--- title: "Fusemachines | 10-Q: FY2026 Q1 Revenue: USD 1.879 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286632660.md" datetime: "2026-05-16T04:11:38.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286632660.md) - [en](https://longbridge.com/en/news/286632660.md) - [zh-HK](https://longbridge.com/zh-HK/news/286632660.md) --- # Fusemachines | 10-Q: FY2026 Q1 Revenue: USD 1.879 M Revenue: As of FY2026 Q1, the actual value is USD 1.879 M. EPS: As of FY2026 Q1, the actual value is USD -0.03. EBIT: As of FY2026 Q1, the actual value is USD -2.981 M. Fusemachines Inc. operates as a single segment focused on data engineering, artificial intelligence consulting, and technical services, with all revenues attributed to this sole segment. #### Revenue For the three months ended March 31, 2026, total revenue was $1.88 million, representing a decrease of $0.07 million (4%) compared to $1.95 million for the same period in 2025. **Revenue by Customer Location:** **United States**: $1.82 million in 2026, down from $1.88 million in 2025. **Rest of the world**: $0.06 million in 2026, down from $0.07 million in 2025. **Revenue by Service Type:** **AI Solutions (Products and Services)**: $1.87 million in 2026, down from $1.95 million in 2025, with product revenue being an insignificant portion in both periods. **AI Education Services**: $0.01 million in 2026, compared to nil in 2025. #### Operational Metrics - **Cost of Revenue**: Increased by $0.07 million (8%) to $0.93 million in 2026 from $0.86 million in 2025, primarily due to annual salary increments. - **Gross Profit**: Decreased by $0.14 million (13%) to $0.95 million in 2026 from $1.09 million in 2025, as a result of lower sales and higher cost of revenue. - **Selling and Marketing Expenses**: Increased by $0.10 million (34%) to $0.41 million in 2026 from $0.31 million in 2025, mainly due to higher consulting fees. - **General and Administrative Expenses**: Increased by $1.34 million (69%) to $3.27 million in 2026 from $1.93 million in 2025, driven by increases in stock-based compensation, professional services costs, and payroll expenses. - **Research and Development Expenses**: Increased by $0.13 million (81%) to $0.30 million in 2026 from $0.17 million in 2025, primarily due to increased payroll expenses. - **Loss from Operations**: Increased to - $3.04 million in 2026 from - $1.32 million in 2025. - **Interest Expense**: Decreased by $0.02 million (18%) to - $0.05 million in 2026 from - $0.07 million in 2025, due to a lower outstanding balance of promissory notes. - **Loss on Extinguishment of Convertible Notes Payable**: Nil in 2026, compared to - $0.39 million in 2025. - **Gain on Extinguishment of Payable**: $0.50 million in 2026, with no corresponding amount in 2025, resulting from a settlement agreement. - **Gain on Change in Fair Value**: Total gain was $1.65 million in 2026, compared to $1.52 million in 2025, including gains from the fair value of forward purchase derivative liability and common stock warrant liability. - **Net Loss**: Increased to - $0.87 million in 2026 from - $0.25 million in 2025, primarily due to increased expenses, partially offset by gains and lower interest expense. - **EBITDA**: - $0.76 million in 2026, compared to - $0.14 million in 2025. - **Adjusted EBITDA**: - $2.50 million in 2026, compared to - $1.20 million in 2025. #### Cash Flow - **Net Cash Used in Operating Activities**: Increased to - $2.22 million in 2026 from - $0.23 million in 2025, driven by higher operating expenses and changes in working capital. - **Net Cash Used in Investing Activities**: Increased to - $0.06 million in 2026 from - $0.02 million in 2025, due to capitalized costs for internally developed software and property and equipment purchases. - **Net Cash Used in Financing Activities**: - $0.17 million in 2026, compared to $0.18 million provided in 2025, primarily due to payments for director and officer insurance liability. #### Outlook and Strategy Fusemachines Inc. plans to mitigate significant market competition and rapid technological changes through continuous innovation, differentiation, and investment in research and development and talent development. The company requires additional capital for operations and growth, with an accumulated deficit of - $36.10 million as of March 31, 2026, raising substantial doubt about its ability to continue as a going concern. However, a Common Stock Purchase Agreement with Roth Principal Investments, LLC provides for up to $20.0 million in additional equity financing over 36 months, though no proceeds have yet been received. ### Related Stocks - [FUSE.US](https://longbridge.com/en/quote/FUSE.US.md) ## Related News & Research - [Fusemachines 2025 10-K: Revenue $7.71M, EPS $(0.08)](https://longbridge.com/en/news/280849645.md) - [Bentley Systems, Incorporated Declares Second Quarter 2026 Dividend](https://longbridge.com/en/news/287402022.md) - [LOWE'S REPORTS FIRST QUARTER 2026 SALES AND EARNINGS RESULTS | LOW Stock News](https://longbridge.com/en/news/287043063.md) - [ZKH Group Limited Announces First Quarter 2026 Unaudited Financial Results | ZKH Stock News](https://longbridge.com/en/news/287196025.md) - [Assessing Nucor (NUE) Valuation After Lexington Rebar Mill Launch And Strong Q1 Earnings](https://longbridge.com/en/news/287439926.md)