Datasea Cuts Revenue 35.5% to $26.8M, Gross Margin Jumps to 8.8%

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Datasea’s six-month revenue fell 35.5% to $26.81M as it cut low-margin services, while gross profit surged 284.4% to $2.36M. Gross margin climbed 730 bps to 8.8% thanks to a strategic shift toward high-margin 5G+AI multimodal offerings.

1. Six-Month Financial Performance

Datasea posted revenue of $26.81 million for the six months ended December 31, 2025, down 35.46% year-over-year, as the company deliberately reduced low-margin standardized services. Gross profit rose to $2.36 million, up 284.4%, driving gross margin to 8.8%, a 730 basis-point improvement from last year.

2. Strategic Shift to High-Margin Services

The company’s management attributed revenue decline to its strategic pivot toward customized, high-value 5G+AI multimodal digital solutions. This shift prioritized tailored offerings for SMEs and industry-specific applications, enhancing profitability and recurring revenue quality.

3. Acoustic High-Tech R&D Initiatives

Datasea is accelerating research in acoustic medicine, brain–computer interfaces, intelligent acoustic systems and health robotics. These efforts aim to expand application scenarios in industrial and precision manufacturing, laying groundwork for future commercialization and long-term growth.

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