Executive Summary

Q2 revenue grew 9.1% YoY to $1.12M, driven by an 82.6% increase in physical events, while virtual/hybrid revenue declined modestly; gross margin improved sequentially to an estimated 84.3% from 74.8% in Q1. Net loss widened YoY to $2.78M ($0.13) but improved QoQ vs. Q1’s $4.84M loss ($0.18) as one-time IPO-related stock-based comp in Q1 rolled off .
No formal quantitative guidance; management reiterated a pivot toward a higher-margin SaaS/PaaS model (Ten Events Pro early adopter program), continued platform investment (Xyvid Pro), and potential partnerships/M&A. A new CFO was appointed on June 30 to strengthen capital markets execution .
Cash increased to $0.74M at quarter-end (from $0.25M at 3/31/25), though operating cash outflows were elevated due to stock option expense recognition noted in Q1/Q2 disclosures; capex remained focused on internal-use software .
Street consensus for Q2 was unavailable; coverage appears limited post-IPO, increasing the importance of execution milestones (SaaS rollout, salesforce ramp) as near-term stock catalysts. Values retrieved from S&P Global [GetEstimates Q2 2025].

What Went Well and What Went Wrong

What Went Well
- Physical events showed strong traction (+$109K, +82.6% YoY), offsetting softness in virtual/hybrid, with contribution from a new customer (~$100K) .
- Sequential fundamentals improved vs. Q1: revenue rebounded to $1.12M (from $0.74M), and reported net loss narrowed to $2.78M from $4.84M as Q1’s large stock-based comp recognition did not recur at that magnitude .
- Strategic execution advanced: Ten Events Pro (SaaS) early adopter program launched for H2’25; CEO emphasized building a “stronger, more resilient company” and expanding recurring revenue streams .
What Went Wrong
- Operating expenses surged YoY (+$910K to $2.15M) on public-company costs (legal, PCAOB audit/advisory, insurance, IR/markets advisory), pressuring profitability (Q2 net loss $2.78M vs. $0.41M LY) .
- Some customers shifted events into Q3 or later, creating timing headwinds for virtual/hybrid revenue (-$16K, -1.8% YoY) .
- Operating cash burn was high (Q2 operating cash outflow $7.58M, impacted by non-cash option expense recognition in the period), increasing sensitivity to capital access and execution on SaaS transition .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025	Consensus (Q2 2025)
Revenue ($)	$1,023,000	$739,000	$1,116,000	N/A*
Net Income - (IS) ($)	$(408,000)	$(4,836,000)	$(2,784,000)	N/A*
Diluted EPS - Continuing Operations ($)	$(0.02)	$(0.18)	$(0.13)	N/A*
Cost of Revenue ($)	$141,000	$186,000	$175,000	—
Gross Profit Margin %	86.2% (calc)	74.8%	84.3% (calc)	—

Notes: Gross margin for Q2 2024 and Q2 2025 calculated from reported revenue and cost of revenue; Q1 2025 gross margin as reported .

YoY and QoQ comparisons (calculated):

Revenue: +9.1% YoY ; +51.0% QoQ .
EPS: worsened YoY to $(0.13) from $(0.02) ; improved QoQ vs. $(0.18) .
Gross margin: down YoY (84.3% vs. 86.2%) but up QoQ (84.3% vs. 74.8%) .

Segment breakdown (Q2 2025 vs. Q2 2024):

Delivered Events Segment	YoY $ Change	YoY % Change	Commentary
Virtual & Hybrid	$(16,000)	(1.8%)	Timing shift of certain customers to Q3 or later
Physical	+$109,000	+82.6%	~+$100K from new customer events

Prior quarter context (Q1 2025 vs. Q1 2024):

Delivered Events Segment	YoY $ Change	Commentary
Virtual & Hybrid	$(368,000)	2024 had a large biennial event with the largest customer
Physical	$(21,000)	Two prior-year events did not repeat

KPIs and balance sheet/cash flow:

KPI	FY 2024 (12/31/24)	Q1 2025 (3/31/25)	Q2 2025 (6/30/25)
Cash and Cash Equivalents ($)	$48,000	$247,000	$739,000
Net Cash Used in Operating Activities (quarter) ($)	—	$6,785,000	$7,577,000
Capex / Internal-use software (quarter) ($)	—	$273,000	$529,000
Interest Expense (quarter) ($)	—	$69,000	$80,000
Weighted Avg Shares (basic/diluted)	—	27,058,113	21,425,980

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3-Q4 2025	Not provided	Not provided	Maintained (no formal guidance)
Gross Margin	FY/Q3-Q4 2025	Not provided	Not provided	Maintained (no formal guidance)
Operating Expenses	FY/Q3-Q4 2025	Not provided	Public company costs to remain elevated vs. prior year baseline (qualitative)	Qualitative only
Capex	FY/Q3-Q4 2025	Not provided	Ongoing investment in internal-use software/platforms (qualitative)	Qualitative only
Strategy Items	FY 2025+	PaaS/SaaS plans underway	Early Adopter Program for Ten Events Pro (SaaS) begins as early as Jul 1, 2025; public launch expected early 2026 (qualitative timing)	New program launched
Capital Allocation	FY 2025+	$1M repurchase authorized (Mar 17, 2025)	Program in place; activity not disclosed in Q2 docs	Maintained

No numerical ranges were provided; the company reiterated qualitative priorities (platform enhancement, PaaS/SaaS transition, M&A/partnerships) .

