China’s Insta360 (688775.SS) reported first-half 2026 revenue of 5.52 billion yuan ($822.1 million), up 50.29% year-on-year, while net profit attributable to shareholders fell 94.15% to 30.41 million yuan ($4.5 million) from 520 million yuan a year earlier. Net profit excluding non-recurring items was a loss of 15.34 million yuan ($2.3 million). Gross margin dropped to 41.42% from 51.22% as memory-chip prices rose and Insta360 confronted an intensifying price and product war with DJI across panoramic cameras, gimbal cameras and drones. Inventory reached 6.21 billion yuan, including 1.75 billion yuan of memory chips, and operating cash flow swung to a 2.76 billion yuan outflow. Selling expenses rose 61.96% to 1.02 billion yuan as the company expanded its physical retail network, while research and development spending increased sharply; figures cited in the two accounts differ, with the new report putting the increase at 79.26% to 1.01 billion yuan and the existing interim-report account at 84.49% to 1.04 billion yuan. DJI launched the Osmo 360 in July 2025, and the companies have since exchanged patent lawsuits involving drones and panoramic cameras. Insta360 has responded with the Yingling drone, Luna gimbal cameras and planned products including two drones, wireless microphones and custom chips. Its longer-term strategy also includes the Cameraman autonomous photography robot, AI features such as the Kira voice assistant and the PanoMind multimodal model. Shares closed at 120.71 yuan on August 27, valuing the company at 48.4 billion yuan, nearly 70% below last September’s 377.04-yuan peak.