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Datasea Inc. Reports Outstanding Growth in 2026 Q2 Financial Results

In an exciting update from the tech sector, Datasea Inc. (NASDAQ: DTSS), a Nevada-based company recognized for its innovations in acoustic high-tech solutions and 5G+AI digitalization, has pre-announced its financial results for the second quarter of fiscal year 2026. The numbers, which cover the period ending on December 31, 2025, reflect significant progress in the company’s strategic objectives and operational performance.

Financial Highlights

During the first half of fiscal year 2026, Datasea achieved remarkable financial milestones, with an expected revenue reaching approximately $26.68 million. One of the most striking aspects of this report is the anticipated gross profit, which is projected to be around $2.32 million. This represents a staggering increase of 278% year-over-year, further emphasizing the company's successful shift in strategy. Additionally, the gross margin has seen an impressive rise to 8.70%, a sharp improvement from just 1.48% in the same period the previous year.

Strategic and Operational Insights

Datasea's recent performance underscores a deliberate move towards enhancing profitability through strategic operational changes rather than merely focusing on revenue growth. The implementation of several key initiatives contributed to this successful transition:

• - Reduction of Low-Margin Services: The company has strategically decreased its focus on standardized 5G AI communication services that yielded lower margins.
• - Focus on High-Margin Solutions: A notable increase in high-margin, customized solutions has aided profit margins.
• - Advancements in Acoustic Technologies: Continued innovation and application of acoustic high-tech products have played a key role in boosting operational effectiveness.
• - Cost Control Measures: Ongoing enhancements in cost controls have contributed significantly to operational efficiency.

Management’s Perspective

Zhixin Liu, CEO of Datasea, expressed optimism regarding these results, emphasizing that the first half of the fiscal year marks a pivotal point in the company's journey toward sustainable profitability. She noted, "By intentionally moderating revenue growth, we’ve elevated our gross profit by an impressive 278% and expanded our gross margin to 8.7%—both indicators of our strategic shift towards high-value, technology-oriented businesses." Liu further iterated that this improvement in profit quality aligns with Datasea's long-term development strategy and supports future growth initiatives.

With an eye on further advancements, Datasea aims to enhance its 5G+AI multimodal digital solutions while increasing contributions from technology-driven offerings within its overall business model. The company is also making strides in health management by exploring innovative applications of its acoustic technologies, such as non-invasive acoustic modulation and related healthcare solutions.

Company Overview

Datasea Inc. is recognized as a leader in providing advanced products, services, and solutions targeted at enterprise and retail clients across two innovational domains: acoustic high-tech and 5G-AI multi-modal solutions. The core of its operations is built on advanced research and development capabilities, further supported by a robust cloud infrastructure powered by AI.

In an effort to expand its footprint, Datasea has also founded Datasea Acoustics LLC in Delaware, signaling its intent to penetrate U.S. markets as part of a broader global strategy. For more detailed information, interested parties may visit the company’s website at www.dataseainc.com.

Caution on Forward-Looking Statements

Investors are reminded that this press release contains forward-looking statements as defined in applicable laws. These statements are based on current expectations and market conditions, and arise from a variety of known and unknown risks that could create variances in actual results. More information regarding these risks can be found in Datasea’s filings with the SEC at www.sec.gov. The company has no obligation to update any forward-looking statements, unless required under law.

Contact Information for Investors

For further inquiries regarding investor relations, Datasea can be contacted via email at [email protected] or through their investor relations partner Precept Investor Relations, David Rudnick at +1 646-694-8538.