Datavault Is Sinking Despite 443% Q1 Revenue Increase. Here's Why.

Wajeeh Khan

Mon, May 18, 2026 at 10:02 AM EDT 2 min read

Datavault AI (DVLT) shares closed down on Friday and are continuing their descent today, even though the company posted a remarkable 443% year-on-year increase in its Q1 revenue.

The post-earnings decline crashed DVLT’s relative strength index (RSI) into the late 30s, signaling the stock is now approaching oversold territory.

More News from Barchart

• Nokia Shares Jumped After Cisco’s Strong Quarterly Results. NOK Could Be the Next Networking Winner.

• Dear Dell Stock Fans, Mark Your Calendars for May 28

• NVDA Earnings, Alphabet Conference and Other Can't Miss Items this Week

• Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!

Datavault stock has been a disappointment for investors in 2026, currently down an alarming 65% versus its year-to-date high in early January.

Why Datavault Stock Crashed on Friday

Investors are bailing on DVLT shares mostly because the firm’s revenue, although it grew notably to $3.4 million, missed the consensus by a massive 83% in the first quarter.

On the bottom line, the Nasdaq-listed company lost $0.09 per share in fiscal Q1, wider than the $0.09 per share analysts had forecast.

Datavault’s gross profit as a percentage of sales came in at just 3% in the first quarter, down sharply from 11% in the year-ago period, reinforcing that DVLT’s cost structure remains far from stabilized

Note that Datavault has a history of closing both June and July in the red, a seasonal pattern that makes it even more unattractive to own in the near term.

DVLT Shares Remain a High-Risk Gamble

While an RSI in the 30s often prompts value hunters to buy the dip, Datavault shares' descent into penny stock territory flashes severe warning signs.

Now hovering around $0.50, this micro-cap stock is exposed to extreme volatility and low liquidity, compounding which is a looming delisting risk.

The company has until August to push its price back above the $1 minimum threshold, making an aggressive, dilutive reverse stock split highly probable.

Plus, even at these depressed levels, DVLT is trading at about 9x sales, an unjustifiable valuation multiple for a company burning cash rapidly, with a cratering gross margin of just 3%.

Another Red Flag on Datavault AI

Another major red flag on DVLT stock is the absence of broad Wall Street coverage.

As of writing, only one analyst covers Datavault AI, meaning the stock lacks institutional visibility and research depth that typically support price discovery