This article first appeared on GuruFocus .
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Total Net Revenue (Q4 2025):RMB89.1 million, decreased 11.7% compared to Q4 2024.
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Gross Profit (Q4 2025):RMB50.2 million, down from RMB63.7 million in Q4 2024.
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Gross Margin (Q4 2025):56.4%, compared to 63.1% in Q4 2024.
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Total Operating Expenses (Q4 2025):RMB73.3 million, increased due to a one-time goodwill impairment charge.
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Net Loss (Q4 2025):RMB26.3 million, compared to net income of RMB13.3 million in Q4 2024.
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Total Net Revenue (Full-Year 2025):RMB268.1 million.
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Gross Profit (Full-Year 2025):RMB130.3 million, a decrease of 7.8% from 2024.
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Gross Margin (Full-Year 2025):48.6%, compared to 52.7% in 2024.
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Total Operating Expenses (Full-Year 2025):RMB194.6 million, increased by 5.5% from 2024.
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Net Loss (Full-Year 2025):RMB48 million, compared to RMB36.1 million in 2024.
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Cash and Cash Equivalents (Dec 31, 2025):RMB85.2 million.
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Total Student Enrollment (Q4 2025):921, decreased from 1,038 in Q4 2024.
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Portfolio Training Service Revenue Contribution (Q4 2025):68.8% of total net revenues.
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Project-Based Programs Credit Hours (Q4 2025):74.9% of total credit hours delivered.
Release Date: March 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ATA Creativity Global ( NASDAQ:AACG ) reported increased revenues from research-based learning and other educational services year over year.
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The company successfully implemented cost-saving initiatives, resulting in a 15.7% reduction in operating expenses, excluding a one-time goodwill impairment charge.
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Project-based programs accounted for 74.9% of total credit hours delivered, showing a strong preference among students.
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The company established its first music preparatory center in Chengdu, enhancing its educational offerings.
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ATA Creativity Global ( NASDAQ:AACG ) hosted the 2025 ACG Expert Tour, providing students with valuable insights and feedback from industry and academic experts.
Negative Points
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Total net revenue for the fourth quarter of 2025 decreased by 11.7% compared to the same period in 2024.
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Gross profit for the fourth quarter of 2025 was lower, with a gross margin of 56.4% compared to 63.1% in the prior-year period.
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The company recorded a significant one-time goodwill impairment charge of RMB33.9 million, impacting operating expenses.
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Net loss attributable to ATA Creativity Global ( NASDAQ:AACG ) during the fourth quarter of 2025 was RMB26.3 million, compared to net income in the prior-year period.
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Total student enrollment decreased in the fourth quarter of 2025, reflecting normalized demand for services.
Q & A Highlights
Q: Can you provide an overview of the financial performance for the fourth quarter of 2025? A: Ruobai Sima, Chief Financial Officer, reported that total net revenue for Q4 2025 was RMB89.1 million, a decrease of 11.7% compared to Q4 2024. The decline was mainly due to reduced revenue from portfolio training programs and overseas study counseling services, partially offset by increased revenue from research-based learning services and other educational services. Gross profit was RMB50.2 million, with a gross margin of 56.4%.
Q: What were the main contributors to the revenue in Q4 2025? A: Xiaofeng Ma, Chairman and CEO, stated that the main revenue contributor was the portfolio training service, accounting for 68.8% of total net revenues. Project-based programs were the primary choice for students, making up 74.9% of total credit hours delivered.
Q: How did operating expenses change in Q4 2025 compared to the previous year? A: Ruobai Sima, CFO, noted that total operating expenses were RMB73.3 million in Q4 2025, up from RMB46.8 million in Q4 2024. This increase was primarily due to a one-time goodwill impairment charge of RMB33.9 million. Excluding this charge, operating expenses decreased by 15.7% from Q4 2024.
Q: What strategic initiatives are planned for 2026 to enhance growth and efficiency? A: Jun Zhang, President, explained that ACG aims to maintain its leading position in China's creative art education industry by leveraging its skilled faculty, high-quality offerings, and global partnerships. The company plans to optimize its service portfolio, expand online course offerings, and streamline operations to improve efficiency and financial performance.
Q: What are the key focus areas for ACG's long-term growth strategy? A: Jun Zhang, President, emphasized that ACG will focus on strengthening its portfolio of higher fee and higher margin services, driving innovation, and introducing new services. The company is committed to delivering state-of-the-art education and enhancing student outcomes, which are central to its business strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
