Exhibit 99.1
FOR
IMMEDIATE RELEASE
Ambow
Education Holding Ltd. (NYSE American: AMBO) Announces Third Quarter and First Nine Months of 2026 Financial Results
Both
business lines grew in the quarter; investment in HybriU product launches and go-to-market increased ahead of CES 2027; net cash used
in operating activities cut in half year to date
Key
Facts At-a-Glance
| ● | Who:
Ambow Education Holding Ltd. (NYSE American: AMBO), an AI-driven technology company delivering
phygital intelligence solutions for education, enterprise collaboration and live events. |
| ● | What:
Unaudited financial and operating results for the three-month and nine-month periods ended
September 30, 2026. |
| ● | When:
Reported November 10, 2026; Quarterly Report on Form 10-Q filed with the SEC the same day. |
| ● | Revenue:
Third quarter net revenues increased 21.4% to $1.7 million from $1.4 million, with educational
programs and services and HybriU licensing and sales both up year over year; nine-month net
revenues increased 6.2% to $6.9 million from $6.5 million. |
| ● | Growth
Investment: Combined selling and marketing and research and development expenses increased
by $0.5 million year over year to $1.6 million for the first nine months of 2026, reflecting
continued investment in HybriU product launches, partner channel development, and NewSchool
student recruitment initiatives. |
| ● | Cost
Discipline: General and administrative expenses decreased 8.7% to $2.1 million for the
first nine months of 2026; net cash used in operating activities decreased by half to $0.7
million from $1.4 million. |
| ● | Balance
Sheet: Cash, restricted cash and short-term investments totaled $6.1 million, with positive
working capital of $3.9 million and net assets of $7.9 million as of September 30, 2026;
total liabilities decreased to $10.4 million from $12.5 million as of December 31, 2025. |
CUPERTINO,
Calif., November 10, 2026 (GLOBE NEWSWIRE) — Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE
American: AMBO), an AI-driven technology company delivering phygital intelligence solutions for education, enterprise collaboration and
live events, today announced its unaudited financial and operating results for the three-month and nine-month periods ended September
30, 2026.
Third
Quarter and First Nine Months 2026 and Recent Financial and Operating Highlights
Growth
| ● | Net
revenues for the third quarter of 2026 increased 21.4% year over year to $1.7 million, with
both business lines contributing. Educational programs and services revenue increased to
$1.3 million from $1.1 million, and HybriU licensing and sales revenue increased to $0.4
million from $0.3 million. |
| ● | Net
revenues for the first nine months of 2026 increased 6.2% year over year to $6.9 million,
led by educational programs and services, which increased to $5.3 million from $5.0 million. |
Subsequent
Event
| ● | Subsequent
to quarter end, Ambow announced that HybriU will exhibit at CES 2027, January 6 through 9,
2027, at Booth #10308 in the Las Vegas Convention Center North Hall, where the Company will
demonstrate a working phygital classroom, meeting room and event environment to the channel
partners, integrators, enterprises and institutions that deploy and use HybriU. |
“Both
of our business lines contributed to revenue growth in the third quarter, reflecting continued progress in our education services and
technology businesses,” said Dr. Jin Huang, Chief Executive Officer and Chair of the Board of Ambow Education Holding Ltd.
“During
the quarter, we increased combined selling and marketing and research and development expenses by $0.2 million to support the commercial
launches of HybriU Events On Demand and the AI-Driven Adaptive Course Generator, further strengthen HybriU’s positioning as Digital
Intelligent Infrastructure, and prepare for CES 2027 in January.
These
strategic investments were supported by continued improvements in operating efficiency. Year to date, net cash used in operating activities
decreased by approximately 50% compared with the same period last year. General and administrative expenses also declined again during
the quarter. As of September 30, 2026, the Company had $6.1 million in cash, restricted cash and short-term investments.”
Third
Quarter 2026 Financial Results
Net
revenues for the third quarter of 2026 increased by 21.4% to $1.7 million from $1.4 million for the same period of 2025. Educational
programs and services revenue increased to $1.3 million from $1.1 million, and HybriU licensing and sales revenue increased to $0.4 million
from $0.3 million.
Gross
profit for the third quarter of 2026 was $0.5 million, compared with $0.5 million for the same period of 2025. Gross profit margin was
30.6% for the third quarter of 2026, compared with 35.7% for the third quarter of 2025.
