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SOS Limited's 2026 Interim Financial Results

SOS Limited, listed under the ticker SOS on the New York Stock Exchange, has recently released its interim financial results for the first half of 2026, covering the period that ended on June 30, 2026. This report outlines notable shifts in revenue and operations compared to the same period in the previous year.

Financial Highlights

The total net revenue for the company reached approximately $48.8 million for the first six months of 2026, representing a considerable decline of 45.5% from the previous year when revenue amounted to $89.6 million. This substantial decrease is largely attributed to the impact of a global economic downturn, which prompted SOS Limited to strategically reduce its business activities during the first half of the year. Furthermore, weakening domestic demand has significantly hindered the company's operational capabilities.

Revenue Breakdown

For the reported period, SOS Limited’s revenue stemmed primarily from three service lines:

• - Commodity Trading: $47.7 million, contributing a staggering 97.6% of total revenue.
• - Hosting Services: $950,000, making up 2.0%.
• - Other Income: $212,000, at 0.4%.

In comparison, the previous year's revenue saw a higher contribution from commodity trading at 94.9%, indicating a shift towards a more commoditized service model.

Operating Costs and Expenses

Operating costs for SOS Limited were reported at $52.5 million, marking a 42.2% decrease from $90.9 million in the first half of 2025. This reduction aligns with the downturn in revenue, highlighting the firm's ongoing adjustments to manage operating expenses effectively. Key components of operating costs include depreciation of mining hardware, electricity, and facilities used for cryptocurrency operations.

Selling and Administrative Expenses

Selling expenses rose slightly to $2.6 million, up from $2.3 million in 2025, primarily driven by increased transportation costs. Conversely, general and administrative expenses experienced a sharp decline, dropping to $6.0 million from $9.4 million, largely due to the lack of depreciation for mining machines in the current period.

Net Loss Analysis

Despite the efforts to control costs, the GAAP net loss for SOS Limited ballooned to $34.5 million in the first half of 2026, up from a loss of $14.2 million in the same period last year. This dramatic increase in losses reflects a gross margin of -7.5%. Management has taken aggressive actions to lower profit margins temporarily to retain existing customers and sustain market share amidst difficult market conditions.

Cash Flow Overview

SOS Limited showed a robust improvement in cash flow, concluding the period with $231.9 million in cash and cash equivalents. This marks an increase of about $228.7 million compared to last year, primarily due to the recovery of substantial amounts in other receivables.

Conclusion

As SOS Limited navigates through challenging economic landscapes, it remains focused on its core business of commodity trading and blockchain operations. The firm’s proactive approach to managing costs and optimizing revenue channels is vital for sustaining long-term growth. SOS Limited’s emphasis on adapting to market conditions while continuing to engage its customer base sets the stage for potential recovery in the upcoming financial periods.

For further details on SOS Limited's financial health and strategic insights, stakeholders are encouraged to visit the company's website or reach out to the Investor Relations Department for comprehensive information.