Datasea reports 70.1% gross profit growth despite lower fiscal 2026 revenue

• Datasea (NASDAQ:DTSS) reported fiscal 2026 gross profit growth of 70.1% despite a lower revenue of approximately $40.70 million for the year ended June 30, 2026.
• Revenue fell 43.17% from approximately $71.62 million in fiscal 2025, while gross margin rose to 10.21% from 3.41% and operating cash flow turned positive at approximately $1.98 million.
• The company stated that the revenue decline was primarily driven by its deliberate reduction of lower-margin digital-service activities.

Datasea (NASDAQ:DTSS) released its full-year financial performance for the period ending June 30, 2026, highlighting improved profitability metrics alongside top-line adjustments.

The strategic pullback from low-margin business segments successfully expanded the company's gross profit to approximately $4.16 million.

Operating loss narrowed to approximately $2.30 million, and net loss attributable to the company decreased by roughly 57% to approximately $2.19 million.

To support long-term product expansion, research and development spending increased approximately 180.3% to $2.57 million during the fiscal year.

Additionally, Nasdaq granted the company an extra 180-calendar-day compliance period until March 22, 2027, to regain compliance with its minimum bid price requirement.