Revenue: As of FY2026 Q1, the actual value is USD 1.879 M.

EPS: As of FY2026 Q1, the actual value is USD -0.03.

EBIT: As of FY2026 Q1, the actual value is USD -2.981 M.

Segment Revenue

FUSEMACHINES INC. operates as a single segment focused on data engineering, AI consulting, and technical services . Total revenue for the three months ended March 31, 2026, was $1.88 million, a 4% decrease from $1.95 million in the same period of 2025, primarily due to lower revenue from AI Solutions (Products and Services) .

• Revenue by Customer Location (Q1 2026 vs. Q1 2025):
  • United States: $1.82 million, down from $1.88 million .
  • Rest of the world: $0.055 million, down from $0.073 million .
• Revenue by Service Type (Q1 2026 vs. Q1 2025):
  • AI Solutions (Products and Services): $1.87 million, compared to $1.95 million . Product revenue was insignificant for both periods .
  • AI Education Services: $0.007 million, up from nil .

Operational Metrics (Three months ended March 31, 2026 vs. 2025)

• Net Loss: Increased to -$0.87 million in 2026 from -$0.25 million in 2025, a 245% increase .
• Cost of Revenue: Increased to -$0.93 million in 2026 from -$0.86 million in 2025, an 8% increase, mainly due to annual salary increments .
• Gross Profit: Decreased to $0.95 million in 2026 from $1.09 million in 2025, a 13% decrease, resulting from lower sales and higher cost of revenue .
• Selling and Marketing Expenses: Increased to $0.41 million in 2026 from $0.31 million in 2025, a 34% increase, primarily due to higher consulting fees .
• General and Administrative Expenses: Increased to $3.27 million in 2026 from $1.93 million in 2025, a 69% increase, driven by a -$0.35 million rise in stock-based compensation expense from restricted stock units (RSUs), a -$0.37 million increase in professional services costs, and a -$0.32 million increase in payroll expenses .
• Research and Development Expenses: Increased to $0.30 million in 2026 from $0.17 million in 2025, an 81% increase, primarily due to increased payroll expenses .
• Loss from Operations: Increased to -$3.04 million in 2026 from -$1.32 million in 2025, a 131% increase .
• Interest Expense: Decreased to -$0.05 million in 2026 from -$0.07 million in 2025, an 18% decrease, due to a lower outstanding balance of promissory notes after conversions to equity .
• Loss on Extinguishment of Convertible Notes Payable: Was nil in 2026, compared to -$0.39 million in 2025 .
• Gain on Extinguishment of Payable: Was $0.50 million in 2026, with no comparable amount in 2025, resulting from a settlement agreement with a former service provider .
• Gain on Change in Fair Value of Convertible Notes and Warrant Liability: Was $0.06 million in 2026, a significant decrease from $1.52 million in 2025 .
• Gain on Change in Fair Value of Forward Purchase Derivative Liability: Was $1.59 million in 2026, with no comparable amount in 2025 .
• Other (Expense) Income: Increased to $0.075 million in 2026 from $0.004 million in 2025, primarily due to foreign exchange .
• Provision for Income Tax: Was -$0.004 million in 2026, compared to nil in 2025 .
• Deemed Dividend related to Shortfall Warrants modification: Was -$0.084 million in 2026, compared to nil in 2025 .
• Net Loss Attributable to Common Stakeholders: Was -$0.96 million in 2026, compared to -$0.25 million in 2025 .
• Total Comprehensive Loss: Was -$0.86 million in 2026, compared to -$0.25 million in 2025 .

Cash Flow (Three months ended March 31, 2026 vs. 2025)

• Net Cash Used in Operating Activities: Increased to -$2.22 million in 2026 from -$0.23 million in 2025, primarily due to higher selling and marketing, general and administrative, and research and development expenses, partially offset by a gain on extinguishment of payable and lower interest expense .
• Net Cash Used in Investing Activities: Increased to -$0.06 million in 2026 from -$0.02 million in 2025, consisting of costs capitalized for internally developed software and purchases of property and equipment .
• Net Cash Used in Financing Activities: Was -$0.17 million in 2026, compared to $0.18 million provided by financing activities in 2025, primarily due to payments for director and officer insurance liability .

Future Outlook and Strategy

FUSEMACHINES INC. faces substantial doubt about its ability to continue as a going concern, relying on continued financial support from stockholders and debt holders to generate profits and positive operating cash flows . While a Committed Equity Facility (CEF) for up to $20,000,000 was secured, no proceeds have been received, and funding is at the Company’s sole discretion with no assurance of availability . The company aims to mitigate risks from market competition and rapid technological changes through continuous innovation, differentiation, deep institutional capabilities, broad AI solutions, and investment in research and development .