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Fusemachines (FUSE) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 15, 2026
Fusemachines (FUSE) reported revenue of $1.9M for the first quarter 2026 (Q1 2026), -4% from a year earlier and -3% from the quarter before. Operating margin was -161.5%, net loss $872K (46.4% of revenue).
Fusemachines, Q1 2026: revenue $1.9M (-4% year over year), operating margin -161.5%, net loss $872K, operating cash flow −$2.2M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.9M | -3% | -4% |
| Operating profit | −$3.0M | — | — |
| Net earnings | −$872K | — | — |
| Operating cash flow | −$2.2M | — | — |
What changed
Revenue was $1.9M in Q1 2026, down 4% year over year and down 3% from the previous quarter. AI Solutions was the largest line at 100% of revenue. AI Solutions lost $82K year over year (down 4%), 109% of the total change.
Gross margin was 50.5%, down 5.3 points from a year earlier. Operating costs exceeded revenue by $3.0M, an operating margin of -161.5%. Operating expenses grew 66% against a revenue fall of 4%. The fastest-growing cost line was Research & development (+81%). The quarter ended with a net loss of $872K, after a profit of $4.3M the previous quarter. Non-operating items added $2.2M, -250% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$2.2M. Non-cash charges added back $24K of depreciation and amortization and $406K of share-based compensation. Working capital and other items used $1.8M. Capital expenditures of $20K exceeded it, leaving free cash flow of −$2.2M.
Questions
What was Fusemachines' revenue in the first quarter 2026?
Fusemachines (FUSE) reported revenue of $1.9M for the first quarter 2026 (Q1 2026), -4% from a year earlier and -3% from the quarter before.
Was Fusemachines profitable in the first quarter 2026?
Operating loss was $3.0M (-161.5% of revenue) and net loss $872K.
Source: Fusemachines 10-Q on SEC EDGAR.