Executive Summary

Q1 2025 revenue was $0.739M, down 34.5% year over year due to bi-annual timing at the largest customer; gross margin held at 74.8% (vs 74.9% last year), but SG&A surged on IPO-related stock compensation, driving a net loss of $4.836M and EPS of $(0.18) .
No numeric guidance was provided; management emphasized investments in sales, digital marketing, and R&D to expand PaaS and add conversational AI to offerings .
Liquidity improved modestly with cash and equivalents at $0.247M at quarter-end (vs $0.048M at FY24 year-end), but operating cash outflow rose sharply to $6.785M on stock comp and public company ramp-up .
Estimates context: S&P Global Wall Street consensus for Q1 2025 EPS and revenue was unavailable; actual revenue recorded at $0.739M, EPS at $(0.18). Values retrieved from S&P Global*.

What Went Well and What Went Wrong

What Went Well

Gross margin stability: 74.8% in Q1 2025 vs 74.9% in Q1 2024 despite revenue decline, indicating pricing and cost discipline in core operations .
Strategic groundwork: Management highlighted progress in building infrastructure to strengthen customer relationships, expand the sales team, invest in digital marketing, and enhance R&D for interactive/features and PaaS expansion .
Capital policy: Authorized a $1M stock repurchase program to strengthen shareholder returns and capital efficiency, signaling confidence in intrinsic value .
- “These steps… will provide us with the competitive advantages, margin expansion, customer growth, diversification, and predictable cash flow generation that we anticipate will drive revenue growth and bottom-line improvements going forward.” — CEO Randy Jones .

What Went Wrong

Revenue down 34.5% YoY to $0.739M, primarily due to an event series at the largest customer that repeats every other year and did not recur in Q1 2025; physical events also down modestly .
SG&A increased by $3.96M to $5.166M, driven by $3.512M stock compensation from IPO option vesting plus public company, marketing, and higher payroll costs; net loss expanded to $4.836M .
Operating cash burn escalated to $6.785M from $0.581M YoY, reflecting stock comp and public company build-out; interest expense increased to $0.069M .

Financial Results

YoY Performance (Q1 2024 vs Q1 2025)

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$1.128	$0.739
Cost of Revenue ($USD Millions)	$0.283	$0.186
Gross Profit Margin %	74.9%	74.8%
SG&A ($USD Millions)	$1.206	$5.166
Interest Expense ($USD Millions)	$0.026	$0.069
Net Loss ($USD Millions)	$0.405	$4.836
EPS ($USD)	$(0.02)	$(0.18)

Notes:

Q1 2024 cost of revenue and SG&A derived from changes disclosed (decrease of $0.097M to $0.186M; increase of $3.960M to $5.166M) .

2025 Sequential Trend (Q1 → Q2 → Q3)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$0.739	$1.116	$0.543
Cost of Revenue ($USD Millions)	$0.186	$0.175	$0.138
SG&A ($USD Millions)	$5.166	$2.153	$2.185
Interest Expense ($USD Millions)	$0.069	$0.080	$0.059
Net Loss ($USD Millions)	$4.836	$2.784	$1.987
EPS ($USD)	$(0.18)	$(0.13)	$(0.10)

Segment Breakdown (Revenue Change YoY)

Segment	Q1 2025	Q2 2025	Q3 2025
Delivered events – Virtual & Hybrid (Change YoY, $USD Millions)	-$0.368	-$0.016	-$0.038
Delivered events – Physical (Change YoY, $USD Millions)	-$0.021	+$0.109	+$0.046

KPIs and Cash Flow

KPI	Q1 2024	Q1 2025
Weighted Avg Shares Outstanding (Millions)	25.000	27.058
Cash & Cash Equivalents ($USD Millions)	$0.048 (FY24 YE)	$0.247 (as of 3/31/25)
Net Cash Used in Operating Activities ($USD Millions)	$0.581	$6.785
Net Cash Used in Investing Activities ($USD Millions)	$0.269	$0.273

Estimates vs Actuals (Q1 2025)

Metric	Consensus	Actual
Revenue ($USD Millions)	N/A*	$0.739
Primary EPS ($USD)	N/A*	$(0.18)

Values retrieved from S&P Global*. Consensus was unavailable for Q1 2025; S&P recorded actual revenue only.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2/Q3 2025	None provided	No numeric guidance; focus on sales expansion, digital ads, recurring revenue via PaaS	Maintained (qualitative only)
Margins	FY 2025	None provided	No numeric guidance; aim for margin expansion via product/platform enhancements	Maintained (qualitative only)
OpEx	FY 2025	None provided	Higher public company costs expected; continued investments in marketing and sales	Raised (qualitative indication)
Product/ARR (SaaS)	FY 2025–2026	None provided	Accelerate SaaS (“Ten Events Pro”) via Webinar.net partnership; expect ARR growth; potential $1.2–$1.7M OpEx reduction in 2026	Introduced
Capital Returns	Open-ended	None provided	$1M stock repurchase program authorized (evergreen)	Introduced

No formal numeric revenue/EPS/tax/OI&E guidance was issued.

