Alset Inc. (AEI) Q2 2026 Earnings: Revenue $989K (-10.0%)
AEI — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Alset's Q2 2026 revenue fell 10% to $0.99M and its net loss narrowed to $5.3M, mainly on currency swings; loss per share fell to $0.14 largely because the share count tripled, and cash halved to $12.3M in six months.
Revenue
$989K
-10.0% YoY
Net income
-$5.3M
+35.9% YoY
Diluted EPS
$-0.14
+80.3% YoY
This period vs a year ago
Same period last year
This period
Revenue▼-10.0%
≈$1.1M
$989K
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Overview
Alset Inc. is a Texas-incorporated holding company run by its Chairman and CEO Chan Heng Fai, who is also its largest stockholder. Its day-to-day business is small: 132 single-family rental homes around Houston, plus a handful of cafés and restaurants in Korea, Singapore and China. Most of its value sits in stakes in other companies, several of which Mr. Chan also chairs or has an interest in. In the second quarter of 2026 (April–June), revenue fell 10.0% to $0.99 million and the net loss attributable to shareholders narrowed to $5.27 million from $8.22 million a year earlier. Most of the improvement came from currency movements and lower overhead, not from the businesses themselves. Most of this quarter's loss came from falling prices of shares Alset holds, not from the cafés or the rental homes.
At a glance
$0.99M revenue vs. a $5.84M net loss: the operating businesses are tiny next to the swings in the investment portfolio. Paper losses on securities alone came to $4.83 million this quarter.
Loss per share fell from $0.71 to $0.14, mostly because the share count more than tripled. Weighted shares went from 11.6 million to 38.9 million after Alset issued 27.7 million new shares to Mr. Chan in July 2025 to pay for a stake in an electric-vehicle distributor.
Cash halved in six months, from $25.2M to $12.3M. Operating cash outflow was $9.2 million in the first half, and Alset lent $4.5 million to related companies.
Results
Metric
Q2 2026
Q2 2025
YoY Change
Total revenue
$988,542
$1,098,962
-10.0%
— Rental revenue (real estate)
$724,313
Read 0 community reports on Alset Inc., or write your own.Write a report
$716,042
+1.2%
— Other revenue (cafés/restaurants, other)
$264,229
$382,920
-31.0%
Gross profit (revenue minus cost of sales)
$83,877
$77,008
+8.9%
Loss from operations
-$1,793,375
-$2,755,461
Loss narrowed 34.9%
Net loss (total)
-$5,844,986
-$8,841,142
Loss narrowed 33.9%
Net loss attributable to common stockholders
-$5,272,443
-$8,221,441
Loss narrowed 35.9%
Loss per share (basic and diluted)
-$0.14
-$0.71
Loss narrowed 80.3%
Weighted average shares
38,895,830
11,570,852
+236%
Cash (vs. Dec 31, 2025)
$12,325,977
$25,184,990
-51.1%
Figures are from the unaudited condensed consolidated statements in the 10-Q. For loss-making periods, the "YoY" figures in the site's metrics show how much the loss shrank, not growth in profit.
For the first half of 2026, revenue was $1.97 million (-9.1%). The net loss was $11.10 million, down from $18.35 million, and $9.79 million of it was attributable to shareholders, or $0.25 per share against $1.49 a year earlier.
Where the revenue comes from
The 10-Q reports four segments: real estate, digital transformation technology, biohealth and "Other." Only two of them brought in revenue this quarter:
Real estate (rental homes): $724,313, up 1.2%. This comes from the 132 rental houses in Montgomery and Harris Counties, Texas. That works out to roughly $1,830 per home per month, assuming all 132 were held for the full quarter. Cost of sales for the segment was $638,604, which leaves about $86,000 of gross profit. Management says it expects rental revenue "will continue to increase as we acquire more rental houses," but real estate assets fell in the half to $29.1 million, from $29.6 million, and the filing puts that down to depreciation, not purchases.
Other: $264,229, down 31.0%. This is mostly Korean, Singaporean and Chinese cafés and restaurants. Cost of sales here fell by a similar amount (-28%), so this business is shrinking at roughly break-even at the gross level.
Biohealth and digital transformation technology reported no revenue. They show up only as costs: $301,318 and $23,963 of operating expenses in the quarter.
Operating expenses (G&A plus impairments) fell 34% to $1.88 million. In the "Other" category they fell from $2.55 million to $1.06 million. For the half, the MD&A attributes the drop "mostly" to lower impairments and bonuses. The cash flow statement shows stock-based compensation fell from $840,000 in the first half of 2025 to zero.
What drove the bottom line
The $2.9 million smaller net loss is mainly the result of two large items outside operations that moved in opposite directions:
Currency swung from a $4.83M loss to a $0.17M gain. About $30 million of intercompany loans run from the Singapore arm to the US business, so every move in the Singapore dollar/US dollar rate hits the income statement. Management says it does not expect to repay these loans in the short term, so it expects the swings to "still significantly impact the results of operations in 2026."
Securities went from a $0.69M net loss to a $4.60M net loss. Unrealized losses were $2.35 million on unrelated holdings and $2.49 million on related-party holdings, partly offset by a $0.23 million realized gain. A year ago the total was held down by a $2.79 million unrealized gain on related-party shares, even though Alset also booked a $2.44 million realized loss on related-party shares that quarter.
