Earnings release
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51Talk Investor Relations 51Talk Online Education Group Announces Second Quarter 2026Results SINGAPORE, Sept. 15, 2026 /PRNewswire/ -- 51Talk Online Education Group ("51Talk" or the "Company") (NYSE American: COE), a globalonline education platform with core expertise in English education, announced its unaudited results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial and Operating Highlights Gross billings[1] for the second quarter of 2026 were US$39.3 million, a 38.1% growth from US$28.5 million for the second quarter of 2025.Net revenues were US$32.4 million for the second quarter of 2026, a 58.8% increase from US$20.4 million for the second quarter of 2025.The number of active students with attended lesson consumption was approximately 138,100 in the second quarter of 2026, representing a 51.3%increase from approximately 91,300 for the second quarter of 2025.Operating cash inflow for the second quarter of 2026 was US$4.9 million.Key Financial and Operating DataFor the three months endedJun. 30, Jun. 30,Period-to-Period2025 2026 Change Net Revenues (in US$ millions) 20.4 32.4 58.8 %Gross Margin 74.5 % 73.9 % -0.6pptGross Billings (in US$ millions) 28.5 39.3 38.1 % Active students with attended lesson consumption[2] (in thousands) 91.3 138.1 51.3 % "Gross billings for the second quarter reached US$39.3 million, once again exceeding the high end of our guidance announced in June 2026 andrepresenting growth of 38.1% year-over-year. Demand across our key markets remains robust. We generated US$4.9 million of net operating cashinflow during the quarter," stated Jack Jiajia Huang, Founder, Chairman, and Chief Executive Officer of 51Talk. "On July 1, we launched our next-generation learning product, Global Communicator, built with our strategic partner Oxford University Press.The world students learn in, the characters they meet, and the lessons themselves are all generated end-to-end by our AI-powered contentproduction platform. The same platform will power new regions, new languages, and new subjects — it is the foundation for what we build next. "Our priority for the remainder of 2026 is to sustain healthy growth by building on last year's success. Following an exceptionally strong thirdquarter of 2025, we are investing more efficiently in the third quarter of 2026, moving us toward profitability and long-term shareholder value,"Jack Jiajia Huang concluded. Second Quarter 2026 Financial Results Net Revenues and Gross Margin Net revenues for the second quarter of 2026 were US$32.4 million, representing a 58.8% increase from US$20.4 million for the same quarter lastyear. The number of active students with attended lesson consumption was approximately 138,100 in the second quarter of 2026, representing a51.3% increase from approximately 91,300 for the same quarter last year. Cost of revenues for the second quarter of 2026 was US$8.5 million, representing a 62.5% increase from US$5.2 million for the same quarter lastyear. The increase was primarily due to the increase in total service fees paid to teachers, mainly resulting from an increased number of paidlessons, as well as higher payment processing fees associated with the expansion of payment channels. Gross profit for the second quarter of 2026 was US$23.9 million, representing a 57.5% increase from US$15.2 million for the same quarter lastyear. Gross margin for the second quarter of 2026 was 73.9%, compared with 74.5% for the same quarter last year. Operating Expenses Total operating expenses for the second quarter of 2026 were US$26.0 million, representing a 41.8% increase from US$18.4 million for the samequarter last year. The increase was mainly due to the increase in sales and marketing expenses. Sales and marketing expenses for the second quarter of 2026 were US$19.3 million, representing a 48.8% increase from US$13.0 million for thesame quarter last year. The increase was primarily attributable to higher sales personnel costs driven by headcount growth in the sales andmarketing team, as well as increased marketing and branding expenses from intensified promotional activities. Excluding share-basedcompensation expenses, non-GAAP sales and marketing expenses for the second quarter of 2026 were US$19.2 million, representing a 49.2%increase from US$12.9 million for the same quarter last year. Product development expenses for the second quarter of 2026 were US$2.4 million, compared with US$1.2 million for the same quarter lastyear. Excluding share-based compensation expenses, non-GAAP product development expenses for the second quarter of 2026 were US$2.4million, compared with US$1.2 million for the same quarter last year. General and administrative expenses for the second quarter of 2026 were US$4.3 million, representing a 3.5% increase from US$4.1 million forthe same quarter last year. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for the second quarterof 2026 were US$3.94 million, representing a 1.1% increase from US$3.90 million for the same quarter last year.
