurity, the widening net loss, increasing cash burn, and substantial doubt about its going concern status present significant risks. The company's reliance on future capital raises could lead to dilution. Therefore, a 'hold' recommendation is appropriate, pending clearer signs of profitability and improved liquidity.

Keywords

T Stamp Inc., Form 10-Q, Quarterly Report, AI Software, Identity Authentication, Cybersecurity, Lexverify, CyberFish, Financial Services, Revenue Growth, Net Loss, Going Concern