Q3 2025 51Talk Online Education Group Earnings Call

December 8, 2025

Hello, ladies and gentlemen.

Cindy Tang: Hello, ladies and gentlemen. Thank you for standing by for 51Talk Q4, Q1, Q2, Q3, Q4, Q3, Q2, Q4 earnings conference call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr. David Chung, Investor Relations for the company. Please go ahead, David.

Operator: Hello, ladies and gentlemen. Thank you for standing by for 51Talk Q4, Q1, Q2, Q3, Q4, Q3, Q2, Q4 earnings conference call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr. David Chung, Investor Relations for the company. Please go ahead, David.

Thank you for standing by for 51 top online education groups third quarter 2025 earnings Conference call.

At this time all participants are in a listen only mode.

Today's conference call is being recorded.

I will now turn the call over to your host Mr. David Jones Investor Relations for the company. Please go ahead David.

Thank you.

David Chung: Thank you. Hello, everyone, and welcome to the Q3, Q4 earnings conference call of 51Talk. The company's results were issued via Newswire Services earlier today and are posted online. You can download the earnings press release and sign up for the company's distribution list by visiting ir.51talk.com. Mr. Jack Wang, our CEO, and Ms. Cindy Tang, our CFO, will begin with some prepared remarks. Following the prepared remarks, there will be a Q&A session. Before we continue, please note that the discussion will contain forward-looking statements made under the Safe Harbor Provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's Form 20-F and other public filings as filed with the US.

Hello, everyone and welcome to the third quarter 2025 earnings Conference call a five point talk.

The company's results were issued via Newswire services earlier today and are posted online.

You can download the earnings press release and sign up for the company's distribution list by visiting our top five <unk> dot com.

Mr. Jeff Wang our CEO and Ms. Cindy Tang our CFO will begin with some prepared remarks.

Following the prepared remarks, there will be a Q&A session.

Before we continue please note that the discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.

Forward looking statements involve inherent risks and.

And then certainties.

As such the company's results may be materially different from the views expressed today.

Further information regarding this and other risks and uncertainties is included in the company's Form 20-F and other public filings as filed with the US. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under the applicable law. Please also note that earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. 51Talk's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I will now turn the call over to our CEO, Jack Huang. Jack, please go ahead.

Further information regarding this and other risks and uncertainties is included in the company's form 20-F, and other public filings as filed with the U S Securities and Exchange Commission.

David Chung: Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under the applicable law. Please also note that earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. 51Talk's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I will now turn the call over to our CEO, Jack Wang. Jack, please go ahead.

The company does not assume any obligation to update any forward looking statements.

Is that just required under the applicable law.

Please also note that earnings press release, and this conference call include discussion of unaudited GAAP.

Financial information as well as unaudited non-GAAP financial measures.

<unk> press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

I will now turn the call over to our CEO, Jeff Lang Jack. Please go ahead.

Okay. Thank you Debbie Hello, everyone.

Jack Huang: Yes. Thank you, David. Hello, everyone. Thank you very much for joining our conference call today. I am very pleased to report that the Q3 of 2025 represented another period of strong performance for our company. The gross billings reached $40.5 million, surpassing our previously issued guidance and demonstrating robust financial growth of 42.1% quarter over quarter and a triple-digit year-over-year growth of 104.6%. Crucially, we achieved this rapid expansion while maintaining positive net operating cash flows, which further solidifies our cash position and stands as a testament to our disciplined execution. Our active student base reached 112,600 during this quarter, marking a significant milestone as we surpassed 100,000 active students for the first time since we embarked on our global expansion strategy more than three years ago.

Jack Wang: Yes. Thank you, David. Hello, everyone. Thank you very much for joining our conference call today. I am very pleased to report that the Q3 of 2025 represented another period of strong performance for our company. The gross billings reached $40.5 million, surpassing our previously issued guidance and demonstrating robust financial growth of 42.1% quarter over quarter and a triple-digit year-over-year growth of 104.6%. Crucially, we achieved this rapid expansion while maintaining positive net operating cash flows, which further solidifies our cash position and stands as a testament to our disciplined execution. Our active student base reached 112,600 during this quarter, marking a significant milestone as we surpassed 100,000 active students for the first time since we embarked on our global expansion strategy more than three years ago.

