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YXT.com Reports Unaudited Financial Results for the First Six Months of 2025

1. YXT's revenues decreased by 7.8% in H1 2025 compared to H1 2024. 2. Gross margin increased to 65.1%, indicating improved profitability measures. 3. Net loss was RMB73.9 million, a significant downturn from prior year's profit. 4. Shift towards large enterprises reflects a strategic pivot amid market changes. 5. AI-related product MRR grew, signaling growth potential in AI solutions.

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FAQ

Why Bearish?

The significant shift to a net loss from profit and declining revenues raises concerns about future revenue stability. Additionally, loss of subscription customers indicates potential for ongoing revenue decline, similar to the historical dip experienced by tech firms during transitional phases.

How important is it?

Financial results reflect critical performance insights that can influence investor sentiment and trading decisions regarding YXT. The company's move toward focusing on larger enterprise accounts could stabilize and potentially improve revenue in the future.

Why Short Term?

Immediate impacts are seen, given recent financial results, but long-term outcomes depend on AI strategy execution. This is akin to other companies adjusting during economic downturns, where initial losses preceded recovery.

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CEIBSADBECRM
SUZHOU, China, Aug. 20, 2025 (GLOBE NEWSWIRE) -- YXT.com Group Holding Limited (NASDAQ: YXT) (“YXT.com” or the “Company”), a provider of AI-enabled enterprise productivity solutions, today announced its unaudited financial results for the first six months ended June 30, 2025. Financial Highlights for the First Six Months of 2025 Total revenues were RMB152.9 million (US$21.3 million), compared with RMB165.8 million in the same period of last year.Gross margin was 65.1% in the six months ended June 30, 2025, compared with 61.1% in the same period of last year, representing an increase of 4.0 percentage points.Net loss was RMB73.9 million (US$10.3 million), compared with a net income of RMB21.4 million in the same period of last year. Adjusted net loss was RMB64.0 million (US$8.9 million), compared with an adjusted net loss of RMB75.3 million in the same period of last year, representing a decrease of RMB11.3 million.Number of subscription customers was 2,358 as of June 30, 2025, compared with 2,481 as of June 30, 2024. Net revenue retention rates of subscription customers decreased to 100.3% for the six months ended June 30, 2025 from 102.8% in the same period of last year. The change reflects the Company’s strategic shift towards large enterprise accounts with consistent demand for corporate learning solutions, and an anticipated churn of small and medium-sized customers from the Company’s portfolio.Monthly Recurring Revenue (“MRR”1) of AI-related product was RMB0.5million (US$69.9 thousand) as of June 30, 2025, compared with RMB0.2 million as of June 30, 2024. Mr. Peter Lu, Director, Founder and Chairman of the Board of YXT.com, commented, “Amid evolving market dynamics, we are successfully incorporating AI-powered corporate learning solutions into our product portfolio, maintaining strong customer retention while strategically prioritizing large enterprise accounts. This strategic focus reflects a broader industrial shift, as organizations increasingly prioritize measurable workforce productivity gains over traditional training metrics. Furthermore, our AI Coach-driven model moves beyond conventional, course-based training to deliver adaptive, interactive learning and personalized tutoring. This approach has fueled the rapid growth of our AI-related product revenue, significantly enhancing enterprise productivity.” Mr. Shen Cao, Chief Financial Officer of YXT.com, added, “We are making meaningful progress in our path to profitability, driven primarily by expanding gross margins that reflected both cost optimization and product improvements. This margin growth reflects our successful transition toward higher-value offerings, particularly our AI-powered corporate learning solutions.” Financial Results for the First Six Months of 2025 Revenues Revenues were RMB152.9 million (US$21.3 million), compared with RMB165.8 million in the same period of last year, representing a decrease of 7.8%. Revenues from corporate learning solutions were RMB152.4 million (US$21.3 million), compared