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,…
Earnings analysis · 10-Q
SHAZ earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
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…
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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.
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
- $-22.84
What stood out
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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.
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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%.
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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%.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 2
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 itself. Analysis can contain errors; check the source document for full context.