ATA Creativity Global's Q2 2025 Earnings Call: Unpacking Contradictions in Revenue Growth, International Expansion, and Financial Guidance

Revenue growth and key sectors, financial growth strategy and key drivers, revenue growth drivers, international expansion and overseas services, financial guidance and growth projections, operating expenses and cost reduction are the key contradictions discussed in ATA Creativity Global's latest 2025Q2 earnings call.



Revenue and Profit Growth:
- ATA Creativity Global (AACG) reported total net revenues of RMB 55.9 billion for Q2 2025, an 8% increase year-on-year.
- The growth was driven by increased revenue contributions from study costing services, other educational services, and research-based learning services.

Operational Efficiency Improvements:
- Total operating expenses decreased to 75.3% of net revenue in Q2 2025, down from 89.8% in the prior year period.
- This decrease was attributed to reduced sales expenses, lower headcount in sales personnel, and decreased sales incentives.

Enrollment and Credit Hours Trends:
- Total student enrollment decreased by 3.1% in Q2 2025, while credit hours delivered slightly increased by 0.3% year-on-year.
- The decrease in enrollment was due to normalized demand in 2025, while the increase in credit hours was driven by the growth in project-based programs.

Admission Results and Partnerships:
- More than 4,000 offers and scholarships were secured for ACG students from prestigious institutions worldwide in 2025.
- The success was attributed to the quality of research-based learning products and partnerships with global institutions.