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    iHuman Inc. Announces First Quarter 2025 Unaudited Financial Results

    6/26/25 6:12:00 AM ET
    $IH
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    BEIJING, June 26, 2025 /PRNewswire/ -- iHuman Inc. (NYSE:IH) ("iHuman" or the "Company"), a leading provider of tech-powered, intellectual development products in China, today announced its unaudited financial results for the first quarter ended March 31, 2025.

    (PRNewsfoto/iHuman Inc.)

    First Quarter 2025 Highlights

    • Revenues were RMB210.4 million (US$29.0 million), compared with RMB235.0 million in the same period last year.
    • Gross profit was RMB143.8 million (US$19.8 million), compared with RMB168.1 million in the same period last year.
    • Operating income was RMB21.6 million (US$3.0 million), compared with RMB17.5 million in the same period last year.
    • Net income was RMB26.5 million (US$3.7 million), compared with RMB22.3 million in the same period last year.
    • Average total MAUs[1] for the first quarter were 26.51 million, compared with 26.38 million in the same period last year.

    [1] "Average total MAUs" refers to the monthly average of the sum of the MAUs of each of the Company's apps during a specific period, which is counted based on the number of unique mobile devices through which such app is accessed at least once in a given month, and duplicate access to different apps is not eliminated from the total MAUs calculation.

    Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "This quarter, we continued to drive innovation across our product portfolio while further strengthening our international industry partnerships.

    Our flagship offerings maintain strong user engagement and a prominent market presence as they continue to deliver value to our users. During the quarter, iHuman Chinese expanded its content library with a broader set of Chinese characters, growing from 1,300 to 1,800 in total, offering children a more comprehensive and engaging experience. In iHuman Magic Thinking, we introduced a new module focused on applied problem-solving, using short, animated sessions to help children apply math concepts to real-life scenarios in a clear and accessible way.

    In a continued effort to innovate, we also expanded our smart device portfolio with the launch of iHuman All-Subject Master, a budget-friendly device designed to help young children build foundational skills with minimal setup and guidance. With a built-in screen, tactile input, and voice interaction, the device delivers a multi-sensory experience that encourages independent engagement. Through thoughtfully designed content blending visual cues, spoken prompts, and interactive challenges, it supports the development of core language, numeracy, and critical thinking skills in a natural and enjoyable way.

    As part of our industry collaboration efforts, we held in-depth discussions with Oxford University Press (OUP) at its UK headquarters in May. Together, we explored cooperation opportunities around OUP's trusted content resources, children's literature, and English proficiency assessments for young learners with a shared goal of accelerating the upgrade of our English offerings. To date, our English product line has already incorporated 25 original OUP reading series from around the globe, covering over 1,000 titles for children aged 3 to 12, and Oxford Primary English Reading Assessments for young learners. These resources are now fully integrated into our platform, enabling intelligent, age- and level-based recommendations. We also jointly developed the Fantastic Friends IP and a comprehensive English learning solution tailored for elementary school students. By combining world-class English learning resources with our cutting-edge interactive content and smart learning engines, we are committed to helping children build confidence and strength in English.

    Looking ahead, we remain focused on developing high-quality, impactful products that empower children's holistic growth, while steadily expanding our global footprint to reach more families around the world."

    Ms. Vivien Weiwei Wang, Director and Chief Financial Officer of iHuman, added, "We started 2025 by continuing our steady progress, achieving 13 consecutive quarters of profitability. AI remains a core pillar of our growth strategy as we continue to integrate intelligent capabilities across our offerings to enhance user experience and support more effective skill development. In line with this vision, we developed a customized coding program for Boya School, a well-regarded private institution in Beijing educating students from elementary to high school. Powered by iHuman AI Coder (formerly "iHuman Smart Coder"), this program marks the first formal application of our AI-powered coding content in a school setting. Designed specifically for young learners, it combines animated storytelling, hands-on exploration, and adaptive guidance to make foundational coding concepts more accessible and engaging. While still in its early stages, we view this initiative as a promising first step and look forward to introducing our high-quality, AI-enabled coding solutions to more classrooms in the future.

    This effort also reflects our ongoing commitment to delivering innovative, future-ready solutions that meet the evolving needs of young learners while laying a solid foundation for our long-term growth."

    First Quarter 2025 Unaudited Financial Results

    Revenues

    Revenues were RMB210.4 million (US$29.0 million), compared with RMB235.0 million in the same period last year. The decrease in revenues was primarily due to the decline in China's newborn population and more conservative consumer spending.

    Average total MAUs for the quarter were 26.51 million, compared with 26.38 million in the same period last year.

    Cost of Revenues

    Cost of revenues was RMB66.7 million (US$9.2 million), compared with RMB66.9 million in the same period last year.

    Gross Profit and Gross Margin

    Gross profit was RMB143.8 million (US$19.8 million), compared with RMB168.1 million in the same period last year. Gross margin was 68.3%, compared with 71.5% in the same period last year. The decrease in gross margin was mainly due to the diversification and structural upgrades of the Company's product portfolio, especially with an increased focus on the offline component of its integrated online-offline strategy to boost the overall appeal of its offerings.

