1. 51Talk reported Q3 2025 revenue of $26.3 million, up 87.5%. 2. Gross billings reached $40.5 million, a growth of 104.6% year-over-year. 3. Active students increased by 71.4%, reaching approximately 112,600. 4. Operating cash inflow was $6.6 million, reflecting strong cash position. 5. Q4 guidance suggests revenue may decline sequentially by 6.1% to 13.5%.
FAQ
Why Bullish?
Strong revenue growth and active student increase, though future revenue may decline.
How important is it?
Quarterly performance demonstrates potential growth; however, guidance for Q4 indicates caution.
Why Short Term?
Immediate impact from Q3 results; Q4 revenue forecast may temper enthusiasm.
51Talk Online Education Group Reports Strong Performance in Q3 2025
51Talk Online Education Group ("51Talk," NYSE American: COE), a leading global online education platform specializing in English education, has announced its unaudited financial results for the third quarter ended September 30, 2025. The Company showcased impressive growth metrics that underline its robust market presence and operational success during this period.
Financial and Operating Highlights
- Gross Billings: $40.5 million, a remarkable 104.6% increase compared to Q3 2024's $19.8 million.
- Net Revenues: $26.3 million, marking an 87.5% growth from $14.0 million in Q3 2024.
- Active Students: Approximately 112,600 active students attended lessons, up 71.4% from around 65,700 in Q3 2024.
- Operating Cash Inflow: $6.6 million for the quarter.
Detailed Financial Results
51Talk's financial results for the third quarter of 2025 reflect significant growth. The Company recorded net revenues of $26.3 million, up 87.5% from the previous year. Active student participation rose dramatically, showcasing the effectiveness of 51Talk's expansion strategies. The cost of revenues in this period was $7.0 million, which represents a 135.9% increase from last year, driven by a higher volume of paid lessons.
The gross profit for Q3 2025 was reported at $19.3 million, indicating a 74.4% increase compared to $11.1 million in the same quarter of the prior year, resulting in a gross margin of 73.3%.
Operating Expenses and Losses
Operating expenses reached $23.4 million, an increase of 97.9% from $11.8 million in Q3 2024. This rise was predominantly due to enhanced sales and marketing efforts. Sales and marketing expenses amounted to $17.5 million, which is a 114.7% increase year-over-year.
The Company reported an operating loss of $4.2 million for Q3 2025, compared to a loss of $0.8 million in the same quarter last year. The net loss attributable to ordinary shareholders was $4.8 million, a stark contrast to the $0.6 million loss reported in Q3 2024.
CEO's Statement
Jack Jiajia Huang, Founder, Chairman, and CEO of 51Talk, commented on the results: "I am pleased to report that the third quarter of 2025 represented another period of strong performance for our Company. Gross billings reached $40.5 million, surpassing our previously issued guidance and demonstrating robust sequential growth of 42.1% quarter-over-quarter and triple-digit year-over-year growth of 104.6%. This rapid expansion reflects our disciplined execution and solid cash flow position."
He further noted, "Our active student base has reached 112,600 during the quarter, marking a significant milestone as we surpassed 100,000 active students for the first time since we embarked on our global expansion strategy more than three years ago."
Strategic Outlook
Looking ahead to the fourth quarter of 2025, 51Talk aims to maintain its growth momentum while focusing on both existing and new clients. The Company also highlighted its participation in COP30 in Brazil, showcasing its global reach with students from five different geographies. This event underscores 51Talk's ongoing commitment to expanding its portfolio and entering new markets.