Revenue: As of FY2026 Q1, the actual value is USD 4.331 M.EPS: As of FY2026 Q1, the actual value is USD -0.6.EBIT: As of FY2026 Q1, the actual value is USD -5.455 M.<h3>Segment Revenue</h3><ul><li>Product Packaging: Revenue increased by 4% to $4,163,000 for the three months ended March 31, 2026, from $3,998,000 in the prior year period.</li><li>Securities: Revenue decreased by 83% to $155,000 for the three months ended March 31, 2026, compared to $920,000 in the prior year period.</li><li>Commercial Lending: Revenue decreased by 71% to $6,000 for the three months ended March 31, 2026, from $21,000 in the same period of 2025.</li><li>Biotechnology: Revenue was $7,000 for the three months ended March 31, 2026, a 53% decrease from $15,000 in the corresponding period of 2025.</li><li>Total Revenue: Overall, total revenue decreased by 13% to $4,331,000 for the three months ended March 31, 2026, from $4,954,000 in the prior year period.</li></ul><h3>Cost of Revenue by Segment</h3><ul><li>Product Packaging: Cost of revenue was $4,439,000 for the three months ended March 31, 2026, up 17% from $3,801,000 in the same period of 2025.</li><li>Securities: Cost of revenue decreased by 22% to $1,094,000 for the three months ended March 31, 2026, from $1,396,000 in the prior year period.</li><li>Biotechnology: Cost of revenue was $0 for the three months ended March 31, 2026, a 100% decrease from $11,000 in the corresponding period of 2025.</li><li>Commercial Lending: Cost of revenue was $0 for the three months ended March 31, 2026, a 100% decrease from - $21,000 (a gain) in the prior year period.</li><li>Total Cost of Revenue: Total cost of revenue increased by approximately 7% for the three months ended March 31, 2026, compared to March 31, 2025.</li></ul><h3>Gross Profit (Loss) by Segment</h3><ul><li>Product Packaging: Gross loss was - $276,000 for the three months ended March 31, 2026, compared to a gross profit of $197,000 in the prior year period.</li><li>Commercial Lending: Gross profit was $6,000 for the three months ended March 31, 2026, down from $42,000 in the prior year period.</li><li>Biotechnology: Gross profit was $7,000 for the three months ended March 31, 2026, up from $4,000 in the prior year period.</li><li>Securities: Gross loss was - $939,000 for the three months ended March 31, 2026, compared to a gross loss of - $476,000 in the prior year period.</li><li>Total Gross Profit (Loss): Total gross loss was - $1,202,000 for the three months ended March 31, 2026, compared to a total gross loss of - $233,000 in the prior year period.</li></ul><h3>Operating Expense by Segment</h3><ul><li>Product Packaging: Operating expense was $899,000 for the three months ended March 31, 2026, compared to $709,000 in the prior year period.</li><li>Commercial Lending: Operating expense was $77,000 for the three months ended March 31, 2026, compared to $65,000 in the prior year period.</li><li>Biotechnology: Operating expense was $2,305,000 for the three months ended March 31, 2026, compared to $1,057,000 in the prior year period.</li><li>Securities: Operating expense was $318,000 for the three months ended March 31, 2026, compared to $162,000 in the prior year period.</li><li>Corporate/Other: Operating expense was $686,000 for the three months ended March 31, 2026, compared to $1,500,000 in the prior year period.</li><li>Total Operating Expense: Total operating expense was $4,285,000 for the three months ended March 31, 2026, compared to $3,493,000 in the prior year period.</li></ul><h3>Operating Income (Loss) by Segment</h3><ul><li>Product Packaging: Operating loss was - $1,175,000 for the three months ended March 31, 2026, compared to an operating loss of - $512,000 in the prior year period.</li><li>Commercial Lending: Operating loss was - $71,000 for the three months ended March 31, 2026, compared to an operating loss of - $23,000 in the prior year period.</li><li>Biotechnology: Operating loss was - $2,298,000 for the three months ended March 31, 2026, compared to an operating loss of - $1,053,000 in the prior year period.</li><li>Securities: Operating loss was - $1,257,000 for the three months ended March 31, 2026, compared to an operating loss of - $638,000 in the prior year period.</li><li>Corporate/Other: Operating loss was - $686,000 for the three months ended March 31, 2026, compared to an operating loss of - $1,500,000 in the prior year period.</li><li>Total Operating Loss: Total operating loss was - $5,487,000 for the three months ended March 31, 2026, compared to - $3,726,000 in the prior year period.</li></ul><h3>Other Key Financial Metrics</h3><ul><li>Net Loss: The net loss for the three months ended March 31, 2026, was - $6,354,000, an increase of 20% from the net loss of - $5,296,000 for the same period in 2025.</li><li>Depreciation and Amortization: This expense was $633,000 for the three months ended March 31, 2026, compared to $523,000 in the prior year.</li><li>Stock-based Payments: Stock-based payments to employees and directors totaled $1,440,000 for the three months ended March 31, 2026, up from $872,000 in the same period of 2025.</li><li>Unrealized Loss on Investments: The company recorded an unrealized loss on investments of $678,000 for the three months ended March 31, 2026, which is lower than the $925,000 loss in the prior year.</li><li>Change in Fair Value of Convertible Bond Investment – Related Party: A change in fair value of - $128,000 was recognized for the three months ended March 31, 2026, with no comparable amount in 2025.</li><li>Cash Paid for Interest: Cash paid for interest was $53,000 for the three months ended March 31, 2026, significantly lower than $947,000 in the prior year.</li></ul><h3>Cash Flow</h3><ul><li>Operating Activities: Net cash used by operating activities was - $133,000 for the three months ended March 31, 2026, a decrease from $168,000 cash provided by operating activities in the same period of 2025.</li><li>Investing Activities: Net cash used by investing activities was - $2,639,000 for the three months ended March 31, 2026, a significant change from $11,070,000 cash provided by investing activities in the prior year, primarily due to the purchase of a convertible bond – related party of approximately $2,450,000 in 2026, contrasting with cash inflows from the sale of real estate ($9,500,000) and related party investments ($1,500,000) in the prior year.</li><li>Financing Activities: Net cash provided by financing activities was $1,394,000 for the three months ended March 31, 2026, a reversal from - $11,694,000 cash used by financing activities in the prior year, influenced by borrowings of convertible note payable – related party of $2,450,000 in the first quarter of 2026.</li></ul><h3>Future Outlook and Strategy</h3>DSS, Inc. plans to continue its evolution and deliver value to stakeholders across its diverse business lines. The Commercial Lending division intends to transition away from certain industries like direct marketing to focus on growing its inventory/equipment loan portfolio and engaging in specialized lending areas such as broker/dealer loans. The company will monitor its managed loan portfolio and explore future opportunities, anticipating the equity portfolio as a bank holding company to remain relatively stable.<h3>Liquidity and Capital Resources</h3>As of March 31, 2026, DSS, Inc. had cash of approximately $4,936,000 and believes it will have access to equity and/or debt-based financing to meet its working capital needs, with sufficient cash for at least the next 12 months. Despite incurring operating losses and negative cash flows from operating and investing activities over the past two years, raising substantial doubt about its ability to continue as a going concern, DSS, Inc. can generate operating cash through the sale of its $983,000 marketable securities and is implementing measures to materially reduce expenses and cash burn across all corporate and business line levels.

DSS | 10-Q: FY2026 Q1 Revenue: USD 4.331 M