with RMB164.5 million in the same period of last year. Revenues from subscription based corporate learning solutions were RMB144.7 million (US$20.2 million), compared with RMB151.9 million in the same period of last year. The change was primarily due to (i) a net impact of RMB4.8 million from operational adjustments, due to (1) our strategic suspension of certain ancillary online teaching tools; (2) our business expansion strategy to focus on large enterprises with strong and steady demand for corporate learning solutions, leading to an expected loss of portion from some small and medium-sized customers and therefore the decrease in the number of our subscription customers during the same periods; and (ii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB2.4 million.Revenues from non-subscription based corporate learning solutions were RMB7.7 million (US$1.1 million), compared with RMB12.6 million in the same period of last year. The change was primarily due to (i) reduced offline solutions reflecting the Company’s strategic emphasis on subscription-based, digitized corporate learning solutions; and (ii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB0.8 million. Revenues from others were RMB0.5 million (US$66.0 thousand), compared with RMB1.3 million in the same period of last year. The change primarily reflects fewer customized software projects completed in the six months ended June 30, 2025, aligning with the Company’s new strategic focus. Cost of revenues Cost of revenues was RMB53.4 million (US$7.5 million), compared with RMB64.4 million in the same period of last year, representing a decrease of 17.1%. This was mainly due to (i) raise in productivity in the Company’s operation leveraging AI tools; (ii) decreased staff expenses and third-party infrastructure costs through operational optimization; (iii) lower instructor compensation costs due to the reduction of offline solutions, aligning with our strategic emphasis on subscription-based, digitized and AI-powered corporate learning solutions; and (iv) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB0.7 million. Gross margin Gross margin was 65.1%, compared with 61.1% in the same period of last year, representing an increase of 4.0 percentage points. This was mainly driven by the Company's continual focus on large enterprise subscription customers, higher-marginal-contribution solutions and ongoing cost optimization efforts. Sales and marketing expenses Sales and marketing expenses were RMB61.9 million (US$8.6 million), compared with RMB71.6 million in the same period of last year, representing a decrease of 13.5%. This was mainly due to (i) raise in productivity in acquiring, converting and retaining customers and realizing revenues aided by AI tools and the Company’s branding campaign; (ii) decreases in compensation paid to sales and marketing staff due to the Company’s efforts in better relocating its human resources; and (iii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB1.7 million. Research and development expenses Research and development expenses were RMB48.3 million (US$6.7 million), compared with RMB59.8 million in the same period of last year, representing a decrease of 19.2%. This was mainly due to (i) increased R&D ROI due to the Company’s new discipline and approach to product-market-fit; (ii) decreases in compensation paid to research and development staff due to the Company’s efforts in better relocating its human resources; and (iii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB0.2 million. General and administrative expenses General and administrative expenses were RMB54.2 million (US$7.6 million), compared with RMB45.0 million in the same period of last year, representing an increase of 20.4%. This was mainly due to (i) the increase of professional service fees; and (ii) an increase in share-based compensation paid to general and administrative staff due to the execution of the share incentive plan in January 2025. The increase was partially offset by (i) the decrease in compensation paid to general and administrative staff; and (ii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB1.4 million. Net loss and adjusted net loss Net loss was RMB73.9 million (US$10.3 million), compared with a net income of RMB21.4 million in the same period of last year. Adjusted net loss was RMB64.0 million (US$8.9 million), compared with an adjusted net loss of RMB75.3 million in the same period of last year, representing a decrease