51Talk Online Education Group

First-quarter 2026 net revenues were $31.2 million, up 70.9% year over year, driven largely by more active students and attended lesson consumption. Gross billings grew 51.9% year over year to $33.3 million, and gross margin was 73.7%. Operating expenses were $24.4 million, up 57.2%, while operating loss narrowed to $1.4 million from $1.5 million a year ago; net loss attributable to ordinary shareholders was $2.3 million versus $1.7 million last year. GAAP EPS per ADS was negative $0.39 and non-GAAP EPS per ADS was negative $0.30. Cash equivalents and time deposits were $35.5 million, and advances from students were $78.9 million. For Q2 2026, management expects gross billings of $36 million to $38 million.

CEO Jack Huang framed the quarter as a solid result, emphasizing that gross billings growth exceeded the high end of guidance and that the sequential operating loss narrowed despite normal Q1 seasonality. He said underlying demand for English learning remains robust across key markets and reiterated confidence in the company’s long-term growth trajectory. Strategically, he highlighted continued investment in localization, user experience, the tutor network, and an AI-plus-human learning model, with a new generation of product expected later this year.

CFO Cindy Tang walked through the quarter’s financials, citing $31.2 million in revenue, 73.7% gross margin, and $33.3 million in gross billings. She noted operating expenses of $24.4 million, including $17.9 million in sales and marketing, $1.9 million in product development, and $4.6 million in G&A. She also pointed to $35.5 million of cash equivalents and time deposits at quarter-end and said Q2 gross billings are expected to be $36 million-$38 million.

In Q&A, an analyst asked for details on the next version of the platform, including timing and feature enhancements. Jack Huang said the product will include foreign tutors, more AI features, and gamification functions, with a new technology platform for gamification and more use of user data and LLM analysis to improve learning outcomes and personalization. Management did not give a precise launch date beyond saying the rollout should begin later this year.