PCSV's Profit Plummets 99.8% Amid Revenue Decline, Increased Costs

TL;DR

**PCSV is bleeding cash and profits, avoid this educational tech stock until they can prove a turnaround.**

AI Summary

PCS Edventures!, Inc. (PCSV) reported a significant decline in financial performance for the three and six months ended September 30, 2025. Revenue for the three months decreased by 32.6% to $1,529,503 from $2,267,338 in the prior year, and for the six months, it fell by 27.1% to $3,952,812 from $5,427,262. Net income plummeted by 99.8% to $939 for the three months, down from $431,229, and by 65.4% to $446,092 for the six months, compared to $1,288,504 previously. This sharp decline in profitability is primarily due to reduced sales and increased operating expenses, with salaries and wages rising to $1,134,539 for the six months from $1,004,031. The company also engaged in significant share repurchase activities, spending $399,061 on open market treasury shares and $53,130 on private purchases, reducing outstanding shares but impacting cash flow. Cash provided by operating activities decreased substantially from $2,852,232 in 2024 to $488,878 in 2025 for the six-month period.

Why It Matters

This filing reveals a concerning trend for PCS Edventures!, Inc., with a dramatic drop in net income and revenue, signaling potential operational challenges and reduced market demand for its STEM education products. For investors, the near-total evaporation of quarterly net income to just $939, coupled with a 65.4% decline year-to-date, raises serious questions about the company's profitability and future growth prospects. Employees might face uncertainty if these trends continue, potentially impacting job security or future compensation. Customers could see less investment in new product development if financial performance remains weak, affecting the competitive landscape in the STEM education sector. The broader market for educational technology may view this as a cautionary tale, highlighting the volatility even in seemingly robust niches.

Risk Assessment

Risk Level: high — The risk level is high due to the precipitous 99.8% drop in net income for the three months ended September 30, 2025, to $939 from $431,229 in the prior year. Additionally, revenue declined significantly by 32.6% for the quarter and 27.1% for the six-month period, indicating a substantial weakening of the core business. The company's cash provided by operating activities also fell sharply from $2,852,232 to $488,878 year-over-year, suggesting deteriorating operational efficiency.

Analyst Insight

Investors should exercise extreme caution and consider divesting PCSV shares given the severe decline in revenue and net income. A wait-and-see approach is advisable to observe if management can implement effective strategies to reverse these negative trends and restore profitability.

Financial Highlights

revenue

$1.53M

net Income

$939

cash Position

$3.25M

revenue Growth

-32.6%

Key Numbers

• $1.53M — Quarterly Revenue (Down 32.6% from $2.27M in Q3 2024)
• $939 — Quarterly Net Income (Down 99.8% from $431,229 in Q3 2024)
• $3.95M — Six-Month Revenue (Down 27.1% from $5.43M in H1 2024)
• $446,092 — Six-Month Net Income (Down 65.4% from $1.29M in H1 2024)
• $488,878 — Net Cash from Operations (Six Months) (Significant decrease from $2,852,232 in H1 2024)
• $399,061 — Treasury Shares Purchased (Cash outflow for share repurchases in H1 2025)
• 117,779,021 — Common Shares Outstanding (As of November 14, 2025)
• $3,247,793 — Cash at End of Period (As of September 30, 2025, a slight increase from March 31, 2025)

Key Players & Entities

• PCS Edventures!, Inc. (company) — Registrant
• $1,529,503 (dollar_amount) — Revenue for three months ended September 30, 2025
• $2,267,338 (dollar_amount) — Revenue for three months ended September 30, 2024
• $939 (dollar_amount) — Net income for three months ended September 30, 2025
• $431,229 (dollar_amount) — Net income for three months ended September 30, 2024
• $3,952,812 (dollar_amount) — Revenue for six months ended September 30, 2025
• $5,427,262 (dollar_amount) — Revenue for six months ended September 30, 2024
• $446,092 (dollar_amount) — Net income for six months ended September 30, 2025
• $1,288,504 (dollar_amount) — Net income for six months ended September 30, 2024
• $399,061 (dollar_amount) — Cash paid for purchase of Treasury Shares in open market

FAQ

Risk Factors

• Declining Revenue and Profitability [high — financial]: Revenue for the three months ended September 30, 2025, decreased by 32.6% to $1,529,503, and net income plummeted by 99.8% to $939. This significant downturn suggests potential issues with sales execution, market demand, or competitive pressures impacting the company's core business.
• Rising Operating Expenses [medium — operational]: Despite declining revenues, salaries and wages increased to $1,134,539 for the six months ended September 30, 2025, from $1,004,031 in the prior year. This indicates a potential disconnect between cost management and revenue generation, squeezing margins further.
• Reduced Cash Flow from Operations [high — financial]: Cash provided by operating activities decreased substantially from $2,852,232 in the six months ended September 30, 2024, to $488,878 in the same period of 2025. This sharp decline raises concerns about the company's ability to generate sufficient cash to fund its operations and investments.
• Impact of Share Repurchases on Cash [medium — financial]: The company spent $399,061 on treasury shares and $53,130 on private purchases, totaling $452,191 in share repurchases. While this reduces outstanding shares, it represents a significant cash outflow that could otherwise be used for growth initiatives or to bolster liquidity during a period of declining operational cash flow.

Industry Context

PCS Edventures!, Inc. operates in the education technology sector, which is characterized by rapid innovation and increasing competition. Companies in this space often face challenges related to curriculum development, platform scalability, and adapting to evolving pedagogical approaches and digital learning trends.

