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TEN Holdings Reports Significant Financial Performance Gain for Q3 2026

On November 6, 2026, TEN Holdings, Inc. (Nasdaq: XHLD) unveiled its financial results for the third quarter ending September 30, 2026. The company's revenue surged to $640,000, representing a remarkable 17.9% year-over-year growth. This achievement was fueled by the completion of earlier initiated customer engagements and the acquisition of new clients.

Virgilio Torres, the Chairman and CEO of TEN Holdings, expressed satisfaction with their performance, highlighting the enduring demand for their digital engagement solutions. He stated, "Our results reflect our capability to serve existing customers while attracting new ones. Our focus will be on increasing recurring revenue and enhancing our technology platform moving forward."

Despite the positive revenue turnaround, the quarter also presented significant non-recurring expenses. Notable deductions included a $1.8 million write-off related to previously capitalized service contracts, alongside approximately $0.5 million in legal costs. Upon excluding these impacts, overall selling, general, and administrative expenses showed a decline compared to the same period the previous year, illustrating TEN Holdings' commitment to operational efficiency. Over the past year, strategic reductions and improvements reportedly slashed the company’s annual operating costs by around $2.5 million. This was achieved through various strategic initiatives, including AI-driven tools aimed at streamlining processes and accelerating product development.

Alongside operational efficiency, TEN Holdings made marked strides in strengthening its financial position during the quarter. The company successfully reduced its short-term related-party borrowings from $4.6 million at the start of the year to merely $0.1 million by September 30, 2026, and cut total liabilities from $7.7 million to $2.0 million.

A standout accomplishment for TEN Holdings in 2026 was the launch of TEN, their cutting-edge Digital Experience Platform. This platform is a pivotal step towards a scalable, SaaS-driven business model, consolidating tools needed by organizations to facilitate and manage digital experiences—all within one unified ecosystem. The TEN platform supports up to 50,000 concurrent attendees, covering areas like webinars, virtual events, and ongoing education programs. Torres highlighted the company’s aim to transition existing customer relationships into subscription-based models, enhancing customer value and establishing a consistent revenue stream.

Looking forward, TEN Holdings is prioritizing three key areas: advancing its transition from a managed services provider to a SaaS company, investing in TEN to maintain competitiveness, and pursuing a disciplined acquisition strategy to integrate accretive businesses that enhance revenue and EBITDA. With a streamlined cost structure and an innovated balance sheet, TEN Holdings is optimistic about creating long-term shareholder value.

The specifics of their third-quarter performance were reflected in multiple financial metrics. The revenue for the quarter of $640,000 increased by $97,000 compared to $543,000 for the same period last year, significantly impacted by transactions previously initiated and new client acquisitions. Conversely, platform usage revenue fell by 12.8% to $428,000. However, professional services revenue shot up by an impressive 307.7%, reaching $212,000.

A notable increase in the cost of revenue was recorded at $261,000, a considerable rise of 89.1% compared to the same quarter last year, attributed to a greater volume of on-site events. Gross profit, however, decreased to $379,000, with a corresponding margin drop from 74.6% to 59.2%.

Selling, general, and administrative expenses reached $4,113,000, marking an 88.2% rise primarily driven by the previously mentioned write-offs and legal matters. When excluding these elements, SGA expenses decreased by approximately 18% from the year prior.

Looking at the balance sheet, TEN Holdings reported cash reserves of $3.5 million, up from $1.6 million at the end of the previous year, driven by a $7.5 million common stock offering launched earlier in June. Additionally, the reduction of short-term loans played a crucial role in enhancing the company’s balance sheet viability.

In summation, TEN Holdings' third quarter results depict a company on a path to transformation, as it pivots towards scalable solutions while maintaining a keen focus on efficient operational practices. The future looks promising for TEN Holdings as it navigates its transition to a dominant player in the SaaS market.