ATA Creativity Global

Fourth-quarter 2025 total net revenue was RMB 89.1 million, down 11.7% year over year. Gross profit was RMB 50.2 million versus RMB 63.7 million a year earlier, and gross margin was 56.4% compared with 63.1%. Total operating expenses were RMB 73.3 million, including a one-time goodwill impairment charge of RMB 33.9 million; excluding that charge, operating expenses decreased 15.7% year over year. Q4 operating loss was RMB 23 million versus income from operations of RMB 17 million last year, and net loss attributable to ACG was RMB 26.3 million versus net income of RMB 13.3 million. For full-year 2025, revenue was RMB 268.1 million, flat year over year; gross profit was RMB 130.3 million, down 7.8%; gross margin was 48.6% versus 52.7%; operating loss was RMB 64.1 million; and net loss attributable to ACG was RMB 48 million. The company ended December 31, 2025 with RMB 85.2 million in cash and cash equivalents. Management did not provide formal numeric revenue or EPS guidance, but said Q1 2026 has a strong pipeline of research-based learning projects and that 2026 should benefit from cost-saving initiatives and improved operational efficiency.

Kevin Ma said 2025 demand normalized after the prior year’s surge, which pressured fourth-quarter revenue, but he highlighted growth in research-based learning, online master classes, institutional partnerships, and service enhancements in Japan and Chengdu. His tone was constructive and focused on execution, emphasizing that the company is investing in world-class educational resources while expanding higher-value offerings. He also pointed to project-based learning as a major part of the mix and said new initiatives should support the business going forward.

Ruobai Sima detailed the financial pressure in the quarter: revenue of RMB 89.1 million, gross profit of RMB 50.2 million, gross margin of 56.4%, and a RMB 33.9 million goodwill impairment that pushed operating expenses to RMB 73.3 million and led to a RMB 23 million operating loss. For full-year 2025, he cited revenue of RMB 268.1 million, gross profit of RMB 130.3 million, gross margin of 48.6%, and operating loss of RMB 64.1 million, with full-year operating expenses of RMB 194.6 million. He also highlighted cost controls, including lower sales headcount and incentives, and said the company finished the year with RMB 85.2 million in cash and cash equivalents.

There were no analyst questions on the call, so there was no Q&A discussion of pushback or follow-up concerns. Management’s forward commentary instead centered on 2026 execution: more online classes, campus consolidation in less active markets, tighter sales spending, and a strong Q1 pipeline led by the Finland Sustainable Design & Art Research Program and the 2026 Competition Winter Camp.