Revenue: As of FY2026 Q1, the actual value is USD 383 K.

EPS: As of FY2026 Q1, the actual value is USD 0.04.

EBIT: As of FY2026 Q1, the actual value is USD 34 K.

Total Revenues

Total revenues decreased to $0.38 million in the three months ended March 31, 2026, from $1.65 million in the same period of 2025, primarily due to a temporary reduction in demand for services and broader economic headwinds, as ZW Data Action Technologies Inc. refocused efforts on its AI services segment and shifted operations outside mainland China.

Segment Revenue Breakdown

• Internet advertising and related services: Revenues were $0.28 million in 2026, a decrease from $1.02 million in 2025.
  • Internet advertising and related marketing service: $0.28 million in 2026 (74.2% of total) compared to $0.97 million in 2025 (58.7% of total).
  • Distribution of the right to use search engine marketing service: Nil in 2026, down from $0.05 million in 2025 (3.0% of total), due to winding down this service in the PRC.
• AI Services: Revenues were $0.04 million in 2026 (9.9% of total), up from nil in 2025.
• IP Services: Revenues increased to $0.06 million in 2026 (15.9% of total) from $0.02 million in 2025 (1.1% of total), primarily from licensing activities related to acquired intellectual property.
• Blockchain-based SaaS services: Revenues were nil in 2026, a significant decrease from $0.62 million in 2025 (37.2% of total).

Total Cost of Revenues

Total cost of revenues decreased to $0.36 million in 2026 from $1.49 million in 2025, in line with the decrease in revenues.

Gross Profit and Margin

Gross profit was $0.03 million in 2026, down from $0.16 million in 2025. The overall gross margin rate decreased to 7.0% in 2026 from 9.7% in 2025. Internet advertising and related marketing service: Gross margin rate was 6.3% in 2026, down from 9.3% in 2025. Distribution of the right to use search engine marketing service: Gross margin rate was 20.4% in 2025. AI Services: Gross margin rate was 18.4% in 2026. IP Services: Gross margin rate was 3.3% in 2026, down from 27.8% in 2025. Blockchain-based SaaS services: Gross margin rate was 9.0% in 2025.

Operating Expenses

Total operating expenses were approximately - $0.05 million in 2026, compared to $0.74 million in 2025. General and administrative expenses were approximately - $0.05 million in 2026, a decrease from $0.74 million in 2025, primarily due to a $0.09 million decrease from a cost reduction plan, a $0.57 million decrease from a reversal of allowances for credit losses, and a $0.14 million decrease in share-based compensation.

Income/(Loss) from Operations

Income from operations was approximately $0.08 million in 2026, compared to a loss from operations of approximately - $0.58 million in 2025.

Net Income/(Loss)

Net income was approximately $0.13 million in 2026, compared to a net loss of approximately - $0.53 million in 2025.

Cash Flow

• Cash and cash equivalents: $0.72 million as of March 31, 2026, compared to $0.97 million as of December 31, 2025.
• Working capital: $2.52 million as of March 31, 2026, compared to $2.48 million as of December 31, 2025.
• Net cash used in operating activities: - $0.29 million in 2026, an improvement from - $0.98 million in 2025.
• Net cash provided by/(used in) investing activities: $0.05 million in 2026, compared to $0.48 million in 2025.
• Net cash provided by financing activities: Nil in 2026, compared to $0.50 million in 2025.

Outlook and Strategy

ZW Data Action Technologies Inc. plans to improve liquidity by collecting maturing short-term loans, exploring equity financing, and optimizing personnel to reduce operating costs. The company aims to broaden blockchain-based SaaS applications, expand its core Internet advertising and marketing business through acquisitions, and develop Internet advertising and marketing channels targeting users outside mainland China, with a focus on AI-enabled applications. Additional equity financing may be sought to enhance liquidity and support future investments, potentially leading to further shareholder dilution.