Datasea Inc. (DTSS) AI Stock Analysis

Datasea Inc., operating through its subsidiaries, specializes in advanced security solutions across the Chinese market. Headquartered in Beijing, the company focuses on developing technologies including big data security platforms, smart 3D security systems, and campus, scenic area, and community security solutions. It also offers specialized systems such as epidemic monitoring platforms. Originally known as Rose Rock, Inc. before rebranding in 2015, Datasea also provides 5G messaging and smart payment solutions alongside its core security offerings to enhance safety and operational efficiency for educational institutions, tourist destinations, and residential areas.

Datasea's revenue has experienced high volatility, declining 43.2% to $40.7M in FY2026 after expanding 198.7% to $71.6M in FY2025 and 558.6% to $24.0M in FY2024. For the trailing twelve months ending June 30, 2026, quarterly revenue growth fell 64.8% year-over-year. Despite the top-line contraction, gross margin improved to 10.2% in FY2026 from 3.4% in FY2025 and 2.0% in FY2024. Operating margin remained negative at -5.5% in FY2026 and -10.8% on a trailing twelve month basis. Net income improved to -$2.1M in FY2026 with an EPS of -$0.32, compared to -$5.1M and -$0.91 in FY2025. Between FY2021 and FY2026, the 5-year revenue CAGR was 197.3%.

As of June 30, 2026, Datasea held $607,922 in cash and short-term investments against total debt of $5.8M, resulting in net debt of $5.2M. The company has total assets of $14.8M and shareholders' equity of $7.3M, yielding a debt-to-equity ratio of 0.79. Liquidity remains constrained, evidenced by a current ratio of 0.44. In FY2026, operating cash flow and free cash flow turned positive at $2.0M each. Capital expenditures were $944, while the share count expanded 565.7% over 5 years.

Datasea trades at a price-to-sales multiple of 0.1x, well below the 2.8x median of its US-listed Technology peers. Its enterprise value stands at $18.3M with an EV-to-revenue multiple of 0.5x, while its price-to-book ratio is 1.8x. In comparison, peer median operating margin is 13.2% versus Datasea's trailing operating margin of -10.8%. The stock closed at $0.53 on October 16, 2026, near its 52-week low of $0.52. Over the trailing 1-year period, the stock declined 71.3%, underperforming the S&P 500 return of 16.8%.

Wall Street coverage is sparse, but the mean price target is $1.50, representing an implied upside of 182.8% from the last close of $0.53. The revenue estimate for the current fiscal year ending June 30, 2026, is listed at $0. Datasea has registered 0 EPS beats over the last 4 quarters. The next earnings date is scheduled for November 12, 2026.

This page is an AI-written research summary of Datasea Inc. (DTSS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: DTSS income statement, DTSS balance sheet, DTSS key metrics, DTSS chart. See the DTSS stock overview for the latest quote and news.