iHuman Inc. Reports Third Quarter 2025 Results and Strategic Growth Plans

iHuman Inc. (NYSE: IH), a prominent provider of tech-powered educational products in China, reported its unaudited financial results for the third quarter ending September 30, 2025. The company has faced challenges in the market but remains committed to its strategy focused on innovation and long-term growth.

Dr. Peng Dai, Director and Chief Executive Officer of iHuman, emphasized the company’s progress despite a complex market environment. “Over the past few decades, iHuman has earned the trust of millions of families by guiding their children through critical early learning milestones,” he stated. The company is now strategically expanding its offerings to cater to older age groups, leveraging its existing content and technological expertise.

The firm also highlighted advancements in its product portfolio. The iHuman English platform has benefited from a redesigned interface and the addition of licensed content from BBC Studios. This improvement aims to enhance the learning experience through engaging storytelling and high-quality visuals. Interactive tasks have been integrated to encourage deeper engagement and help children build their English skills in a joyful manner.

Alongside its digital products, iHuman launched the iHuman AI Pal, a plush AI companion designed to enrich children’s playtime. This soft, screen-free toy utilizes advanced language model technology, creating a nurturing environment for language acquisition in both English and Chinese. The AI Pal not only engages children through stories and songs but also fosters positive character traits, good habits, and safety awareness.

In terms of financial performance, iHuman’s revenues for the third quarter reached RMB 205.8 million (approximately USD 28.9 million), a decline from RMB 239.4 million in the same period last year. This decrease is attributed to a decline in China’s newborn population and more conservative consumer spending. The average monthly active users (MAUs) also fell to 26.13 million from 29.12 million year-over-year.

The cost of revenues decreased to RMB 65.1 million (USD 9.1 million), aligning with the revenue decline. Gross profit stood at RMB 140.6 million (USD 19.8 million), resulting in a gross margin of 68.3%, consistent with the previous year.

Operating expenses were reduced by 13.4% to RMB 124.0 million (USD 17.4 million). Notably, research and development expenses decreased to RMB 55.3 million (USD 7.8 million), reflecting savings in payroll and outsourcing. Sales and marketing expenses also saw a significant reduction, down 24.9% to RMB 45.7 million (USD 6.4 million), due to cost-saving measures.

Operating income for the quarter was RMB 16.7 million (USD 2.3 million), with net income reported at RMB 21.6 million (USD 3.0 million), compared to RMB 25.1 million in the previous year. Basic and diluted net income per American Depositary Share (ADS) were RMB 0.42 (USD 0.06) and RMB 0.40 (USD 0.06), respectively.

As of September 30, 2025, iHuman reported deferred revenue and customer advances of RMB 230.4 million (USD 32.4 million), down from RMB 283.3 million at the end of the previous year. Cash, cash equivalents, and short-term investments totaled RMB 1,128.2 million (USD 158.5 million), a slight decrease from RMB 1,168.7 million.

The board of directors has authorized an extension of the company’s share repurchase program until December 31, 2026. This decision reflects confidence in iHuman’s business prospects and aims to enhance shareholder value.

Looking ahead, iHuman plans to continue investing strategically in innovation and technology. Ms. Vivien Weiwei Wang, Director and Chief Financial Officer, noted, “We are pleased to report our 15th consecutive quarter of profitability, reflecting solid financial performance.” The company aims to broaden its market reach, with iHuman English now available on multiple smart speaker platforms and in-vehicle systems through partnerships with brands like NIO.

The second season of the popular children’s series Rainbow Crew was launched in October, further expanding iHuman’s content library. This series has consistently ranked among the top children’s programs on major streaming platforms, reinforcing the company’s cultural influence.

iHuman remains optimistic about its future, focusing on deepening its leadership in the children’s learning sector while creating lasting value for users and shareholders.