Youxin's revenue jumps 444% to $1.88M after Celnet buy, but losses widen

What's the deal? Youxin TechnologyDealroom has a profile for this one. Try Dealroom → (NASDAQ:YAAS) posted first-half fiscal 2026 revenue of $1.88 million, up 444% from $0.35 million a year earlier, driven largely by its October 2025 acquisition of CelnetDealroom has a profile for this one. Try Dealroom →. Gross profit rose 496% to $0.77 million, with gross margin expanding to 41% from 37%.

Why now? The results, covering the six months ended March 31, 2026, are the first to consolidate Celnet's operations. The acquisition, alongside growth in customized CRM development services, reshaped the company's reported scale.

What's behind the numbers? Professional services generated $1.75 million, up 662% year over year, and made up the bulk of revenue. Customized CRM development rose 274% to $0.83 million, while new lines — data and workflow migration ($0.36 million), staff outsourcing ($0.49 million), and operations and maintenance ($0.06 million) — added revenue absent in the prior year. Subscription revenue slipped 8% to about $0.09 million.

What could go wrong? Profitability remains under pressure. Operating expenses climbed to $2.65 million from $1.40 million, outstripping gross profit, and the net loss widened to $1.87 million. General and administrative costs alone hit $2.05 million, including $0.64 million of share-based compensation for shares issued to external consultants.

Watch the cash. Youxin's cash balance fell to $4.55 million at March 31, 2026, from $9.91 million at September 30, 2025, making liquidity a metric to monitor as the company funds its expansion.

The signal: Youxin's leap in revenue shows how acquisitions can quickly transform a small company's top line, but the widening loss and shrinking cash underline the cost of buying growth. For investors, the key question is whether the added scale can eventually turn into sustainable earnings.

Image credit: Generated with Gemini