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Loss from Operations Operating loss for the second quarter of 2026 was US$2.1 million, compared with operating loss of US$3.2 million for the same quarter last year. Non-GAAP operating loss for the second quarter of 2026 was US$1.6 million, compared with non-GAAP operating loss of US$2.8 million forthe same quarter last year. Net Loss Attributable to the Company's Ordinary Shareholders Net loss attributable to the Company's ordinary shareholders for the second quarter of 2026 was US$3.1 million, compared with net loss ofUS$3.5 million for the same quarter last year. Excluding share-based compensation expenses of US$0.5 million, non-GAAP net loss attributable to the Company's ordinary shareholders for thesecond quarter of 2026 was US$2.6 million, compared with non-GAAP net loss of US$3.1 million for the same quarter last year. Basic and diluted net loss per share attributable to ordinary shareholders for the second quarter of 2026 was US$0.01, compared with basic anddiluted net loss per share of US$0.01 for the same quarter last year. Excluding share-based compensation expenses of US$0.5 million, non-GAAP basic and diluted net loss per share attributable to ordinaryshareholders for the second quarter of 2026 was US$0.01, compared with non-GAAP basic and diluted net loss per share attributable to ordinaryshareholders of US$0.01 for the same quarter last year. Basic and diluted net loss per American depositary share ("ADS") attributable to ordinary shareholders for the second quarter of 2026 wasUS$0.51, compared with basic and diluted net loss per ADS of US$0.59 for the same quarter last year. Each ADS represents 60 Class A ordinaryshares. Excluding share-based compensation expenses of US$0.5 million, non-GAAP basic and diluted net loss per ADS attributable to ordinaryshareholders for the second quarter of 2026 was US$0.43, compared with non-GAAP basic and diluted net loss per ADS attributable to ordinaryshareholders of US$0.53 for the same quarter last year. Balance Sheet As of June 30, 2026, the Company had total cash, cash equivalents and time deposits of US$40.1 million, compared with US$39.0 million as ofDecember 31, 2025. The Company had advances from students[3] of US$86.7 million as of June 30, 2026, compared with US$76.6 million as of December 31, 2025. Outlook For the third quarter of 2026, the Company currently expects net gross billings to be between US$41.0 million and US$43.0 million, whichwould represent a sequential increase of 4.3% to 9.4% and an increase of approximately 1.3% to 6.3% from the same quarter in 2025. The above outlook is based on current market conditions and reflects the Company's current and preliminary estimates of market and operatingconditions and customer demand, which are all subject to change. [1] Gross billings for a specific period, which is one of the Company's key operating data, is defined as the total amount of cash received andreceivable from third party payment platforms for the sale of course packages and services in such period, net of the total amount of refunds insuch period. The gross billings data included herein was from the Company's business system and converted with quarterly correspondingexchange rate, which may lead to differences with bank records.[2] An "active student with attended lesson consumption" for a given period refers to a student who attended at least one paid lesson, excludingthose students who only attended paid live broadcasting lessons or trial lessons.[3] "Advances from students" is defined as the amount of obligation to transfer goods or service to students or business partners for whichconsideration has been received from students in advance. The deposits from students are also presented in the total amount of "advances fromstudents." Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on September 15, 2026 (8:00 PMSingapore/Hong Kong time on September 15, 2026). Dial-in details for the earnings conference call are as follows: United States (toll free):1-888-346-8982International: 1-412-902-4272Mainland China (toll free):4001-201203Hong Kong (toll free):800-905945Web phone click here Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "51Talk Online EducationGroup." Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website athttp://ir.51talk.com. A replay of the conference call will be accessible until September 22, 2026, by dialing the following telephone numbers: United States (toll free): 1-855-669-9658
