51Talk Online Education Group (COE) investor relations material

Executive summary

• Gross billings rose 51.9% year-over-year to $33.3 million, surpassing guidance despite seasonal softness.

• Net revenues increased 70.9% year-over-year to $31.2 million, driven by robust demand and higher active student count.

• Active students with attended lesson consumption grew 63.9% year-over-year to approximately 132,900.

• Focused on localizing products and enhancing user experience across key markets.

• Accelerated platform, tutor network, and AI-plus-human learning experience development, with next-generation product rollout expected later in 2026.

Financial highlights

• Gross profit reached $23.0 million, up 63.9% year-over-year.

• Gross margin was 73.7% for the quarter, down from 76.8% year-over-year due to higher payment processing fees.

• Operating loss narrowed to $1.4 million from $1.5 million year-over-year.

• Net loss attributable to shareholders was $2.3 million, compared to $1.7 million in the prior year.

• Total operating expenses rose 57.2% to $24.4 million, mainly from increased sales and marketing spend.

Outlook and guidance

• Q2 2026 gross billings expected between $36 million and $38 million, up 8.1%–14.1% sequentially and 26.5%–33.5% year-over-year, reflecting current market and demand estimates.

• Guidance reflects robust demand for English learning.