8-K: TEN Holdings Reports 2025 Results: Revenue Down, Losses Up

TEN Holdings, Inc. announced its full year 2025 financial results, reporting an 11.4% revenue decrease and a significantly widened net loss, despite operational advancements and customer growth.

Summary

• Total revenues for fiscal year 2025 were $3.1 million, representing an 11.4% decrease from $3.5 million in fiscal year 2024.
• Virtual & Hybrid events revenue decreased by $0.5 million, primarily due to a non-repeating event series with a major customer.
• Physical events revenue increased by $0.1 million, driven by a higher volume of deals closed and delivered.
• Cost of revenue increased marginally by $11,000, or 1.7%, to approximately $663,000, reflecting efficiencies in event delivery.
• Gross profit margin declined by 2.8% to 78.6% in fiscal year 2025 from 81.4% in fiscal year 2024, mainly due to decreased revenues.
• Selling, general and administrative (SG&A) expenses surged by $9,886,000, or 183%, to $15,276,000.
• Approximately $10,000,000 of the SG&A increase was attributed to non-cash expenses, including stock-based compensation, debt restructuring, and impairments.
• The company incurred $1,700,000 in expenses related to becoming a public company, with an additional $3,100,000 for payroll and $400,000 for business operations.
• Interest expense increased by $74,000, or 35%, to $284,000, primarily due to interest owed to a shareholder for loans.
• Net loss for the twelve months ended December 31, 2025, was $19,498,000, or $(8.58) per share, significantly wider than the $2,968,000, or $(1.78) per share, loss in 2024.
• Weighted average common shares outstanding increased to 2,272,982 in 2025 from 1,667,674 in 2024.
• Cash balance as of December 31, 2025, was $1,630,657, a substantial increase from $48,479 in fiscal year 2024.
• Net cash used in operating activities increased from $2.5 million in fiscal year 2024 to $10.3 million in fiscal year 2025, driven by higher operating expenses.
• Net cash provided by financing activities increased from $3.2 million in 2024 to $18.2 million in 2025, primarily from the issuance of shares and short-term loans.
• New customer acquisition more than doubled, increasing from six in the prior year to 16 in fiscal 2025.
• Strategic partnerships were formed with Webinar.net for the Ten Events Pro platform, projected to save $1.2 million to $1.7 million annually, and with V-Cube for advanced enterprise communication capabilities.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a challenging financial report, with significant revenue decline and widening losses overshadowing operational improvements and customer growth. The substantial increase in non-cash expenses and operating cash burn raises concerns about financial health and sustainability, despite successful capital raising efforts.

Positives

• New customer acquisition more than doubled, increasing from six in the prior year to 16 in fiscal 2025, indicating growing market adoption.
• Formed a strategic partnership with Webinar.net for the Ten Events Pro platform, expected to generate estimated annual savings of $1.2 million to $1.7 million and position for faster recurring revenue growth.
• Partnered with V-Cube to bring advanced enterprise communication capabilities to the North American market.
• Implemented SOC 2 compliant broadcast systems, reinforcing enterprise confidence in security and compliance.
• Expanded service offerings to include conversational AI solutions, designed to enhance engagement and automation.
• Physical events revenue increased by $0.1 million due to a significant amount of more deals closed and delivered.
• Cash balance significantly increased to $1,630,657 as of December 31, 2025, from $48,479 in fiscal year 2024.
• Achieved continued efficiencies in physical event delivery, keeping cost of revenue relatively flat despite increased physical event revenue.

Negatives

• Total revenues decreased by 11.4% to $3.1 million in fiscal year 2025 from $3.5 million in fiscal year 2024.
• Virtual & Hybrid events revenue decreased by $0.5 million due to a non-repeating event series with a major customer.
• Gross profit margin declined by 2.8% to 78.6% from 81.4% in fiscal year 2024.
• Selling, general and administrative (SG&A) expenses increased by 183% to $15,276,000.
• Net loss significantly widened to $19,498,000 or $(8.58) per share in 2025, compared to $2,968,000 or $(1.78) per share in 2024.
• Net cash used in operating activities increased substantially from $2.5 million in 2024 to $10.3 million in 2025, driven by higher operating expenses.
• Interest expense increased by 35% to $284,000, primarily due to interest owed to a shareholder for loans.
• A significant portion of SG&A expenses ($10,000,000) were non-cash related, including stock-based compensation, debt restructuring, and impairments, which can impact shareholder value.

