ATA Creativity Global (AACG) Q3 2025 earnings summary

Executive summary

• Q3 2025 net revenues were RMB67.3 million ($9.5 million), stable year-over-year, with nine-month 2025 revenue up 7.1% due to growth in research-based learning and overseas study counseling services.

• Net income attributable to shareholders was RMB2.4 million ($0.3 million) in Q3 2025, reversing a net loss of RMB14.7 million in Q3 2024, mainly due to a one-time investment gain and cost-saving initiatives.

• Portfolio training services contributed 71.9% of Q3 2025 net revenues; project-based program credit hours delivered rose 22.9% year-over-year.

• Student enrollment in Q3 2025 was 1,052, down from 1,289 in Q3 2024, reflecting normalized demand post-pandemic.

• Summer programs included 14 labs and a new partnership with Hong Kong Polytechnic University, focusing on digital entertainment media design.

Financial highlights

• Q3 2025 net revenues: RMB67.3 million ($9.5 million), stable year-over-year; gross margin: RMB26.4 million ($3.7 million), down from RMB30 million ($4.3 million) in Q3 2024.

• Q3 2025 gross margin was 39.2%, down from 44.6% in Q3 2024, due to higher costs in research-based learning and outsourcing.

• Q3 2025 operating expenses decreased 22.4% to RMB37 million ($5.2 million); operating loss narrowed to RMB10.6 million from RMB17.6 million.

• Nine-month 2025 net revenues: RMB179 million ($25.1 million), up 7.1%; gross profit: RMB80.1 million, up 3.2%; net loss narrowed to RMB21.7 million ($3.1 million) from RMB49.4 million.

• Cash and cash equivalents as of September 30, 2025: RMB96.8 million ($13.6 million); total assets: RMB462.5 million ($65.0 million); shareholder equity: RMB58.8 million ($8.3 million).

Outlook and guidance

• Full-year 2025 net revenues expected between RMB276 million and RMB281 million, a 3%-5% year-over-year increase.

• Portfolio training to remain the main revenue pillar, with growth in other business lines and expansion of new, higher-value services.

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

• Management expects to achieve guidance, supported by new program launches and ongoing cost controls.