Datasea Inc (DTSS) Q2 2025 Earnings Report

Datasea Inc reported QQ2 2025 results showing a meaningful top-line acceleration but a persistent quarterly loss and fragile liquidity. Revenue reached $20.46 million, up 80.3% year over year, driven by demand for the company’s smart security and data platform offerings. However, gross profit was only $0.417 million, yielding a gross margin of about 2.04%, and the company posted an operating loss of $1.238 million and a net loss of $1.136 million, with earnings per share of -$0.16. The quarter underscored ongoing fixed-cost pressure and a heavy reliance on external financing to fund operations, as evidenced by sizable stock issuances and a net cash outflow of approximately $0.67 million despite a financing inflow of $4.168 million.

From a balance sheet perspective, Datasea entered QQ2 2025 with limited liquidity: cash and cash equivalents of $0.268 million, total current assets of $1.596 million against current liabilities of $2.560 million, and current ratio of 0.62. The company carries significant intangible assets ($4.081 million) and a large accumulated deficit driven by prior losses, with negative retained earnings of about $42.54 million. Net debt stood at roughly $1.05 million on a modest cash base. Financing activity provided the primary source of cash during the quarter, including common stock issuances totaling nearly $4.0 million, which points to active management of capital raises to support operations.

Absent an available earnings call transcript in the provided data, specific management quotes or themes cannot be cited. The following analysis integrates the disclosed quantitative results with typical strategic considerations for a software infrastructure player in Datasea’s markets and offers a forward-looking view under cautious scenarios.