Datasea Inc (DTSS) Q1 2025 Earnings Report

Datasea Inc (DTSS) reported Q1 2025 revenue of $21.08 million, up 206.4% year over year and 383.1% quarter over quarter, underscoring meaningful top-line acceleration. However, the quarter delivered a razor-thin gross margin of 0.93% ($196,981 gross profit on $21.08 million revenue) and a material operating loss of $2.03 million, resulting in a net loss of $1.96 million and an EPS of -$0.49. Dramatic revenue growth did not translate into earnings acceleration, and EBITDA remained negative at about -$1.94 million. The company generated negative operating cash flow (-$0.73 million) while financing activity provided a cash inflow of about $1.49 million, yielding a net cash increase of roughly $0.76 million for the period and ending cash of $0.94 million. Total assets stood at $7.96 million against liabilities of $3.89 million, producing stockholders’ equity of $4.10 million, with retained earnings deeply negative at -$41.40 million. The balance sheet also shows a modest net debt position (~$0.43 million) and a modest liquidity profile (current ratio ~1.91, quick ratio ~1.86). There is a notable disparity between rapid top-line growth and profitability; the latter will hinge on margin expansion, cost discipline, and monetization of existing assets. Given the lack of a disclosed forward guidance, the investment thesis remains highly contingent on sustained revenue growth coupled with meaningful gross margin improvement and controlled cash burn.