SHAZ earnings analysis
What we found in SHAZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Revenue improved to $1,931,381 and gross profit turned positive at $1,169,626, but operating performance remained deeply negative, with a $24,784,178 operating loss and an implied operating margin of -1,283.1%. The $428,302,926 quarterly net loss was dominated by a $400,440,855 convertible-note fair-value loss, and EPS was $(22.84). The amendment provides no balance-sheet, cash-flow, segment, risk-factor, or quantitative guidance updates beyond correcting prior-period EPS and share-count disclosures.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue rose sharply year over year
- Second-quarter revenue was $1,931,381, up from $376,984 in the prior-year quarter and $294,014 in Q1 2026. The filing does not disclose segment revenue.
- Gross profitability turned positive
- Gross profit was $1,169,626 versus a gross loss of $21,282 in Q2 2025 and a gross margin of -78.8% in Q1 2026; the implied Q2 2026 gross margin was 60.6%.
- Operating losses remain severe
- The company reported a Q2 2026 operating loss of $24,784,178, compared with $2,610,233 in Q2 2025 and $2,817,200 in Q1 2026; the implied operating margin was -1,283.1%.
- Large equity financing strengthened capital
- Equity financing materially increased capitalization: the company issued 18,941,573 common shares and $438,141,548 of pre-funded warrants during the quarter, while reporting total stockholders’ equity of $1,127,547,379 at June 30, 2026.
- Revenue missed consensus materially
- Q2 revenue exceeded the supplied consensus estimate of $7,539,000 by only $1,931,381, or approximately 74.4% below expectations, while reported filing EPS was a loss of $22.84 versus the supplied estimate of -$0.46.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Extreme fair-value-driven net loss
- Net loss attributable to SharonAI was $428,302,926 in Q2 2026 versus $2,576,406 in Q2 2025. The loss included a $400,440,855 change in the fair value of convertible notes and $6,138,775 of warrant-liability remeasurement expense.
- Amendment highlights reporting corrections
- The filing’s corrected Q2 2025 EPS was $(0.27), while Q2 2026 basic and diluted EPS was $(22.84), based on weighted-average shares of 18,755,220. The amendment specifically corrected prior-period EPS and share-count errors.
- Large excluded dilution overhang
- Potential dilution is substantial: securities excluded from diluted EPS included 1,139,093 stock options and RSUs, 6,891,805 warrants, and 14,281,632 shares related to convertible notes.
- Operating cost base expanded sharply
- Selling, general and administrative expense increased to $8,685,424 from $1,083,093 in Q2 2025, while share-based compensation rose to $2,670,588 from $489,345.
- Financing costs increased
- Net interest expense increased to $4,527,540 from $43,521 in the prior-year quarter, adding pressure to the company’s already significant operating loss of $24,784,178.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-22.84
- Gross margin
- 60.6%
- Operating margin
- -1283.1%
What they said about what is next.
The 10-Q/A is limited to corrections to the original filing and provides no quantitative revenue or EPS outlook. The separate August 4, 2026 contract announcement stated that revenue from the $373 million, five-year agreement is expected to commence in Q1 2027.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 15, 2026
- SharonAI Holdings Inc. reported a net loss of $20 million for Q1 2026, significantly larger than the $1.4 million loss reported in Q1 2025. Revenue decreased to $294 thousand from $325 thousand year-over-year,…
- 10-K · March 31, 2026
- SharonAI Holdings Inc.'s 10-K for the year ended December 31, 2025, reveals a strategic transition focused on AI and HPC cloud services, with significant financial losses despite revenue growth. The company posted…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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