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International: 1-412-317-0088Replay Access Code:2434410 About 51Talk Online Education Group 51Talk Online Education Group (NYSE American: COE) is a global online education platform with core expertise in English education. TheCompany's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enablestudents to take live interactive English lessons on demand. The Company connects its students with highly qualified teachers using a sharedeconomy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students. Use of Non-GAAP Financial Measures In evaluating its business, 51Talk considers and uses the following measures defined as non-GAAP financial measures by the SEC assupplemental metrics to review and assess its operating performance: non-GAAP sales and marketing expenses, non-GAAP product developmentexpenses, non-GAAP general and administrative expenses, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP netincome/(loss), non-GAAP net income/(loss) attributable to ordinary shareholders, and non-GAAP net income/(loss) attributable to ordinaryshareholders per share and per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses.The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financialinformation prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tablecaptioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this press release. 51Talk believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excludingshare-based compensation expenses that may not be indicative of its operating performance from a cash perspective. 51Talk believes that bothmanagement and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecastingfuture periods. These non-GAAP financial measures also facilitate management's internal comparisons to 51Talk's historical performance. 51Talkcomputes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. 51Talk believesthese non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used bymanagement in its financial and operational decision-making. A limitation of using non-GAAP measures is that these non-GAAP measuresexclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in51Talk's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded fromeach non-GAAP measure. The accompanying table at the end of this press release provides more details on the reconciliations between GAAPfinancial measures that are most directly comparable to non-GAAP financial measures. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements 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. Among other things, 51Talk'squotations from management in this announcement, as well as 51Talk's strategic and operational plans, contain forward-looking statements.51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), inits annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employeesto third parties. Statements that are not historical facts, including statements about 51Talk's beliefs and expectations, are forward-lookingstatements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differmaterially from those contained in any forward-looking statement, including but not limited to the following: 51Talk's goals and strategies;51Talk's expectations regarding demand for and market acceptance of its brand and platform; 51Talk's ability to retain and increase its studentenrollment; 51Talk's ability to offer new courses; 51Talk's ability to engage, train and retain new teachers; 51Talk's future business development,results of operations and financial condition; 51Talk's ability to maintain and improve infrastructure necessary to operate its education platform;competition in the online education industry in its international markets; the expected growth of, and trends in, the markets for 51Talk's courseofferings in its international markets; relevant government policies and regulations relating to 51Talk's corporate structure, business and industry;general economic and business condition in the Philippines, its international markets and elsewhere; and assumptions underlying or related to anyof the foregoing. Further information regarding these and other risks is included in 51Talk's filings with the SEC. All information provided in thispress release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, exceptas required under applicable law. 51TALK ONLINE EDUCATION GROUPUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) As ofDec. 31,Jun. 30,2025 2026US$ US$ ASSETSCurrent assetsCash and cash equivalents 38,86939,978Time deposits 93 93Prepaid expenses and other current assets21,43524,452Total current assets 60,39764,523 Non-current assetsProperty and equipment, net 1,998 1,959
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Intangible assets, net 68 62Right-of-use assets 3,211 2,660Deferred tax assets 77 74Other non-current assets 341 349Total non-current assets 5,695 5,104 Total assets 66,09269,627 LIABILITIES AND SHAREHOLDERS' DEFICITSCurrent liabilitiesAdvances from students 76,56986,703Accrued expenses and other current liabilities12,46412,517Amounts due to related parties 3,333 2,052Lease liabilities 1,764 1,619Taxes payable 1,226 1,795Total current liabilities 95,356104,686 Non-current liabilitiesLease liabilities 1,177 916Other non-current liabilities 360 379Deferred tax liabilities 452 459Total non-current liabilities 1,989 1,754 Total liabilities 97,345106,440 Total shareholders' deficits (31,357)(36,942)Noncontrolling interests 104 129Total deficits (31,253)(36,813) Total liabilities and shareholders' deficits 66,09269,627 51TALK ONLINE EDUCATION GROUPUNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(In thousands except for number of shares and per share data) For the three months endedFor the six months