of 15.0%. Loss per share Basic and diluted net loss per share was RMB0.41 (US$0.06), compared with basic and diluted net loss per share of RMB3.82 in the same period of last year. The decrease in basic and diluted net loss per share was primarily attributable to (i) the net accretion of convertible redeemable preferred shares for the six months ended June 30, 2024; and (ii) the increase of weighted average number of ordinary shares. Balance Sheet As of June 30, 2025, the Company had cash and cash equivalents and restricted cash and short-term investment of RMB235.7 million (US$32.9 million), compared with RMB418.2 million as of December 31, 2024. Conference Call Information The Company's management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on Wednesday, August 20, 2025 (or 8:00 P.M. Beijing Time on Wednesday, August 20, 2025) to discuss the financial results. Details for the conference call are as follows: All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call. A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.yxt.com/. Non-GAAP Financial Measures In evaluating our business, we consider and use adjusted net loss as a supplemental non-GAAP measure to review and assess our operating performance. Adjusted net loss is net loss excluding gain on deconsolidation of CEIBS PG, share-based compensation, change in fair value of derivative liabilities, net of income taxes, to the extent applicable. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP measure facilitates investors’ assessment of our operating performance. The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. We compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. About YXT.com YXT.com (NASDAQ: YXT) is a technology company focusing on enterprise productivity solutions. With a mission to "Empower people and organization development through technology," The Company strives to become the supreme provider in building and boosting enterprise productivity by combining over a decade of experience in tech-enabled talent learning and development and with AI-augmented task copilots and unleashing the power of knowledge and synergy. Since its inception, YXT.com has supported and received recognition from numerous Global and China Fortune 500 companies. ContactInvestor RelationsYXT.comE-mail: IR@radnova.comSerena HuangOctans Capital GroupE-mail: yxt.ir@octanscap.comTel: +86-10-6580-0653 YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND JUNE 30, 2025(All amounts in thousands, except for share and per share data, unless otherwise noted)   As ofDecember 31, As ofJune 30,  2024 2025  RMB RMB US$       ASSETS      Current assets:      Cash and cash equivalents 417,920 142,434 19,883Restricted Cash 322 156 22Short-term investments - 93,063 12,991Accounts receivable, net 19,386 16,722 2,334Amounts due from related parties 2,000 2,000 279Prepaid expenses and other current assets, net 35,791 43,237 6,036Total current assets 475,419 297,612 41,545       Non-current assets:      Property, equipment and software, net 15,175 11,837 1,652Intangible assets, net 7,069 4,946 690Goodwill 163,837 163,837 22,871Long-term investments 114,432 109,518 15,288Operating lease right-of-use assets, net 25,655 25,727 3,591Other non-current assets 20,349 9,679 1,351Total non-current assets 346,517 325,544 45,443Total assets 821,936 623,156 86,988       LIABILITIES AND SHAREHOLDERS’ EQUITY      Current liabilities      Accounts payable 7,389 10,507 1,465Amounts due to related parties 2,452 3,047 425Short-term borrowings 163,000 121,500 16,961Deferred revenue, current 125,428 98,774 13,788Acquisition consideration payable 14,775 14,775 2,063Other payable and accrued liabilities 72,028 130,085 18,159Operating lease liabilities, current 8,966 11,542 1,611Total current liabilities 394,038 390,230 54,472       Non-current liabilities      Long-term borrowings 125,500 6,000 838Operating lease liabilities, non-current 17,458 15,005 2,095Deferred revenue, non-current 57,710 51,651 7,210Total non-current liabilities 200,668 72,656 10,143Total liabilities 594,706 462,886 64,615        YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND JUNE 30, 2025(All amounts in thousands, except for share and per share data, unless otherwise noted)   As ofDecember 31, As ofJune 30,  2024  2025  RMB RMB US$       Shareholders’ equity      Class A ordinary shares (US$0.0001 par value per share; 483,068,176 Class A ordinary shares authorized, 163,294,773 Class A ordinary shares issued and outstanding