51Talk Online Education Group (COE) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 2026 reached $32.4 million, up 58.8% year-over-year, with gross billings at $39.3 million, a 38.1% increase from Q2 2025.

• Active students with attended lesson consumption grew 51.3% to approximately 138,100 compared to Q2 2025.

• Net operating cash inflows totaled $4.9 million for the quarter.

• Operating loss narrowed to $2.1 million from $3.2 million year-over-year; net loss attributable to shareholders was $3.1 million, down from $3.5 million.

• Launched the AI-powered Global Communicator product in partnership with Oxford University Press on July 1.

Financial highlights

• Gross margin for Q2 was 73.9%.

• Gross profit for Q2 2026 was $23.9 million, up 57.5% year-over-year.

• Q2 operating expenses were $26 million, up 41.8% year-over-year.

• Sales and marketing expenses rose 48.8% to $19.3 million, mainly due to increased headcount and promotional activities.

• Product development expenses increased 96.6% to $2.4 million.

Outlook and guidance

• Q3 2026 gross billings are expected to be between $41 million and $43 million, representing a sequential increase of 4.3% to 9.4% and a year-over-year increase of 1.3% to 6.3%.

• Guidance reflects current market and operating conditions and is subject to change.