ATA Creativity Global's Q2 2025: Key Contradictions in Financial Performance, Market Strategy, and Enrollment Trends

Financial performance and revenue growth, market competition and strategic positioning, student enrollment trends and market expansion, revenue and market growth strategy, and growth strategy and market positioning are the key contradictions discussed in ATA Creativity Global's latest 2025Q2 earnings call.



Revenue and Profit Growth:
- ATA Creativity Global reported RMB 55.9 million in net revenues for Q2 2025, an 8% increase from the previous year.
- The growth was primarily due to increased contributions from overseas study counseling services, other educational services, and research-based learning services.

Operating Expense Reduction:
- Total operating expenses for Q2 2025 decreased to RMB 42.1 million, down 9.4% from the previous year.
- This reduction was attributed to lower headcount in sales personnel, decreased sales incentives, and reduced professional fees.

Student Enrollment Trends:
- Total student enrollment for Q2 2025 was 1,050, a 3.1% decrease from the previous year.
- The decline was due to normalized demand in services after the rebound in 2023 and the first half of 2024.

Credit Hours and Program Trends:
- The number of credit hours delivered slightly increased by 0.3% in Q2 2025 compared to the previous year.
- This was driven by a 25.7% increase in project-based programs, offset by a decrease in time-based programs as more students opted for the project-based track.