iHuman (IH) Q1 2026 earnings summary

Executive summary

• Revenues declined to RMB182.5 million (US$26.5 million), down from RMB210.4 million year-over-year, mainly due to demographic shifts and conservative consumer spending in China.

• Net income dropped to RMB4.5 million (US$0.7 million) from RMB26.5 million in the prior year period.

• Operating loss was RMB10.1 million (US$1.5 million), reversing from an operating income of RMB21.6 million a year ago.

• Average total MAUs fell to 23.62 million from 26.51 million year-over-year, reflecting demographic headwinds.

• Strategic focus on AI-powered product innovation, international expansion, and ecosystem growth, including the acquisition of All Knowledge and Perfect Lingo.

Financial highlights

• Gross profit was RMB122.0 million (US$17.7 million), down from RMB143.8 million year-over-year.

• Gross margin decreased to 66.8% from 68.3% in the prior year.

• Total operating expenses rose 8.1% to RMB132.1 million, driven by higher sales and marketing spend.

• Research and development expenses were RMB56.5 million, up slightly from RMB55.4 million.

• Sales and marketing expenses increased 21.6% to RMB50.2 million.

Outlook and guidance

• Management expects long-term growth driven by AI innovation, new product development, and international expansion.

• Continued investment in content, AI, and user engagement to reinforce competitive positioning.