Operating
expenses for the third quarter of 2026 increased by 18.2% to $1.3 million from $1.1 million for the same period of 2025. The increase
was attributable to growth investment: selling and marketing expenses increased to $0.4 million from $0.3 million and research and development
expenses increased to $0.2 million from $0.1 million, a combined increase of $196 thousand, while general and administrative expenses
decreased by $40 thousand to $0.7 million.
Operating
loss for the third quarter of 2026 was $0.8 million, compared with an operating loss of $0.6 million for the same period of 2025. The
$148 thousand increase in operating loss reflected the $196 thousand increase in combined selling and marketing and research and development
expenses, partially offset by the reduction in general and administrative expenses.
Net
loss attributable to ordinary shareholders for the third quarter of 2026 was $0.8 million, or $0.27 per basic and diluted ADS, compared
with a net loss of $0.6 million, or $0.21 per basic and diluted ADS, for the same period of 2025.
First
Nine Months 2026 Financial Results
Net
revenues for the first nine months of 2026 increased by 6.2% to $6.9 million from $6.5 million for the same period of 2025. The increase
was primarily due to net revenues generated by educational programs and services, which increased to $5.3 million from $5.0 million.
HybriU licensing and sales revenue was $1.5 million in both periods.
Gross profit for the first nine months of 2026 increased by 3.0% to
$3.4 million from $3.3 million for the same period of 2025. Gross profit margin was 50.0% for the first nine months of 2026, compared
with 51.1% for the same period of 2025. The change in gross margin was mainly attributable to an increase in academic costs associated
with the delivery of educational programs, which exceeded the growth in revenue during the period.
Operating
expenses for the first nine months of 2026 increased by 11.4% to $3.9 million from $3.5 million for the same period of 2025. Selling
and marketing expenses increased to $1.0 million from $0.8 million and research and development expenses increased to $0.6 million from
$0.3 million, a combined increase of $489 thousand directed to HybriU product launches, go-to-market programs and NewSchool enrollment.
General and administrative expenses decreased 8.7% to $2.1 million from $2.3 million. Operating expenses for 2026 also included a $161
thousand non-cash impairment loss on construction in progress recognized in the second quarter.
Operating
loss for the first nine months of 2026 was $0.5 million, compared with an operating loss of $0.2 million for the same period of 2025.
The $301 thousand increase in operating loss reflected the $489 thousand increase in combined selling and marketing and research and
development expenses and the $161 thousand impairment loss, partially offset by a $236 thousand reduction in general and administrative
expenses and a $113 thousand increase in gross profit.
Net
loss attributable to ordinary shareholders for the first nine months of 2026 was $0.5 million, or $0.17 per basic and diluted ADS, compared
with net income of $1.3 million, or $0.44 per basic and diluted ADS, for the same period of 2025. Net income for the first nine months
of 2025 included a one-time gain on lease settlement of $1.5 million recognized in the second quarter of 2025.
Balance
Sheet and Liquidity
As
of September 30, 2026, Ambow maintained cash resources of $6.1 million, comprising cash and cash equivalents of $2.4 million, restricted
cash of $2.7 million and short-term investments of $1.0 million in time deposits. Cash and cash equivalents increased from $0.8 million
as of December 31, 2025, as $4.6 million of restricted cash was released during the period. As of September 30, 2026, the Company’s
consolidated current assets exceeded its consolidated current liabilities by $3.9 million, and consolidated net assets were $7.9 million.
Total
liabilities decreased to $10.4 million as of September 30, 2026 from $12.5 million as of December 31, 2025, including a reduction in
accounts payable to $0.9 million from $1.6 million, while borrowings were unchanged at $3.2 million. Net cash used in operating activities
was $0.7 million for the first nine months of 2026, compared with $1.4 million for the same period of 2025.
The
Company’s financial and operating results for the third quarter and first nine months of 2026 are also available in its Quarterly
Report on Form 10-Q, filed with the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov.
About
Ambow Education Holding Ltd.
Ambow
Education Holding Ltd. (NYSE American: AMBO) is an AI-driven technology company delivering phygital intelligence solutions for education,
enterprise collaboration and live events.
Founded
in 2000 and headquartered in Cupertino, California, Ambow develops technologies that connect physical environments, artificial intelligence,
digital systems, workflows and institutional knowledge.
