iHuman (IH) Q4 2025 earnings summary

Executive summary

• Revenue and net income declined year-over-year for both Q4 and FY2025, primarily due to demographic shifts and conservative consumer spending.

• Strategic expansion included the launch of FreeTalk, an AI-native oral English app, and continued innovation in core offerings and smart devices.

• International growth was highlighted by strong performance of Aha World and industry recognition for Reading Stars.

• A special cash dividend was declared for the third consecutive year, reflecting confidence in financial sustainability.

Financial highlights

• Q4 2025 revenue: RMB190.7M ($27.3M), down from RMB232.7M YoY; FY2025 revenue: RMB807.0M ($115.4M), down from RMB922.2M YoY.

• Q4 2025 net income: RMB15.4M ($2.2M), down from RMB26.5M YoY; FY2025 net income: RMB95.4M ($13.6M), down from RMB98.6M YoY.

• Gross margin for Q4 2025 was 66.9% (67.2% prior year); FY2025 gross margin was 67.9% (69.4% prior year).

• Operating expenses decreased 16.3% YoY in Q4 and 15.4% YoY in FY2025, mainly due to payroll and marketing savings.

• Deferred revenue and customer advances at year-end: RMB219.9M ($31.4M), down from RMB283.3M YoY.

Outlook and guidance

• Management remains focused on product innovation, prudent operations, and long-term sustainability amid evolving market conditions.

• Continued global expansion and content-driven portfolio expected to drive long-term value.