Earnings Call Themes & Trends

Note: No Q2 earnings call transcript was available. Themes below reflect prepared commentary in press releases across periods.

Topic	Previous Mentions (Q-2: FY2024)	Previous Mentions (Q-1: Q1’25)	Current Period (Q2’25)	Trend
SaaS/PaaS transition	Planned launch of PaaS model to drive recurring revenue	Preparing to integrate PaaS and add conversational AI; build recurring revenue	Launched Ten Events Pro Early Adopter Program; GA targeted for early 2026	Accelerating
Sales/go-to-market	Reengineered GTM; add new sales executive, realign sales force	Realigning sales, expanding sales team, digital marketing	Restructured sales team; added new sales leader to scale operations	Execution in progress
Platform investment	Expand Xyvid Pro features, analytics, scalability	Continue enhancing Xyvid Pro; invest in R&D	Ongoing focus on Xyvid Pro enhancements	Steady focus
Cost structure/public company costs	Higher FY24 SG&A with accounting/pro services	Large Q1 stock-based comp ($3.51M) drove SG&A spike	Elevated public-company costs (legal, PCAOB, insurance, IR) cited for YoY opex increase	Headwind persisting
Event mix (virtual vs. physical)	Physical events increased in FY24 vs. FY23	N/A	Q2: physical +82.6% YoY; virtual/hybrid -1.8% YoY (timing shift to Q3+)	Mix shifting toward physical in Q2
Capital allocation	N/A	$1M buyback authorized (Mar 17, 2025)	No update on usage; new CFO appointed 6/30/25	Foundation building

Management Commentary

“During the second quarter of 2025, we achieved year-over-year revenue growth, underscoring the strength and resilience of our strategy... Leveraging our strengthened infrastructure... we are deepening client relationships and scaling our sales operations.” — CEO Randolph Wilson Jones III .
“Operating expenses increased... due to the incremental costs associated with operating as a public company... We believe that these investments have been critical to building a stronger foundation for sustained growth and enhanced transparency.” — CEO .
“Looking ahead, we remain focused on creating shareholder value by expanding our market presence, advancing our products and services, and deepening customer relationships.” — CEO .
On SaaS launch: “Our transition into a SaaS-based model with the introduction of Ten Pro is a defining milestone... expected to unlock a scalable and recurring revenue stream.” — CEO .
On CFO hire: “His background... will assist our Company in building a solid relationship and reputation with banking institutions and the investment community.” — CEO on appointment of CFO Virgilio D. Torres .

Q&A Highlights

No published Q2 2025 earnings call transcript or Q&A was available at the time of this analysis; management’s disclosures reflect prepared press-release commentary [ListDocuments: no earnings-call-transcript for XHLD].

Estimates Context

Wall Street consensus from S&P Global for Q2 2025 EPS and revenue was unavailable; the database returned actuals only for revenue and no estimates for coverage metrics, suggesting limited analyst coverage post-IPO. Values retrieved from S&P Global.
Implication: Absent consensus, investor focus will be on sequential improvement (revenues, margins), execution milestones (SaaS early adopter progress), and operating expense normalization as key drivers for estimate formation and rerating .

Key Takeaways for Investors

Mix shift and timing: Physical events strength (+82.6% YoY) and customer event timing (virtual/hybrid pushouts to Q3+) drove Q2’s 9.1% revenue growth and a healthier gross margin vs. Q1 .
Expense normalization is key: Elevated public-company costs materially pressured operating results; incremental normalization and scale benefits are needed to narrow losses from the $2.78M level in Q2 .
SaaS pivot as catalyst: Ten Events Pro early adopter rollout and on-time GA in early 2026 could structurally expand margins and introduce recurring revenue—early customer traction updates will be important catalysts .
Capital markets readiness: New CFO with M&A/capital-raising experience may facilitate financing options and potential bolt-on acquisitions to accelerate strategy .
Liquidity watch: Cash rose to $0.74M at quarter-end, but operating cash outflows remain high; delivery on SaaS and salesforce productivity will be critical to funding runway and reducing burn .
Coverage gap: With limited Street estimates, incremental disclosures (KPIs for Ten Pro adoption, bookings pipeline, segment revenue) could attract coverage and reduce uncertainty, potentially improving valuation credibility [GetEstimates Q2 2025] .
Near-term setup: Q3 may benefit from event timing shifts cited in Q2, offering a potential sequential revenue uplift if execution remains on track .

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Appendix: Source Documents

Q2 2025 Press Release and 8-K: Revenues, costs, opex drivers, net loss/EPS, cash, operating cash flow, event mix .
Q1 2025 Press Release and 8-K: Revenues, gross margin, opex (stock comp), net loss/EPS, cash, operating cash flow .
Strategy/Other Q2-period Releases: Ten Events Pro Early Adopter Program (SaaS) ; CFO appointment ; Investor outreach .
FY 2024 Results: Baseline trends and strategic focus .

Estimates disclaimer: Estimates data (including the absence of consensus values) retrieved from S&P Global.

TEN Holdings, Inc. (XHLD)·Q2 2025 Earnings Summary