    Operating Expenses

    Total operating expenses were RMB122.2 million (US$16.8 million), a decrease of 18.9% from RMB150.6 million in the same period last year.

    Research and development expenses were RMB55.4 million (US$7.6 million), a decrease of 18.5% from RMB67.9 million in the same period last year, primarily due to savings in payroll-related costs.  

    Sales and marketing expenses were RMB41.3 million (US$5.7 million), a decrease of 25.0% from RMB55.0 million in the same period last year, primarily due to cost savings in marketing activities.

    General and administrative expenses were RMB25.5 million (US$3.5 million), a decrease of 7.9% from RMB27.7 million in the same period last year, primarily due to savings in professional fees. 

    Operating Income 

    Operating income was RMB21.6 million (US$3.0 million), compared with RMB17.5 million in the same period last year.

    Net Income 

    Net income was RMB26.5 million (US$3.7 million), compared with RMB22.3 million in the same period last year.

    Basic and diluted net income per ADS were RMB0.51 (US$0.07) and RMB0.49 (US$0.07), respectively, compared with RMB0.42 and RMB0.41 in the same period last year. Each ADS represents five Class A ordinary shares of the Company.

    Deferred Revenue and Customer Advances

    Deferred revenue and customer advances were RMB267.9 million (US$36.9 million) as of March 31, 2025, compared with RMB283.3 million as of December 31, 2024.

    Cash, Cash Equivalents and Short-term Investments

    Cash, cash equivalents and short-term investments were RMB1,119.1 million (US$154.2 million) as of March 31, 2025, compared with RMB1,168.7 million as of December 31, 2024. The decrease was primarily due to the payment of annual bonuses to employees in the first quarter.

    Exchange Rate Information

    The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of March 31, 2025, which was RMB7.2567 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts.

    Non-GAAP Financial Measures

    iHuman considers and uses non-GAAP financial measures, such as adjusted operating income, adjusted net income and adjusted diluted net income per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). iHuman defines adjusted operating income, adjusted net income and adjusted diluted net income per ADS as operating income, net income and diluted net income per ADS excluding share-based compensation expenses, respectively. Adjusted operating income, adjusted net income and adjusted diluted net income per ADS enable iHuman's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. iHuman believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose.

    Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of the non-GAAP financial measures. In addition, the non-GAAP financial measures iHuman uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP.

    Safe Harbor Statement

    This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about iHuman's beliefs and expectations, are forward-looking statements. Among other things, the description of the management's quotations in this announcement contains forward-looking statements. iHuman may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iHuman's growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract and retain users, convert non-paying users into paying users and increase the spending of paying users, the trends in, and size of, the market in which iHuman operates; its expectations regarding demand for, and market acceptance of, its products and services; its expectations regarding its relationships with business partners; general economic and business conditions; regulatory environment; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in iHuman's filings with the SEC. All information provided in this press release is as of the date of this press release, and iHuman does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    About iHuman Inc.

    iHuman Inc. is a leading provider of tech-powered, intellectual development products in China that is committed to making the child-upbringing experience easier for parents and transforming intellectual development into a fun journey for children. Benefiting from a deep legacy that combines over two decades of experience in the parenthood industry, superior original content, advanced high-tech innovation DNA and research & development capabilities with cutting-edge technologies, iHuman empowers parents with tools to make the child-upbringing experience more efficient. iHuman's unique, fun and interactive product offerings stimulate children's natural curiosity and exploration. The Company's comprehensive suite of innovative and high-quality products include self-directed apps, interactive content and smart devices that cover a broad variety of areas to develop children's abilities in speaking, critical thinking, independent reading and creativity. Leveraging advanced technological capabilities, including 3D engines, AI/AR functionality, and big data analysis on children's behavior & psychology, iHuman believes it will continue to provide superior experience that is efficient and relieving for parents, and effective and fun for children, in China and all over the world, through its integrated suite of tech-powered, intellectual development products.

    For more information about iHuman, please visit https://ir.ihuman.com/.

    For investor and media enquiries, please contact:

    iHuman Inc.

    Mr. Justin Zhang

    Investor Relations Director

    Phone: +86-10-5780-6606

    E-mail: [email protected]

    Christensen

    In China

    Ms. Alice Li

    Phone: +86-10-5900-1548

    E-mail: [email protected] 

    In the US

    Ms. Linda Bergkamp

    Phone: +1-480-614-3004

    E-mail: [email protected]

     

     

     

    iHuman Inc.

