51Talk Online Education Group (COE) Q3 2025 earnings summary

Executive summary

• Gross billings reached $40.5 million in Q3 2025, up 104.6% year-over-year and 42.1% quarter-over-quarter, surpassing guidance.

• Net revenues rose 87.5% year-over-year to $26.3 million, with active students up 71.4% to 112,600, surpassing 100,000 for the first time since global expansion began.

• Maintained positive net operating cash flow, with operating cash inflow of $6.6 million, strengthening the cash position.

• Participation in COP30 in Brazil highlighted global reach and portfolio diversification, with student participation from five countries.

Financial highlights

• Gross margin for Q3 2025 was 73.3%, down from 78.7% a year ago.

• Operating expenses totaled $23.4 million, a 97.9% increase year-over-year, with sales and marketing expenses up 114.7% to $17.5 million.

• Operating loss widened to $4.2 million from $0.8 million year-over-year; net loss attributable to shareholders was $4.8 million, up 669.4% year-over-year.

• GAAP and non-GAAP EPS per ADS were negative $0.80 and $0.74, respectively.

• Cash, cash equivalents, and time deposits totaled $36.6 million at quarter end.

Outlook and guidance

• Q4 2025 gross billings expected between $35 million and $38 million, a sequential decrease but up 63.7% to 77.7% year-over-year.

• Guidance reflects current market and operating conditions and is subject to change.