endedJun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,2025 2026 2026 2025 2026US$ US$ US$ US$ US$ Net revenues 20,398 31,188 32,382 38,645 63,570Cost of revenues (5,205) (8,214) (8,456) (9,435) (16,670)Gross profit 15,193 22,974 23,926 29,210 46,900Operating expensesSales and marketing expenses (12,973) (17,857) (19,303) (24,202) (37,160)Product development expenses (1,242) (1,934) (2,442) (2,288) (4,376)General and administrative expenses (4,137) (4,605) (4,283) (7,381) (8,888)Total operating expenses (18,352) (24,396) (26,028) (33,871) (50,424)Loss from operations (3,159) (1,422) (2,102) (4,661) (3,524)Interest income 58 134 138 78 272Other expenses, net (227) (547) (514) (286) (1,061)Loss before income tax expenses (3,328) (1,835) (2,478) (4,869) (4,313)Income tax expenses (169) (489) (584) (326) (1,073)Net loss (3,497) (2,324) (3,062) (5,195) (5,386)Net loss attributable to noncontrolling interests(13) (6) (4) (32) (10)Net loss attributable to the Company's ordinary shareholders(3,484) (2,318) (3,058) (5,163) (5,376) Weighted average number of ordinary shares used incomputing basic and diluted loss per share353,922,077359,982,394362,215,106352,764,153361,093,168
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51TALK ONLINE EDUCATION GROUPUNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(In thousands except for number of shares and per share data) For the three months endedFor the six months endedJun. 30,Mar. 31,Jun. 30,Jun. 30,Jun. 30,2025 2026 2026 2025 2026US$ US$ US$ US$ US$ Net loss per share attributable to ordinary shareholdersBasic and diluted (0.01) (0.01) (0.01) (0.01) (0.01)Net loss per ADS attributable to ordinary shareholdersBasic and diluted (0.59) (0.39) (0.51) (0.88) (0.89) Share-based compensation expenses are included in the operating expenses as follows: Sales and marketing expenses (94) (99) (83) (142) (182)Product development expenses (14) (49) (66) (27) (115)General and administrative expenses (237) (381) (342) (455) (723) 51TALK ONLINE EDUCATION GROUPReconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures(In thousands except for number of shares and per share data) For the three months endedFor the six months endedJun. 30,Mar. 31,Jun. 30,Jun. 30,Jun. 30,2025 2026 2026 2025 2026US$ US$ US$ US$ US$ Sales and marketing expenses(12,973)(17,857)(19,303)(24,202)(37,160)Less: Share-based compensation expenses(94) (99) (83) (142) (182) Non-GAAP sales and marketing expenses(12,879)(17,758)(19,220)(24,060)(36,978) Product development expenses(1,242)(1,934)(2,442) (2,288) (4,376)Less: Share-based compensation expenses(14) (49) (66) (27) (115) Non-GAAP product development expenses(1,228)(1,885)(2,376) (2,261) (4,261) General and administrative expenses(4,137)(4,605)(4,283) (7,381) (8,888)Less: Share-based compensation expenses(237) (381) (342) (455) (723) Non-GAAP general and administrative expenses(3,900)(4,224)(3,941) (6,926) (8,165) Operating expenses (18,352)(24,396)(26,028)(33,871)(50,424)Less: Share-based compensation expenses(345) (529) (491) (624) (1,020) Non-GAAP operating expenses (18,007)(23,867)(25,537)(33,247)(49,404) Loss from operations (3,159)(1,422)(2,102) (4,661) (3,524)Less: Share-based compensation expenses(345) (529) (491) (624) (1,020) Non-GAAP loss from operations (2,814) (893)(1,611) (4,037) (2,504) 51TALK ONLINE EDUCATION GROUPReconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures(In thousands except for number of shares and per share data) For the three months endedFor the six months endedJun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,2025 2026 2026 2025 2026
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US$ US$ US$ US$ US$ Income tax expenses (169) (489) (584) (326) (1,073)Less: Tax impact of Share-based compensation expenses- - - - - Non-GAAP income tax expenses (169) (489) (584) (326) (1,073) Net loss attributable to the Company's ordinary shareholders(3,484) (2,318) (3,058) (5,163) (5,376)Less: Share-based compensation expenses (345) (529) (491) (624) (1,020)Non-GAAP net loss attributable to the Company's ordinaryshareholders (3,139) (1,789) (2,567) (4,539) (4,356) Weighted average number of ordinary shares used incomputing basic and diluted loss per share353,922,077359,982,394362,215,106352,764,153361,093,168 Non-GAAP net loss per share attributable to ordinary shareholdersBasic and diluted (0.01) (0.00) (0.01) (0.01) (0.01) Non-GAAP net loss per ADS attributable to ordinary shareholdersBasic and diluted (0.53) (0.30) (0.43) (0.77) (0.72) *The previously reported unaudited quarterly financial information for the relevant periods was restated in the fourth quarter of 2025 to reflectcertain immaterial adjustments, primarily related to the refinement of expense recognition cutoffs during the year-end financial reporting process. SOURCE 51Talk Online Education Group For further information: For investor and media inquiries, please contact: 51Talk Online Education Group, Investor Relations, Mr. David Chung,davidchung@51talk.com; Ms. Helen Xu, helenxu@51talk.com https://ir.51talk.com/2026-09-15-51Talk-Online-Education-Group-Announces-Second-Quarter-2026-Results