TEN Holdings (XHLD) Q2 2025 Financial Results Summary

# TEN Holdings Inc. (XHLD) Q2 2025 Financial Results Summary

Released on August 14, 2025, TEN Holdings, Inc. (NASDAQ: XHLD) announced its financial results for the second quarter ended June 30, 2025. This report highlights key financial metrics, operational results, and a glance into the company’s future strategies.

## Financial Highlights

– **Revenue:**
– Total revenue for Q2 2025 was **$1,116,000**, an increase of **$93,000**, or **9.1%**, from **$1,023,000** in Q2 2024.
– **Revenue from delivered events:**
– Virtual and hybrid events revenue decreased by **$16,000**, or **1.8%**, due to clients postponing events.
– Physical events revenue increased by **$109,000**, or **82.6%**, driven by additional events for a new customer.

– **Cost of Revenue:**
– Increased to **$175,000** in Q2 2025 from **$141,000** in Q2 2024, marking a rise of **$34,000**, or **24.1%**, due to higher costs linked to increased physical events.

– **Selling, General, and Administrative Expenses:**
– Saw a substantial increase to **$2,153,000**, up **$910,000**, or **73%** from **$1,243,000** in Q2 2024, attributed primarily to public company-related expenses, including:
– Increased legal costs.
– Higher PCAOB audit costs.
– Additional insurance premiums.
– External investor relations management fees.

– **Interest Expenses:**
– Increased to **$80,000**, up from **$48,000**, during the same period last year.

– **Net Loss:**
– Total net loss for Q2 2025 was **$2,784,000**, or **$(0.13) per share**, compared to a loss of **$408,000**, or **$(0.02) per share**, in Q2 2024.
– The loss included **$1,359,000** linked to increased operating expenses and **$1,425,000** due to a transaction with Sunpeak Holdings Corporation and higher interest expenses.

– **Weighted Average Number of Shares:**
– Weighted average shares outstanding were **21,425,980** for Q2 2025, down from **25,000,000** for Q2 2024.

## Balance Sheet and Cash Flow Results

– As of June 30, 2025, total cash and cash equivalents increased to **$739,000** from **$48,000** as of December 31, 2024.

– **Cash Flows:**
– Net cash used in operating activities escalated from **$1,007,000** in Q2 2024 to **$7,577,000** in Q2 2025, primarily due to a **$3,500,000** non-cash expense for stock options.

– Net cash used in investing activities was **$529,000** in Q2 2025, marginally lower than **$541,000** in Q2 2024.

## Shareholder Returns

– There was **no declaration of a quarterly dividend** or any share repurchase noted in the report.

## Company Outlook

– The company aims to enhance the **Xyvid Pro Platform** by:
– Introducing new interactive features to enhance attendee engagement.
– Integrating advanced data analytics.
– Improving scalability and flexibility of the platform.

– TEN Holdings intends to focus on increasing recurring revenue streams through the further development of its **Platform-as-a-Service (PaaS)** model.

– Future strategies also include identifying and investing in businesses that offer complementary competitive advantages.

## Conclusion

TEN Holdings, Inc. has shown resilience in revenue growth despite increased costs associated with being a publicly traded company. The company continues to invest in its platform development and market expansion while currently facing losses attributed to growth-related expenses. Moving forward, emphasis on shareholder value and strategic opportunities seems pivotal for their operational direction.

### Condensed Consolidated Statements of Income (in thousands)