The decline in Datavault AI Inc.'s (DVLT) profitability, leading to a negative net margin and EPS, is clearly indicated in its recent financial disclosures. As of June 30, 2025, Fintel's data shows DVLT's Trailing Twelve Months (TTM) Net Income at -$58.13 million against TTM Revenue of $4.44 million.1 This results in a TTM net margin of approximately -1309.23%, indicating a much larger negative margin than the -20.89% figure mentioned. The TTM EPS of -$0.96 is a direct consequence of these substantial losses.2
An examination of DVLT's Condensed Consolidated Statements of Operations for the nine months ended September 30, 2025, provides further insight into the drivers of this negative performance:3
- Increased Operating Expenses: The company experienced substantial increases across its operating expense categories. Research and development expenses more than doubled to $11.56 million, sales and marketing expenses rose to $5.45 million, and general and administrative expenses surged to $19.84 million for the nine months ended September 30, 2025, compared to the same period in the prior year.3 These elevated costs are a significant factor contributing to the overall net loss.
- High Interest Expense: DVLT incurred a substantial interest expense of $18.19 million for the nine months ended September 30, 2025.3 This suggests a heavy reliance on debt financing, which can weigh heavily on profitability, especially for a company not yet generating consistent positive cash flow from operations. The filing mentions convertible notes and bridge financing activities contributing to this expense.3
- Other Significant Expenses: The company also reported a considerable 'Other (expense) income, net' of -$24.82 million for the nine months ended September 30, 2025.3 This category includes losses recognized in connection with the modification and exchange of convertible notes, amounting to several million dollars.3
These combined factors demonstrate a period of significant investment and operational costs that have outpaced revenue generation, leading to the substantial net losses and, consequently, the negative net margin and EPS observed.
