iHuman Inc. Announces Second Quarter 2025 Unaudited Financial Results

BEIJING, Sept. 18, 2025 /PRNewswire/ -- iHuman Inc. (NYSE: IH) ("iHuman" or the "Company"), a leading provider of tech-powered, intellectual development products in China, today announced its unaudited financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

• Revenues were RMB200.2 million (US$27.9 million), compared with RMB215.1 million in the same period last year.
• Gross profit was RMB135.7 million (US$19.0 million), compared with RMB151.7 million in the same period last year.
• Operating income was RMB19.5 million (US$2.7 million), compared with RMB18.8 million in the same period last year.
• Net income was RMB31.9 million (US$4.5 million), compared with RMB24.7 million in the same period last year.
• Average total MAUs^[1] for the second quarter were 23.72 million, compared with 24.57 million in the same period last year.

Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "During the second quarter, we continued to advance our product roadmap and expand our international presence with several key updates. Our flagship app, iHuman Chinese—long recognized as an industry benchmark—introduced new features to make character exploration more intuitive and engaging. One specific highlight is the new photo recognition function that covers most daily-use Chinese characters. Children can simply take a picture of an unfamiliar character, and the app will instantly display its meaning, related words, example sentences, and cultural context, seamlessly turning everyday curiosity into a learning opportunity. We also launched a speaking feature that uses intelligent voice analysis to provide real-time feedback on pronunciation, helping children build confidence and fluency in verbal expression through practice.  

Internationally, we launched a major upgrade to Aha Makeover, transforming it from a traditional styling experience into a vibrant, story-driven world. The update introduces missions, a tiered rewards system, and an expansive world map with different themed zones. The update also features a new virtual girl group of five original characters, each with a distinctive style and personality. Users can interact with them through various creative activities, such as experimenting with hairstyles, applying makeup, mixing and matching outfits, and personalizing rooms in a cozy virtual home. These interactions unlock rewards and advance the storyline, sparking users' creativity through diverse challenges. By combining character-led narratives with creative styling tools and engaging missions, the update delivers a distinctive and immersive experience that strengthens user engagement over time.

We also took a major step forward in our global content strategy by establishing a strategic partnership with Cricket Media, a highly respected children's brand with more than five decades of experience and strong ties to schools, libraries, and households across the U.S. By leveraging Cricket Media's award-winning library—spanning genres like science, art, history, poetry, comics, and fiction—and our proven expertise in content digitization, edutainment, and interactive learning design, we are reimaging these classic resources for the digital age. Recently, we jointly launched Reading Stars, an intuitive app that retains the depth of traditional reading while offering interactive activities, motivating rewards, and personalized pathways to create a richer experience for young readers. This partnership not only introduces a compelling new reading product, but also deepens our presence in the U.S. education and consumer markets, bolsters our brand recognition abroad, and provides an effective platform for building long-term distribution channels and localized product offerings.

Building on our strength in digital products, we are also expanding our entertainment content through our animation studio, Kunpeng. Our flagship Cosmicrew franchise, which first aired in 2018, remains a long-standing favorite among children and one of the most recognized and beloved names in its category. This summer, Cosmicrew continued its strong performance across major streaming platforms, underscoring its enduring popularity. Within the franchise, the Super Mecha Dinosaurs subseries has also built a devoted fanbase. In May, we released a new season that quickly attracted broad viewership on leading streaming platforms, further expanding the series' strong following. Importantly, as an integral part of iHuman's ecosystem, Kunpeng's original IPs not only broaden our entertainment lineup but also further increase the visibility of our overall IP portfolio within iHuman apps. This strengthens user engagement, creating a self-reinforcing flywheel where education and entertainment are closely integrated and amplify each other over time.

By continuing to innovate, expanding our global footprint, and growing our entertainment portfolio, we are strengthening the foundation for long-term growth and creating more opportunities to engage audiences worldwide."

Ms. Vivien Weiwei Wang, Director and Chief Financial Officer of iHuman, added, "We are pleased to deliver another solid quarter of results, marking our 14th consecutive quarter of profitability. This achievement is a testament to our disciplined execution and firm commitment to sustainable development. This quarter, we continued to strengthen our product portfolio and expand collaboration with ecosystem partners, creating new synergies and opportunities that lay a strong foundation for long-term growth. We are also actively expanding the role of AI across our operations, applying it not only to enrich user experiences but also to reimagine our operational processes. From automating routine tasks and streamlining workflows to enhancing data-driven insights, AI is enabling us to respond faster, operate more precisely, and capture greater efficiencies across the board.

Backed by an industry-leading product lineup, a healthy balance sheet, and an agile operating model, we are well positioned to capitalize on new opportunities, scale globally, and continue creating value for our shareholders."

Second Quarter 2025 Unaudited Financial Results

Revenues

Revenues were RMB200.2 million (US$27.9 million), compared with RMB215.1 million in the same period last year. The decrease in revenues was primarily due to the decline in China's newborn population and more conservative consumer spending.

