BEIJING, Dec. 29, 2025 /PRNewswire/ -- iHuman Inc. $(IH)$ ("iHuman" or the "Company"), a leading provider of tech-powered, intellectual development products in China, today announced its unaudited financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Highlights

   -- Revenues were RMB205.8 million (US$28.9 million), compared with RMB239.4 
      million in the same period last year. 
 
   -- Gross profit was RMB140.6 million (US$19.8 million), compared with 
      RMB163.9 million in the same period last year. 
 
   -- Operating income was RMB16.7 million (US$2.3 million), compared with 
      RMB20.7 million in the same period last year. 
 
   -- Net income was RMB21.6 million (US$3.0 million), compared with RMB25.1 
      million in the same period last year. 
 
   -- Average total MAUs[1] for the third quarter were 26.13 million, compared 
      with 29.12 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, "Despite a complex market environment, we made steady progress this quarter in executing our strategy centered on product innovation and long-term value creation. Over the past few decades, iHuman has earned the trust of millions of families by guiding their children through critical early learning milestones, from recognizing their first Chinese characters to reading their first stories. Building on these strong family connections and our proven leadership in early childhood development, we are now strategically expanding several of our core offerings to serve older age cohorts by leveraging our rich content and technological expertise to address more advanced learning needs. This strategic initiative will deepen our user engagement, broaden our total addressable market, and reinforce the foundation for sustainable, long-term growth.

Our ongoing commitment to innovation continued to yield significant advancements across our portfolio. In iHuman English, we optimized both interface design and content to deliver a more seamless and inspiring learning journey for young learners. The main world map was redesigned for enhanced clarity and a more intuitive navigation, further improving the learning flow. We also added a curated selection of BBC Studios-licensed kids content, bringing dynamic storytelling, authentic language input, and high-quality visuals that enrich the program and create a compelling learning experience. Combined with interactive tasks and fun speaking prompts thoughtfully designed under our proprietary progressive learning framework, these improvements create a more seamless pathway that encourages deeper engagement and helps children steadily build their English skills and confidence through joyful exploration.

Complementing our digital products, our smart devices portfolio extends AI-driven learning and companionship deeper into the daily routines of children. We recently launched iHuman AI Pal, our first plush AI companion inspired by our beloved Cosmicrew characters. Designed as a soft, screen-free toy powered by large language model technology, it blends naturally into children's playtime, transforming everyday interactions into opportunities for discovery, imagination, and emotional connection. Beyond simple dialogue, iHuman AI Pal creates an adaptive English and Chinese environment that feels as natural and comforting as talking with a favorite plush friend. Through immersive stories, songs, and interactive fun experiences, it adjusts content to children's respective levels, helping them absorb new expressions effortlessly and build confidence in communication. It also supports holistic growth by fostering positive character, good habits, and safety awareness through memorable, story-based experiences. With built-in long-term memory, it recalls each child's preferences and past interactions, creating a familiar and lasting companionship that encourages open communication and builds confidence. Additionally, a connected mini program for parents keeps the family informed of the child's progress, provides personalized insights, and captures memorable moments -- a testament to our vision of responsible, family-centric AI that supports children's development while giving parents peace of mind.

Following the remarkable success of its inaugural season, our Kunpeng Animation Studio launched the second season of Rainbow Crew in October, adding new depth and creativity to our expanding content library. Since its premiere, the series has consistently ranked among the top children's programs across major streaming platforms, validating its sustained audience appeal. The ongoing success of the Rainbow Crew franchise further strengthens our brand's cultural influence and supports the long-term expansion of our content and licensing portfolio.

Looking ahead, we will continue to prioritize strategic investment in innovation, technology, and creative excellence to meet the evolving needs of families. With a trusted brand, a loyal user base, and a strong product pipeline, we remain highly confident in our ability to drive strategic progress, deepen our leadership in the children's learning sector, and create lasting value for both users and shareholders."

Ms. Vivien Weiwei Wang, Director and Chief Financial Officer of iHuman, added, "We are pleased to report our 15th consecutive quarter of profitability, reflecting the solid financial performance and disciplined operational execution that further strengthens our foundation for sustainable growth. At the same time, we continued to expand our market reach by bringing our innovative offerings across a broader range of platforms and everyday lifestyle scenarios. During the quarter, we made meaningful progress in extending our offerings into the smart home ecosystem, with iHuman English now available on multiple leading smart speaker platforms. This expansion brings our content into additional family settings, enabling users to engage with our products more conveniently as part of their everyday home activities. We also expanded into new in-vehicle mobility experiences through cooperation with NIO, a well-recognized smart electric vehicle brand, making our core apps like iHuman Chinese and iHuman Pinyin available within their in-car systems. By expanding beyond traditional learning environments, these partnerships broaden user access to our products and strengthen our influence within the modern family lifestyle."

Third Quarter 2025 Unaudited Financial Results

Revenues

Revenues were RMB205.8 million (US$28.9 million), compared with RMB239.4 million in the same period last year. The decrease in revenues was primarily due to the decline in China's newborn population and more conservative consumer spending.

Average total MAUs for the quarter were 26.13 million, compared with 29.12 million in the same period last year. The decrease in MAUs was primarily due to the decline in China's newborn population.

Cost of Revenues

Cost of revenues was RMB65.1 million (US$9.1 million), compared with RMB75.5 million in the same period last year. The decline in cost of revenues was in line with the decrease in revenues.

Gross Profit and Gross Margin

Gross profit was RMB140.6 million (US$19.8 million), compared with RMB163.9 million in the same period last year. Gross margin was 68.3%, compared with 68.4% in the same period last year.

Operating Expenses

Total operating expenses were RMB124.0 million (US$17.4 million), a decrease of 13.4% from RMB143.2 million in the same period last year.

Research and development expenses were RMB55.3 million (US$7.8 million), a decrease of 6.8% from RMB59.3 million in the same period last year, primarily due to savings in payroll-related and outsourcing expenses.

Sales and marketing expenses were RMB45.7 million (US$6.4 million), a decrease of 24.9% from RMB60.9 million in the same period last year, primarily due to cost savings in marketing activities.

General and administrative expenses were RMB22.9 million (US$3.2 million), compared with RMB23.0 million in the same period last year.

Operating Income

Operating income was RMB16.7 million (US$2.3 million), compared with RMB20.7 million in the same period last year.

Net Income

Net income was RMB21.6 million (US$3.0 million), compared with RMB25.1 million in the same period last year.

Basic and diluted net income per ADS were RMB0.42 (US$0.06) and RMB0.40 (US$0.06), respectively, compared with RMB0.48 and RMB0.47 in the same period last year. Each ADS represents five Class A ordinary shares of the Company.

Deferred Revenue and Customer Advances

Deferred revenue and customer advances were RMB230.4 million (US$32.4 million) as of September 30, 2025, compared with RMB283.3 million as of December 31, 2024.

Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments were RMB1,128.2 million (US$158.5 million) as of September 30, 2025, compared with RMB1,168.7 million as of December 31, 2024.

Extension of Share Repurchase Program

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