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

    (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

    except for number of shares, ADSs, per share and per ADS data)





    December 31,



    March 31,



    March 31,



    2024



    2025



    2025



     RMB 



     RMB 



    US$ 













    ASSETS











    Current assets











    Cash and cash equivalents 

    1,123,292



    1,119,064



    154,211

    Short-term investments

    45,457



    -



    -

    Accounts receivable, net

    52,030



    59,578



    8,210

    Inventories, net

    23,475



    18,935



    2,609

    Amounts due from related parties

    2,051



    1,449



    200

    Prepayments and other current assets

    89,512



    90,290



    12,442

    Total current assets

    1,335,817



    1,289,316



    177,672

    Non-current assets











    Property and equipment, net

    3,476



    3,026



    417

    Intangible assets, net

    16,429



    16,075



    2,215

    Operating lease right-of-use assets

    14,885



    14,064



    1,938

    Long-term investment

    26,333



    26,333



    3,629

    Other non-current assets

    22,701



    23,377



    3,221

    Total non-current assets

    83,824



    82,875



    11,420

    Total assets

    1,419,641



    1,372,191



    189,092













    LIABILITIES











    Current liabilities











    Accounts payable

    30,233



    24,363



    3,357

    Deferred revenue and customer advances

    283,251



    267,916



    36,920

    Amounts due to related parties

    1,734



    7,427



    1,023

    Accrued expenses and other current liabilities

    126,501



    80,216



    11,054

    Dividend payable

    2,164



    37,062



    5,107

    Current operating lease liabilities

    3,661



    3,576



    493

    Total current liabilities

    447,544



    420,560



    57,954

    Non-current liabilities











    Non-current operating lease liabilities

    11,252



    10,586



    1,459

    Total non-current liabilities

    11,252



    10,586



    1,459

    Total liabilities

    458,796



    431,146



    59,413

    SHAREHOLDERS' EQUITY











    Ordinary shares (par value of US$0.0001 per share,

        700,000,000 Class A shares authorized as of

        December 31, 2024 and March 31, 2025; 125,122,382

        Class A shares issued and 116,084,207 outstanding as

        of December 31, 2024; 125,122,382 Class A shares

        issued and 113,607,892 outstanding as of March 31,

        2025; 200,000,000 Class B shares authorized,

        144,000,000 Class B ordinary shares issued and

        outstanding as of December 31, 2024 and March 31,

        2025; 100,000,000 shares (undesignated) authorized,

        nil shares (undesignated) issued and outstanding as of

        December 31, 2024 and March 31, 2025)

    185



    185



    25

    Additional paid-in capital

    996,657



    959,954



    132,285

    Treasury stock

    (26,296)



    (35,319)



    (4,867)

    Statutory reserves

    8,395



    8,395



    1,157

    Accumulated other comprehensive income

    24,009



    23,417



    3,227

    Accumulated deficit

    (42,105)



    (15,587)



    (2,148)

    Total shareholders' equity

    960,845



    941,045



    129,679

    Total liabilities and shareholders' equity

    1,419,641



    1,372,191



    189,092

     

     

     

    iHuman Inc.

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

    except for number of shares, ADSs, per share and per ADS data)





    For the three months ended



    March 31,



    March 31,



    March 31,



    2024



    2025



    2025



     RMB 



     RMB 



    US$ 













    Revenues

    235,003



    210,439



    28,999

    Cost of revenues

    (66,892)



    (66,663)



    (9,186)













    Gross profit

    168,111



    143,776



    19,813













    Operating expenses











    Research and development expenses

    (67,923)



    (55,385)



    (7,632)

    Sales and marketing expenses

    (54,995)



    (41,255)



    (5,685)

    General and administrative expenses

    (27,724)



    (25,539)



    (3,519)

    Total operating expenses

    (150,642)



    (122,179)



    (16,836)

    Operating income

    17,469



    21,597



    2,977

    Other income, net

    9,010



    8,000



    1,102

    Income before income taxes

    26,479



    29,597



    4,079

    Income tax expenses

    (4,177)



    (3,079)



    (424)

    Net income

    22,302



    26,518



    3,655













    Net income per ADS:











       - Basic

    0.42



    0.51



    0.07

       - Diluted

    0.41



    0.49



    0.07













    Weighted average number of ADSs:











       - Basic

    52,729,148



    51,888,345



    51,888,345

       - Diluted

    54,691,599



    53,884,134



    53,884,134













    Total share-based compensation expenses included in:











    Cost of revenues

    40



    8



    1

    Research and development expenses

    457



    110



    15

    Sales and marketing expenses

    46



    16



    2

    General and administrative expenses

    301



    104



    14













     

     

     

    iHuman Inc.

    UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

     (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

    except for number of shares, ADSs, per share and per ADS data)





    For the three months ended



    March 31,



    March 31,



    March 31,



    2024



    2025



    2025



     RMB



     RMB



    US$













    Operating income

    17,469



    21,597



    2,977

    Share-based compensation expenses

    844



    238



    32

    Adjusted operating income

    18,313



    21,835



    3,009













    Net income

    22,302



    26,518



    3,655

    Share-based compensation expenses

    844



    238



    32

    Adjusted net income

    23,146



    26,756



    3,687













    Diluted net income per ADS

    0.41



    0.49



    0.07

    Impact of non-GAAP adjustments

    0.01



    0.01



    0.00

    Adjusted diluted net income per ADS

    0.42



    0.50



    0.07













    Weighted average number of ADSs – diluted

    54,691,599



    53,884,134



    53,884,134

    Weighted average number of ADSs – adjusted

    54,691,599



    53,884,134



    53,884,134













     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/ihuman-inc-announces-first-quarter-2025-unaudited-financial-results-302492125.html

    SOURCE iHuman Inc.

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