<span item_type="fundamental" item_id="04eb5e75ac4b85a87be27db5b1e58ece" counter_id="ST/US/CNET" env="prod"></span><span item_type="announcement" item_id="648606696608369281" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 383 K.</p><p>EPS: As of FY2026 Q1, the actual value is USD 0.04.</p><p>EBIT: As of FY2026 Q1, the actual value is USD 34 K.</p><p></p><h4>Total Revenues</h4><p>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. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></p><h4>Segment Revenue Breakdown</h4><ul><li><strong>Internet advertising and related services</strong>: Revenues were $0.28 million in 2026, a decrease from $1.02 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span><ul><li>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). <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li><li>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. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li></ul></li><li><strong>AI Services</strong>: Revenues were $0.04 million in 2026 (9.9% of total), up from nil in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li><li><strong>IP Services</strong>: 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. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li><li><strong>Blockchain-based SaaS services</strong>: Revenues were nil in 2026, a significant decrease from $0.62 million in 2025 (37.2% of total). <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li></ul><h4>Total Cost of Revenues</h4><p>Total cost of revenues decreased to $0.36 million in 2026 from $1.49 million in 2025, in line with the decrease in revenues. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></p><h4>Gross Profit and Margin</h4><p>Gross profit was $0.03 million in 2026, down from $0.16 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span> The overall gross margin rate decreased to 7.0% in 2026 from 9.7% in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span> Internet advertising and related marketing service: Gross margin rate was 6.3% in 2026, down from 9.3% in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span> Distribution of the right to use search engine marketing service: Gross margin rate was 20.4% in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span> AI Services: Gross margin rate was 18.4% in 2026. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span> IP Services: Gross margin rate was 3.3% in 2026, down from 27.8% in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span> Blockchain-based SaaS services: Gross margin rate was 9.0% in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></p><h4>Operating Expenses</h4><p>Total operating expenses were approximately - $0.05 million in 2026, compared to $0.74 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span> 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. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></p><h4>Income/(Loss) from Operations</h4><p>Income from operations was approximately $0.08 million in 2026, compared to a loss from operations of approximately - $0.58 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></p><h4>Net Income/(Loss)</h4><p>Net income was approximately $0.13 million in 2026, compared to a net loss of approximately - $0.53 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></p><h4>Cash Flow</h4><ul><li>Cash and cash equivalents: $0.72 million as of March 31, 2026, compared to $0.97 million as of December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li><li>Working capital: $2.52 million as of March 31, 2026, compared to $2.48 million as of December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li><li>Net cash used in operating activities: - $0.29 million in 2026, an improvement from - $0.98 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li><li>Net cash provided by/(used in) investing activities: $0.05 million in 2026, compared to $0.48 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li><li>Net cash provided by financing activities: Nil in 2026, compared to $0.50 million in 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></li></ul><h4>Outlook and Strategy</h4><p>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. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1376321/000117184326003454/cnet20260331_10q.htm"></span></p>

ZW Data Action Tech | 10-Q: FY2026 Q1 Revenue: USD 383 K