iHuman Inc. Announces First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
iHuman (NYSE: IH) reported first quarter 2026 revenue of RMB182.5 million, down from RMB210.4 million a year earlier. Gross profit was RMB122.0 million and gross margin was 66.8%. The company recorded an operating loss of RMB10.1 million but net income of RMB4.5 million.
Average total MAUs fell to 23.62 million. Operating expenses rose 8.1% to RMB132.1 million, driven by higher sales and marketing. iHuman advanced its AI strategy, launched new content, and began integrating acquired All Knowledge and Perfect Lingo. Cash and short-term investments totaled RMB1,099.9 million.
Positive
- Net income of RMB4.5 million despite an operating loss
- Gross margin remained high at 66.8% in Q1 2026
- Cash, equivalents and short-term investments of RMB1,099.9 million at March 31, 2026
- Cost of revenues declined to RMB60.5 million, in line with lower revenue
- Acquisitions of All Knowledge and Perfect Lingo to expand product ecosystem and AI reach
- Deferred revenue and customer advances of RMB208.1 million supporting future revenue recognition
Negative
- Revenues decreased to RMB182.5 million from RMB210.4 million year over year
- Average total MAUs declined to 23.62 million from 26.51 million
- Shift from prior-year operating income to RMB10.1 million operating loss
- Net income fell to RMB4.5 million from RMB26.5 million year over year
- Total operating expenses rose 8.1% to RMB132.1 million
- Sales and marketing expenses increased 21.6% to RMB50.2 million
News Market Reaction – IH
In the Jun 29 session, IH gained 4.13%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | Earnings release | Negative | +1.5% | Q4 and FY2025 earnings showed revenue decline but maintained profitability and strong cash. |
| Dec 29 | Earnings release | Negative | -0.9% | Q3 2025 results with lower revenue and MAUs but continued profitability and solid cash. |
| Sep 18 | Earnings release | Negative | -3.6% | Q2 2025 update showing revenue decline, softer MAUs but improving profitability metrics. |
| Jun 26 | Earnings release | Negative | -3.4% | Q1 2025 results with revenue pressure from demographics but solid profitability and MAUs. |
| Mar 25 | Earnings release | Negative | -2.3% | Q4 and FY2024 earnings showed revenue decline amid demographic headwinds but steady profits. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings reports have typically led to mild share price declines, with 4 of the last 5 earnings reactions negative.
Key Terms
maus technical
deferred revenue financial
earn-out payments financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Quarter 2026 Highlights
- Revenues were
RMB182 .5 million (US ), compared with$26.5 million RMB210.4 million in the same period last year. - Gross profit was
RMB122 .0 million (US ), compared with$17.7 million RMB143.8 million in the same period last year. - Operating loss was
RMB10.1 million (US ), compared with an operating income of$1.5 million RMB21.6 million in the same period last year. - Net income was
RMB4.5 million (US ), compared with$0.7 million RMB26.5 million in the same period last year. - Average total MAUs[1] for the first quarter were 23.62 million, compared with 26.51 million in the same period last year.
[1] "Average total MAUs" refers to the monthly average of the sum of the MAUs of each of the Company's apps during a specific period, which is counted based on the number of unique mobile devices through which such app is accessed at least once in a given month, and duplicate access to different apps is not eliminated from the total MAUs calculation. |
Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "In the first quarter of 2026, we continued to navigate a challenging operating environment with focus and resolve. While evolving demographic trends in
As part of our AI strategy, we continue to expand the application of next-generation AI technologies across knowledge acquisition and personal development, enhancing our AI agent capabilities to enable more interactive, personalized, and emotionally engaging user experiences. During the quarter, our AI-native app Xiaomo Writing continued to evolve around the writing journey through Xiaoyudian, its core AI agent, which guides children in observing, thinking, and expressing themselves. Built on adaptive interaction and long-term personalized memory, Xiaoyudian continuously learns each user's expression style, thinking patterns, and learning behaviors, enabling increasingly personalized support and encouragement over time. The app also features a dedicated parent-facing AI agent that translates learning progress into clear and actionable insights, helping parents better understand and participate in their children's development. Unlike general-purpose AI learning tools, AI agents designed around specific learning objectives and long-term learner development are better equipped to understand context, build personalized knowledge over time, and provide targeted support. We believe this approach not only creates a differentiated product experience, but also positions us to build a scalable AI agent ecosystem that can extend across broader learning scenarios and wider age groups over time.