Risks

• Reliance on a single large customer for virtual & hybrid events, as evidenced by the $0.5 million revenue decrease when an event series did not repeat.
• Significant increase in net loss and operating cash outflow, indicating challenges in achieving profitability and sustainable cash flow from operations.
• High non-cash expenses ($10,000,000 in SG&A) related to stock-based compensation, debt restructuring, and impairments, which can impact shareholder value and financial health.
• Increased interest expense due to shareholder loans, suggesting potential reliance on related-party financing and associated risks.
• Uncertainties related to market conditions and other factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the SEC) and other filings with the SEC.

Future Outlook

TEN Holdings plans to promote future business growth by strengthening customer relationships, improving customer loyalty, and increasing marketing and sales efforts with additional investment in digital marketing and sales team expansion. The company aims to increase product and market expansion of its software-as-a-service, Ten Events Pro, to broaden its customer base, enhance market reach, and generate sustainable recurring revenue streams. It also intends to maximize partnerships with V-Cube and Webinar.net to penetrate new market opportunities and continue raising capital to facilitate investments, partnerships, and acquisitions that offer complementary and strategic advantages.

Management Comments

• "Fiscal 2025 marked TEN Holdings first year as a public company, a period during which management prioritized establishing the operational, technological, and governance foundations necessary to support scalable growth, raising capital and enhancing visibility with the investor community."
• "This past year, we focused on strengthening our platform, expanding enterprise adoption, and leveraging strategic partnerships to drive operational efficiency and sustainable performance."
• "These initiatives position TEN Holdings to deliver long-term value for shareholders."
• "Management believes that the initiatives completed in fiscal 2025, including strengthening strategic partnerships, advancing platform capabilities, enhancing enterprise security, expanding the customer base, and establishing a presence in the public capital markets, have positioned TEN Holdings to pursue growth and long-term shareholder value."

Industry Context

StockSavvy.ai notes that the event planning, production, and broadcasting services industry is increasingly shifting towards virtual and hybrid models, driven by technological advancements and evolving client needs. TEN Holdings' focus on its Ten Events Pro SaaS platform, partnerships with Webinar.net and V-Cube, and expansion into conversational AI align with broader industry trends emphasizing digital transformation, enhanced engagement, and operational efficiency in event management. The increase in physical events revenue suggests a partial return to in-person gatherings, but the overall revenue decline indicates intense competition or specific company challenges in a dynamic market.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to assess against global benchmarks. Therefore, a direct comparison to industry standards is not possible based solely on this document.

Corporate Governance

Related Party Transactions

• Interest expense increased by approximately $74,000, or 35%, to approximately $284,000 primarily due to interest owed to a shareholder for loans made to the company.

Stakeholder Impact

• Shareholders: Significant net loss and increased weighted average shares outstanding (due to share issuance for financing) could lead to dilution and negative impact on share price. The company's stated goal is to deliver long-term value, but current results are poor.
• Employees: Increased payroll expenses suggest continued employment, but the overall financial performance could create uncertainty.
• Customers: Expansion of platform capabilities, security enhancements (SOC 2), and new AI solutions aim to improve service and engagement.
• Creditors: Increased interest expense due to shareholder loans indicates reliance on debt, potentially increasing risk for other creditors.
• Partners: Strategic partnerships (Webinar.net, V-Cube) are being maximized, suggesting continued collaboration and potential for mutual growth.

Next Steps

• Strengthen customer relationships and improve customer loyalty.
• Increase marketing and sales efforts with additional investment in digital marketing and sales team expansion.
• Increase product and market expansion of the software-as-a-service, Ten Events Pro.
• Maximize partnerships with V-Cube and Webinar.net to penetrate new market opportunities.
• Continue to raise capital to facilitate investments in, partnerships with, and acquisitions of appropriate businesses.

Key Dates

Recommendation

The significant decline in revenue, substantial increase in net loss, and considerable cash burn from operations indicate severe financial distress. While the company has raised capital and made operational improvements, the core financial performance is deteriorating rapidly. The high non-cash expenses and reliance on shareholder loans for interest payments further highlight underlying issues. A seasoned investor would likely view these results as a strong signal to sell, as the current trajectory is unsustainable without a drastic turnaround.

Keywords

TEN Holdings, XHLD, Financial Results, Event Planning, Virtual Events, Hybrid Events, Broadcasting Services, SaaS, Ten Events Pro, Webinar.net, V-Cube, Conversational AI, SEC Filing, Earnings Report, Corporate Governance, Risk Management