China-based online education provider 51Talk Online Education Group reported second-quarter 2026 results on September 15, posting a sharp jump in revenue and a narrower operating loss, driven by rising active student consumption and a new AI-powered curriculum product.
Net revenues rose 58.8% year-over-year to $32.4 million, while gross billings climbed 38.1% to $39.3 million — both figures exceeding the high end of the company's June guidance. CFO Cindy Tang said the revenue growth was "largely driven by the increase of active students with attended lesson consumption."
Gross margin held at 73.9%. Operating expenses rose 41.8% to $26 million, fueled by a 48.8% increase in sales and marketing spend to $19.3 million and a near-doubling of product development costs to $2.4 million. General and administrative expenses were roughly flat at $4.3 million.
The operating loss narrowed to $2.1 million from $3.2 million in the same quarter last year. Net loss attributable to ordinary shareholders came in at $3.1 million, compared with $3.5 million a year earlier. GAAP earnings per ADS were negative $0.51, and non-GAAP EPS was negative $0.43.
Cash, cash equivalents and time deposits stood at $40.1 million at quarter-end, with advances from students totaling $86.7 million.
The company also highlighted the July 1 launch of Global Communicator, an AI-powered curriculum built in partnership with Oxford University Press. CEO Jack Huang called the product "the foundation for what we build next," noting the platform generates learning environments, characters and lessons end-to-end and can support expansion into new regions, languages and subjects.
Looking ahead, 51Talk guided for Q3 gross billings of $41 million to $43 million, implying sequential growth. Management said it plans to invest "more efficiently" in the third quarter after heavier prior spending on sales, marketing and product development, signaling a push toward profitability.
Shares rose 2.52% in premarket trading to $12.20, from a previous close of $11.90. The stock has traded between $9.93 and $56.13 over the past 52 weeks.
