iHuman (IH) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was RMB200.2 million (US$27.9 million), down 6.9% year-over-year due to lower birth rates and cautious consumer spending.

• Net income rose to RMB31.9 million (US$4.5 million), up from RMB24.7 million in Q2 2024, marking the 14th consecutive profitable quarter.

• Product innovation included new features in flagship apps and a major international upgrade to Aha Makeover, enhancing user engagement.

• Strategic partnership with Cricket Media launched Reading Stars app, expanding presence in the U.S. education market.

• Continued investment in original IP and animation content, with Cosmicrew franchise maintaining strong performance.

Financial highlights

• Gross profit was RMB135.7 million (US$19.0 million), down from RMB151.7 million year-over-year.

• Gross margin declined to 67.8% from 70.5% due to product portfolio diversification.

• Operating income increased to RMB19.5 million (US$2.7 million) from RMB18.8 million year-over-year.

• Basic and diluted net income per ADS were RMB0.62 (US$0.09) and RMB0.60 (US$0.08), up from RMB0.47 and RMB0.45.

• Deferred revenue and customer advances were RMB240.0 million (US$33.5 million) as of June 30, 2025.

• Cash, cash equivalents, and short-term investments totaled RMB1,100.1 million (US$153.6 million), down from RMB1,168.7 million at year-end 2024.

Outlook and guidance

• Management expects to capitalize on global opportunities, scale internationally, and continue value creation for shareholders.

• Ongoing focus on product innovation, AI integration, and operational efficiency to drive sustainable growth.