--- title: "ZW Data Action Tech | 10-Q: FY2026 Q1 Revenue: USD 383 K" type: "News" locale: "en" url: "https://longbridge.com/en/news/286557250.md" datetime: "2026-05-15T11:32:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286557250.md) - [en](https://longbridge.com/en/news/286557250.md) - [zh-HK](https://longbridge.com/zh-HK/news/286557250.md) --- # ZW Data Action Tech | 10-Q: FY2026 Q1 Revenue: USD 383 K Revenue: As of FY2026 Q1, the actual value is USD 383 K. EPS: As of FY2026 Q1, the actual value is USD 0.04. EBIT: As of FY2026 Q1, the actual value is USD 34 K. #### Total Revenues Total revenues decreased to $0.38 million in the three months ended March 31, 2026, from $1.65 million in the same period of 2025, primarily due to a temporary reduction in demand for services and broader economic headwinds, as ZW Data Action Technologies Inc. refocused efforts on its AI services segment and shifted operations outside mainland China. #### Segment Revenue Breakdown - **Internet advertising and related services**: Revenues were $0.28 million in 2026, a decrease from $1.02 million in 2025. - Internet advertising and related marketing service: $0.28 million in 2026 (74.2% of total) compared to $0.97 million in 2025 (58.7% of total). - Distribution of the right to use search engine marketing service: Nil in 2026, down from $0.05 million in 2025 (3.0% of total), due to winding down this service in the PRC. - **AI Services**: Revenues were $0.04 million in 2026 (9.9% of total), up from nil in 2025. - **IP Services**: Revenues increased to $0.06 million in 2026 (15.9% of total) from $0.02 million in 2025 (1.1% of total), primarily from licensing activities related to acquired intellectual property. - **Blockchain-based SaaS services**: Revenues were nil in 2026, a significant decrease from $0.62 million in 2025 (37.2% of total). #### Total Cost of Revenues Total cost of revenues decreased to $0.36 million in 2026 from $1.49 million in 2025, in line with the decrease in revenues. #### Gross Profit and Margin Gross profit was $0.03 million in 2026, down from $0.16 million in 2025. The overall gross margin rate decreased to 7.0% in 2026 from 9.7% in 2025. Internet advertising and related marketing service: Gross margin rate was 6.3% in 2026, down from 9.3% in 2025. Distribution of the right to use search engine marketing service: Gross margin rate was 20.4% in 2025. AI Services: Gross margin rate was 18.4% in 2026. IP Services: Gross margin rate was 3.3% in 2026, down from 27.8% in 2025. Blockchain-based SaaS services: Gross margin rate was 9.0% in 2025. #### Operating Expenses Total operating expenses were approximately - $0.05 million in 2026, compared to $0.74 million in 2025. General and administrative expenses were approximately - $0.05 million in 2026, a decrease from $0.74 million in 2025, primarily due to a $0.09 million decrease from a cost reduction plan, a $0.57 million decrease from a reversal of allowances for credit losses, and a $0.14 million decrease in share-based compensation. #### Income/(Loss) from Operations Income from operations was approximately $0.08 million in 2026, compared to a loss from operations of approximately - $0.58 million in 2025. #### Net Income/(Loss) Net income was approximately $0.13 million in 2026, compared to a net loss of approximately - $0.53 million in 2025. #### Cash Flow - Cash and cash equivalents: $0.72 million as of March 31, 2026, compared to $0.97 million as of December 31, 2025. - Working capital: $2.52 million as of March 31, 2026, compared to $2.48 million as of December 31, 2025. - Net cash used in operating activities: - $0.29 million in 2026, an improvement from - $0.98 million in 2025. - Net cash provided by/(used in) investing activities: $0.05 million in 2026, compared to $0.48 million in 2025. - Net cash provided by financing activities: Nil in 2026, compared to $0.50 million in 2025. #### Outlook and Strategy ZW Data Action Technologies Inc. plans to improve liquidity by collecting maturing short-term loans, exploring equity financing, and optimizing personnel to reduce operating costs. The company aims to broaden blockchain-based SaaS applications, expand its core Internet advertising and marketing business through acquisitions, and develop Internet advertising and marketing channels targeting users outside mainland China, with a focus on AI-enabled applications. 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