ATA Creativity Global (AACG) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw cost savings initiatives and streamlined operations, with revenue mainly from research-based learning and educational services, but net revenues declined 11.7% year-over-year to $12.7M (RMB89.1M), and a net loss of $3.8M (RMB26.3M) was recorded due to a one-time goodwill impairment.

• FY 2025 net revenues remained flat at $38.3M (RMB268.1M), but net loss widened to $6.9M (RMB48.0M) from $5.2M (RMB36.1M) in FY 2024, supported by core portfolio training and increased contributions from research-based learning and overseas study counselling.

• Portfolio training programs faced revenue declines due to increased competition, while other educational services grew.

• Operational efficiency initiatives and service enhancements were implemented, including new partnerships and program launches.

Financial highlights

• Q4 2025 net revenue was RMB89.1M ($12.7M), down from RMB100.9M in Q4 2024; gross profit was RMB50.2M ($7.2M), with a gross margin of 56.4%.

• Q4 2025 net loss attributable to shareholders was RMB26.3M ($3.8M), compared to net income of RMB13.3M ($1.9M) in Q4 2024, mainly due to a one-time goodwill impairment charge.

• FY 2025 net revenue was RMB268.1M ($38.3M), flat year-over-year; gross profit was RMB130.3M ($18.6M), with a gross margin of 48.6%.

• FY 2025 net loss attributable to shareholders was RMB48.0M ($6.9M), compared to RMB36.1M ($5.2M) in FY 2024.

• Cash and cash equivalents at year-end were RMB85.2M ($12.2M); working capital deficit was $33.3M.

Outlook and guidance

• FY 2026 strategy focuses on maintaining a leading position in creative arts education, leveraging teaching expertise, expanding operational efficiency, and optimizing service portfolios amid rising competition.

• Priorities include optimizing services, improving classroom utilization, cost-effective student acquisition, and profitability improvements.

• Long-term growth will emphasize higher-margin services, project-based programs, and expansion of research-based learning and overseas counselling.