Quick Verdict
Core AI Holdings reported a Q2 2026 net loss of $1.6 million; no per-share EPS was disclosed in the earnings release. Revenue climbed 56% year over year to $22.4 million, while gross loss narrowed 97%. CHAI shares closed up 57.1% on August 28 before falling 8.0% in after-hours trading.
About Core AI Holdings
Core AI Holdings, Inc. (Nasdaq: CHAI) is a Miami, Florida-based AI technology and infrastructure company that develops and scales AI-driven businesses across consumer applications, digital platforms, and emerging high-performance-computing (HPC) and AI data-center initiatives. Its principal operating business is Core Gaming, an AI-enabled mobile-game developer and publisher that uses proprietary analytics and AI tools to develop, distribute, acquire users for, and monetize casual games globally.
The company is extending this base into AI-powered digital marketing, media production, HomeGPT—a residential decision and planning platform—and data-center joint ventures. Core Gaming has accumulated more than 800 million downloads and a player community exceeding 40 million across more than 140 countries, according to the company.
As of August 28, CHAI had an intraday market capitalization of approximately $10.3 million, a trailing EPS of -$0.98, no meaningful trailing P/E ratio because it remains loss-making, no indicated dividend, and seven full-time employees listed in market data. The company’s year-end is December 31. The supplied materials do not disclose its founding year.
Top Financial Highlights
- Q2 2026 revenue increased 56% year over year to $22.4 million, from $14.3 million in Q2 2025.
- The revenue increase was primarily attributed to higher advertising revenue from mobile games after advertising-placement and user-acquisition optimization.
- Cost of providing services rose 52% year over year to approximately $22.4 million.
- Q2 gross loss declined 97% to about $11,000, versus approximately $397,000 a year earlier.
- Gross margin was effectively near breakeven in Q2, though still marginally negative because the company reported a gross loss rather than gross profit.
- Q2 net loss widened to $1.6 million, compared with a $758,000 net loss in Q2 2025.
- Q2 EPS was not disclosed in the company’s earnings announcement; available market data lists trailing-12-month EPS of -$0.98, which is not the quarterly reported EPS.
- First-half 2026 revenue totaled $26.1 million, down from $28.9 million in the first half of 2025.
- First-half 2026 gross loss was $3.1 million, compared with $626,000 in the prior-year period, reflecting elevated first-quarter customer-acquisition costs.
- Operating cash flow turned positive: net cash provided by operating activities was $5.5 million in H1 2026, compared with $2.4 million used in H1 2025.
- Cash and cash equivalents stood at $12.0 million at June 30, 2026, versus $1.9 million at December 31, 2025.
- The company received about $4.6 million of net private-placement proceeds during the first half.
- Core AI entered into four HPC and AI data-center joint ventures in the first half and signed an MOU for potential Malaysian data-center development.
- Management did not provide explicit Q3 2026 revenue, earnings, or margin guidance. It instead stated that its near-term emphasis is on continued improvement in existing-business economics and advancing AI-infrastructure initiatives.
- The data-center ventures remain early-stage: no projects had been presented to the JVs for approval, and no financing commitments had been secured as of June 30.
Beat or Miss?
Core AI’s release did not cite Wall Street consensus estimates for revenue, EPS, or profitability. Therefore, a conventional earnings “beat” or “miss” cannot be established from reported company materials. Operationally, the quarter was positive on revenue growth, gross-loss reduction, cash generation, and investor response; however, the company remains net-loss-making, and first-half revenue was below the prior-year level.
| Metric | Reported | Difference/Analysis |
| Q2 revenue | $22.4 million | +56% YoY; analyst consensus not disclosed |
| Q2 net income | $(1.6 million) | Net loss widened from $(758,000); consensus not disclosed |
| Q2 EPS | Not disclosed | No quarterly reported EPS or consensus was provided |
| Q2 gross loss | ($11,000) | Improved 97% from approximately $(397,000) |
| H1 operating cash flow | $5.5 million inflow | Improved from a $2.4 million outflow in H1 2025 |
What Leadership Is Saying
“Our second quarter demonstrated meaningful progress in both revenue growth and operating efficiency. Revenue increased 56% year-over-year, while our gross loss declined by 97% and approached breakeven. These results reflect the impact of the operational adjustments we made to our advertising and user acquisition strategy and our focus on improving the quality and efficiency of our growth.” — Aitan Zacharin, Chief Executive Officer
“Our objective is to build Core AI into a diversified AI technology and infrastructure platform. We are executing across multiple layers of the AI ecosystem, from AI-powered applications and digital platforms to the development of HPC and AI infrastructure. The four data-center joint ventures and additional international initiatives established during the first half of the year represent important steps in that strategy.” — Aitan Zacharin, Chief Executive Officer
The release did not include a separate CFO quotation. Core AI appointed Arie Goor as chief financial officer during July 2026, but the Q2 earnings announcement itself attributes the disclosed management comments to CEO Aitan Zacharin.
Historical Performance
| Category | Q2 2026 | Q2 2025 | Change (%) |
| Revenue | $22.4 million | $14.3 million | 56.00% |
| Net income/(loss) | $(1.6 million) | ($758,000) | Loss widened 111.1% |
| Cost of providing services | Approximately $22.4 million | Approximately $14.7 million | 52.00% |
| Gross income/(loss) | Approximately $(11,000) | Approximately $(397,000) | Gross loss narrowed 97.2% |
Note: The company did not disclose operating expenses in the supplied Q2 release. Cost of providing services is used as the closest disclosed operating-cost measure. The net-loss change reflects a larger loss, not improved profitability.
How the Market Reacted?
Investors reacted positively to the revenue acceleration, near-breakeven gross margin, positive first-half operating cash flow, and announced progress in AI infrastructure. CHAI closed August 28 at $0.40, up $0.1454, or 57.11%, from the previous close of $0.2546; intraday trading reached a high of $0.52 on volume of about 302.2 million shares.
The reaction was volatile after the close, however. Shares were quoted at $0.3681 in after-hours trading, down 7.98% from the regular-session close. The market response therefore appears bullish on the quarterly operating inflection, while the after-hours retracement and the company’s still-negative net income underscore the speculative nature of the move.
