EpicQuest Education Group Surges 114% After Hours Amid Robust Revenue Growth and Reduced Losses

EpicQuest Education Group International Limited's shares surged 113.71% after-hours, driven by a 29.1% revenue increase to $5.37 million and a 95.5% reduction in net loss to $0.16 million. The company attributes its growth to expanded international foundational and collaborative programs. Despite strong performance, liquidity concerns persist with cash and cash equivalents declining 71.3% to $0.33 million.

EpicQuest Education Group International Limited's (EEIQ) shares surged 113.71% in after-hours trading on August 22, 2025, following the release of its first-quarter 2025 financial results. The company reported a 29.1% increase in revenue to $5.37 million, driven primarily by expanded international foundational and collaborative programs [1]. Additionally, EEIQ achieved a remarkable 95.5% reduction in net loss to $0.16 million, significantly improving its financial performance.

The revenue growth was primarily driven by the expansion of international programs offered through Davis University and EduGlobal College. The company's gross margin improved to 63.7% year-over-year, reflecting operational efficiency gains. CEO Jianbo Zhang emphasized that internationalization continues to be a key catalyst of the company's strategic growth plan [2].

Despite the strong performance, liquidity concerns persist. Cash and cash equivalents declined 71.3% to $0.33 million, and the company maintains a negative working capital of $3.96 million. The current ratio stands at 0.57, indicating a liquidity challenge [1].

EEIQ's global recruitment initiatives continue to expand, with new agreements to boost enrollment from Africa and the Middle East. The company's long-standing relationship with the Regional Campuses of Miami University of Ohio remains a cornerstone of its business [2].

In summary, EEIQ's Q1 2025 results demonstrate significant improvement in financial performance, driven by robust revenue growth and reduced losses. However, liquidity concerns remain a key risk factor for the company.

References:
[1] https://www.ainvest.com/news/epicquest-education-group-international-limited-eeiq-shares-skyrocket-106-26-strong-earnings-2508/
[2] https://finance.yahoo.com/news/epicquest-education-announces-first-half-210000190.html