Thank you very much for joining our conference call today.

I am very pleased to report that the third.

Second quarter of 2025 presented another.

Periods of strong performance for our company.

The gross billing reached $45 million, surpassing our previously issued guidance demonstrating the fastest schedule bills.

42, 1% quarter over quarter, and a triple digit year over year gross of 100 and a 4.6%.

Crucially, we achieved this rapid expansion, while maintaining a positive net operating cash flow.

Which further solidifies our cash position and our stands as a testament to our.

He is a plain execution.

Our active students base reached 100 and trough solvent and a 600 trillion this quarter marking it.

Can it be kind of milestone actually surpassed 100000 active students for the first time since we embarked on our global expansion strategy more than three years ago.

Jack Wang: We remain confident in both the substantial opportunity presented by the global market and our team's ability to execute our strategic vision and drive sustainable long-term value. As we enter the Q4 of 2025, we consolidate recent rapid growth and expand business momentum with existing and new clients. We continue to build bridges and enable our customers to exchange on the global stage, as demonstrated by our recent participation in COP30, held in Brazil in November 2025. Our students from five countries participated in this event, demonstrating the increasingly diversified nature of our portfolio and our successful reach into new markets. We remain focused on executing our strategic priorities while maintaining disciplined capital allocation to drive long-term shareholder value. With that, I will now turn the call over to Cindy, our CFO.

We remain confident in both the substantial opportunity presented by the global market and our team's ability to execute our strategic vision and drive sustainable long-term value. As we enter the Q4 of 2025, we consolidate recent rapid growth and expand business momentum with existing and new clients. We continue to build bridges and enable our customers to exchange on the global stage, as demonstrated by our recent participation in COP30, held in Brazil in November 2025. Our students from five countries participated in this event, demonstrating the increasingly diversified nature of our portfolio and our successful reach into new markets. We remain focused on executing our strategic priorities while maintaining disciplined capital allocation to drive long-term shareholder value. With that, I will now turn the call over to Cindy, our CFO.

We remain confident in both the substantial opportunity presented by the global market and our team's ability to execute our.

T J can vision and drive sustainable long term value.

As we enter the fourth quarter of 2025, we consolidate recent rapid growth and expand.

Peter nice momentum with existing and new clients.

We continue to build bridges and enable our customers to extend on the global stage as demonstrated by our recent participation in cop 30 held in Brazil in November 2025.

Our students from five countries participating in this event demonstrating the increasingly diversified nature of our portfolio and our successful rich into new markets. We remain focused on executing our strategic priorities, while maintaining them.

Discipline.

Capital allocation to drive long term shareholder value.

I will now turn the call over to Cindy our CFO. Thank.

Cindy Tang: Thank you, Jack. Now, let me walk you through our Q3 financial details. Q3 net revenues were $26.3 million, an 87.5% increase from the same quarter last year, largely driven by the increase of active students with attended lesson consumption. Gross margin for Q3 was 73.3%. Gross billings grew by 104.6% from the same quarter last year to $40.5 million. Q3 operating expenses were $23.4 million, an increase of 97.9% compared to the same quarter last year. Specifically, this has been driven by Q3 sales and marketing expenses of $17.5 million, a 114.7% increase from the same quarter last year due to the rise in marketing and branding expenses resulting from intensified marketing and branding activities, as well as higher sales personnel costs related to increases in the number of sales and marketing personnel. Q3 product development expenses were $1.6 million.

Now, let me walk you through our first quarter financial details.

Third quarter net revenues.

<unk> 6.3 million U S dollars and 87, 5% increase from the same quarter last year, largely driven by the increase of active students would that tend to lessen consumption.

Gross margin for the third quarter was 73, 3%.

Gross billings grew by 104, 6% from the same quarter last year to 45 million U S dollars.

Q3, operating expenses were $23.4 million, an increase of 97, 9% compared to the same quarter last year.

Basically this has been driven by Q3 sales and marketing expenses of $17 5 million U S dollars.

114.7% increase from the same quarter last year due to the rise in marketing and branding expenses, resulting from intensified marketing and branding activities as well as higher sales personnel costs related to increases in a number of sales.

