Big Tree Cloud FY2026: Revenue Halved to $0.6M, Net Loss $3.7M, Two Material Weaknesses Disclosed
DSY sits 92% above its 52-week low of $1.67.
Summary
Big Tree Cloud's FY2026 revenue fell 49.3% to US$644,792 with a US$3.7 million net loss, two material weaknesses in internal controls, and a restatement of FY2025 financials. The company is betting its future on an early-stage AI services business while burning US$3.4 million of operating cash.
Key Events · Earnings and Guidance · DSY
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Revenue Halved, Gross Margin Collapsed
FY2026 net revenue fell 49.3% to US$644,792 from US$1,271,196, and gross margin dropped to 7.0% from 53.8% as the company sold inventory at low margins.
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Net Loss and Negative Operating Cash Flow
Net loss was US$3,655,398 for FY2026 versus US$32,527,871 in FY2025, with US$3.4 million of operating cash burn and a US$0.2 million working-capital deficit.
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Two Material Weaknesses Disclosed
Management identified material weaknesses in U.S. GAAP accounting staffing and period-end financial reporting controls, and concluded disclosure controls and procedures were not effective as of June 30, 2026.
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FY2025 Financials Restated
The company restated FY2025 to reclassify a US$1,395,946 structured deposit from cash to short-term investment and to correct a US$107,404 allocation error between additional paid-in capital and non-controlling interests.
Analysis · DSY · Manufacturing
Revenue collapsed 49.3% to US$644,792 and gross margin fell to 7.0% from 53.8%, leaving a US$3.7 million net loss and negative operating cash flow of US$3.4 million. The company also disclosed two material weaknesses in internal control over financial reporting, concluded its disclosure controls were not effective, and restated FY2025 figures for a misclassified US$1.4 million structured deposit. Cash of US$3.1 million plus a renewed RMB8.5 million (about US$1.3 million) bank loan maturing September 2029 and a RMB7.0 million (about US$1.0 million) capital contribution keep the company funded for at least 12 months, but the business is now a shell of its former self with 89% of revenue from two customers and a pivot to AI services that produced only US$117,958.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 36.2% of the 898 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.75%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DSY was trading at $3.21 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $26.5M. The 52-week trading range was $1.67 to $19.90. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.