KNOREX Posts Operating Loss of $5,135,369 in First Half of 2026
Key Facts
KNOREX’s unaudited results for the first half of 2026 showed its loss from operations widening to $5,135,369, up 41.6% from $3,627,945 in the same period of 2025. The company presented data for the six months ended June 30, 2026 and 2025, and the report was signed by the chief executive officer and chairman of the board on October 27, 2026. Net loss attributable to the company rose to $5,434,380 from $4,618,703. This came as U.S. revenue declined, despite growth in international revenue and an improvement in gross margin. The company also reported a growing working capital deficit and limited available cash resources.
Revenue from U.S. operations was $2,175,408 in the first half of 2026, compared with $2,538,797 in the same period a year earlier. By contrast, international revenue rose to $503,120 from $287,584. KNOREX attributed the U.S. decline mainly to lower spending by some key customers after they lost contracts with their end customers. The company said spending also fluctuates with the use of quote-based insertion orders, and that some new customers began with smaller test budgets. It added that some end customers of its key customers operate in the automotive sector and were adversely affected by U.S. tariffs on imports.
Gross profit fell to about $1.2 million from about $1.3 million, but gross margin rose to 46.5% from 45.3%. The company said the slight improvement in margin was associated with increased customer use of higher-margin platform subscriptions and services. Still, the operating loss widened to $5,135,369 from $3,627,945, an increase of 41.6%. The comparison shows that the margin improvement did not prevent the loss from operations from widening during the period. The company attributed part of the increase in general and administrative expenses to an increase of approximately $2.0 million in consulting and professional services fees.
KNOREX said the increase in consulting and professional services fees was related to capital management, fundraising, corporate development, and management and business consulting. It also said slowing demand included end customers in the automotive sector that were affected by U.S. tariffs on imports. In response, the company stepped up its presence at trade shows and its inbound and outbound marketing efforts to attract new customers. The company cited these factors alongside higher administrative expenses in explaining the period’s results. By contrast, growth in international revenue and improvement in gross margin were two positive developments in the reported data.
Net cash used in operating activities was $2,411,751 in the first half of 2026, compared with $2,759,308 in the same period of 2025. But the company said its working capital deficit reached about $13.3 million as of June 30, 2026, compared with $7.7 million as of December 31, 2025. It said the deficit raises substantial doubt about its ability to continue as a going concern. Available cash resources were also about $0.3 million at the time of the interim report. The company said it continues to evaluate additional financing opportunities, including further issuances under its equity line of credit facility.
In the market, KNRX shares closed at $0.14799 on October 29, 2026. The financial disclosure reporting the results was an unaudited interim report filed with the U.S. Securities and Exchange Commission for the six months ended June 30. The company links its financing needs to the working capital deficit and limited available cash resources, while saying it is evaluating additional financing options. The signed report date, October 27, 2026, provides the timeline for the financial data covering the first half. The disclosure did not specify a date for the next financial announcement.