#United States #AI #Acoustic Technology #Nevada #Datasea

Datasea Achieves Significant Growth in Gross Profit

In a noteworthy financial update, Datasea Inc. (NASDAQ: DTSS), a Nevada-based company specializing in high-tech acoustic technologies and AI multimodal digitalization, reported impressive results for the first fiscal quarter of 2026. The company's gross profit surged to $1.2 million, marking a staggering 4.9 times increase compared to the previous year. This growth signals Datasea's successful transition towards a more profitable business model focused on high-tech products.

Key Financial Highlights

In a detailed financial report released on November 13, 2025, the company disclosed several critical metrics:

• - Revenue for the quarter stood at $13.81 million, a decline of 34.5% from $21.08 million in Q1 2025. This decrease was part of a strategic optimization plan aimed at restructuring low-margin operations.
• - Gross profit rose dramatically from just $0.02 million to $1.17 million, reflecting cost rationalization and enhanced operational efficiencies, emphasizing profitability through high-tech solutions.
• - The gross margin jumped to 8.46%, a remarkable gain of 753 basis points, highlighting the success of the company's focus on high-margin products like 5G and AI solutions.

Management Insights

CEO Zhixin Liu highlighted the strategic transformation that Datasea is undergoing, stating, "The first quarter of fiscal 2026 marks a strategic transition for Datasea as we pivot from scale expansion to profitability optimization." The deliberate reduction in revenue generation tactics is aimed at focusing on high-value technology-driven businesses while scaling back on low-margin services.

This strategic shift is reflected in Datasea's partnerships and product developments. For instance, the company successfully delivered customized 5G+AI multimodal digital services for several major clients, resulting in revenues of approximately RMB 6.53 million (around $0.92 million). Liu emphasized, "These high-margin, technology-driven solutions have proven the effectiveness of our strategic shift and further enhanced overall profitability."

Operational Highlights

Datasea's performance can be primarily attributed to two critical segments:

1. 5G+AI Multimodal Digital Solutions

This segment remains the primary revenue generator for Datasea, contributing $13.32 million during the quarter. The company's leadership in the expanding 5G+AI multimodal industry has allowed for continuous growth in its customer base, providing stability and recurring revenue. Key achievements within this segment included:

• - Successful revenue realization from vertical solutions, especially in AI multimodal services targeting SMEs and digital rural development.
• - Significant contributions from new media marketing services that tapped into current market demands, elevating overall profitability.

2. Acoustic High-Tech Innovations

Datasea has continued its research and development in the 'Acoustics + AI + Neuro-Regulation' domain, focusing on creating integrated health management solutions. This segment has seen progress in retail and cooperative efforts within medical and healthcare applications. Noteworthy advancements include:

• - A strategic shift from single hardware products to comprehensive acoustic solution systems, catering to healthcare and beauty sectors.

Future Prospects

Datasea's forward-looking strategy emphasizes continued innovation across both core business segments:

• - 5G+AI Multimodal Segment: Plans to upgrade its proprietary AI platforms and develop customized high-margin solutions while promoting subscription-based services will enhance revenue stability.
• - Acoustic Technology: The company aims to accelerate research on integrating ultrasound and brain-computer interface technologies to pioneer non-invasive health management solutions.

Datasea is committed to enhancing its gross margin and solidifying its competitive edge in the high-tech innovation landscape. With these strategies, Datasea is poised to achieve sustainable profitability and expand its market presence globally.

For further information about Datasea Inc. and its innovative offerings, visit dataseainc.com.