Through
HybriU, Ambow enables institutions and professionals to capture, organize, activate and reuse knowledge generated across classrooms,
meetings and events, creating intelligence assets that can become more valuable over time.
For
more information, visit www.ambow.com and www.hybriu.com.
Follow
Ambow on X: @Ambow_Education
Follow
Ambow 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. Additional information regarding these and other risks is included
in the Company’s filings with the SEC. 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.
Investor
and Media Contact
Ambow
Education Holding Ltd.
Email:
ir@ambow.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
September 30, | |
| | |
2025 | | |
2026 | |
| | |
(Audited) | | |
(Unaudited) | |
| ASSETS | |
| | |
| |
| Current assets: | |
| | |
| |
| Cash and cash equivalent | |
$ | 831 | | |
$ | 2,404 | |
| Restricted cash | |
| 7,260 | | |
| 2,700 | |
| Short-term investments | |
| — | | |
| 1,000 | |
| Accounts receivable, net | |
| 2,288 | | |
| 929 | |
| Inventory | |
| 80 | | |
| 380 | |
| Prepaid and other current assets, net | |
| 410 | | |
| 456 | |
| Total current assets | |
| 10,869 | | |
| 7,869 | |
| Non-current assets: | |
| | | |
| | |
| Property and equipment, net | |
| 1,984 | | |
| 1,747 | |
| Intangible assets, net | |
| 1,662 | | |
| 3,302 | |
| Other non-current assets, net | |
| 969 | | |
| 834 | |
| Operating lease right-of-use asset | |
| 5,312 | | |
| 4,528 | |
| Total non-current assets | |
| 9,927 | | |
| 10,411 | |
| | |
| | | |
| | |
| Total assets | |
$ | 20,796 | | |
$ | 18,280 | |
| LIABILITIES | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Short-term borrowings | |
$ | 500 | | |
$ | 500 | |
| Accounts payable | |
| 1,609 | | |
| 902 | |
| Accrued and other liabilities | |
| 1,542 | | |
| 1,060 | |
| Income taxes payable, current | |
| 1 | | |
| 1 | |
| Operating lease liability, current | |
| 1,285 | | |
| 1,506 | |
| Total current liabilities | |
| 4,937 | | |
| 3,969 | |
| Non-current liabilities: | |
| | | |
| | |
| Long-term borrowings | |
| 2,700 | | |
| 2,700 | |
| Other non-current liabilities | |
| 167 | | |
| — | |
| Operating lease liability, non-current | |
| 4,742 | | |
| 3,761 | |
| Total non-current liabilities | |
| 7,609 | | |
| 6,461 | |
| | |
| | | |
| | |
| Total liabilities | |
$ | 12,546 | | |
$ | 10,430 | |
| | |
| | | |
| | |
| Commitments and contingencies | |
| — | | |
| — | |
| | |
| | | |
| | |
| EQUITY | |
| | | |
| | |
| 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, 2025 and September 30, 2026, 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, 2025 and September 30, 2026, respectively) | |
| 13 | | |
| 13 | |
| Additional paid-in capital | |
| 517,185 | | |
| 517,280 | |
| Accumulated deficit | |
| (508,966 | ) | |
| (509,461 | ) |
| Accumulated other comprehensive loss | |
| (128 | ) | |
| (128 | ) |
| Total equity | |
| 8,250 | | |
| 7,850 | |
| Total liabilities and equity | |
$ | 20,796 | | |
$ | 18,280 | |
AMBOW
EDUCATION HOLDING LTD.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(All
amounts in thousands, except for share and per share data) (Unaudited)
| | |
For the nine months ended
September 30, | | |
For the three months ended
September 30, | |
| | |
2025 | | |
2026 | | |
2025 | | |
2026 | |
| NET REVENUES | |
| | |
| | |
| | |
| |
| - Educational program and services | |
$ | 4,976 | | |
$ | 5,332 | | |
$ | 1,074 | | |
$ | 1,258 | |
| - HybriU licensing and sales | |
| 1,506 | | |
| 1,521 | | |
| 328 | | |
| 403 | |
| Total net revenues | |
