iHuman (IH) investor relations material

Executive summary

• Revenues for Q2 2026 were RMB173.4 million (US$25.6 million), down from RMB210.9 million year-over-year.

• Gross profit declined to RMB111.2 million (US$16.4 million) from RMB140.6 million in the prior year.

• Operating loss was RMB20.8 million (US$3.1 million), compared to operating income of RMB18.3 million last year.

• Net loss reached RMB17.5 million (US$2.6 million), versus net income of RMB30.7 million a year ago.

• Average total MAUs fell to 20.72 million from 23.97 million year-over-year.

Financial highlights

• Gross margin was 64.1%, down from 66.7% in the same period last year.

• Total operating expenses increased 7.9% to RMB132.0 million.

• Research and development expenses were RMB56.4 million, sales and marketing RMB52.3 million, and general and administrative RMB23.3 million.

• Deferred revenue and customer advances were RMB231.5 million as of June 30, 2026.

• Cash, cash equivalents, and short-term investments totaled RMB1,007.4 million (US$148.5 million) at quarter end.

Outlook and guidance

• Management remains focused on strengthening the product ecosystem, expanding global reach, and investing in AI innovation.

• Continued investment in product portfolio and international expansion is expected to support long-term growth despite near-term financial pressure.