In personnel.

Q3 product development expenses were $1.6 million dollars, an 87.8% increase from the same quarter last year. Finally, Q3 general and administrative expenses were $4.3 million, a 52.5% increase from the same quarter last year. Overall, Q3 operating loss was $4.2 million, while net loss attributable to ordinary shareholders was $4.8 million, a 428.9% and 669.4% increase from the same quarter last year, respectively. Q3 GAAP and non-GAAP earnings per ADS were -$0.8 and $0.74, respectively. The company's total cash, cash equivalents, and time deposits were $36.6 million at the end of Q3. Advances from students were $70.7 million at the end of Q3. Looking forward to Q4 of 2025, we currently expect the net gross billings to be between $35 million and $38 million.

Q3 product development expenses were one 6 million U S dollars and 87, 8% increase from the same quarter last year.

Cindy Tang: dollars, an 87.8% increase from the same quarter last year. Finally, Q3 general and administrative expenses were $4.3 million, a 52.5% increase from the same quarter last year. Overall, Q3 operating loss was $4.2 million, while net loss attributable to ordinary shareholders was $4.8 million, a 428.9% and 669.4% increase from the same quarter last year, respectively. Q3 GAAP and non-GAAP earnings per ADS were -$0.8 and $0.74, respectively. The company's total cash, cash equivalents, and time deposits were $36.6 million at the end of Q3. Advances from students were $70.7 million at the end of Q3. Looking forward to Q4 of 2025, we currently expect the net gross billings to be between $35 million and $38 million.

Finally, Q3 general and administrative expenses were $4 3 million U S dollars.

A 52.5% increase from the same quarter last year.

Overall Q3 operating loss was $4 2 million U S dollars, while net loss attributable to ordinary shareholders was $4 8 million U S dollars.

And 428, 9% and 669 point for that.

Increase for them from the same quarter last year, respectively.

Q3, GAAP and non-GAAP, earning per yes, when negative 0.8 U S dollars and zero point 74 U S dollars respectively.

The company's total cash cash equivalents and time deposits with $36 6 million U S dollars at the end of the third quarter.

That's just from students with 70.7 million U S dollars and he ended up the third quarter.

Looking forward to the fourth quarter of 'twenty 'twenty five we currently expect the net gross billings to be between 35 million U S dollars and 38 million U S dollars.

Cindy Tang: The above outlook is based on our current market conditions and reflects the company's current and preliminary estimates of the market, operating conditions, and customer demands, which are all subject to change. This concludes our prepared remarks. We will now open the line for questions. Operator, please go ahead.

The above outlook is based on our current market conditions and reflects the company's current and preliminary estimates of the market, operating conditions, and customer demands, which are all subject to change. This concludes our prepared remarks. We will now open the line for questions. Operator, please go ahead.

The above outlook is based on our current market conditions and reflect the company's current and preliminary estimates of the market and operating conditions and customer demand, which are all subject to change.

This concludes our prepared remarks, we will now open the line for questions. Operator. Please go ahead.

Thank you.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Please ask your question, and you may re-enter the queue if you have further questions. At this time, we will pause momentarily to assemble our roster. Once again, to ask a question, please press star then one to join the question queue. We have no questions at this time. I'd like to turn the call back over to the company for closing remarks.

We will now begin the question and answer session.

To ask a question you May press Star then one on here Touchtone phone.

If youre using a speakerphone please pick up your handset before pressing the keys.

If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Please ask your question and you may reenter the queue. If you have further questions.

At this time, we will pause momentarily to assemble our roster.

Once again to ask a question. Please press Star then one to join the question queue.

We have no questions at this time I'd like to turn the call back over to the company for closing remarks.

Thank you once again for joining us today. If you have further questions. Please contact Bob Gwin talks Investor relations for the contact information provided on our website.

David Chung: Thank you once again for joining us today. If you have further questions, please contact 51Talk Investor Relations through the contact information provided on our website.

This concludes this conference call you may now disconnect your line.

Operator: This concludes this conference call. You may now disconnect your line. Thank you.

Yeah.

[music].

Q3 2025 51Talk Online Education Group Earnings Call

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