KIDZ AI Inc. (NASDAQ: KIDZ) reported its financial results for the third quarter ended September 30, 2026, announcing sequential revenue growth and an improved balance sheet.
For the third quarter of 2026, the company reported revenue increased 40% compared to the previous quarter, marking its first quarter-over-quarter revenue increase in 2026. The company also reported an improved gross margin of 65.9%, up from 43.9% in the second quarter of 2026.
On the income statement, the company reported a net loss of $654,057 for the third quarter. This compares to a net income of $2,520,989 reported in the prior year quarter.
KIDZ AI reported a net cash position of approximately $14.9 million as of September 30, 2026. This figure is calculated as cash and cash equivalents ($14,384,888) plus USDC stablecoin holdings ($3,003,537), less the principal amount of notes payable ($2,500,000). This results in a net cash position per share of approximately $14.53.
The company’s balance sheet showed stockholders’ equity increased approximately 349% to $16.9 million, while total liabilities decreased approximately 54% to $5.4 million compared to December 31, 2025. Notes payable decreased approximately 69% to $2.6 million during the same period.
During the third quarter, KIDZ AI repurchased an aggregate of 74,082 shares of its Class B common stock at an average price of approximately $3.36 per share, for a total purchase price of approximately $249,194.
The company noted that its net cash position represents approximately 12 times its market capitalization based on the November 11, 2026 closing price of $1.17 per share.
