Datavault AI Inc. (DVLT): Results of Operations and Financial Condition
Datavault AI Inc. (DVLT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Datavault AI Reports Second Quarter 2026 Financial Results and Provides Business Update Highlighting Progress Toward Commercialization of Tokenization and Data Monetization Platforms Datavault AI reiterates its full-year 2026 revenue target of at least $200 million V
How this was made
The 30-second read
Why it matters
The Q2 earnings release provides the first public disclosure of the company's financial performance and strategic acquisitions, offering traders fresh data to price the stock.
Market read
The filing supplies new earnings data for a micro‑cap AI firm, potentially influencing short‑term trading activity.
What to watch
Recent acquisitions (NYIAX, pending CyberCatch) may take time to generate revenue, adding execution risk.
Datavault AI reports Q2 2026 revenue of $6.7 million, up 287%, reiterates full-year 2026 revenue target of at least $200 million
Revenue increased 287% year over year and gross profit rose to $2.9 million, but operating expenses increased to $29.3 million and net loss attributable to common stockholders widened to $88.0 million, including a $56.4 million impairment of investments in non-marketable securities and an $8.1 million loss on crypto assets.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenueGAAP | $6.7 million | – | increased $5.0 million, or 287% |
| Gross profitGAAP | $2.9 million | – | – |
| Cost of net revenueGAAP | $3,839 (in thousands) | – | – |
| Research and development expensesGAAP | $7.2 million | – | increased $3.0 million |
| Sales and marketing expensesGAAP | $7.2 million | – | increased $5.5 million |
| General and administrative expensesGAAP | $14.9 million | – | increased $8.4 million |
| Total operating expensesGAAP | $29,334 (in thousands) | – | – |
| Loss from operationsGAAP | $(26,456) (in thousands) | – | – |
| Interest expense, netGAAP | $(1,000) (in thousands) | – | – |
| Loss on Crypto assetsGAAP | $(8,094) (in thousands) | – | – |
| Impairment of investments in non-marketable securitiesGAAP | $(56,372) (in thousands) | – | – |
| Change in fair value of warrant liabilitiesGAAP | $3,866 (in thousands) | – | – |
| Loss before provision for income taxesGAAP | $(88,025) (in thousands) | – | – |
| Provision for income taxesGAAP | $— | – | – |
| Net loss attributable to common stockholdersGAAP | $(88,025) (in thousands) | – | – |
| Net loss per common share, basic and dilutedGAAP | $(0.12) | – | – |
| Weighted average number of common shares used in computing net loss per common shareother | 727,623,511 | – | – |
| Six-month total net revenueGAAP | $10,133 (in thousands) | – | – |
| Six-month gross profitGAAP | $2,989 (in thousands) | – | – |
| Six-month net loss attributable to common stockholdersGAAP | $(141,156) (in thousands) | – | – |
| Six-month net loss per common share, basic and dilutedGAAP | $(0.22) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Live event production revenueNot separately stated. | $2,839 (in thousands) | – | – |
| Consumer audio products, components, and other revenue, netNot separately stated. | $1,053 (in thousands) | – | – |
| Consumer audio products and components, related party, netNot separately stated. | $316 (in thousands) | – | – |
| Patent license revenueNot separately stated. | $2,509 (in thousands) | – | – |
Full-year 2026 outlook
- Revenueat least $200 million (approximately 400% growth rate year over year)
- NoteDatavault AI is reiterating its previously announced full-year 2026 revenue target.
What drove it
- Total net revenue increased to $6.7 million from $1.7 million, with reported revenue from live event production, consumer audio products and components, related-party consumer audio products and components, and patent licenses.
- Patent license revenue was $2,509 (in thousands) in the second quarter of 2026, compared with $— in the second quarter of 2025.
- The company completed the acquisition of NYIAX, described as its fifth owned exchange.
- Datavault AI advanced its collaboration with Fiserv and continued its nationwide build-out of a quantum-ready GPU edge network with Available Infrastructure.
- The company cited the initial SanQtum deployments in New York and Philadelphia and the July 17, 2026 announcement of the tokenization and monetization of Available Infrastructure's Project Qestrel.
Concerns
- Loss from operations was $(26,456) (in thousands), compared with $(12,459) (in thousands) in the prior-year quarter.
- Net loss attributable to common stockholders was $(88,025) (in thousands), compared with $(37,116) (in thousands) in the prior-year quarter.
- The quarter included an $(8,094) (in thousands) loss on Crypto assets and an $(56,372) (in thousands) impairment of investments in non-marketable securities.
- Operating expenses were $29,334 (in thousands), compared with $12,494 (in thousands) in the prior-year quarter.
- Cash and cash equivalents were $1,400 (in thousands) at June 30, 2026.
- The company identified risks that contracted opportunities may not convert into commercial activity and recognized revenue, that exchange launches may be delayed, and that the pending CyberCatch acquisition may not close.
What to watch
- Conversion of contracted opportunities into commercial activity and recognized revenue during the second half of 2026.
- Execution against the reiterated full-year 2026 revenue target of at least $200 million.
- Integration of NYIAX and the outcome, timing, and expected benefits of the pending CyberCatch acquisition.
- Further SanQtum deployments and execution of the planned Project Qestrel network across 100 U.S. cities and more than 30 states.
- The proposed issuance, timing, and listing of $QEST utility tokens, including required regulatory clearances.
