New York – November 06, 2026 -- TEN Holdings (Nasdaq: XHLD) grew third-quarter revenue 17.9% year over year to $640,000, but a $1.8 million write-off and about $0.5 million in litigation costs widened its net loss to $3.7 million as it shifts from managed services to a SaaS model.
Net loss widens 87.9% on one-time charges
Net loss for the quarter ended September 30, 2026 was $3,734,000, up $1,747,000 from $1,987,000 a year earlier. Loss per share fell to $0.31 from $0.84, because weighted average shares rose to 11,999,366 from 2,359,622. Prior-period per-share figures reflect a 1-for-15 reverse split effective December 1, 2025.
SG&A expenses rose 88.2% to $4,113,000. The increase came from the $1.8 million write-off of previously capitalized service contracts and roughly $0.5 million in legal expenses tied to ongoing litigation. Excluding both items, SG&A would have fallen about $0.4 million, or roughly 18%. The quarter also included a $0.3 million expense reversal from forfeited stock-based awards.
Services revenue jumps 307.7% while platform usage falls 12.8%
Professional and managed services revenue climbed $160,000 to $212,000. Platform usage revenue dropped $63,000 to $428,000. Management attributed the overall gain to completing customer transactions begun in prior periods and to new customers.
Cost of revenue rose 89.1% to $261,000 on more on-site events. Gross profit slipped to $379,000 from $405,000, and gross margin fell to 59.2% from 74.6%.
Related-party debt drops from $4.6 million to $0.1 million
Total liabilities declined about 74%, from $7.7 million at year-end 2025 to $2.0 million. Short-term related-party loans fell to $0.1 million, mainly because $4.6 million of debt was settled by offsetting a receivable due from a related party, plus cash repayments. Interest expense dropped to $2,000 from $59,000.
Cash and equivalents stood at $3.5 million, plus $0.1 million restricted, versus $1.6 million at December 31, 2025. The gain from year-end came largely from a $7.5 million common stock offering that closed June 30, 2026. Since June 30, cash fell $2.3 million from $5.8 million, with $2.7 million used in operations, partly offset by $0.7 million from stock option exercises. Holders exercised options on 89,405 shares for about $0.73 million.
Nine-month operating cash burn narrowed to $5.4 million from $9.0 million, mainly because the prior year included $4.7 million in advances to related parties. Financing inflows were $7.4 million versus $10.1 million. Investing outflows were zero versus $0.8 million for capitalized software.
TEN platform launches with 50,000-attendee capacity
Chairman and CEO Virgilio Torres said the company has cut its annual operating cost base by about $2.5 million over 12 months, citing process changes and AI-driven engineering tools. The company launched TEN, a Digital Experience Platform that combines registration, live production, audience engagement, on-demand content and continuing education credentialing. It is sold self-service, with managed services as an add-on, and supports up to 50,000 concurrent attendees at launch. Development was accelerated by proceeds from the June offering.
Management plans to move existing enterprise customers toward subscriptions. It lists three priorities: completing the shift to SaaS, funding TEN's competitiveness, and acquiring businesses that add revenue and EBITDA, offer products the sales team can scale, and bring complementary technology.
Interim CFO appointed and $100 million shelf filed
Ian M. Lawson became Interim Chief Financial Officer effective September 30, 2026. The company relocated its headquarters to New York and filed a Form S-3 registration statement for a $100 million universal shelf. Depreciation and amortization fell to $10,000 from $147,000, after capitalized software was fully impaired in 2025.