51Talk Online Education Group Announces Engagement of Ernst & Young LLP, as the Company's Independent Registered Public Accounting Firm

Rhea-AI Summary

51Talk Online Education Group (NYSE American: COE) has announced a significant change in its auditing partnership. The company has appointed Ernst & Young LLP as its new independent registered public accounting firm, effective September 3, 2025, replacing Marcum Asia CPAs LLP. Ernst & Young will be responsible for auditing the company's annual consolidated financial statements for the fiscal year ending December 31, 2025.

The transition was approved by 51Talk's audit committee and board of directors on August 29, 2025. The company emphasized that the change was not due to any disagreements with Marcum, and there are no concerning matters that shareholders need to be aware of regarding this transition.

Positive

• Engagement of Big Four accounting firm Ernst & Young LLP indicates commitment to high auditing standards
• Smooth transition with no disagreements or unresolved matters with previous auditor

Negative

• None.

Insights

Corporate Governance Expert

51Talk's switch to EY from Marcum represents a potential upgrade to a Big Four firm, though routine in nature.

51Talk's change in auditors from Marcum Asia CPAs to Ernst & Young LLP appears to be a routine corporate governance development rather than a sign of underlying issues. The company explicitly stated there were no disagreements with Marcum prompting this transition, which is reassuring for investors concerned about potential accounting irregularities. The switch to EY, one of the prestigious Big Four accounting firms, could be interpreted as a positive signal of 51Talk's maturation and commitment to robust financial reporting standards. Large institutional investors often prefer companies audited by Big Four firms due to their global reputation and extensive resources. This transition might enhance 51Talk's credibility in capital markets, potentially making it more attractive to institutional investors who maintain strict governance requirements. However, investors should note that such auditor changes typically come with higher audit fees, which could marginally increase operating costs. The timing of the change—just before the fiscal year ending December 31, 2025—follows a logical timeline, allowing EY sufficient onboarding time before conducting the full-year audit.

SINGAPORE, Sept. 3, 2025 /PRNewswire/ -- 51Talk Online Education Group ("51Talk" or the "Company") (NYSE American: COE), a global online education platform with core expertise in English education, today announced that on August 29, 2025, the audit committee of its board of directors and the board of directors have approved the dismissal of Marcum Asia CPAs LLP ("Marcum") as its independent registered public accounting firm, effective immediately, and the engagement of Ernst & Young LLP as the Company's new independent registered public accounting firm, effective on September 3, 2025. Ernst & Young LLP will be engaged to audit the annual consolidated financial statements of the Company and its subsidiaries (the "Group") filed with the U.S. Securities and Exchange Commission for the fiscal year ending December 31, 2025.

This transition was not the result of any disagreements or unresolved matters with Marcum, the incumbent auditor of the Company, and there are no matters with respect to this transition that need to be brought to the attention of the Company's shareholders. The Company is grateful to Marcum for its past services to the Company.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("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. Statements that are not historical facts, including statements about 51Talk's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in 51Talk's filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About 51Talk Online Education Group

51Talk Online Education Group (NYSE American: COE) is a global online education platform with core expertise in English education. The Company's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enable students to take live interactive English lessons on demand. The Company connects its students with highly qualified teachers using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.

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SOURCE 51Talk Online Education Group

FAQ

Why did 51Talk (NYSE American: COE) change its auditing firm in 2025?

51Talk changed from Marcum Asia CPAs LLP to Ernst & Young LLP as part of a normal transition, with no disagreements or unresolved matters reported. The change was approved by the audit committee and board of directors.

When will Ernst & Young begin auditing 51Talk's financial statements?

Ernst & Young LLP will begin auditing 51Talk's consolidated financial statements effective September 3, 2025, covering the fiscal year ending December 31, 2025.

Were there any disputes between 51Talk and its previous auditor Marcum?

No, the company explicitly stated there were no disagreements or unresolved matters with Marcum Asia CPAs LLP, and the transition does not require any special attention from shareholders.

Who approved the change in 51Talk's auditing firm?

The change was approved by 51Talk's audit committee and board of directors on August 29, 2025.