Regulatory Implications

As a publicly traded company, PCS Edventures!, Inc. is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is critical to maintaining investor confidence and avoiding potential penalties.

What Investors Should Do

1. Monitor expense management closely.
2. Analyze the sustainability of share repurchases.
3. Seek clarification on revenue drivers.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance and condition. (This filing provides the detailed financial information and operational insights for PCS Edventures!, Inc. for the specified period.)

Treasury Shares

Shares of a company's own stock that it has repurchased from the open market. These shares are held by the company and can be reissued later. (PCS Edventures!, Inc. spent $399,061 on repurchasing treasury shares, impacting its cash position and reducing the number of outstanding shares.)

Cash Provided by Operating Activities

The net amount of cash generated or used by a company's normal business operations over a period. (A significant decrease in this metric from $2,852,232 to $488,878 for the six-month period indicates a weakening ability of the core business to generate cash.)

Year-Over-Year Comparison

PCS Edventures!, Inc. has experienced a significant deterioration in financial performance compared to the prior year. Revenue for the three months fell by 32.6% and net income by 99.8%. For the six-month period, revenue declined by 27.1% and net income by 65.4%. Operating cash flow also saw a dramatic decrease. While the company has reduced its outstanding share count through repurchases, this has come at the cost of significant cash outflow during a period of weakening operational performance.

Filing Documents

• form10-q.htm (10-Q) — 546KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 16KB
• ex32.htm (EX-32) — 9KB
• 0001493152-25-022452.txt ( ) — 2773KB
• pcsv-20250930.xsd (EX-101.SCH) — 20KB
• pcsv-20250930_cal.xml (EX-101.CAL) — 41KB
• pcsv-20250930_def.xml (EX-101.DEF) — 41KB
• pcsv-20250930_lab.xml (EX-101.LAB) — 214KB
• pcsv-20250930_pre.xml (EX-101.PRE) — 162KB
• form10-q_htm.xml (XML) — 287KB

, Other Information, Item 6. Exhibits, hereof

Part II, Other Information, Item 6. Exhibits, hereof. 2 PCS EDVENTURES!, Inc. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2025 INDEX Page PART I – FINANCIAL INFORMATION 4 ITEM 1. Condensed Financial Statements (unaudited) 4 Condensed Balance Sheets as of September 30, 2025 (unaudited), and March 31, 2025 5 Condensed Statements of Operations for the Three and Six Months ended September 30, 2025, and 2024 (unaudited) 6 Condensed Statements of Stockholders' Equity for the Three and Six Months ended September 30, 2025, and 2024 (unaudited) 7 Condensed Statements of Cash Flows for the Six Months ended September 30, 2025, and 2024 (unaudited) 8 Notes to the Condensed Financial Statements (unaudited) 9 ITEM 2.

Management's Discussion and Analysis of Financial Conditions and Results of Operations

Management's Discussion and Analysis of Financial Conditions and Results of Operations 14 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 19 ITEM 4.

Controls and Procedures

Controls and Procedures 19 PART II - OTHER INFORMATION 20 ITEM 1.

Legal Proceedings

Legal Proceedings 20 ITEM 1A.

Risk Factors

Risk Factors 20 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 ITEM 3. Defaults Upon Senior Securities 20 ITEM 4. Mine Safety Disclosures 20 ITEM 5. Other Information 20 ITEM 6. EXHIBIT INDEX 21

SIGNATURES

SIGNATURES 22 3 PART I –FINANCIAL INFORMATION PART I – FINANCIAL INFORMATION Item 1. Condensed Financial Statements The Condensed Financial Statements of the Registrant required to be filed with this 10-Q Quarterly Report were prepared by management and commence below, together with related notes. In the opinion of management, the Condensed Financial Statements fairly present the financial condition of the Registrant. (This space intentionally left blank.) 4 PCS EDVENTURES!, INC. Condensed Balance Sheets September 30, 2025 Unaudited March 31, 2025 CURRENT ASSETS Cash $ 3,247,793 $ 3,223,147 Accounts receivable, net of allowance for credit losses of $ 38,027 741,110 383,826 Accounts receivable, other receivables 81,736 55 Prepaid expenses 185,146 247,422 Inventory, net 1,832,092 2,064,534 Total Current Assets 6,087,877 5,918,984 NONCURRENT ASSETS Lease Right-of-Use Asset 1,039,646 1,140,217 Deposits 29,747 29,747 Property and equipment, net 93,974 97,213 Deferred tax asset 2,143,315 2,276,861 Total Noncurrent Assets 3,306,682 3,544,038 TOTAL ASSETS $ 9,394,559 $ 9,463,022 CURRENT LIABILITIES Accounts payable $ 98,643 $ 24,991 Payroll liabilities and accrued expenses 108,485 171,398 Deferred revenue 30,160 20,026 Lease Liability, current portion 216,574 110,024 Total Current Liabilities 453,862 326,439 NONCURRENT LIABILITIES Lease liabilities, net of current portion 886,483 1,081,614 Total Noncurrent Liabilities 886,483 1,081,614 TOTAL LIABILITIES $ 1,340,345 $ 1,408,053 STOCKHOLDERS' EQUITY Preferred stock, no par value, 20,000,000 authorized shares, No shares issued and outstanding - - Common stock, no par value, 125,000,000 authorized shares, 117,877,521 shares issued, 117,762,021 shares outstanding 122,189,763 shares issued and outstanding - - Additional paid-in capital before Treasury shares 39,590,922 40,022,746 Treasury stock, 115,500

View Full Filing

View this 10-Q filing on SEC EDGAR