iHuman (IH) Q1 2025 earnings summary

Executive summary

• Achieved 13 consecutive quarters of profitability, with continued innovation in product offerings and international partnerships, notably with Oxford University Press for English learning content.

• Expanded product portfolio with new smart devices and AI-powered educational solutions, including the launch of iHuman All-Subject Master and a coding program for schools.

Financial highlights

• Revenues were RMB210.4 million (US$29.0 million), down from RMB235.0 million year-over-year, mainly due to demographic and consumer spending trends.

• Gross profit was RMB143.8 million (US$19.8 million), compared to RMB168.1 million last year; gross margin declined to 68.3% from 71.5%.

• Operating income rose to RMB21.6 million (US$3.0 million) from RMB17.5 million; net income increased to RMB26.5 million (US$3.7 million) from RMB22.3 million.

• Basic and diluted net income per ADS were RMB0.51 and RMB0.49, up from RMB0.42 and RMB0.41 year-over-year.

• Cash, cash equivalents, and short-term investments totaled RMB1,119.1 million (US$154.2 million) as of March 31, 2025.

Outlook and guidance

• Focus remains on developing high-quality, impactful products and expanding the global footprint, with AI integration as a core growth strategy.

• Management anticipates continued innovation and international collaboration to drive long-term growth.