KIDZ AI Inc. Reports Second Quarter 2026 Results

• Seco d qua te Net loss a owed 35% yea -ove -yea to app oximately $2.50 millio

• Cash a d est icted cash totaled app oximately $8.88 millio at Ju e 30, 2026, mo e tha th ee times the $2.75 millio held at Decembe 31, 2025

• Co ve tible otes payable educed 92% si ce yea -e d, f om app oximately $8.20 millio to app oximately $0.67 millio , substa tially simplifyi g the capital st uctu e

• Total stockholde s’ equity i c eased 163% si ce yea -e d to app oximately $9.95 millio ; total liabilities-to-equity atio imp oved f om 3.12x to 0.41x

• I itial GPU cluste deployme t u de way as the Compa y adva ces towa d its fi st AI compute eve ue

• Named wi e of the 2026 EdTechX Awa d fo the Ame icas

NEW YORK CITY, NY / ACCESS Newswi e / August 13, 2026 / KIDZ AI I c. (NASDAQ:KIDZ)(NASDAQ:KIDZW) (“KIDZ AI” o the “Compa y”), a educatio tech ology compa y adva ci g AI i f ast uctu e a d GPU compute i itiatives alo gside its co e EdTech ope atio s, today a ou ced its fi a cial esults fo the seco d qua te e ded Ju e 30, 2026.

The seco d qua te of 2026 ma ked a defi i g st ategic i flectio poi t fo KIDZ AI. O May 26, 2026, the Compa y fo mally cha ged its co po ate ame f om Classove Holdi gs, I c. to KIDZ AI I c., sig ali g a fu dame tal expa sio of its missio beyo d o li e tuto i g a d K-12 educatio towa d AI compute i f ast uctu e, GPU cloud se vices, a d embodied AI obotics.

Ma ageme t believes the global educatio a d e te p ise computi g secto s a e co ve gi g o the same fou datio al tech ologies – la ge-scale AI models, i tellige t age ts, a d physical obotics. KIDZ AI’s positio i g o both the dema d side (AI- ative lea i g platfo ms a d obotics cu icula) a d the supply side (GPU compute capacity secu ed u de existi g ag eeme ts a d data ce te i f ast uctu e) c eates what ma ageme t believes is a diffe e tiated, scalable platfo m fo lo g-te m value c eatio .

Ma ageme t views this epositio i g as mo e tha a eb a d: it ep ese ts a delibe ate t a sitio f om a pu ely tuto i g-based eve ue model towa d AI compute eve ue, obotics cu icula, a d i f ast uctu e pa t e ships – a t a sfo matio the Compa y believes will defi e its ext chapte of g owth.

Seco d Qua te 2026 Fi a cial Highlights

• Se vice Reve ue: Se vice eve ue fo the seco d qua te e ded Ju 30, 2026 was app oximately $0.48 millio , compa ed to app oximately $0.73 millio i the p io yea pe iod, a dec ease of app oximately 34%. The decli e eflects the Compa y’s delibe ate eallocatio of capital a d ma ageme t focus away f om tuto i g custome acquisitio a d towa d its AI i f ast uctu e build-out, du i g a pe iod i which AI compute eve ue had ot yet comme ced. The Compa y is adva ci g its i itial GPU cluste deployme ts towa d eve ue ge e atio .

• Net Loss Imp oved 35% Yea -Ove -Yea : Net loss fo the seco d qua te e ded Ju e 30, 2026 was app oximately $2.50 millio , compa ed to app oximately $3.87 millio i the p io yea pe iod, eflecti g discipli ed cost ma ageme t du i g the st ategic t a sitio .

• G oss Ma gi of 44%: G oss ma gi was 44% i the seco d qua te e ded Ju e 30, 2026, co siste t with the p io yea qua te , demo st ati g the esilie ce of the co e o li e educatio model eve as ope atio al focus shifts towa d AI expa sio i itiatives.