Beyond our product and AI innovation efforts, we implemented the acquisition of the businesses and assets related to All Knowledge and Perfect Lingo, marking an important milestone in expanding our product ecosystem, broadening our user reach across a wider range of ages and learning needs, and increasing our total addressable market. We believe these additions will further enhance the depth and diversity of our ecosystem, strengthen our AI innovation capabilities, and unlock exciting new opportunities to serve learners throughout every stage of their lifelong learning journeys. We are also delighted to welcome Mr. Teng Li as Co-Chief Executive Officer and Ms. Congyu Lin as Chief Strategy Officer. Their entrepreneurial vision, strategic insight, and extensive industry experience will strengthen our leadership team and help accelerate our next phase of innovation and growth.
Looking ahead, we believe our expanding product ecosystem, strengthening AI capabilities, and growing global user community will continue to reinforce iHuman's long-term positioning and drive continued growth."
Mr. Teng Li, Co-Chief Executive Officer of iHuman, stated, "I am excited to join iHuman at such an important stage of its development. All Knowledge and Perfect Lingo share iHuman's longstanding commitment to leveraging technology, high-quality content, and thoughtful product design to create engaging and meaningful learning experiences. Through All Knowledge, we have built a vibrant community for knowledge discovery and lifelong learning, combining rich humanities content, AI literacy, and innovative learning tools to support intellectual exploration and continuous personal growth. Perfect Lingo is an AI-powered language learning platform that combines personalized learning with rich, real-world content, helping users across a broad range of ages and backgrounds build language proficiency. We see strong alignment in vision and values, as well as significant opportunities to build on each other's strengths. By bringing together our complementary products, content assets, user communities, and AI capabilities, we believe we can create richer learning experiences, reach a broader range of users, and accelerate innovation and growth across our ecosystem. I look forward to working closely with the team as we continue building products that inspire curiosity, support lifelong learning, and create lasting value for our users."
Ms. Vivien Weiwei Wang, Director and Chief Financial Officer of iHuman, added, "During the quarter, we remained focused on execution while continuing to invest in the key capabilities and strategic initiatives that we believe will support our long-term growth. As part of this strategy, we intentionally increased investments in new product exploration and development, AI capabilities, international market expansion, and targeted marketing initiatives designed to strengthen our long-term competitive position. We are prioritizing long-term value creation. While these investments impacted our near-term financial results, we believe they will enhance our innovation capabilities, broaden our growth opportunities, and create a stronger foundation for sustainable growth over the long-term.
Our existing IP portfolio continued to demonstrate enduring appeal among children and families. At Kunpeng Animation Studio, we further strengthened our original animation capabilities and continued expanding the Cosmicrew universe. Recently, we launched Little Cosmicrew, a new series centered on the childhood stories of the beloved Cosmicrew characters. By exploring the friendships, adventures, and formative experiences that shaped these characters before they became the heroes audiences know today, the series delivers a relatable and emotionally engaging viewing experience for young audiences, further deepening audience affinity and extending the long-term vitality of the Cosmicrew franchise.
Moving forward, we will continue investing in high-quality content development, AI-driven innovation, international expansion, and user engagement, while maintaining a thoughtful approach to capital allocation and investment efficiency. We believe these strategic investments will further strengthen our competitive position and create sustainable long-term value for our users and shareholders."
