ATA Creativity Global (AACG) Q2 2025 earnings summary

Executive summary

• Q2 2025 net revenues rose 8% year-over-year to RMB55.9 million ($7.8M), with gross profit up 10.2% to RMB28.3 million ($4.0M), driven by research-based learning, overseas study counseling, and educational services.

• H1 2025 net revenues increased 11.8% to RMB111.7 million ($15.6M), with gross profit up 12.8%, led by research-based learning and overseas study counseling.

• Portfolio training services remained the main revenue contributor, accounting for 68% of Q2 net revenues.

• Delivered over 4,000 student offers and scholarships from prestigious global institutions across six major art disciplines.

• Operating expenses declined due to cost efficiencies, supporting improved margins and narrowed net loss to RMB10.8 million ($1.5M) in Q2 2025.

Financial highlights

• Q2 2025 net revenues: RMB55.9M ($7.8M); gross profit: RMB28.3M ($4.0M); gross margin: 50.6%.

• Q2 2025 net loss attributable: RMB10.8M ($1.5M), improved from RMB16.8M in Q2 2024.

• H1 2025 net revenues: RMB111.7M ($15.6M); gross profit: RMB53.7M ($7.5M); gross margin: 48.1%.

• H1 2025 net loss attributable: RMB24.1M ($3.4M), improved from RMB34.7M in H1 2024.

• As of June 30, 2025: cash and equivalents RMB34.7M ($4.8M), total assets RMB444.2M ($62.0M), liabilities RMB388.4M ($54.2M), equity RMB55.8M ($7.8M).

Outlook and guidance

• FY 2025 net revenues expected between RMB276–281 million, representing a 3–5% year-over-year increase.

• Portfolio training to remain the main revenue pillar, with increased contributions from new and higher-value offerings.

• Management expects new and recurring programs to drive revenue growth in H2 2025.

• Guidance is based on current business initiatives and market conditions, subject to change.