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iHuman Inc. Financial Results: Q1 2025

On June 26, 2025, iHuman Inc. (NYSE: IH), a notable player in the tech-powered educational sector in China, unveiled its unaudited financial outcomes for the first quarter ending March 31, 2025. This report provides insight into the company's performance amid challenging market conditions while highlighting its ongoing innovations in educational products.

Q1 2025 Highlights

The company's revenue amounted to RMB210.4 million (approximately USD29 million), which marks a decline compared to RMB235 million in the same period of the previous year. Despite this drop, iHuman managed to generate a gross profit of RMB143.8 million (USD19.8 million), though this also showed a decrease from RMB168.1 million year-on-year. The gross margin settled at 68.3%, down from 71.5% a year earlier, attributed to strategic shifts in product offerings and focus on integrated online-offline strategies.

Operating income rose to RMB21.6 million (USD3 million), reflecting a positive trend over the RMB17.5 million recorded in Q1 2024. The net income was RMB26.5 million (USD3.7 million), up from RMB22.3 million, marking 13 quarters of profitability for the company.

Furthermore, the average total Monthly Active Users (MAUs) increased slightly to 26.51 million, up from 26.38 million a year earlier, showcasing robust user engagement.

Innovations and Developments

Dr. Peng Dai, CEO of iHuman, emphasized the company’s commitment to innovation in its product range during the quarter. This commitment is exemplified through the expansion of its flagship educational products. In particular, the iHuman Chinese app enhanced its character library from 1,300 to 1,800, significantly enriching the learning experience for children.

Another noteworthy addition to the product line was in the iHuman Magic Thinking platform, which introduced a problem-solving module designed to make mathematics relatable for kids through short, animated lessons. Recognizing the impact of hands-on learning, iHuman launched the iHuman All-Subject Master, a user-friendly device aimed at fostering foundational skills in young learners primarily without needing extensive parental guidance. This innovative tool combines visual, auditory, and interactive elements to promote effective learning outcomes.

Enhancing its educational offerings further, iHuman engaged in strategic partnership discussions with Oxford University Press. This collaboration aligns with iHuman's aim to enrich its English learning resources, which now incorporate 25 original reading series from OUP, giving access to over 1,000 titles designed for children aged 3 to 12.

Looking forward

Looking ahead, the strategy for iHuman involves enhancing product quality to meet the diverse needs of children while expanding its reach. As stated by Ms. Vivien Weiwei Wang, CFO of iHuman, the company's focus on artificial intelligence as a cornerstone of its growth seems promising as it looks to escalate intelligent capabilities within its product offerings. Recently, a tailored coding program developed for the Boya School marked a milestone in integrating AI into the classroom, offering young students interactive coding experiences.

In conclusion, despite a slight dip in revenue, iHuman Inc. continues to witness steady growth through innovation and strategic partnerships, demonstrating a strong commitment to facilitating children's educational journeys. The company sets its sights on future expansions while sustaining its position in the competitive educational landscape of technology-driven learning products.