Ten (XHLD -3.34%), a virtual event technology specialist, reported second-quarter earnings for fiscal 2025 on August 14, 2025. The most significant takeaway from this period was a healthy year-over-year revenue gain—up 9.1% (GAAP).—countered by a substantial increase in net loss. Net loss (GAAP) deepened to ($2.78 million), or ($0.13) per share, compared with a net loss of $408,000, or ($0.02) per share, in Q2 2024. There were no formal analyst estimates available. Overall, the quarter illustrated revenue traction alongside a pressing need to contain costs, as public company expenses and a one-off Sunpeak Holdings Corporation transaction weighed on results.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| Revenue (GAAP) | $1.12 million | $1.02 million | 9.8% |
| Cost of Revenue | N/A | $0.14 million | N/A |
| Net Loss (GAAP) | ($2.78 million) | N/A | N/A |
| EPS (GAAP) | ($0.13) | ($0.02) | (550.0%) |
| Net Cash Used in Operating Activities | ($7.58 million) | ($1.01 million) | 650.5% |
The Business and Strategic Focuses
Ten is a provider of technology and services for virtual, hybrid, and physical events, building on its proprietary Xyvid Pro Platform. The company's software allows organizations to host interactive webcasts and live experiences with customizable, scalable options for audiences ranging from a few participants to tens of thousands. Its main revenue comes from producing virtual, hybrid, and physical events for a diverse range of customers, including technology firms, healthcare organizations, educational institutions, marketing and advertising agencies, nonprofits, and companies of various sizes.
The Xyvid Pro Platform sits at the center of Ten’s business strategy. This proprietary event platform is designed to offer advanced engagement, analytics, and production capabilities, giving Ten a competitive edge in a digitized event industry. The company’s recent focus has included investments in technology, service expansion, and building out the sales organization.
Quarterly Developments: Revenue, Expenses, and Platform Progress
GAAP revenue climbed to $1,116,000, up 9.1% compared to the same period a year ago. This growth was not uniform across service lines. Physical event services surged—revenue from this category increased by 82.6%, adding around $109,000 (GAAP), largely because Ten landed a new customer and fulfilled additional event orders. However, revenue from virtual and hybrid events slipped by $16,000, or 1.8%, as some clients shifted their scheduled events into later quarters. This created a more volatile revenue mix and underscored the ongoing unpredictability of event timing and customer demand.
Cost of revenue (GAAP) increased more than revenue itself, rising 24.1%. This is mainly due to additional high-cost physical events, which tend to require more resources than virtual formats.
The most notable financial change was a steep jump in selling, general, and administrative expenses, which rose by $910,000 year over year—a 73% increase—reaching $2.15 million. This was much larger than the rise in revenue. The company cited public-company costs (such as audit and legal expenses, investor relations, and compliance) and one-time charges related to the Sunpeak Holdings Corporation transaction. Interest expenses also increased to $80,000 from $48,000 a year earlier, reflecting higher financing costs and transaction-related obligations.
Operating cash burn was significant, with $7,577,000 used in operating activities. A large non-cash stock option expense ($3.50 million) contributed to this number. Management specifically divided the period's deepened net loss into higher operating expenses ($1.36 million) and expenses related to the Sunpeak deal plus higher financing costs ($1.43 million). Total cash and equivalents improved to $739,000 at quarter-end versus $48,000 at year-end 2024. The share count decreased, going from 25.0 million to about 21.4 million.
Product, Customer Mix, and Strategic Initiatives
Ten’s growth strategy relies on continuous enhancement of its Xyvid Pro Platform, a proprietary software suite offering professional webcast production, interactive tools, and robust event analytics. Management has emphasized that its ongoing investment in platform features and scalability is a key priority. However, there were no new quantitative disclosures on usage, customer adoption, or growth in recurring revenues in this quarter.
The company remains heavily reliant on the virtual and hybrid event business for most of its revenue, though physical event income was notably up by $109,000, or 82.6%, due to additional work from a single, new customer. This pattern highlights a concentration risk, as much of Ten’s quarterly performance depends on individual large clients and the specific timing of their events. For the fiscal year ended December 31, 2024, one customer accounted for approximately 64.6% of total revenue, and future results may be similarly lumpy if revenue continues to depend on a limited customer base.
The company expressed intentions to evolve its business model towards recurring revenue, particularly through a “platform-as-a-service” approach where organizations would pay subscriptions for ongoing access to the event platform. While this could help stabilize revenue and diversify Ten’s customer list, management has not committed to a timeline or projected any near-term dollar amounts associated with this initiative.
Customer retention and satisfaction remain focal points. Ten’s leadership spoke of efforts to deepen relationships following a restructured and expanded sales team. While management referenced repeat business and its investment in customer-facing personnel, it did not quantify retention rates or contract renewal volumes for the quarter.
Looking Ahead: Outlook and Key Watch Points
No formal financial guidance was issued for the coming quarter or for fiscal 2025 as a whole. Management repeated its intention to invest in new platform features, seek out merger and acquisition opportunities, and move toward a recurring revenue model via platform subscriptions. However, the outlook remains uncertain without numeric forecasts.
Looking forward, investors may wish to monitor progress in the growth of the Xyvid Pro Platform, shifts in revenue mix between event types, adoption of the proposed subscription-based model, expense discipline, and signs of greater customer diversification. The significant increase in operating expenses and heavy reliance on timing-sensitive events are important trends to watch. XHLD does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