Average total MAUs for the quarter were 23.72 million, compared with 24.57 million in the same period last year.

Cost of Revenues

Cost of revenues was RMB64.4 million (US$9.0 million), compared with RMB63.4 million in the same period last year.

Gross Profit and Gross Margin

Gross profit was RMB135.7 million (US$19.0 million), compared with RMB151.7 million in the same period last year. Gross margin was 67.8%, compared with 70.5% in the same period last year. The decrease in gross margin was mainly due to the diversification and structural upgrades of the Company's product portfolio.

Operating Expenses

Total operating expenses were RMB116.3 million (US$16.2 million), a decrease of 12.5% from RMB132.9 million in the same period last year.

Research and development expenses were RMB52.8 million (US$7.4 million), a decrease of 7.7% from RMB57.2 million in the same period last year, primarily due to savings in payroll-related and outsourcing expenses.  

Sales and marketing expenses were RMB41.3 million (US$5.8 million), a decrease of 19.5% from RMB51.3 million in the same period last year, primarily due to cost savings in marketing activities. 

General and administrative expenses were RMB22.1 million (US$3.1 million), a decrease of 9.3% from RMB24.4 million in the same period last year, primarily due to savings in payroll-related expenses as well as other administrative expenses. 

Operating Income

Operating income was RMB19.5 million (US$2.7 million), compared with RMB18.8 million in the same period last year.

Net Income

Net income was RMB31.9 million (US$4.5 million), compared with RMB24.7 million in the same period last year.

Basic and diluted net income per ADS were RMB0.62 (US$0.09) and RMB0.60 (US$0.08), respectively, compared with RMB0.47 and RMB0.45 in the same period last year. Each ADS represents five Class A ordinary shares of the Company.

Deferred Revenue and Customer Advances

Deferred revenue and customer advances were RMB240.0 million (US$33.5 million) as of June 30, 2025, compared with RMB283.3 million as of December 31, 2024.

Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments were RMB1,100.1 million (US$153.6 million) as of June 30, 2025, compared with RMB1,168.7 million as of December 31, 2024. The decrease was primarily due to the payment of annual bonuses to employees and dividends in the first half of the year.

Exchange Rate Information

The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2025, which was RMB7.1636 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts.

Non-GAAP Financial Measures

iHuman considers and uses non-GAAP financial measures, such as adjusted operating income, adjusted net income and adjusted diluted net income per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). iHuman defines adjusted operating income, adjusted net income and adjusted diluted net income per ADS as operating income, net income and diluted net income per ADS excluding share-based compensation expenses, respectively. Adjusted operating income, adjusted net income and adjusted diluted net income per ADS enable iHuman's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. iHuman believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of the non-GAAP financial measures. In addition, the non-GAAP financial measures iHuman uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about iHuman's beliefs and expectations, are forward-looking statements. Among other things, the description of the management's quotations in this announcement contains forward-looking statements. iHuman may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iHuman's growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract and retain users, convert non-paying users into paying users and increase the spending of paying users, the trends in, and size of, the market in which iHuman operates; its expectations regarding demand for, and market acceptance of, its products and services; its expectations regarding its relationships with business partners; general economic and business conditions; regulatory environment; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in iHuman's filings with the SEC. All information provided in this press release is as of the date of this press release, and iHuman does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About iHuman Inc.

iHuman Inc. is a leading provider of tech-powered, intellectual development products in China that is committed to making the child-upbringing experience easier for parents and transforming intellectual development into a fun journey for children. Benefiting from a deep legacy that combines nearly three decades of experience in the parenthood industry, superior original content, advanced high-tech innovation DNA and research & development capabilities with cutting-edge technologies, iHuman empowers parents with tools to make the child-upbringing experience more efficient. iHuman's unique, fun and interactive product offerings stimulate children's natural curiosity and exploration. The Company's comprehensive suite of innovative and high-quality products include self-directed apps, interactive content and smart devices that cover a broad variety of areas to develop children's abilities in speaking, critical thinking, independent reading and creativity. Leveraging advanced technological capabilities, including 3D engines, AI/AR functionality, and big data analysis on children's behavior & psychology, iHuman believes it will continue to provide superior experience that is efficient and relieving for parents, and effective and fun for children, in China and all over the world, through its integrated suite of tech-powered, intellectual development products.

For more information about iHuman, please visit https://ir.ihuman.com/. 

For investor and media enquiries, please contact:

iHuman Inc.
Mr. Justin Zhang
Investor Relations Director
Phone: +86-10-5780-6606
E-mail: ir@ihuman.com

Christensen
In China
Ms. Alice Li
Phone: +86-10-5900-1548
E-mail: alice.li@christensencomms.com 

In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com

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SOURCE iHuman Inc.