Key Takeaways
- iHuman reported Q2 2025 revenues of RMB200.2 million, down from RMB215.1 million in the previous year.
- Net income rose to RMB31.9 million, up from RMB24.7 million in the same period last year.
- The company continues to innovate with new product features and strategic partnerships, including a collaboration with Cricket Media.
Financial Performance Overview
iHuman Inc., a prominent provider of tech-driven educational products in China, shared its unaudited financial results for the second quarter ending June 30, 2025. The company’s revenues reached RMB200.2 million (approximately US$27.9 million), marking a decrease from RMB215.1 million during the same period last year. This decline is attributed to reduced birth rates in China and a generally cautious consumer spending environment.
Gross profit for the quarter was RMB135.7 million, down from RMB151.7 million in Q2 2024, resulting in a gross margin of 67.8%, a decline from 70.5% a year ago. Operating income stood at RMB19.5 million, slightly improved from RMB18.8 million in the prior year. Notably, net income increased to RMB31.9 million compared to RMB24.7 million in Q2 2024. The average monthly active users (MAUs) for the quarter totaled 23.72 million, lower than 24.57 million in the same period last year.
Dr. Peng Dai, CEO of iHuman, underscored the company’s commitment to enhancing its product offerings and expanding its international market presence. Key developments during the quarter included significant updates to their flagship app, iHuman Chinese. New features include a photo recognition capability that helps children learn unfamiliar Chinese characters and an intelligent speaking function designed to provide real-time feedback on pronunciation.
In addition, iHuman introduced a substantial upgrade to its international app, Aha Makeover, transforming it into an interactive, story-driven platform with various creative missions and characters. This redesign aims to enhance user engagement through interactive experiences.
The company also advanced its global content strategy through a partnership with Cricket Media, recognized for its extensive library and educational resources. Together, they launched the Reading Stars app, designed to create an engaging and interactive reading experience tailored for young audiences.
Furthermore, iHuman is expanding its entertainment division through its animation studio, Kunpeng. The Cosmicrew franchise, well-received since its inception in 2018, has continued to perform well across streaming platforms, reinforcing its popularity among children. A new season of the subseries, Super Mecha Dinosaurs, was released, garnering significant viewership.
Vivien Weiwei Wang, CFO of iHuman, expressed satisfaction with the company’s sustained profitability, marking 14 consecutive quarters of positive results. She highlighted the importance of strategic collaborations and the integration of artificial intelligence to enhance user experiences and operational efficiency.
Total operating expenses for Q2 were RMB116.3 million, reflecting a 12.5% decrease compared to RMB132.9 million in the same quarter the previous year. This reduction was driven by decreased research and development, as well as marketing expenses, highlighting the company’s focus on cost management amid a challenging economic landscape.
As of June 30, 2025, iHuman reported cash, cash equivalents, and short-term investments totaling RMB1,100.1 million. However, this figure reflects a decrease from RMB1,168.7 million at the end of 2024, mainly due to employee bonuses and dividend payments.
In conclusion, iHuman is uniquely positioned in the educational technology space, demonstrating resilience through innovative product enhancements and strategic partnerships aimed at bolstering both its domestic and international presence.
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