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TEN Holdings Inc. Reveals First Quarter 2025 Financial Results

On May 20, 2025, TEN Holdings, Inc. (Nasdaq: XHLD), a key player in the event planning and production sector, announced its financial outcomes for the first quarter of 2025, marking a critical phase for the company. For the period ending March 31, 2025, TEN Holdings exhibited a substantial decline in revenue but remains optimistic about its strategic growth plans.

Management Insights

The company's CEO, Randy Jones, expressed confidence in their business strategies during the first quarter. He emphasized the company's commitment to enhancing customer relationships, investing in digital marketing, and expanding their sales team. These initiatives, according to Jones, will empower TEN Holdings to advance their proprietary Xyvid Pro Platform with more interactive features, paired with enhanced data analytics capabilities. The focus is also on integrating conversational AI technology to improve service offerings.

Jones articulated the prospective strategy of identifying and acquiring businesses that can provide complementary advantages to accelerate TEN’s growth. Such measures are projected to boost competitive strength, create predictable cash flows, and ultimately lead to a rise in revenue.

Financial Performance Highlights

In the first quarter of 2025, TEN Holdings reported total revenues of $739,000, a significant decrease of $389,000, or 34.5%, compared to $1,128,000 in the corresponding quarter of 2024. This decline can be attributed primarily to decreased revenues from both virtual and hybrid events, which saw a drop largely due to a major event series for a key client that occurred in the first quarter of 2024 but did not happen this year.

The company recorded a slight reduction in the cost of revenue, amounting to $186,000—a decrease of 34.3% year-over-year—which correlated with the drop in revenue. The gross profit margin remained nearly stable at 74.8%, showcasing the company’s ability to manage costs amid declining revenues.

However, TEN Holdings faced a drastic increase in selling, general, and administrative expenses, which rose by $3,960,000, or 328.4%, totaling $5,166,000. This spike is largely due to stock compensation expenses connected to employee stock option vesting, alongside increased marketing and payroll costs.

The company posted a net loss of $4,836,000, representing a loss per share of $(.18). This is in contrast to a net loss of $405,000, or $(.02) per share, in the first quarter of 2024, highlighting the growing operational expenses.

Non-GAAP losses, which exclude stock-based compensation, indicated a loss of $1,324,000 in Q1 2025, compared to $405,000 in the previous year.

Balance Sheet and Cash Flow

As of March 31, 2025, TEN Holdings’ cash and cash equivalents stood at $247,000, up from $48,000 at the end of December 2024. Nonetheless, net cash used for operating activities surged from $581,000 in Q1 2024 to $6,785,000 in Q1 2025, reflecting increased operational costs.

The cash flow from investing activities for the first quarter of 2025 was noted at $273,000, marginally higher than the $269,000 reported in the previous year's quarter, primarily driven by expenses associated with capitalized software development.

Future Outlook

Looking ahead, TEN Holdings is poised to implement a go-to-market strategy underscored by fresh investments in sales personnel and digital advertising campaigns aimed at enhancing customer engagement. A central goal is to reinforce recurring revenue streams through continued development of their platform-as-a-service model. The company is committed to enriching the Xyvid Pro Platform, introducing new interactive features while improving scalability and analytics.

The management team anticipates that these proactive steps will bolster overall business resilience and enable sustained growth.

About TEN Holdings, Inc.

TEN Holdings, Inc., based in Pennsylvania, specializes in providing comprehensive event planning, production, and broadcasting services. The company's offerings predominantly encompass virtual, hybrid, and physical events, relying heavily on their proprietary Xyvid Pro Platform to deliver excellence in their services.