51Talk (NYSE American: COE) delivered Q4 2025 net revenues of $30.6 million (up 88.6% YoY) and full-year 2025 revenues of $95.6 million (up 88.6% YoY). Net loss per ADS widened to $1.08 in Q4 and $2.84 for the full year as aggressive marketing spend outpaced top-line growth. After-hours movement was muted; on earnings day (March 27, 2026), shares closed at $18.90, up approximately 2.55% from the prior session.
About 51Talk Online Education Group
51Talk Online Education Group (NYSE American: COE) is a global online education platform headquartered in Singapore, specializing in English-language instruction. Founded in 2011 in Beijing under the name “China Online Education Group,” the company connects students across China, Hong Kong, the Philippines, Malaysia, Singapore, and Thailand with qualified tutors through a shared-economy model and live, interactive one-on-one lessons on demand.
As of the full year 2025, the company served approximately 170,300 active students, and its platform supports both online and mobile access. The company’s flagship programs include Classic English Junior and Classic English, catering primarily to K-12 learners. With a market capitalization of approximately $103–$117 million as of late March 2026, and trailing twelve-month revenue of $95.6 million, 51Talk does not pay a dividend and remains unprofitable on a GAAP basis, with a full-year net loss of $16.8 million. The company employs AI capabilities in its tutoring platform and has been deepening its investment in product development, which totaled $5.5 million for 2025.
Top Financial Highlights
- Full-year 2025 gross billings reached $127.6 million, up 83.4% from $69.6 million in 2024
- Full-year 2025 net revenues hit $95.6 million, an 88.6% increase from $50.7 million in 2024
- Q4 2025 net revenues were $30.6 million, up 88.6% from $16.2 million in Q4 2024
- Q4 2025 gross billings were $36.8 million, up 72.0% from $21.4 million in Q4 2024
- Full-year 2025 gross margin was 73.9%, compared to 78.0% in 2024 – a compression of 410 basis points
- Q4 2025 gross margin was 72.4%, down from 77.5% in Q4 2024
- Full-year 2025 net loss was $16.8 million, versus a net loss of $7.2 million in 2024- a widening of 132.3%
- Q4 2025 net loss attributable to shareholders was $6.5 million, versus $1.4 million in Q4 2024
- Full-year 2025 basic and diluted net loss per ADS was $2.84, compared to $1.25 in 2024
- Q4 2025 basic and diluted net loss per ADS was $1.08, compared to $0.24 in Q4 2024
- Full-year 2025 total operating expenses reached $85.1 million, up 78.8% YoY, led by sales and marketing at $62.3 million (+86.6%)
- Full-year 2025 operating cash inflow was $11.8 million; Q4 operating cash inflow was $3.1 million
- Cash, cash equivalents and time deposits as of December 31, 2025 stood at $39.0 million, up from $29.2 million at end of 2024
- Active students with attended lesson consumption reached 170,300 for full year 2025, up 79.3% from 95,000 in 2024; Q4 active students totaled approximately 126,700, up 70.8% YoY
- Q1 2026 net gross billings guidance set at $29.0–$31.0 million, representing YoY growth of approximately 32.2% to 41.4%
Beat or Miss?
| Metric | Reported (Q4 2025) | Prior Guidance / Expected | Difference / Analysis |
| Q4 Gross Billings | $36.8M | $35.0M–$38.0M (Q3 2025 guidance) | Within guidance range |
| Q4 Net Revenue | $30.6M | N/A (no formal estimate) | 88.6% YoY beat vs. $16.2M prior year |
| Q4 Gross Margin | 72.40% | N/A | Declined from 77.5% in Q4 2024 |
| Q4 Operating Loss | -$5.2M | N/A | Widened significantly from -$0.9M in Q4 2024 |
| Q4 Net Loss per ADS | ($1.08) | N/A | Widened from -$0.24 in Q4 2024 |
| FY 2025 Net Revenue | $95.6M | N/A | 88.6% YoY increase |
| FY 2025 Gross Billings | $127.6M | N/A | First time surpassing $100M threshold |
| FY 2025 Operating Cash Inflow | $11.8M | N/A | First time exceeding $10M mark |
What Leadership Is Saying?
CEO – Jack Jiajia Huang (Founder, Chairman and Chief Executive Officer)
“2025 has been a transformational year for 51Talk, as we began to reap the rewards of the strategic investments made over the past several years. Full-year gross billings reached US$127.6 million, representing year-over-year growth of 83.4%, while net revenues grew 88.6% year-over-year to US$95.6 million. These results mark a significant milestone, as gross billings surpassed and net revenues approached the US$100 million threshold for the first time since we embarked on our global expansion strategy, providing compelling validation that our business model can scale effectively on a global basis.”
