0001493152-26-023145
SEC filingRevenue declined 31% to $14.5M, but gross profit surged 67% to $5.6M and operating loss narrowed 53% to $3.4M, as a $14.6M digital asset loss drove net loss to $17.7M.
Revenue for the first quarter of fiscal 2026 was $14.5 million, down 31% from $21.1 million in the prior-year period. The decrease was primarily due to the absence of revenue from businesses disposed of in prior periods, partially offset by contributions from the acquisitions of Click and TubeBuddy, which were not included in the comparable prior-year period. The company also benefited from new web3 agency deals, though the overall revenue mix shifted toward higher-margin offerings.
Net loss widened to $17.7 million from $5.2 million, primarily due to a $14.6 million realized and unrealized loss on digital assets and the ETH treasury strategy launched in July 2025. The large change in warrant liability income was driven by the decline in the company's common share price during the period. Diluted EPS was -$0.18 compared to -$0.14 in the prior year.
The company expects to continue to obtain information to determine the fair value of net assets acquired during measurement periods. Goodwill arising from acquisitions is expected to be deductible for tax purposes. The company's focus remains on integrating acquisitions, expanding its digital asset strategy, and improving operational efficiency.