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was found after targeted search across earnings transcripts for XHLD (none available in catalog for the period). This section reflects management themes from press releases.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2025)	Trend
Sales & GTM	FY24: reengineered go-to-market; added sales exec, realigned sales force; increased digital marketing	Continued investments in digital marketing and sales expansion; better positioned to strengthen customer relationships	Strengthening in Q2 with sales leader cited
PaaS / Recurring Revenue	FY24: began development of PaaS to drive recurring revenue	Focus on developing/integrating PaaS model to increase recurring revenue	Q3: SaaS “Ten Events Pro” early adopter program; Webinar.net partnership accelerates ARR pathway
Conversational AI	Not disclosed in FY24	Plan to add conversational AI to upgrade offerings	Formal press release adding conversational AI to service portfolio
Public Company Cost Structure	N/A (pre-IPO)	Stock comp from IPO drove SG&A	Q2/Q3 public company costs materially elevate OpEx (legal, audit, IR, insurance)
Partnerships	N/A	Potential to invest/partner/acquire complementary businesses	Q3: Webinar.net partnership; Oct: V‑Cube partnership for enterprise-grade experiences
Liquidity & Cash Flow	FY24: operating cash outflow $2.48M; cash $0.048M YE	Cash $0.247M; Op cash outflow $6.785M; investing ~$0.273M	Cash reached $0.739M by Q2; investing ~$0.529M

Management Commentary

“We now expect to be in a better position to achieve key objectives such as strengthening our customer relationships, increasing our investment in digital marketing, and expanding our sales team… to further develop and integrate our PaaS model and increase recurring revenue, and to add conversational artificial intelligence to upgrade our offerings.” — CEO Randy Jones .
“These steps… will provide us with the competitive advantages, margin expansion, customer growth, diversification, and predictable cash flow generation that we anticipate will drive revenue growth and bottom-line improvements going forward.” — CEO Randy Jones .
On Q2 posture: “As anticipated, operating expenses increased… primarily due to the incremental costs associated with operating as a public company… critical to building a stronger foundation for sustained growth” — CEO Randolph Wilson Jones III .

Q&A Highlights

No Q1 2025 earnings call transcript was available in the source catalog for XHLD; therefore, there are no Q&A items to report for the quarter. We searched the earnings-call-transcript document type for 1/1/2025–6/30/2025 and found none.

Estimates Context

S&P Global consensus for Q1 2025 EPS and revenue was unavailable; S&P recorded actual revenue only. Values retrieved from S&P Global*.
Implication: With no formal coverage, updates to forward estimates are unlikely; investors should anchor on company qualitative guidance, operating expense trajectory as a public company, and commercialization of SaaS/AI initiatives .

Key Takeaways for Investors

Revenue variability tied to large bi-annual customers caused a 34.5% YoY decline; monitor customer concentration and event timing normalization through FY25 .
Despite revenue pressure, gross margin remained stable, suggesting core production economics are intact; the near-term loss is dominated by stock comp and public company ramp-up .
Balance sheet/liquidity improved from YE24, but operating cash burn surged; watch cash levels and potential draws under facilities to support SaaS build-out .
Strategic pivot toward recurring revenue (PaaS/SaaS “Ten Events Pro”) and conversational AI could improve revenue quality and margins over time; partnerships (Webinar.net, V‑Cube) accelerate road map .
Capital policy supports shareholder returns via a $1M repurchase program, but execution depends on cash generation and OpEx discipline .
Near-term trading: Stock likely reacts to execution signals on SaaS commercialization, ARR disclosures, and OpEx normalization; lack of numeric guidance heightens sensitivity to quarterly delivery .
Medium term: Focus on diversifying client mix away from bi-annual exposure, scaling enterprise partnerships, and demonstrating recurring revenue traction with improving operating leverage .

References:

TEN Holdings, Inc. (XHLD)·Q1 2025 Earnings Summary