KIDZ AI Inc.

What they do

The company sells live online enrichment courses for children aged 4 to 17 in the U.S. and internationally, taught by independent educator contractors. Courses cover language, science, technology, engineering, arts, mathematics and music, plus test preparation for exams and competitions. It monetizes through time-based subscriptions (unlimited access for a period) and credit-based subscriptions (prepaid lesson balances). The company was incorporated in Delaware on May 2, 2024 and became public through a business combination involving BFAC and Class Over.

Revenue drivers

• Online tutoring and enrichment courses — Subscriptions and lesson-credit packages are the primary revenue source; total revenue was $3,366,421 in 2025, down 8% from $3,675,604 in 2024, with gross margin of 57% in 2025.
• Time-based subscriptions — Students receive unlimited access to courses for a specified period; the company describes subscriptions as the steady, recurring portion of revenue.
• Credit-based subscriptions — Students prepay a balance and draw down lessons at any time; described as flexible, non-recurring revenue that supplements subscriptions.
• AI compute / GPU cloud (pre-revenue) — The company states AI compute revenue had not yet commenced as of the Q2 2026 release; an initial GPU cluster deployment is underway but no revenue figure is reported.

Recent performance

Second quarter 2026 revenue was $481,831, down 34% from $725,648 in the prior-year quarter, with gross profit of $211,722 and gross margin of 44%. Six-month 2026 revenue was $1,001,029, down 35% from $1,541,664, with gross profit of $472,620 and 47% margin. Net loss for Q2 2026 was approximately $2.50 million, a 35% improvement from approximately $3.87 million a year earlier. Cash and restricted cash were approximately $8.88 million at June 30, 2026 versus $2.75 million at December 31, 2025. Convertible notes payable fell from approximately $8.20 million to approximately $0.67 million, and stockholders' equity rose from approximately $3.78 million to approximately $9.95 million.

Strategy

On May 26, 2026 the company renamed itself from Classover Holdings, Inc. to KIDZ AI Inc., framing the change as an expansion beyond K-12 tutoring into AI compute infrastructure, GPU cloud services and embodied AI robotics. Management attributes the Q2 revenue decline to deliberately reallocating capital and focus away from tutoring customer acquisition toward the AI infrastructure build-out. An initial GPU cluster deployment is underway, and the company says it is advancing toward first AI compute revenue. The release describes positioning on both AI-native learning demand and GPU compute supply via existing agreements and data center infrastructure. Prior financing arrangements include a $400 million equity purchase facility with Solana Strategic Holdings LLC, terminated in March 2026 without any shares sold, and a senior secured convertible note purchase agreement with Solana Growth Ventures LLC under which $11 million of notes were sold on June 6, 2025.

Risks

• Declining core revenue — Tutoring revenue fell 8% in 2025 and 34% in Q2 2026, and management attributes the drop to its own reallocation of focus, meaning the legacy business may keep shrinking before AI compute revenue begins.
• AI compute revenue not yet started — The company states AI compute revenue had not commenced as of the Q2 2026 release, so a GPU infrastructure business it is funding has not demonstrated any revenue.
• Continued losses and cash use — Net loss was $7.0 million in 2025 and approximately $2.50 million in Q2 2026 alone, with operating cash flow of negative $3.8 million in 2025.
• Dependence on registered-user conversion and educator partners — The company says growth depends on converting registered users into paid subscribers and attracting and retaining high-quality independent teacher contractors; it had 74,997 registered users and 1,200 educator partners as of December 31, 2025.

Outlook

Management frames Q2 2026 as a strategic inflection point and says it is advancing initial GPU cluster deployments toward generating the company's first AI compute revenue. It describes the transition from a tutoring-based revenue model toward AI compute, robotics curricula and infrastructure partnerships. The company states its larger cash position (approximately $8.88 million at June 30, 2026) gives it greater flexibility to fund the AI infrastructure strategy. No specific revenue, margin or timing guidance is provided in the excerpts.