0001493152-26-023382
SEC filingA challenging quarter as revenue plunged 65% YoY following the sale of the software business, with gross margin collapsing to 5.9% and operating losses widening, though net loss improved on lower other expenses.
Revenue for the first quarter of 2026 was $1.2 million, a decrease of 65% compared to $3.6 million in the same period last year. This decline is primarily attributable to the sale of the software business and ongoing competitive pressures in the U.S. software market. The company's CX and DX divisions continue to operate, but revenue from these segments has been impacted by the strategic pivot toward Go IPO consulting.
Net loss improved 39% to -$1.9 million from -$3.1 million in the prior year. The improvement was primarily due to a $1.5 million decrease in fair value losses on marketable securities. Operating loss, however, widened 24% to -$1.5 million, driven by lower revenue and relatively fixed operating expenses. Diluted EPS was -$1.49, compared to -$0.14 in the prior year, reflecting the impact of the reduced net loss and share count changes.
The company is actively pivoting to Go IPO consulting, having signed 16 client agreements. However, this segment also experienced a decline in gross profit, indicating that the transition is still in early stages and profitability has not yet been achieved. The company's ability to successfully scale this business and improve margins will be critical to its future financial performance.