YXT.COM Group (YXT) Q2 2025 earnings summary

Executive summary

• Strategic repositioning towards large enterprise clients and scalable, higher-margin AI solutions to drive sustainable growth and operational efficiency.

• Industry transformation driven by AI adoption, with intelligent, adaptive learning ecosystems replacing traditional methods.

• Total revenues for the first six months of 2025 were RMB152.9 million (US$21.3 million), down 7.8% year-over-year.

• Gross margin improved to 65.1% from 61.1% year-over-year, reflecting cost optimization and a shift to higher-value offerings.

• Net loss was RMB73.9 million (US$10.3 million), compared to net income of RMB21.4 million in the prior year period, which included a one-off RMB78.8 million gain.

Financial highlights

• Subscription-based solutions accounted for 94.6% of revenue (RMB144.7 million); non-subscription revenue fell 39% year-over-year to RMB7.7 million.

• Cost of revenues decreased 17.1% to RMB53.4 million, driven by AI-enabled productivity and lower staff costs.

• Sales and marketing expenses dropped 13.5% to RMB61.9 million; R&D expenses fell 19.2% to RMB48.3 million.

• General and administrative expenses rose 20.5% to RMB54.2 million, mainly due to higher professional fees and share-based compensation.

• Cash and short-term investments at RMB235.7 million, down from RMB418.2 million at 2024 year-end, reflecting planned AI R&D investment.

Outlook and guidance

• Continued focus on deepening enterprise relationships, scaling AI solutions, and disciplined cost management.

• Margin expansion expected to persist as AI and subscription-based products grow.

• AI-powered solutions are expected to drive future growth and customer retention.