| 6,482 | | |
| 6,853 | | |
| 1,402 | | |
| 1,661 | |
| COST OF REVENUES | |
| | | |
| | | |
| | | |
| | |
| - Educational program and services | |
| (2,950 | ) | |
| (3,428 | ) | |
| (901 | ) | |
| (1,152 | ) |
| - HybriU licensing and sales | |
| (220 | ) | |
| — | | |
| — | | |
| — | |
| Total cost of revenues | |
| (3,170 | ) | |
| (3,428 | ) | |
| (901 | ) | |
| (1,152 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| GROSS PROFIT | |
| 3,312 | | |
| 3,425 | | |
| 501 | | |
| 509 | |
| OPERATING EXPENSES | |
| | | |
| | | |
| | | |
| | |
| Selling and marketing | |
| (778 | ) | |
| (1,018 | ) | |
| (279 | ) | |
| (399 | ) |
| General and administrative | |
| (2,348 | ) | |
| (2,112 | ) | |
| (706 | ) | |
| (666 | ) |
| Research and development | |
| (348 | ) | |
| (597 | ) | |
| (145 | ) | |
| (221 | ) |
| Impairment loss | |
| — | | |
| (161 | ) | |
| — | | |
| — | |
| Total operating expenses | |
| (3,474 | ) | |
| (3,888 | ) | |
| (1,130 | ) | |
| (1,286 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| OPERATING LOSS | |
| (162 | ) | |
| (463 | ) | |
| (629 | ) | |
| (777 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| OTHER (EXPENSE) INCOME | |
| | | |
| | | |
| | | |
| | |
| Interest income (expenses), net | |
| 35 | | |
| 2 | | |
| 76 | | |
| (9 | ) |
| Other (expenses) income, net | |
| (45 | ) | |
| (6 | ) | |
| (58 | ) | |
| 27 | |
| Gain on lease settlement | |
| 1,492 | | |
| — | | |
| — | | |
| — | |
| Total other income (expenses), net | |
| 1,482 | | |
| (4 | ) | |
| 18 | | |
| 18 | |
| | |
| | | |
| | | |
| | | |
| | |
| INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS | |
| 1,320 | | |
| (467 | ) | |
| (611 | ) | |
| (759 | ) |
| Income tax expenses | |
| (49 | ) | |
| (28 | ) | |
| (2 | ) | |
| (14 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| NET INCOME (LOSS) | |
$ | 1,271 | | |
$ | (495 | ) | |
$ | (613 | ) | |
$ | (773 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| NET INCOME (LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS | |
$ | 1,271 | | |
$ | (495 | ) | |
$ | (613 | ) | |
$ | (773 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| OTHER COMPREHENSIVE INCOME, NET OF TAX | |
| | | |
| | | |
| | | |
| | |
| Other comprehensive income | |
| — | | |
| — | | |
| — | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | |
| TOTAL COMPREHENSIVE INCOME (LOSS) | |
| 1,271 | | |
| (495 | ) | |
| (613 | ) | |
| (773 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Basic income (loss) per share | |
$ | 0.0222 | | |
$ | (0.0087 | ) | |
$ | (0.0107 | ) | |
$ | (0.0135 | ) |
| Diluted income (loss) per share | |
$ | 0.0222 | | |
$ | (0.0087 | ) | |
$ | (0.0107 | ) | |
$ | (0.0135 | ) |
| Basic income (loss) per ADS | |
$ | 0.4440 | | |
$ | (0.1740 | ) | |
$ | (0.2140 | ) | |
$ | (0.2700 | ) |
| Diluted income (loss) per ADS | |
$ | 0.4440 | | |
$ | (0.1740 | ) | |
$ | (0.2140 | ) | |
$ | (0.2700 | ) |
| Weighted average shares used in calculating basic net income (loss) per share | |
| 57,127,524 | | |
| 57,127,524 | | |
| 57,127,524 | | |
| 57,127,524 | |
| Weighted average shares used in calculating diluted net income (loss) per share | |
| 57,377,554 | | |
| 57,127,524 | | |
| 57,127,524 | | |
| 57,127,524 | |
| Share-based compensation expense included in: | |
| | | |
| | | |
| | | |
| | |
| - Selling and marketing | |
| — | | |
| 8 | | |
| — | | |
| 3 | |
| - General and administrative | |
| — | | |
| 37 | | |
| — | | |
| 12 | |
| - Research and development | |
| — | | |
| 50 | | |
| — | | |
| 17 | |
