YXT.COM Group Holding Limited

For the first half of 2026, total revenue increased 6% year over year to RMB 162.1 million. Corporate learning solutions revenue was RMB 158.2 million, including RMB 151.8 million from subscription-based corporate learning solutions. Gross margin was 70.1%, up 5 percentage points from 65.1% last year. Net loss narrowed to RMB 14.4 million from RMB 73.9 million, and adjusted net loss narrowed 80.9% year over year to RMB 12.2 million. On the balance of customer metrics, subscription customers were 2,391 versus 2,358 a year earlier, and net revenue retention improved to 102.6% from 100.3%. Looking ahead, management said it expects a higher gross margin in the second half of 2026 and continued gross margin expansion over time as AI transformation progresses.

Peter Lu said enterprise customers are now asking whether AI can improve business outcomes, not just whether a product has AI features, and framed that as the reason YXT.COM has shifted toward what he called “intelligent productivity.” He highlighted nearly ninefold growth in AI product-related revenue, stronger new customer acquisition, better retention, and the early success of SaleSmart as evidence that the strategy is working. His tone was confident and forward-looking, emphasizing that AI is becoming central to both the existing corporate learning business and new productivity offerings.

Shen Cao said the company’s first-half transformation translated into “clear financial results,” with 6% revenue growth, gross margin up to 70.1%, and losses significantly reduced. He attributed the margin improvement to a higher-quality revenue mix, focus on large enterprise subscription customers, AI-enabled productivity gains, and cost optimization; cost of revenues fell 9.1% year over year to RMB 48.5 million, and sales and marketing expense fell 3%. R&D increased 9.8% as the company kept investing in AI capabilities, while management said it still expects higher gross margin in H2 2026 and continued margin expansion beyond that.

Analyst questions focused on progress across the four product lines and the sustainability of gross margin expansion. Management said TalentNova signed more than 120 clients, up more than 48% year over year; NeoLearning signed RMB 32.7 million of engagements, up 26.8%; SaleSmart won over 20 new clients with more than RMB 5.3 million in signed contract value; and AI BOX was folded into the broader TalentNova and NeoLearning suites rather than marketed separately. On margins, management explicitly said it expects H2 2026 gross margin to be higher than H1 and believes margins can keep improving in future years as AI transformation continues.