• Cash Positio Mo e Tha T ipled: Cash a d est icted cash totaled app oximately $8.88 millio at Ju e 30, 2026, compa ed to app oximately $2.75 millio at Decembe 31, 2025, p ovidi g the Compa y with substa tially g eate fi a cial flexibility to fu d its AI i f ast uctu e st ategy.

• Co ve tible Notes Reduced 92%: Co ve tible otes payable dec eased f om app oximately $8.20 millio at Decembe 31, 2025 to app oximately $0.67 millio at Ju e 30, 2026, p ima ily th ough co ve sio s to equity – a fu dame tal simplificatio of the capital st uctu e that substa tially emoves a sig ifica t fi a ci g ove ha g.

• Stockholde s’ Equity G ew 163%: Total stockholde s’ equity i c eased f om app oximately $3.78 millio at Decembe 31, 2025 to app oximately $9.95 millio at Ju e 30, 2026, a i c ease of $6.17 millio .

• St o ge Capital St uctu e: Total liabilities dec eased 65.6% f om app oximately $11.77 millio at Decembe 31, 2025 to app oximately $4.05 millio at Ju e 30, 2026, a d the total liabilities-to-equity atio imp oved f om 3.12x to 0.41x, eflecti g both the lowe liability bala ce a d a la ge equity base.

St ategic T a sfo matio

• Reb a ded to KIDZ AI I c.: The Compa y eb a ded f om Classove Holdi gs, I c. to KIDZ AI I c., eflecti g the expa sio of its missio beyo d o li e tuto i g a d K-12 educatio towa d AI compute i f ast uctu e, GPU cloud se vices, a d embodied AI obotics.

• KIDZBot AI Robotics Platfo m U veiled: KIDZ AI u veiled KIDZBot, a i teg ated AI- ative obotics platfo m i co po ati g pe siste t memo y, easo i g, p ompt- a d toke -based i te actio s, se so -d ive feedback, co textual awa e ess, a d adaptive lea i g. The Compa y is actively developi g multiple KIDZBot obotic fo m facto s, togethe with a AI-powe ed softwa e platfo m a d compa io app, as pa t of a b oade KIDZBot ecosystem, with comme cial ollout p epa atio s u de way.

• AI Compute I f ast uctu e Build-Out Adva ci g: The Compa y co ti ued to adva ce its GPU compute a d data ce te i itiatives du i g the qua te , positio i g its i itial GPU cluste s fo deployme t a d futu e eve ue ge e atio .

Co po ate Recog itio

Ma ageme t Comme ta y

“The seco d qua te of 2026 ep ese ted a defi i g i flectio poi t fo KIDZ AI,” said Stepha ie Luo, Chief Executive Office of KIDZ AI. “I six mo ths, we have fu dame tally t a sfo med ou bala ce sheet – mo e tha t ipli g ou cash positio , eti i g 92% of ou co ve tible debt, a d g owi g stockholde s’ equity by mo e tha 160% – while executi g ou st ategic pivot towa d AI compute i f ast uctu e. As expected du i g this t a sitio , ea -te m se vice eve ue eflected ou delibe ate shift i focus; we believe the AI compute eve ue we a e wo ki g towa d ep ese ts a mo e scalable a d du able fou datio fo g owth.”

“At the same time, we emai deeply committed to ou educatio oots,” co ti ued Ms. Luo. “We believe that the lau ch of KIDZBot a d ou EdTechX Awa d wi demo st ate that KIDZ AI co ti ues to lead i AI- ative educatio i ovatio . With a st e gthe ed bala ce sheet, expa di g AI i f ast uctu e capabilities, a d a diffe e tiated Physical AI educatio platfo m, we believe KIDZ AI is u iquely positio ed, a d we emai focused o discipli ed executio a d lo g-te m value c eatio fo ou sha eholde s.”

