10-Q · May 1, 2026
Inno Holdings Inc. reported revenue of $1M for Q1 2026, consistent with Q4 2025, but showed significant improvement in EPS, narrowing losses to -$0.01 from -$0.24 last quarter. The company's gross margin improved to…
Earnings analysis · 10-Q
INHD earnings analysis
Filed August 18, 2026 · Our reading of the company's report
The latest report
Inno Holdings reported Q2 2026 revenue of $931,911, with gross margin falling to 2.3%, operating margin worsening to negative 85.0%, diluted EPS of negative $2.6, and free cash flow of negative $3.0 million. Revenue was…
Read full summary
Inno Holdings reported Q2 2026 revenue of $931,911, with gross margin falling to 2.3%, operating margin worsening to negative 85.0%, diluted EPS of negative $2.6, and free cash flow of negative $3.0 million. Revenue was substantially higher year over year but declined sequentially, while profitability and cash generation remained weak. The filing also identifies ineffective disclosure controls as of June 30, 2026, pending litigation with a September 28, 2026 response deadline, and continued exposure to future trading halts. No quantitative guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-2.6
What stood out
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Revenue Below Prior Quarter
Q2 2026 revenue was $931,911, down approximately 6.8% from $1.0 million in Q1 2026 but up approximately 94.7% from $478,100 in Q2 2025.
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Gross Margin Compressed
Gross margin declined to 2.3% from 5.1% in Q1 2026 and 8.7% in Q2 2025, a sequential decrease of 2.8 percentage points and year-over-year decrease of 6.4 points.
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Operating Loss Remains Severe
Operating margin deteriorated to negative 85.0% from negative 33.4% in Q1 2026, although it improved from negative 286.4% in Q2 2025.
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EPS Turned More Negative
Diluted EPS was negative $2.6, compared with negative $0.2 in Q1 2026 and negative $397.2 in Q2 2025.
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Cash Burn Remains Material
Free cash flow was negative $3.0 million in Q2 2026, indicating substantial cash consumption relative to reported revenue of $931,911.
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Temporary Restraining Order Lifted
The June 25, 2026 temporary restraining order expired on July 9, 2026, and on August 6, 2026 the court denied Kingbird’s emergency motions to extend it.
What to watch
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Material Internal-Control Weakness
Management concluded disclosure controls were not effective as of June 30, 2026 because of a lack of adequate policies and procedures over key business cycles. The company plans to hire additional personnel or a consultant but stated it cannot assure remediation will occur in a timely manner.
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Pending Kingbird Litigation
Kingbird’s litigation remains pending, and the company and CEO Ding Wei must file an answer or motion to dismiss by September 28, 2026. The company stated that the timing of rulings cannot be predicted and that litigation could require substantial costs and management resources.
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Future Trading-Halt Risk
Nasdaq trading in the common stock was halted from June 9, 2026 through July 31, 2026. The company warns that a future halt or suspension could impair liquidity, access to capital and Nasdaq listing status.
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Unproven AI Diversification
The company entered into a development services agreement on June 8, 2026 for an AI-powered used-mobile-phone sales and customer-acquisition agent. Management warns that the initiative may require significant capital and may not become profitable within the anticipated timeframe or at all.
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Consumer-Electronics Concentration
The company’s operating model remains concentrated in recycled consumer-electronics trading, exposing results to changes in supply, demand, commodity and resale prices, competition, and environmental and trade regulations.
Management's outlook
No quantitative revenue or EPS guidance was provided in the filing; the outlook was not specified.
Earlier filings 4
10-Q · February 3, 2026
Revenue surged 643% year-over-year to $1,456,481 for the quarter ended December 31, 2025, driven by the company’s electronic products trading business, while cost of goods sold rose to $1,382,346. Despite the revenue…
10-Q · February 14, 2025
INNO Holdings reported revenue of $198,000 for the quarter ended December 31, 2024, a 19% increase from $166,617 a year earlier driven solely by a newly launched electronic products trading business. Gross profit was…
10-K · December 9, 2024
INNO Holdings reports FY2024 revenue of $885,495 (up 11% vs. FY2023) driven by new consulting ($205,000) and one-time licensing ($285,000) streams, but remains unprofitable with a net loss attributable to INNO of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.