Ambow Education Announces Second Quarter and First Half of 2025 Financial and Operating Results

Rhea-AI Summary

Ambow Education (NYSE American: AMBO) reported strong financial results for Q2 and H1 2025, driven by its HybriU platform adoption. Q2 2025 highlights include net revenues of $2.8 million (up 16.7% YoY), gross profit of $1.5 million (up 15.4%), and net income of $1.8 million ($0.03 per share).

H1 2025 showed notable growth with net revenues reaching $5.1 million (up 6.3% YoY) and operating income of $0.5 million, improving from a $0.4 million loss in H1 2024. The company maintained strong liquidity with $11.3 million in cash resources. Key developments include new HybriU partnerships with Colorado State University and University of the West, plus the launch of corporate products like HybriU Conferencing and the HybriU Global Learning Network.

Positive

• Net revenues increased 16.7% YoY to $2.8 million in Q2 2025
• Operating income improved to $0.5 million in H1 2025 from -$0.4 million loss in H1 2024
• Operating expenses decreased by 23.3% to $2.3 million in H1 2025
• HybriU platform generated $1.2 million in H1 2025 compared to zero revenue in H1 2024
• Strong cash position of $11.3 million as of June 30, 2025
• New partnerships established with two major U.S. universities

Negative

• Slight decline in gross profit margin to 53.6% in Q2 2025 from 54.2% in Q2 2024

Insights

Financial Analyst

Ambow shows promising financial turnaround with HybriU platform driving revenue growth and improved profitability despite still modest absolute numbers.

Ambow Education's Q2 2025 results demonstrate notable progress in its business transformation. The company reported Q2 revenue of $2.8 million, up 16.7% year-over-year, with their new HybriU platform emerging as the primary growth driver. The platform generated $1.2 million in H1 2025 revenues compared to zero in the prior year period, indicating successful market penetration.

Their improved operational efficiency is particularly promising - Q2 operating expenses decreased by 15.4% to $1.1 million, primarily through reduced rental costs. This cost discipline, combined with revenue growth, led to a significant improvement in profitability metrics:

• Q2 operating income tripled to $0.3 million (vs $0.1 million in Q2 2024)
• Q2 net income jumped to $1.8 million (vs $0.1 million in Q2 2024)
• H1 operating income swung positive to $0.5 million (vs -$0.4 million loss in H1 2024)

The company maintains a solid liquidity position with $11.3 million in cash resources, providing sufficient runway for continued product development and expansion efforts. Their gross margin remains stable at 53.6% for Q2 and 54.9% for H1, indicating consistent value delivery despite the product transition.

The strategic expansion of HybriU beyond educational institutions into corporate applications (conferencing, knowledge capture) represents a meaningful TAM expansion. Partnerships with Colorado State University and University of the West, plus the July launch of HybriU Global Learning Network to connect institutions with international students, indicate growing market validation.

Despite these positive developments, investors should note that $5.1 million in H1 revenue still represents a relatively modest absolute business size, requiring significant scaling to justify substantial valuation growth.

CUPERTINO, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE American: AMBO) a U.S.-based innovator of AI-powered phygital (physical + digital) solutions for education, corporate collaboration and live events, today announced its unaudited financial and operating results for the three-month and six-month periods ended June 30, 2025.

First Half of 2025 Financial and Operating Highlights

• HybriU’s net revenues reached $1.2 million in the first half of 2025, compared with no net revenues in the first half of 2024.

• Established HybriU partnerships with two leading U.S. higher education institutions, Colorado State University and University of the West, to elevate the phygital learning experience for students and faculty.

• Broadened the HybriU platform's addressable market by launching a series of new HybriU products for corporate applications, including HybriU Conferencing and HybriU Knowledge Capture.

• Introduced the HybriU Global Learning Network (HGLN) in July to connect U.S. institutions with students worldwide, scale enrollment and provide localized academic and enrollment support.