First Quarter 2026 Unaudited Financial Results
Revenues
Revenues were
Average total MAUs for the quarter were 23.62 million, compared with 26.51 million in the same period last year. The decrease in MAUs was primarily due to the decline in
Cost of Revenues
Cost of revenues was
Gross Profit and Gross Margin
Gross profit was
Operating Expenses
Total operating expenses were
Research and development expenses were
Sales and marketing expenses were
General and administrative expenses were
Operating Income (Loss)
Operating loss was
Net Income
Net income was
Basic and diluted net income per ADS were
Deferred Revenue and Customer Advances
Deferred revenue and customer advances were
Cash, Cash Equivalents and Short-term Investments
Cash, cash equivalents and short-term investments were
Acquisition of Businesses and Assets
Following the execution of the asset transfer agreements announced on May 31, 2026, integration activities relating to the acquisitions of the businesses and assets of All Knowledge (全知识) and Perfect Lingo (万词王) (the "Acquisitions") are progressing as planned. The acquisitions are expected to further expand the Company's product ecosystem and user reach while strengthening its AI capabilities across broader learning scenarios. The total consideration consists of upfront payments of
Exchange Rate Information
The
Non-GAAP Financial Measures
iHuman considers and uses non-GAAP financial measures, such as adjusted operating income (loss), 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
Non-GAAP financial measures are not defined under
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
About iHuman Inc.
iHuman Inc. is a leading provider of tech-powered knowledge and personal growth products. Backed by 30 years of experience serving children and families, iHuman combines cutting-edge technologies, a distinctive edutainment philosophy, and high-quality original content to help users expand their horizons, unlock their potential, and foster personal growth. The Company has built a comprehensive product ecosystem spanning interactive digital applications, smart devices, consumer products, and a popular, award-winning animation division. By integrating AI, machine learning, AR/VR, 3D engines, and big data analytics with meticulously crafted content, iHuman delivers engaging and highly personalized experiences for users of all ages, helping them acquire knowledge, develop skills, and enhance their overall capabilities. Through its rapidly expanding international presence, iHuman is cultivating a vibrant global user community and extending the reach of its products, content, and proprietary IPs to families and users around the world.
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 Advisory
Ms. Alice Li
Phone: +86-10-5900-1548
E-mail: ihumangroup@christensencomms.com
iHuman Inc. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Amounts in thousands of Renminbi ("RMB") and | |||||
except for number of shares, ADSs, per share and per ADS data) | |||||
December 31, | March 31, | March 31, | |||
2025 | 2026 | 2026 | |||
RMB | RMB | US$ | |||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 1,151,120 | 356,478 | 51,678 | ||
Short-term investments | - | 743,457 | 107,779 | ||
Accounts receivable, net | 47,070 | 51,452 | 7,459 | ||
Inventories, net | 21,388 | 27,828 | 4,034 | ||
Amounts due from related parties | 4,314 | 3,340 | 484 | ||
Prepayments and other current assets | 74,483 | 76,036 | 11,023 | ||
Total current assets | 1,298,375 | 1,258,591 | 182,457 | ||
Non-current assets | |||||
Property and equipment, net | 2,563 | 2,682 | 389 | ||
Intangible assets, net | 17,634 | 17,103 | 2,479 | ||
Operating lease right-of-use assets | 11,586 | 11,146 | 1,616 | ||
Long-term investment | 26,333 | 26,333 | 3,817 | ||
Other non-current assets | 11,864 | 11,509 | 1,669 | ||
