0001213900-26-048836
SEC filingNext Technology Holding Inc. reported $465.2K in revenue and $77.9K in gross profit for Q1 FY2026 — its first commercial software revenue, driven solely by a single smart water-system management customer agreement — while operating income declined sharply to -$6.6M due to expanded investment in personnel, vendors, and capital formation.
Revenue of $465.2K for Q1 FY2026 represents the Company’s inaugural recognition of commercial software revenue. As stated in Item 2 of the Management Discussion, this amount arises entirely from a single customer agreement with an entity in the smart water-system management sector. The absence of prior-period revenue confirms this is a new commercial milestone — not a continuation or scaling of existing contracts. Because the agreement is singular and scope-defined, the revenue reflects execution against a discrete deliverable rather than recurring or diversified demand.
Gross profit totaled $77.9K, resulting in a 16.7% gross margin. This margin level is characteristic of early-stage software engagements where implementation services, third-party integrations, and customization absorb a meaningful portion of revenue — particularly when delivered under a fixed-price or milestone-based arrangement. No comparative gross margin is provided for Q1 FY2025, as no revenue was recognized in that period; therefore, the margin reflects baseline economics of the Company’s initial commercial deployment, not a trend.
Net income was -$105.9M, and diluted EPS was -$11.86. While the authoritative financial packet does not break down the components driving this loss beyond the GAAP totals, management commentary in Item 2 attributes the decrease to 'loss in fair value in digital assets' and 'decrease in income tax expenses.' These qualitative drivers confirm the loss is substantially non-operational and non-cash in nature — distinct from the underlying software business performance reflected in revenue and gross profit.
Net cash used in operating activities was -$1.4M. This negative outflow aligns with the scale of operating losses and reflects the working capital impact of early-stage commercial activity — including timing differences between revenue recognition, vendor payments, and payroll cycles. Management does not attribute this to liquidity stress, but rather to the natural cash consumption profile of a company investing ahead of revenue scale.