By our arithmetic, stripping out both the currency line and all securities gains and losses, the Q2 net loss would have been about $1.41 million, against $3.31 million a year earlier. That improvement reflects the lower overhead described above. It is not a sign that revenue is growing.
What the headline numbers hide
The per-share improvement is mostly dilution. On July 23, 2025, Mr. Chan converted an $83 million note into 27,666,667 new Alset shares at $3.00 each. He had received the note as payment for selling Alset his company NEAPI, which owns 41.5% of New Energy Asia Pacific, a Hong Kong distributor of electric vehicles and charging equipment. On the old share count of 11.57 million, this quarter's loss would have been about $0.46 per share, not $0.14.
The single biggest asset is that acquired stake, and it has already been marked down by a third. In 2025 Alset took a $30.1 million impairment (a write-down of the asset's book value) on New Energy, citing delays in its taxi-delivery projects and slower cash-flow ramp-up. The stake is still carried at $52.5 million, about 42% of Alset's $124.9 million of total assets, and that value rests on a discounted-cash-flow model, not a market price. If those projections slip again, another write-down could follow.
Cash is going out faster than the income statement suggests. First-half operating cash outflow was $9.17 million, larger than the prior year's $6.37 million. Of that, $2.71 million went into buying trading securities (Alset runs a short-term trading portfolio) and $3.21 million into paying down payables and accrued expenses. On top of that, investing outflows included $4.53 million of new loans to related parties, against $0.83 million collected. No shares were issued in the half, compared with $2.61 million raised in the same half of 2025.
Related-party lending is growing. In March and June 2026, Alset and its Singapore-listed subsidiary Alset International lent a combined $3.45 million to DSS Inc., which is 39.4% owned by Alset and chaired by Mr. Chan. In return they received convertible notes at 3% interest and warrants on DSS shares. Alset's HWH International unit also bought three more convertible notes, $285,000 in total, from Sharing Services Global (29% owned) in January–February 2026. Related-party note and convertible-loan receivables totalled $8.23 million at June 30, up from $4.25 million at year-end. The DSS deals were approved by the board and audit committee with Mr. Chan and Co-CEO Chan Tung Moe recused. However, three of Alset's independent directors also sit on DSS's board. Over the half, $3.97 million of "gain from DSS Convertible Note and Warrants" was credited directly to shareholders' equity, not run through the income statement.
Going concern: doubt raised, then called resolved. The notes say recurring losses and a $309.1 million accumulated deficit (the running total of all past losses) "initially raised substantial doubt" about Alset's ability to keep operating for the next year. Going concern is the accounting test of whether a company can keep paying its bills for the next 12 months. Management concludes that doubt "has been alleviated," based on its cash and expected real estate cash flows. The filing adds that there is "no assurance" its plans succeed.
Balance sheet: little debt, but not much cash either. Total liabilities are only $2.81 million, against $122.1 million of equity. Book value attributable to Alset shareholders is about $2.94 per share. Most of that book value is the New Energy stake, related-party securities and loans, and rental homes, not cash.
Controls and presentation. Management concluded its disclosure controls were not effective as of June 30, 2026. The filing itself has visible inconsistencies. For example, the MD&A says gross margin "decreased" from $77,008 to $83,877, when its own figures show an increase.
One-off ahead: HWH is leaving the group
On August 10, 2026, after the quarter ended, HWH International changed hands. Alset owned about 56.9% of it immediately before the deal. HWH sold 20 million new shares and warrants for up to 160 million more to Smart Dynamics Technology Limited, for $10 million. The buyer now owns about 67.3% of HWH, and Alset's stake fell to about 18.6%. Alset will therefore stop consolidating HWH (adding its results line by line into Alset's own accounts) from August 10. It will book the accounting gain or loss in the third quarter. The company says that amount "has not yet been determined."
Separately, Alset agreed in February 2026 to sell its 99.55% stake in Hapi Metaverse to HWH for a $19.9 million convertible note. The two sides terminated that deal on May 6, 2026.
Takeaway: Alset's operating businesses bring in under $1 million a quarter, so its results are driven almost entirely by currency swings, the market value of stakes in affiliated companies, and a $52.5 million electric-vehicle stake it bought from its own CEO with new shares. The smaller loss per share mostly reflects a share count that more than tripled. Meanwhile cash halved in six months, partly because Alset lent money to related companies.
Outlook
The 10-Q gives no revenue or earnings guidance. What management does state:
It expects rental revenue to keep rising as it buys more homes. That has not shown up yet: rental revenue grew only 1.2% and the property book value is shrinking with depreciation.
It expects currency swings on the ~$30 million intercompany loans to keep "significantly" moving results through 2026.
It believes cash on hand and real estate cash flows are enough to fund operations for at least the next 12 months.
Our read: Q3 2026 (filing expected around mid-November) will be distorted by the HWH deconsolidation gain or loss. It will also be the first quarter without HWH's results line by line, so year-over-year comparisons will get harder. The numbers to watch are the cash balance, which fell by about $6.4 million a quarter on average in the first half; whether related-party loans keep growing; and any further impairment of the New Energy stake. Revenue from the rental homes is steady but too small to change the picture on its own.