Hong Kong–listed AI software developer SenseTime (SENSETIME-W) reported a decisive turnaround for the six months ended 30 June 2026, posting a net profit of RMB 617.31 million compared with a RMB 1.49 billion loss a year earlier. The move back into the black was driven by double-digit top-line growth, margin expansion and sizeable fair-value gains on strategic investments.

Revenue climbed 23.4% year on year to RMB 2.91 billion, fuelled by a 28.2% increase in generative AI sales to RMB 2.33 billion, which now account for 79.9% of group turnover. Computer Vision revenues recovered to RMB 496.80 million, up 13.9%. Recurring Revenue surged 124.4% to RMB 1.14 billion, lifting its share of total sales to 39.3% from 21.6%.

Gross profit advanced 32.9% to RMB 1.21 billion, and gross margin widened 2.9 percentage points to 41.4%, reflecting a richer sales mix and higher delivery efficiency. Research and development spending fell 17.1% to RMB 1.76 billion as hiring and cost controls took hold, while selling and administrative expenses both declined.

EBITDA rebounded to RMB 1.39 billion versus a RMB 847.69 million loss a year earlier. On a non-IFRS basis, Adjusted EBITDA improved to RMB 384.86 million from a RMB 540.34 million loss, and the adjusted net loss narrowed 67.3% to RMB 385.90 million.

Other gains totalled RMB 2.13 billion, largely comprising RMB 1.25 billion of unrealised fair-value gains on financial assets and a RMB 521.02 million gain from subsidiary disposals, which together underpinned the headline profit.

Operationally, the company reported a 127.0% leap in overseas revenue, while daily average token output from its SenseCore infrastructure rose 22-fold year on year to 2.4 trillion in July 2026. Total compute capacity reached 48,000 petaFLOPS.

Cash and cash equivalents stood at RMB 9.88 billion, supplemented by RMB 3.12 billion in term deposits. Net cash exceeded debt, producing a negative gearing ratio of -8.6%. The group raised a combined HKD 6.38 billion through two placements in December 2025 and April 2026, fully allocating proceeds to AI infrastructure expansion, generative AI R&D and working capital.

No interim dividend was declared. The board cited continued investment needs as SenseTime advances its “one model system, one Token Factory, one Agent Harness” strategy focused on scaled multimodal agent delivery and task-based monetisation.