Datasea (DTSS) AI Stock Analysis

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Datasea

(NASDAQ:DTSS)

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Rating:45Neutral

Price Target:$0.51▼(-2.50% Downside)

Action:reiterated

Date:10/11/26

DTSS scores in the mid-range primarily due to improving financial quality (positive operating/free cash flow in 2026 and a repaired equity position), but the overall profile is held back by volatile revenue with thin margins and continued losses. Technical indicators are also weak, with price trading below key moving averages and negative MACD, while valuation is constrained by a negative P/E and no dividend support.

Positive Factors

Improved Equity PositionThe return to positive equity materially improves Datasea’s solvency profile compared with its earlier negative-capital position. Although leverage remains meaningful and profitability is not yet established, stronger capital backing reduces financial distress risk and provides a more stable base for operations.

Negative Factors

Revenue VolatilityThe sharp reversal after several years of rapid revenue expansion shows that Datasea’s top line is not yet dependable. Such volatility makes staffing, investment planning, and cash forecasting harder, while weakening confidence that prior growth can translate into durable operating scale.

Datasea Key Performance Indicators (KPIs)

Revenue by Source

Chart Insights

Data provided by:

The Fly

Datasea (DTSS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.43M
Dividend Yield: ―
Average Volume (3M): 3.02M
Price to Earnings (P/E): -2.4
Beta (1Y): 1.38
Revenue Growth: 20.31%
EPS Growth: 90.57%
Country: US
Employees: 42
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

Datasea Business Overview & Revenue Model

Company Description

Datasea Intelligent Technology Ltd., together with its subsidiaries, provides advanced acoustic products and solutions to businesses and individual users worldwide. It operates through Acoustic High-Tech and AI Multimodal Digitalization segment. The...

Datasea Financial Statement Overview

Summary

Mixed but improving fundamentals. Revenue scaled strongly into 2025 but fell materially in 2026, indicating high volatility. Margins remain very thin and profitability is still negative, though losses narrowed sharply. Balance sheet repair (negative to positive equity) and the return to positive operating/free cash flow in 2026 are meaningful positives, but durability of cash generation and revenue stability remain key risks. KPI insights also point to lumpy, contract-driven revenue concentration.

Income Statement

34Negative

Balance Sheet

49Neutral

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	40.70M	40.70M	71.62M	23.98M	3.64M	17.08M
Gross Profit	4.16M	4.16M	2.44M	474.11K	135.48K	955.67K
EBITDA	-90.60K	-39.71K	-3.94M	-11.73M	-7.51M	-6.53M
Net Income	-2.13M	-2.13M	-5.09M	-11.38M	-9.48M	-6.52M
Balance Sheet
Total Assets	14.77M	14.77M	6.74M	3.29M	2.75M	3.76M
Cash, Cash Equivalents and Short-Term Investments	431.25K	607.92K	620.81K	181.26K	19.73K	164.22K
Total Debt	5.80M	5.80M	2.67M	1.22M	2.15M	571.37K
Total Liabilities	7.52M	7.52M	3.79M	3.60M	6.33M	2.16M
Stockholders Equity	7.26M	7.26M	2.95M	-236.75K	-3.52M	2.45M
Cash Flow
Free Cash Flow	481.03K	2.03M	-6.46M	-6.57M	-3.22M	-6.24M
Operating Cash Flow	2.03M	2.03M	-2.37M	-6.40M	-3.14M	-5.14M
Investing Cash Flow	-4.99M	-4.99M	-4.09M	-167.96K	-113.13K	-1.13M
Financing Cash Flow	3.04M	3.04M	6.95M	6.84M	3.11M	6.38M

Datasea Technical Analysis

Technical Analysis SentimentNegative

Last Price0.52

Price Trends

50DMA0.68Negative

100DMA0.72Negative

200DMA0.82Negative

Market Momentum

MACD-0.04Positive

RSI38.79Neutral

STOCH23.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTSS, the sentiment is Negative. The current price of 0.52 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.68, and below the 200-day MA of 0.82, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTSS.

Datasea Risk Analysis

Datasea disclosed 56 risk factors in its most recent earnings report. Datasea reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Nevada law and provisions in our articles of incorporation and bylaws could make a merger, tender offer or proxy contest difficult, thereby depressing the market price of our common stock.Q2, 2025

2.We incur additional increased costs as a publicly traded company listed on Nasdaq, and our management is required to devote substantial time to new compliance initiatives and reporting requirements.Q2, 2025

3.On October 23, 2019, the SAFE PRC regulation of loans and direct investment by offshore holding companies to PRC entities may delay or prevent us from making loans or additional capital contributions to the PRC subsidiary and affiliated entities, which could harm our liquidity and our ability to fund and expand our business.Q2, 2025

Datasea Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DTSS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BLIN	49Neutral	$7.67M	-5.29	-14.51%	―	1.61%	58.69%
MSAI	46Neutral	$7.47M	-0.47	-31.31%	―	11.49%	69.83%
DTSS	45Neutral	$9.47M	-2.41	-40.41%	―	20.31%	90.57%
BNAI	42Neutral	$33.25M	-1.65	-146.80%	―	706.94%	68.10%
CETX	38Underperform	$2.00M	-0.01	-68.23%	―	-1.51%	96.23%

* Technology Sector Average

Performance Comparison

DTSS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DTSS	Datasea Inc.	0.52	-0.65	-55.56%
BLIN	Bridgeline Digital	0.60	-0.35	-37.16%
CETX	Cemtrex	0.61	-31.39	-98.09%
BNAI	Brand Engagement Network Inc.	4.23	0.33	8.46%
MSAI	Multisensor AI Holdings Inc	3.55	-26.06	-88.01%

Datasea Corporate Events

Datasea Wins Nasdaq Extension to March 2027 to Regain $1 Minimum Bid Price

Sep 28, 2026

On March 27, 2026, Datasea received a Nasdaq staff determination notice that its shares had traded below the $1.00 minimum bid price for 30 consecutive business days, triggering a 180-day grace period to regain compliance that expired on September 23...

Datasea Files Unaudited FY 2026 Results Showing Higher Assets and Narrower Loss

Sep 2, 2026

On September 2, 2026, Datasea Intelligent Technology Ltd. filed a Form 6-K with the U.S. Securities and Exchange Commission furnishing unaudited consolidated financial statements for the fiscal years ended June 30, 2026 and 2025. The filing provides...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 11, 2026

Datasea AI Stock Analysis