Earnings release
Page 1
FiEE , Inc. Announces Second Quarter and First Half 2026 Unaudited Financial Results Strong Growth Across Segments Boosted First Half 2026 Revenue to $ 6.9 million Profit Turnaround Achieved as First Half Net Income Reached $ 2.5 million Exhibit 99.1 Osaka , Japan - August 14 , 2026 – FiEE , Inc. ( NASDAQ : FIEE ) ( “ FiEE , ” the “ Company , ” “ we , ” “ our , ” or similar terms ) , a technology company integrating IoT , connectivity , and AI to redefine brand management solutions in the digital era , today announced its unaudited financial results for the three and six months ended June 30 , 2026 , marking a profitable half - year following its strategic transformation . Operational and Financial Highlights for the Six Months Ended June 30 , 2026 • Revenue soared 15,298.1 % year - on - year to approximately $ 6.9 million , compared to $ 0.05 million in the first half of 2025. The increase in revenue primarily reflects the Company's strategic transition from legacy hardware operations to SaaS solutions , with a new business model focusing on integrating AI and big data into content creation and brand management , and the successful expansion into multiple new business lines , including SaaS MCN digital services , software services , digital authentication services , and other services , most of which experienced rapid growth following their launch . • • ○ о ― As of June 30 , 2026 , the Company onboarded over 900 customers for its SaaS – MCN digital services , representing total service fees of $ 9.2 million , of which $ 7.9 million has been recognized as revenue cumulatively . Specifically , in the first half of 2026 , FiEE added 138 new customers and recognized $ 2.6 million in revenue from this business . As of June 30 , 2026 , we secured contracts totaling $ 2.9 million for our software services , $ 1.7 million of which was recognized as revenue in the six months ended June 30 , 2026. During the first half of 2026 , FiEE added 18 new software services customers , bringing the total number of customers for these services to 31 . As of June 30 , 2026 , the digital authentication services business line generated cumulative revenue of $ 2.9 million , including $ 2.6 million recognized in the six months ended June 30 , 2026 , serving five corporate clients and 459 individual clients in total , with related accounts receivable amounting to $ 2.0 million . Gross profit was $ 5.4 million , compared to a gross profit of $ 438 in the same period of 2025. Gross margin increased significantly to 77.3 % in the first half of 2026 , up from 1.0 % in the same period of 2025. The improvement was primarily driven by our MCN digital services , which leverage AI and data analytics to reduce reliance on manual labor , resulting in higher margins compared to traditional service models . Net income was approximately $ 2.5 million , achieving a turnaround from a net loss of $ 1.0 million in same period of 2025 . The Company acquired Yinlian Culture and its VIE Maltose Culture in May 2026. Through this acquisition , the Company has further expanded into the AI music business , combining music content creation and distribution with AI capabilities to build an advanced AI music ecosystem . Operational and Financial Highlights for the Three Months Ended June 30 , 2026 • Revenue was approximately $ 4.8 million , compared to $ 0.04 million for the three months ended June 30 , 2025 . • Gross profit was approximately $ 3.9 million , compared to $ 1,063 for the three months ended June 30 , 2025 . • Net income was approximately $ 2.1 million , turning around the net loss of $ 0.6 million for the three months ended June 30 , 2025 .