Total non-current assets | 69,980 | 68,773 | 9,970 | ||
Total assets | 1,368,355 | 1,327,364 | 192,427 | ||
LIABILITIES | |||||
Current liabilities | |||||
Accounts payable | 25,083 | 28,123 | 4,077 | ||
Deferred revenue and customer advances | 219,913 | 208,085 | 30,166 | ||
Amounts due to related parties | 1,066 | 2,397 | 347 | ||
Accrued expenses and other current liabilities | 115,749 | 83,313 | 12,078 | ||
Dividend payable | - | 35,477 | 5,143 | ||
Current operating lease liabilities | 2,166 | 2,166 | 314 | ||
Total current liabilities | 363,977 | 359,561 | 52,125 | ||
Non-current liabilities | |||||
Non-current operating lease liabilities | 9,208 | 8,799 | 1,276 | ||
Total non-current liabilities | 9,208 | 8,799 | 1,276 | ||
Total liabilities | 373,185 | 368,360 | 53,401 | ||
SHAREHOLDERS' EQUITY | |||||
Ordinary shares (par value of | 186 | 186 | 27 | ||
Additional paid-in capital | 960,641 | 960,720 | 139,275 | ||
Treasury stock | (43,483) | (43,483) | (6,304) | ||
Statutory reserves | 8,463 | 8,463 | 1,227 | ||
Accumulated other comprehensive income | 16,134 | 10,770 | 1,561 | ||
Retained earnings | 53,229 | 22,348 | 3,240 | ||
Total shareholders' equity | 995,170 | 959,004 | 139,026 | ||
Total liabilities and shareholders' equity | 1,368,355 | 1,327,364 | 192,427 | ||
iHuman Inc. | |||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(Amounts in thousands of Renminbi ("RMB") and | |||||
except for number of shares, ADSs, per share and per ADS data) | |||||
For the three months ended | |||||
March 31, | March 31, | March 31, | |||
2025 | 2026 | 2026 | |||
RMB | RMB | US$ | |||
Revenues | 210,439 | 182,496 | 26,456 | ||
Cost of revenues | (66,663) | (60,520) | (8,774) | ||
Gross profit | 143,776 | 121,976 | 17,682 | ||
Operating expenses | |||||
Research and development expenses | (55,385) | (56,500) | (8,191) | ||
Sales and marketing expenses | (41,255) | (50,175) | (7,274) | ||
General and administrative expenses | (25,539) | (25,388) | (3,680) | ||
Total operating expenses | (122,179) | (132,063) | (19,145) | ||
Operating income (loss) | 21,597 | (10,087) | (1,463) | ||
Other income, net | 8,000 | 14,611 | 2,118 | ||
Income before income taxes | 29,597 | 4,524 | 655 | ||
Income tax expenses | (3,079) | (8) | (1) | ||
Net income | 26,518 | 4,516 | 654 | ||
Net income per ADS: | |||||
- Basic | 0.51 | 0.09 | 0.01 | ||
- Diluted | 0.49 | 0.09 | 0.01 | ||
Weighted average number of ADSs: | |||||
- Basic | 51,888,345 | 51,109,944 | 51,109,944 | ||
- Diluted | 53,884,134 | 53,060,129 | 53,060,129 | ||
Total share-based compensation expenses included in: | |||||
Cost of revenues | 8 | 3 | 0 | ||
Research and development expenses | 110 | 32 | 5 | ||
Sales and marketing expenses | 16 | (15) | (2) | ||
General and administrative expenses | 104 | 28 | 4 | ||
iHuman Inc. | |||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||
(Amounts in thousands of Renminbi ("RMB") and | |||||
except for number of shares, ADSs, per share and per ADS data) | |||||
For the three months ended | |||||
March 31, | March 31, | March 31, | |||
2025 | 2026 | 2026 | |||
RMB | RMB | US$ | |||
Operating income (loss) | 21,597 | (10,087) | (1,463) | ||
Share-based compensation expenses | 238 | 48 | 7 | ||
Adjusted operating income (loss) | 21,835 | (10,039) | (1,456) | ||
Net income | 26,518 | 4,516 | 654 | ||
Share-based compensation expenses | 238 | 48 | 7 | ||
Adjusted net income | 26,756 | 4,564 | 661 | ||
Diluted net income per ADS | 0.49 | 0.09 | 0.01 | ||
Impact of non-GAAP adjustments | 0.01 | 0.00 | 0.00 | ||
Adjusted diluted net income per ADS | 0.50 | 0.09 | 0.01 | ||
Weighted average number of ADSs – diluted | 53,884,134 | 53,060,129 | 53,060,129 | ||
Weighted average number of ADSs – adjusted | 53,884,134 | 53,060,129 | 53,060,129 | ||
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SOURCE iHuman Inc.