as of December 31, 2024; 483,068,176 Class A ordinary shares authorized, 163,294,773 Class A ordinary shares issued and 162,143,025 Class A ordinary shares outstanding as of June 30, 2025) 118  118  16 Class B ordinary shares (US$0.0001 par value per share; 16,931,824 Class B ordinary shares authorized, 16,931,824 Class B ordinary shares issued and outstanding as of December 31, 2024; 16,931,824 Class B ordinary shares authorized, 16,931,824 Class B ordinary shares issued and outstanding as of June 30, 2025) 11  11  2 Treasury stock -  (2,157) (301)Additional paid-in capital 3,489,553  3,499,426  488,501 Accumulated other comprehensive income 25,096  24,298  3,392 Accumulated deficit (3,287,548) (3,361,426) (469,237)Total shareholders’ equity 227,230  160,270  22,373 Total liabilities and shareholders’ equity 821,936  623,156  86,988            YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025(All amounts in thousands, except for share and per share data, unless otherwise noted)   For the six months ended June 30,  2024 2025  RMB RMB US$       Revenues:      Corporate learning solutions 164,420  152,417  21,277 Others 1,336  477  66 Total revenues 165,756  152,894  21,343        Cost of revenues (64,419) (53,380) (7,452)Sales and marketing expenses (71,569) (61,932) (8,645)Research and development expenses (59,772) (48,277) (6,739)General and administrative expenses (44,993) (54,219) (7,569)Other operating income 1,609  465  65 Loss from operations (73,388) (64,449) (8,997)       Interest and investment income 4,163  1,685  235 Interest expense (4,993) (4,186) (584)Investment losses (4,951) (7,417) (1,035)Gain on deconsolidation of CEIBS Publishing Group 78,760  -  - Foreign exchange gain, net 33  489  68 Change in fair value of derivative liabilities 21,735  -  - Income/(loss) before income tax expense 21,359  (73,878) (10,313)Income tax expense -  -  - Net income/(loss) 21,359  (73,878) (10,313)       Net loss attributable to non-controlling interests shareholders 300  -  -        Net income/(loss) attributable to YXT.COM Group Holding Limited 21,659  (73,878) (10,313)        YXT.COM GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025(All amounts in thousands, except for share and per share data, unless otherwise noted)   For the six months ended June 30,  2024 2025  RMB RMB US$       Net income/(loss) attributable to YXT.COM Group Holding Limited 21,659  (73,878) (10,313)Net accretion of convertible redeemable preferred shares (204,364) -  - Deemed dividend to preferred shareholders due to modification (5,940) -  -        Net loss attributable to ordinary shareholders of YXT.COM Group Holding Limited (188,645) (73,878) (10,313)       Net income/(loss) 21,359  (73,878) (10,313)Other comprehensive income/(loss)      Foreign currency translation adjustment, net of tax 1,191  (301) (42)Unrealized loss on investments in available-for-sale debt securities, net of tax (5,408) (497) (69)       Total comprehensive income/(loss) 17,142  (74,676) (10,424)       Total comprehensive loss attributable to non-controlling interests 300  -  -        Total comprehensive income/(loss) attributable to YXT.COM Group Holding Limited 17,442  (74,676) (10,424)       Net loss attributable to ordinary shareholders of YXT.COM Group Holding Limited (188,645) (73,878) (10,313)—Weighted average number of ordinary shares basic and diluted 49,329,740  179,881,274  179,881,274        Net loss per share attributable to ordinary shareholders:      —Basic and diluted (3.82) (0.41) (0.06)           YXT.COM GROUP HOLDING LIMITED   UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTSFOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025 (All amounts in thousands, except for share and per share data, unless otherwise noted)     For the six months ended June 30,  2024  2025   RMB RMB US$       Net income/(loss)  21,359    (73,878)  (10,313)Adjustments:      Gain on deconsolidation of CEIBS Publishing Group (78,760) -  - Share-based compensation 3,820  9,873  1,378 Change in fair value of derivative liabilities (21,735) -  - Adjusted loss before income taxes (75,316) (64,005) (8,935)Adjusted income taxes -  -  - Adjusted net loss  (75,316 )  (64,005 )  (8,935 )           ______________________________1 MRR is calculated based on the accounting adjusted total contract value divided by the number of months of the agreement based on the start and end dates of each contracted line item.

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