51Talk Online Education Group (COE) Q2 2025 earnings summary

Executive summary

• Gross billings reached $28.5 million in Q2 2025, up 79.7% year-over-year, exceeding guidance due to strong demand and disciplined execution.

• Net revenues rose 86.1% to $20.4 million, driven by increased active students and lesson consumption.

• Quarterly active students with attended lesson consumption increased 67.8% year-over-year to 91,300.

• Investments in user experience, service quality, and AI integration are expected to strengthen competitive position and long-term value.

Financial highlights

• Gross profit was $15.2 million, up 77.8% from $8.6 million in Q2 2024.

• Gross margin was 74.6% for the quarter, down from 78.1% year-over-year due to higher service fees paid to teachers.

• Operating expenses totaled $17.9 million, up 53.5% year-over-year, with sales and marketing expenses increasing 74.8%.

• Operating loss was $2.7 million; net loss attributable to ordinary shareholders was $3.0 million, a 144.7% increase year-over-year.

• Cash equivalents and time deposits stood at $30.9 million; advances from students were $56.4 million at quarter end.

Outlook and guidance

• Q3 2025 gross billings are expected to be between $36.5 million and $37.5 million, representing sequential growth of 28.1% to 31.6%.

• Guidance reflects confidence in continued positive momentum and is based on current market and operating conditions.