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iHuman Inc. Unveils Fourth Quarter and Fiscal Year 2025 Results

Introduction
Beijing, March 31, 2026 - iHuman Inc. (NYSE: IH), recognized as a premier developer of tech-enhanced educational products in China, has released its unaudited financial results for the fourth quarter and fiscal year ending December 31, 2025. Despite facing a challenging market environment, the company showcased a strategic approach towards operational resilience.

Quarter Highlights

In Q4 2025, iHuman reported revenues of RMB 190.7 million (approximately US$27.3 million), a decline from RMB 232.7 million in the previous year. The company's gross profit followed a similar trend, decreasing to RMB 127.5 million (around US$18.2 million) from RMB 156.4 million a year prior.

An operating income of RMB 9.0 million (about US$1.3 million) was recorded, down from RMB 14.9 million, while net income stood at RMB 15.4 million (US$2.2 million), experiencing a decrease from RMB 26.5 million. Moreover, the average monthly active users (MAUs) totaled 23.57 million, a drop from 25.78 million year-on-year, primarily attributed to the declining birth rate in China.

Fiscal Year Insights

For the entire fiscal year 2025, revenues amounted to RMB 807.0 million (US$115.4 million), down from RMB 922.2 million in 2024. The yearly gross profit reached RMB 547.6 million (US$78.3 million) against RMB 640.2 million the previous year. Operating income was RMB 66.8 million (US$9.5 million), less than the RMB 71.9 million reported for 2024. Net income fell to RMB 95.4 million (US$13.6 million) from RMB 98.6 million, highlighting the impact of market conditions on the company’s performance.

Strategic Initiatives and Innovations

In light of shifting demographics influencing childhood education, iHuman's CEO, Dr. Peng Dai, emphasized the firm's proactive approach in adapting their product lineup. A significant development during this period was the introduction of FreeTalk, an AI-driven application designed to enhance oral English skills for a diverse range of learners. This application features AI-powered digital tutors, providing an interactive and supportive environment for users to improve their English proficiency without the fear of judgment.

In parallel, iHuman has expanded its educational toolkit with the launch of innovative modules and devices. For example, the Animal Park feature within iHuman Chinese allows children to learn Chinese characters through engaging, game-like interactions that incorporate frequent reinforcement, motivating young users to develop their literacy skills through play. Additionally, iHuman has introduced a bilingual early learning tablet that combines their rich content ecosystem, aiming to nurture a love for learning while incorporating eye-protection features for healthy usage.

Furthermore, the content creation wing, Kunpeng Animation Studio, made strides in original content with the release of its second film, Ice Planet, from the Cosmicrew franchise. The studio's initiatives included interactive fan engagement activities, deepening brand connection with their young audience.

Looking Ahead

As iHuman navigates the complexities of 2026, Mr. Vivien Weiwei Wang, CFO, pointed out the company's commitment to enhancing product innovation and furthering their international presence, as evidenced by the rising popularity of their Aha World platform in international markets, particularly in the U.S. This growth reflects a robust response to their content quality and innovative design.

In conclusion, the company has declared a special cash dividend of US$0.02 per ordinary share as part of its commitment to shareholder returns, continuing a trend of profit sharing for the third consecutive year.

Conclusion

Amid the challenges posed by a changing environment, iHuman is dedicated to evolving its offerings and maintaining operational effectiveness, ensuring its commitment to creating value for shareholders and enhancing the user experience in its mission to enrich children's education worldwide.