IDAI · T Stamp Inc.

Operating income improved 18.2% to -$7.7 million from -$9.4 million. The decrease in operating loss was mainly related to a substantial decrease in SG&A expense and an increase in net revenue. These dynamics demonstrate effective cost management, enabling the company to narrow its operating deficit even as it invests in growth areas. Operating margin stood at -244.0%, reflecting high fixed costs relative to revenue scale, though management expects the margin will continue to improve until it stabilizes over time.

Operational signals include higher R&D costs from personnel-related expenses tied to development team expansion and merit adjustments, alongside increased internal developer allocations for the QID Master Services Agreement. Management has evaluated these conditions and plans to generate revenue and raise capital as needed to satisfy its capital needs, positioning the company to address liquidity while pursuing scalability.