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Kidz AI (KIDZ) Q1 2026 earnings results (first quarter 2026)

10-Q filed May 15, 2026

Kidz AI (KIDZ) reported revenue of $519K for the first quarter 2026 (Q1 2026), -36% from a year earlier and -3% from the quarter before. Operating margin was -172.3%, net loss $4.2M (806.5% of revenue).

Revenue$519K
Year over year-36%
Quarter over quarter-3%
Operating margin-172.3%
Net earnings−$4.2M

Kidz AI, Q1 2026: revenue $519K (-36% year over year), operating margin -172.3%, net loss $4.2M, operating cash flow −$602K. The chart follows the revenue to costs, profit and cash.

Q1 2026AmountQ/QY/Y
Revenue$519K-3%-36%
Operating profit−$895K——
Net earnings−$4.2M——
Operating cash flow−$602K——

What changed

Revenue was $519K in Q1 2026, down 36% year over year and down 3% from the previous quarter.

Gross margin was 50.3%, up 0.6 points from Q1 2025. Operating costs exceeded revenue by $895K, an operating margin of -172.3%. Operating expenses grew 65% against a revenue fall of 36%. The fastest-growing cost line was Research & development (+130%). The quarter ended with a net loss of $4.2M, narrower than the previous quarter's $5.4M loss. Net interest and other expense of $3.3M was the main reason.

Operating cash flow was −$602K. Non-cash charges added back $121K of depreciation and amortization and $189K of share-based compensation. Working capital and other items added $3.3M. Capital expenditures of $33K exceeded it, leaving free cash flow of −$635K.

Questions

What was Kidz AI's revenue in the first quarter 2026?

Kidz AI (KIDZ) reported revenue of $519K for the first quarter 2026 (Q1 2026), -36% from a year earlier and -3% from the quarter before.

Was Kidz AI profitable in the first quarter 2026?

Operating loss was $895K (-172.3% of revenue) and net loss $4.2M.

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Source: Kidz AI 10-Q on SEC EDGAR.