Balance sheet and cash flow
- Cash and cash equivalents were $1,400 (in thousands) as of June 30, 2026, compared with $2,004 (in thousands) as of December 31, 2025.
- Crypto assets were $49,016 (in thousands) as of June 30, 2026, compared with $92,222 (in thousands) as of December 31, 2025.
- Accounts receivable were $3,598 (in thousands) as of June 30, 2026, compared with $888 (in thousands) as of December 31, 2025.
- Related party receivable was $24,040 (in thousands) as of June 30, 2026, compared with $30,000 (in thousands) as of December 31, 2025.
- Total assets were $276,642 (in thousands) as of June 30, 2026, compared with $274,704 (in thousands) as of December 31, 2025.
- Short-term convertible note payable, related party was $3,680 (in thousands) as of June 30, 2026, compared with $3,936 (in thousands) as of December 31, 2025.
- Short-term promissory notes were $1,544 (in thousands) as of June 30, 2026, compared with $1,013 (in thousands) as of December 31, 2025.
- Total liabilities were $30,748 (in thousands) as of June 30, 2026, compared with $36,730 (in thousands) as of December 31, 2025.
- Total stockholders' equity was $245,894 (in thousands) as of June 30, 2026, compared with $237,974 (in thousands) as of December 31, 2025.
- Shares issued and outstanding were 854,456,625 as of June 30, 2026, compared with 573,438,153 as of December 31, 2025.
Analysis
Datavault AI reported second-quarter revenue of $6.7 million, an increase of $5.0 million, or 287%, from $1.7 million in the prior-year quarter. The reported revenue base comprised $2,839 (in thousands) of live event production revenue, $1,053 (in thousands) of consumer audio products, components, and other revenue, $316 (in thousands) of related-party consumer audio products and components revenue, and $2,509 (in thousands) of patent license revenue. Gross profit increased to $2.9 million from $35,000, while the filing does not report gross margin.
The company remained deeply loss-making as spending increased. Research and development expenses rose to $7.2 million, sales and marketing expenses rose to $7.2 million, and general and administrative expenses rose to $14.9 million. Total operating expenses were $29,334 (in thousands), producing a loss from operations of $(26,456) (in thousands), compared with $(12,459) (in thousands) a year earlier.
Below operating income, the quarter included an $(8,094) (in thousands) loss on Crypto assets and an $(56,372) (in thousands) impairment of investments in non-marketable securities. These items contributed to a net loss attributable to common stockholders of $(88,025) (in thousands), versus $(37,116) (in thousands) in the prior-year period. Basic and diluted net loss per common share was $(0.12), while the weighted average share count was 727,623,511, compared with 68,174,418 in the prior-year period.
Liquidity and balance-sheet items warrant attention. Cash and cash equivalents were $1,400 (in thousands) at June 30, 2026, while crypto assets were $49,016 (in thousands), related party receivable was $24,040 (in thousands), and total liabilities were $30,748 (in thousands). Shares issued and outstanding increased to 854,456,625 at June 30, 2026 from 573,438,153 at December 31, 2025. The filing did not provide an operating cash flow or free cash flow statement.
Management reiterated its full-year 2026 revenue target of at least $200 million, described as approximately 400% growth year over year. The commercial plan centers on launching exchanges, scaling SanQtum, and converting contracted opportunities into recognized revenue, alongside NYIAX integration, the pending CyberCatch acquisition, collaboration with Fiserv, and the Project Qestrel tokenization initiative. The principal execution measure is whether these initiatives translate into reported revenue at a pace consistent with the reiterated target.
Management, verbatim
Over the past few months, we made significant progress assembling the technology, infrastructure and strategic capabilities required to bring Datavault AI’s platform to market at scale.
Nathaniel Bradley, Chief Executive Officer of Datavault AI
With the core platform buildout well underway, our focus for the second half of 2026 shifts to execution: launching our exchanges, scaling SanQtum and converting our contracted opportunities into commercial activity and recognized revenue.
Nathaniel Bradley, Chief Executive Officer of Datavault AI
Not in the filing
stated, not guessed- Non-GAAP financial measures and reconciliations
- Gross margin
- Quarter-over-quarter financial comparisons
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Forward guidance for gross margin, operating expenses, tax rate, EPS, operating cash flow, or free cash flow
- A previous quarterly outlook section for comparison with actual results
- Quantified drivers for individual revenue categories
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Datavault AI is a Nasdaq‑listed AI platform focusing on data monetization, tokenization, and edge computing.
Ticker impact
Datavault AI Inc. filed an 8‑K reporting Q2 2026 results with revenue up 287% to $6.7 M and reiterated a $200 M full‑year target.
Potential short‑term upside on the earnings surprise, followed by volatility as investors assess cash burn.
The earnings beat is material for a micro‑cap, yet the scale is limited and the company remains loss‑making.
Market effects
Highlights growing interest in AI‑driven data monetization and tokenization platforms within the tech sector.
Primarily U.S. market impact; limited broader regional effect.
Modest, as the company is a niche player in the global AI and tokenization space.
Counterpoint
High burn rate and lack of profitability could pressure the stock despite revenue growth.
Key entities
- CompanyDatavault AI Inc.
AI platform provider listed on Nasdaq under ticker DVLT.
- Acquired CompanyNYIAX
Fifth owned exchange acquired by Datavault AI.
- Target CompanyCyberCatch Holdings, Inc.
Company under definitive agreement for acquisition.
