51Talk Posts $32.4 Million Q2 2026 Revenue, Up 58.8%, Leans on AI Content Platform for Global Growth
51Talk Online Education Group (NYSE American: COE), a Singapore-based global online education platform with core expertise in English education, on September 15 released its unaudited financial results for the second quarter ended June 30, 2026.
Net revenues for the quarter were $32.4 million, a 58.8% increase from $20.4 million in the same quarter of 2025. Gross billings reached $39.3 million, up 38.1% from $28.5 million a year earlier. The number of active students with attended lesson consumption was approximately 138,100, representing a 51.3% rise from about 91,300 in the second quarter of 2025.
Gross profit was $23.9 million, up 57.5% from $15.2 million, while gross margin edged down to 73.9% from 74.5%. Cost of revenues rose 62.5% to $8.5 million from $5.2 million, primarily due to higher teacher service fees resulting from an increased number of paid lessons, as well as higher payment processing fees associated with the expansion of payment channels.
Net loss narrowed to $3.1 million from $3.5 million in the prior-year quarter. Total operating expenses grew 41.8% to $26.0 million from $18.4 million, led by a 48.8% jump in sales and marketing spending to $19.3 million as the company expanded its sales team and stepped up promotions and brand campaigns. Product development expenses doubled to $2.4 million, while general and administrative expenses edged up 3.5% to $4.3 million.
As of June 30, 2026, 51Talk held $40.1 million in cash, cash equivalents and time deposits, compared with $39.0 million as of December 31, 2025. The company generated $4.9 million of net operating cash inflow during the quarter.
Founder, Chairman and Chief Executive Officer Jack Jiajia Huang said gross billings once again exceeded the high end of the guidance issued in June 2026, adding that demand across the company's key markets remains robust.
On July 1, 51Talk launched Global Communicator, a next-generation learning product built with strategic partner Oxford University Press. According to Huang, the learning scenarios students enter, the characters they meet and the lessons themselves are all generated end-to-end by the company's AI-powered content production platform. The same platform will support expansion into new regions, new languages and new subjects — "it is the foundation for what we build next," he said.
Huang added that 51Talk's priority for the remainder of 2026 is to sustain healthy growth. Following an exceptionally strong third quarter of 2025, the company is investing more efficiently in the third quarter of 2026, moving it toward profitability and long-term shareholder value.
Net revenues for the quarter were $32.4 million, a 58.8% increase from $20.4 million in the same quarter of 2025. Gross billings reached $39.3 million, up 38.1% from $28.5 million a year earlier. The number of active students with attended lesson consumption was approximately 138,100, representing a 51.3% rise from about 91,300 in the second quarter of 2025.
Gross profit was $23.9 million, up 57.5% from $15.2 million, while gross margin edged down to 73.9% from 74.5%. Cost of revenues rose 62.5% to $8.5 million from $5.2 million, primarily due to higher teacher service fees resulting from an increased number of paid lessons, as well as higher payment processing fees associated with the expansion of payment channels.
Net loss narrowed to $3.1 million from $3.5 million in the prior-year quarter. Total operating expenses grew 41.8% to $26.0 million from $18.4 million, led by a 48.8% jump in sales and marketing spending to $19.3 million as the company expanded its sales team and stepped up promotions and brand campaigns. Product development expenses doubled to $2.4 million, while general and administrative expenses edged up 3.5% to $4.3 million.
As of June 30, 2026, 51Talk held $40.1 million in cash, cash equivalents and time deposits, compared with $39.0 million as of December 31, 2025. The company generated $4.9 million of net operating cash inflow during the quarter.
Founder, Chairman and Chief Executive Officer Jack Jiajia Huang said gross billings once again exceeded the high end of the guidance issued in June 2026, adding that demand across the company's key markets remains robust.
On July 1, 51Talk launched Global Communicator, a next-generation learning product built with strategic partner Oxford University Press. According to Huang, the learning scenarios students enter, the characters they meet and the lessons themselves are all generated end-to-end by the company's AI-powered content production platform. The same platform will support expansion into new regions, new languages and new subjects — "it is the foundation for what we build next," he said.
Huang added that 51Talk's priority for the remainder of 2026 is to sustain healthy growth. Following an exceptionally strong third quarter of 2025, the company is investing more efficiently in the third quarter of 2026, moving it toward profitability and long-term shareholder value.
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