“Net operating cash inflow also surpassed the US$10 million mark, reaching US$11.8 million in 2025 – further evidence that we are building a sustainable and scalable business. Looking ahead to 2026, we are committed to expanding our growth trajectory based on the foundation we built over the past years. We are focused on consolidating the transformational gains of the past year and further enhancing our user experience. We will continue to invest prudently in our platform, our tutors, and our AI capabilities, while making meaningful progress toward profitability.”
CFO – Cindy Tang (Chief Financial Officer)
“Our Q1 2026 guidance reflects net gross billings between US$29.0 million and US$31.0 million, which represents a year-over-year increase of approximately 32.2% to 41.4% from the same quarter in 2025. This outlook is based on current market conditions and reflects our current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.”
Historical Performance
51Talk YoY Comparison – Q4 2025 vs Q4 2024
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Net Revenue | $30.6M | $16.2M | 88.60% |
| Gross Profit | $22.2M | $12.6M | 76.20% |
| Gross Margin | 72.40% | 77.50% | -510 bps |
| Total Operating Expenses | $27.4M | $13.4M | 103.60% |
| Sales and Marketing Expenses | $20.4M | $10.1M | 101.60% |
| Operating Loss | -$5.2M | -$0.9M | -504.30% |
| Net Loss (to shareholders) | -$6.5M | -$1.4M | -371% |
| Net Loss per ADS | ($1.08) | ($0.24) | -350% |
| Active Students | 126,700 | 74,200 | 70.80% |
| Gross Billings | $36.8M | $21.4M | 72.00% |
51Talk Full Year Comparison
FY 2025 vs FY 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Net Revenue | $95.6M | $50.7M | 88.60% |
| Gross Profit | $70.7M | $39.5M | 78.80% |
| Gross Margin | 73.90% | 78.00% | -410 bps |
| Total Operating Expenses | $85.1M | $47.6M | 78.80% |
| Sales and Marketing | $62.3M | $33.4M | 86.60% |
| Operating Loss | -$14.4M | -$8.0M | -80.00% |
| Net Loss | -$16.8M | -$7.2M | -132.30% |
| Net Loss per ADS | ($2.84) | ($1.25) | -127.20% |
| Active Students | 170,300 | 95,000 | 79.30% |
| Gross Billings | $127.6M | $69.6M | 83.40% |
| Operating Cash Inflow | $11.8M | N/A | First $10M+ year |
Competitor Context
Online Education Sector
51Talk (COE) operates in the competitive global online English education market. Below is a snapshot comparing 51Talk against two major sector peers, TAL Education Group (TAL) and New Oriental Education (EDU), on key metrics from their most recent annual reporting periods.
| Category | 51Talk (COE) FY 2025 | TAL Education (TAL) FY 2025 (ended Feb 2025) | New Oriental (EDU) FY 2025 (ended May 2025) |
| Net Revenue | $95.6M | $2,250.2M | $4,900M+ |
| YoY Revenue Growth | 88.60% | 51.00% | +9.4% (Q4 only, ex-East Buy +18.7%) |
| Net Income / Loss | -$16.8M | +$84.6M | +$7.1M (Q4 only) |
| Gross Margin | 73.90% | N/A (not separately disclosed) | N/A (not separately disclosed) |
| Primary Market Focus | Global / International English learners | China (smart learning, AI devices) | China (tutoring, overseas test prep) |
| Ticker | NYSE: COE | NYSE: TAL | NYSE: EDU |
While 51Talk leads its peer group on revenue growth rate, TAL and New Oriental both operate at significantly larger scale and TAL achieved GAAP net income of $84.6 million for its fiscal year 2025, compared to 51Talk’s net loss. New Oriental’s Q4 FY2025 EPS of $0.32 beat analyst forecasts by over 10%, illustrating contrasting profitability trajectories within the sector.
How the Market Reacted?
On earnings day, March 27, 2026, COE shares closed at $18.90, a gain of approximately 2.55% from the prior session close of $18.43. Trading volume on the day reached 19,884 shares, above the recent daily average, reflecting heightened investor attention around the results. The measured reaction indicates that the market largely expected the strong top-line growth, but the widening net loss and compressing margins tempered enthusiasm.
Analyst TipRanks sentiment maintained a “Hold” rating with a price target of $24.50, and AI analyst Spark (via TipRanks) assigned a Neutral rating citing sustained losses and negative equity despite robust revenue recovery. The stock remains well below its 52-week high of $56.13, reflecting ongoing investor caution about the pace of profitability improvement relative to the accelerating investment cycle.