“In the first half of 2025, we grew our top-line, expanded margins and improved our profitability, all driven by the increasing adoption of our HybriU platform,” said Dr. Jin Huang, Ambow’s President, Chief Executive Officer, and acting Chief Financial Officer. “Our results reflect the strength of our business model and our disciplined approach to managing resources. With $11.3 million in cash resources and HybriU's growing footprint, we’re well-positioned to meet rising demand for hybrid learning and enterprise solutions across borders. In the months ahead, we plan to roll out new HybriU products designed to help universities and global businesses improve engagement and outcomes. With our comprehensive HybriU platform and expanding partnerships, HybriU is helping reshape how people learn and work together, transcending geographic limitations with cutting-edge AI. Looking forward, we remain focused on growing HybriU's impact and building long-term value for all of our stakeholders,” Dr. Huang concluded.

Second Quarter 2025 Financial Results

Net revenues for the second quarter of 2025 increased by 16.7% to $2.8 million from $2.4 million for the same period of 2024. The increase was primarily driven by net revenues generated from HybriU.

Gross profit for the second quarter of 2025 increased by 15.4% to $1.5 million from $1.3 million for the same period of 2024. Gross profit margin was 53.6% for the second quarter of 2025, compared with 54.2% for the second quarter of 2024.

Operating expenses for the second quarter of 2025 decreased by 15.4% to $1.1 million from $1.3 million for the same period of 2024. The decrease was mainly attributable to reduced rental expenses.

Operating income for the second quarter of 2025 was $0.3 million, compared to $0.1 million for the same period of 2024.

Net income attributable to ordinary shareholders for the second quarter of 2025 was $1.8 million, or $0.03 per basic and diluted share, compared to $0.1 million, or $0 per basic and diluted share, for the same period of 2024.

As of June 30, 2025, Ambow maintained cash resources of $11.3 million, comprising cash and cash equivalents of $4.0 million and restricted cash of $7.3 million.

First Six Months 2025 Financial Results

Net revenues for the first six months of 2025 increased by 6.3% to $5.1 million from $4.8 million for the same period of 2024. The increase was primarily due to net revenues generated from HybriU.

Gross profit for the first six months of 2025 increased by 7.7% to $2.8 million from $2.6 million for the same period of 2024. Gross profit margin was 54.9%, compared with 54.2% for the same period of 2024.

Operating expenses for the first six months of 2025 decreased by 23.3% to $2.3 million from $3.0 million for the same period of 2024. The decrease was primarily due to reduced rental expenses.

Operating (loss) income improved to an operating income of $0.5 million for the first six months of 2025, compared with an operating loss of $0.4 million for the same period of 2024.

Net income attributable to ordinary shareholders for the first six months of 2025 was $1.9 million, or $0.03 per basic and diluted share, compared to $0.2 million, or $0 per basic and diluted share, for the same period of 2024.

The Company’s financial and operating results for the second quarter and first half of 2025 can also be found on its Report of Foreign Private Issuer on Form 6-K, to be furnished with the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov.

About Ambow

Ambow Education Holding Ltd. is a U.S.-based, AI-driven technology company offering phygital (physical + digital) solutions for education, corporate conferencing and live events. Through its flagship platform, HybriU, Ambow is shaping the future of learning, collaboration and communication—delivering immersive, intelligent, real-time experiences across industries. For more information, visit Ambow’s corporate website at https://www.ambow.com/.

Follow us on X: @Ambow_Education
Follow us on LinkedIn: Ambow-education-group

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Ambow and the industry. All information provided in this press release is as of the date hereof, and Ambow undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Ambow believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

For more information, please contact:

Ambow Education Holding Ltd.
E-mail: ir@ambow.com

or

Piacente Financial Communications

Tel: +1-212-481-2050
E-mail: ambow@tpg-ir.com

AMBOW EDUCATION HOLDING LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data)
	As of December 31,				As of June 30,
	2024				2025
	$				$
	Audited				Unaudited
ASSETS
Current assets:
Cash and cash equivalents		1,123				4,064
Restricted cash		7,318				7,260
Accounts receivable, net		2,541				2,052
Prepaid and other current assets		659				686
Total current assets		11,641				14,062
Non-current assets:
Property and equipment, net		1,200				1,493
Intangible assets, net		512				507
Operating lease right-of-use asset		2,722				5,793
Other non-current assets		1,296				1,339
Total non-current assets		5,730				9,132
Total assets		17,371				23,194
LIABILITIES
Current liabilities:
Short-term borrowings		2,700				4,904
Accounts payable		749				825
Accrued and other liabilities		1,029				2,284
Income taxes payable		12				58
Operating lease liability, current		2,357				712
Total current liabilities		6,847				8,783
Non-current liabilities:
Operating lease liability, non-current		3,787				5,290
Other non-current liabilities		—				500
Total non-current liabilities		3,787				5,790
Total liabilities		10,634				14,573
EQUITY
Preferred shares
($0.003 par value;1,666,667 shares authorized, nil issued and outstanding as of December 31, 2024 and June 30, 2025)		—				—
Class A Ordinary shares
($0.003 par value; 66,666,667 and 66,666,667 shares authorized, 52,419,109 and 52,419,109 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively)		146				146
Class C Ordinary shares
($0.003 par value; 8,333,333 and 8,333,333 shares authorized, 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively)		13				13
Additional paid-in capital		517,031				517,031
Accumulated deficit		(510,325	)			(508,441	)
Accumulated other comprehensive loss		(128	)			(128	)
Total equity		6,737				8,621
Total liabilities and equity		17,371				23,194

AMBOW EDUCATION HOLDING LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (All amounts in thousands, except for share and per share data)
	For the six months ended June 30,								For the three months ended June 30,
	2024				2025				2024				2025
	$				$				$				$
NET REVENUES
Educational programs and services		4,773				3,902				2,399				1,912
HybriU licensing and selling		—				1,178				—				854
Total net revenues		4,773				5,080				2,399				2,766
COST OF REVENUES
Educational programs and services		(2,208	)			(2,049	)			(1,064	)			(1,071	)
HybriU licensing and selling		—				(220	)			—				(220	)
Total cost of revenues		(2,208	)			(2,269	)			(1,064	)			(1,291	)
GROSS PROFIT		2,565				2,811				1,335				1,475
Operating expenses:
Selling and marketing		(550	)			(499	)			(251	)			(273	)
General and administrative		(2,280	)			(1,642	)			(944	)			(771	)
Research and development		(150	)			(203	)			(75	)			(102	)
Total operating expenses		(2,980	)			(2,344	)			(1,270	)			(1,146	)
OPERATING (LOSS) INCOME		(415	)			467				65				329
OTHER INCOME (EXPENSES)
Interest income (expense), net		66				(41	)			31				(29	)
Other income, net		60				13				33				30
Gain on lease termination		—				1,492				—				1,492
Total other income		126				1,464				64				1,493
(LOSS) INCOME BEFORE INCOME TAX		(289	)			1,931				129				1,822
Income tax benefit (expense)		505				(47	)			(6	)			(47	)
NET INCOME		216				1,884				123				1,775
NET INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS		216				1,884				123				1,775
OTHER COMPREHENSIVE INCOME, NET OF TAX
Other comprehensive income, net		—				—				—				—
TOTAL COMPREHENSIVE INCOME		216				1,884				123				1,775
Net income per share – basic and diluted		0.0038				0.0330				0.0022				0.0311
Net income per ADS – basic and diluted		0.0760				0.6600				0.0440				0.6220
Weighted average shares used in calculating basic and diluted net income per share		57,127,524				57,127,524				57,127,524				57,127,524

FAQ

What were Ambow Education's (AMBO) Q2 2025 earnings results?

In Q2 2025, Ambow reported net revenues of $2.8 million (up 16.7% YoY), gross profit of $1.5 million, and net income of $1.8 million ($0.03 per share).

How much revenue did Ambow's HybriU platform generate in H1 2025?

HybriU generated $1.2 million in net revenues during H1 2025, compared to no revenues in H1 2024.

What is Ambow Education's cash position as of June 30, 2025?

Ambow maintained $11.3 million in cash resources, consisting of $4.0 million in cash and cash equivalents and $7.3 million in restricted cash.

Which universities partnered with Ambow's HybriU platform in 2025?

Ambow established HybriU partnerships with Colorado State University and University of the West to enhance phygital learning experiences.

How did Ambow's operating expenses change in H1 2025?

Operating expenses decreased by 23.3% to $2.3 million in H1 2025, primarily due to reduced rental expenses.