DeepWisdom Technology Reports Strong H1 2026: AI Business Surges 209%, Achieves Q2 Profitability
DeepWisdom Technology, a provider of enterprise-grade large model AI application solutions, has released its first interim performance report since its listing. For the first half of 2026, the company achieved operating revenue of 284 million yuan, a year-on-year increase of 115.0%. The core growth driver was the "DeepexiOS AI-grade Enterprise Operating System Platform Solution," directly related to AI applications. This segment generated 226 million yuan in revenue, up 209.2% year-on-year, and its share of total revenue increased from 55.3% to 79.6%. In contrast, revenue from the "FastData Enterprise-grade Data Intelligence Solution" remained largely flat at 58.038 million yuan. The company's revenue structure is increasingly shifting towards enterprise-grade AI applications.
Profitability also showed significant improvement. DeepWisdom Technology reported a net profit of approximately 30 million yuan in the second quarter of 2026. For the first half of the year, the net loss narrowed to 32 million yuan, an 89.6% reduction. The adjusted net loss decreased by 48.5% to 27 million yuan from 52 million yuan. This improved profitability is attributed to revenue expansion and optimization of the business structure, which boosted gross profit margin to 56.5% in H1 2026, a 1.5 percentage point increase. The DeepexiOS solution's gross margin reached 57.2%, up 2 percentage points. Furthermore, economies of scale are becoming apparent, with sales and marketing expenses and R&D expenses growing at 33.2% and 23.8% respectively, significantly lower than revenue growth. This led to a decrease in the sales expense ratio from approximately 37.3% to 23.1%. The substantial increase in revenue in the second quarter further diluted these costs, accelerating the release of operating leverage. While traditional net loss figures were also impacted by reduced share-based payments and the absence of listing expenses, the trend in adjusted losses, gross margin, and expense ratios better reflects the core business's profitability trajectory. The company's second-quarter profitability suggests it has crossed a short-term break-even point, and sustained order fulfillment and revenue growth in the second half of 2026 could lead to a full-year turnaround.
AI's rapid adoption in enterprise environments is a key market dynamic, as evidenced by DeepWisdom Technology's financial performance. The company's strategic pivot towards AI-centric solutions, particularly its DeepexiOS platform, has demonstrably driven revenue growth and improved its financial metrics. The shift in revenue composition towards higher-margin AI products and the achievement of economies of scale in operational expenses highlight the potential for future profitability. However, investors should note that reported net profit figures can be influenced by non-operational factors like share-based payments and one-time listing costs. The adjusted net loss and margin trends offer a more granular view of the underlying business's operational efficiency. As the enterprise AI market matures, companies like DeepWisdom Technology will face ongoing challenges in maintaining rapid growth, managing R&D investments, and navigating competitive pressures. The company's ability to sustain its current trajectory and effectively scale its operations will be critical in determining its long-term success in the evolving AI landscape.
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