St ategic Outlook

The Compa y expects to co ti ue adva ci g its AI i f ast uctu e st ategy th ough the deployme t of its i itial GPU cluste s. KIDZ AI i te ds to pu sue additio al GPU compute pa t e ships, data ce te elatio ships, a d st ategic t a sactio s to expa d its compute capacity a d st e gthe its eocloud model. I the educatio ve tical, the Compa y will look to focus o the comme cial ollout of KIDZBot a d the i teg atio of Physical AI co cepts i to its cu iculum offe i gs.

About KIDZ AI I c.

KIDZ AI I c. (NASDAQ:KIDZ)(NASDAQ:KIDZW) is a AI-d ive educatio tech ology compa y developi g p op ieta y lea i g systems that combi e a tificial i tellige ce, AI age ts a d obotics. The Compa y is also pu sui g oppo tu ities i AI compute i f ast uctu e, GPU cloud platfo ms a d elated data-ce te ecosystems.

Fo wa d-Looki g Stateme tsThis p ess elease co tai s “fo wa d-looki g stateme ts” withi the mea i g of the safe ha bo p ovisio s of the U.S. P ivate Secu ities Litigatio Refo m Act of 1995. Fo wa d-looki g stateme ts a e eithe histo ical facts o assu a ces of futu e pe fo ma ce. I stead, they a e based o ly o KIDZ AI’s cu e t beliefs, expectatio s a d assumptio s ega di g the futu e of KIDZ AI’s busi ess, futu e pla s a d st ategies, p ojectio s, a ticipated eve ts a d t e ds, the eco omy a d othe futu e co ditio s. Because fo wa d-looki g stateme ts elate to the futu e, they a e subject to i he e t u ce tai ties, isks a d cha ges i ci cumsta ces that a e difficult to p edict a d ma y of which a e outside of KIDZ AI’s co t ol i cludi g, but ot limited to: KIDZ AI’s ability to execute its busi ess model, i cludi g obtai i g ma ket accepta ce of its p oducts a d se vices; KIDZ AI’s fi a cial a d busi ess pe fo ma ce, i cludi g fi a cial p ojectio s a d busi ess met ics a d a y u de lyi g assumptio s the eu de ; the fi al tech ical co figu atio , capacity, costs, a d timi g of a y GPU compute deployme t; KIDZ AI’s ability to obtai the GPUs a d elated equipme t ecessa y to pe fo m its obligatio s u de the ece tly a ou ced defi itive ag eeme t with Ca opy Wave a d achieve its goals a d expected esults; KIDZ AI’s ability to mai tai the listi g of its secu ities o Nasdaq; cha ges i KIDZ AI’s st ategy, futu e ope atio s, fi a cial positio , estimated eve ue a d losses, p ojected costs, p ospects a d pla s; KIDZ AI’s ability to att act a d etai a la ge umbe of custome s; KIDZ AI’s futu e capital equi eme ts a d sou ces a d uses of cash; KIDZ AI’s ability to att act a d etai key pe so el; KIDZ AI’s expectatio s ega di g its ability to obtai a d mai tai i tellectual p ope ty p otectio a d ot i f i ge o the ights of othe s; cha ges i applicable laws o egulatio s; a d the possibility that KIDZ AI may be adve sely affected by othe eco omic, busi ess, a d/o competitive facto s. These isks a d u ce tai ties also i clude those isks a d u ce tai ties i dicated i KIDZ AI’s fili gs with the SEC. KIDZ AI’s actual esults a d fi a cial co ditio may diffe mate ially f om those i dicated i the fo wa d-looki g stateme ts. The efo e, you should ot ely o a y of these fo wa d-looki g stateme ts.

A y fo wa d-looki g stateme t made by KIDZ AI i this p ess elease is based o ly o i fo matio cu e tly available to KIDZ AI a d speaks o ly as of the date o which it is made. KIDZ AI u de takes o obligatio to publicly update a y fo wa d-looki g stateme t, whethe w itte o o al, that may be made f om time to time, whethe as a esult of ew i fo matio , futu e developme ts o othe wise.

Co tactsKIDZ AI I c.[email p otected]800-345-9588

SOURCE: KIDZ AI I c.