New York, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Diamond Equity Research, an equity research firm with a focus on small capitalization public companies has released an update note on Genius Group Ltd. (NYSE: GNS). The update note includes information on the Genius Group Ltd.’ financial results, management commentary, recent developments, outlook, and risks. The research summary below is from a report commissioned by Genius Group Ltd. and produced by Diamond Equity Research. Investors can find various risk factors in the update report and in the respective financial filings for Genius Group Limited.
The full research report is available below.
Genius Group Limited October 2026 Update Note
Highlights from the report include:
- H1 2026 Results Confirm Profitable Operating Units Following the Restructuring: Genius Group reported unaudited results for the first half of 2026, with revenue from continuing operations up 140% year-over-year to $6.2 million. The revenue increase was majorly driven by $2.1 million of Resorts revenue, mainly from the July 2025 acquisitions, while School revenue rose 475% year-over-year to $2.3 million. Gross profit rose 188% to $3.5 million as gross margin improved to 56.6% from 47.1% driven by a shift towards higher margin programs. The total net loss from continuing operations halved to $9.1 million from $18.0 million in first half of last year. Net Income from continuing operations for all operating units turned positive for the first half of the year. We would highlight that these figures cover the three operating business units only and exclude central treasury gains and losses and central financing, investing, legal and management items, so they are not directly comparable with the audited group accounts. The sale of the remaining Bitcoin treasury and share issuance proceeds funded the repayment of third-party debt, reducing total liabilities 37% to $25.5 million and lifting net assets 10% to $106.0 million, thereby de-leveraging the capital structure ahead of the treasury relaunch.
- Jewel Bank Stake and the GENIUS Act Provide Regulated Digital-Asset Optionality: In April 2026 the company closed an $8.0 million registered direct offering at $0.37 per share with American Ventures LLC as lead investor and invested in Jewel Bank, which the H1 2026 accounts carry as a $7.7 million senior secured convertible note convertible at the company's election into a 9.9% equity interest. Jewel Bank holds both a full Bermuda Monetary Authority banking license and a Class F Digital Asset Business Act license, the only institution in Bermuda with both, and is developing JUSD, a dollar-denominated stablecoin designed for compliance with the GENIUS Act signed into US law in July 2025. Management's plan is to become a Permitted Payment Stablecoin Issuer, launch GEMs, its blockchain-based education merit tokens, and build digital asset service provider capability alongside the education platform. Launch is expected in the second half of 2026. However, on September 25 2026, the company issued a notice of acceleration under the convertible notes, citing breaches of the note and related agreements. We continue to carry the position at its $7.7 million cost and assign no franchise value to it.
- Closure of Revealed Films Narrows the Group to Three Operating Units: Revealed Films was closed on 13 May 2026 and, together with E-Squared Education Enterprises, which closed in 2025, is now presented within discontinued operations for both periods, leaving Genius School, Genius Academy and Genius Resorts as the continuing business. Discontinued operations contributed $0.3 million of revenue and a $5.1 million profit/gain from discontinuation in the first half of 2026, against a $1.0 million loss a year earlier. It largely reflects a $5.5 million non-cash gain on the dissolution of a subsidiary. We treat that profit as non-recurring and exclude Revealed Films from our forecasts beyond FY 2026.
- Bitcoin Treasury Purchases Recommence: Between 2 and 5 October 2026, Genius Group acquired 10 Bitcoin for approximately $854,000, an average of $85,364 per BTC. The purchases, while not a significant dollar value for a corporation, mark a step for the company toward executing its Board-approved $1.2 billion dual treasury capital plan.
- Valuation: Our valuation of Genius Group is based on a sum-of-the-parts framework that separates the operating education business from the newly authorized dual treasury. Revenue is modelled bottom-up by business unit: a location-level build for Genius Resorts across site count, seats, utilization and revenue per order contributing $8.4 million in FY 2026, $4.0 million from Property Investors Network on approximately 27.8 thousand paying students, $3.75 million of Pro Education revenue from the 51%-owned ProEd Global School, and $1.6 million from GeniusU on approximately 24.6k paying students at an average $64 of revenue each. Operating costs are tied directly to that revenue base. The cost of sales fell significantly from 65.8% of revenue in FY 2025 to 38.4% in FY 2026, primarily driven by strong revenue growth and a strategic shift toward higher-margin programs. Part A, the core EdTech business, is valued at $278.1 million of equity, weighting a DCF at 90%, discounted at a 12.4% rate, and a guideline public company analysis which we weight at 10%, applying a 3.53x cohort EV/Sales multiple to our FY 2026 revenue estimate of $19.0 million, or $1.60 per share on 173.4 million shares. Part B, the treasury, carries $19.9 million of assets pro forma for the proposed $12.5 million perpetual preferred tranche, which ranks senior, leaving $0.04 per share. Key risk factors in our valuation model include going concern risk and execution risk; additional risk factors can be found in risk profile section. Our blended framework derives an illustrative valuation of $1.65 per share, contingent on continued financing access and successful execution.
About Genius Group Limited
Genius Group (NYSE American: GNS) is a global education group delivering AI-powered education and acceleration solutions for the future of work. Genius Group serves over 6 million users in more than 100 countries through its Genius City model and online digital marketplace. The Company operates a Bitcoin and AI dual treasury strategy alongside its core education business.
For more information, visit https://www.geniusgroup.net/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Genius Group Limited for producing research materials regarding Genius Group Limited, and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 10/13/2026, the issuer has paid us a total of $121,500 for our research services, which commenced on 04/16/2022. The first year was billed annually for $27,000. Thereafter, payments were made in equal installments of $13,500 for six-month semi-annual periods, with $13,500 received in April 2023 for the April–October 2023 period. A payment of $27,000 was made in May 2024 to cover two outstanding six-month terms corresponding to October 2023 and April 2024. An additional $13,500 was received in November 2024 for the October 2024–April 2025 period, followed by another $13,500 payment received in May 2025 for the April 2025–October 2025 period, another $13,500 payment received in November 2025 for the October 2025–April 2026 period and another $13,500 payment received in September 2026 for the April 2026-October 2026 period. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company but usually do not exceed $5,000. The issuer has paid us for non-research related services as of 10/13/2026 consisting of $3,000 for presenting at a virtual investment conference and $2,000 for organizing an investment dinner. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Artificial intelligence-assisted tools were used to support certain research, information synthesis, and editorial processes. Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. This report does not explicitly or implicitly affirm that the information contained within this document is accurate and/or comprehensive, and as such should not be relied on in such a capacity. All information contained within this report is subject to change without any formal or other notice provided. This document is not produced in conjunction with a security offering and is not an offering to purchase securities. Investors need to be aware of the high degree of risk in small capitalization equities including the complete potential loss of their investment. Investors can find various risk factors in the update report and in the respective financial filings for Genius Group Ltd. Please review the update report attached for full disclosure page.
Attachment
