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- **Revenue Stability with Growth Drivers**: Q3 2025 net revenue held steady at RMB 67.3 million, while 9-month revenue rose 7.1% to RMB 179 million, fueled by research-based learning and overseas study counseling.
- **Margin Pressure and Cost Control**: Gross margin dipped to 39.2% (from 44.6%), but operating expenses fell 22.4% to RMB 37 million, narrowing the net loss to RMB 2.4 million.
- **Strategic Expansion**: Project-based programs saw 22.9% credit hour growth, with new online Master Classes and fashion week partnerships enhancing student engagement and outcomes.
- **Operational Efficiency**: Streamlined operations and campus consolidation in slower markets are balancing expansion with cost management for sustainable growth.

**【CFO Financial Commentary】**
- **Q3 2025 Financial Highlights**: Total net revenue was RMB 67.3 million, stable compared to Q3 2024, with a 7.1% year-over-year increase in 9-month 2025 revenue to RMB 179 million. Gross profit was RMB 26.4 million (39.2% gross margin), down from 44.6% in Q3 2024 due to higher outsourcing and part-time teacher costs. Operating expenses decreased 22.4% to RMB 37 million, driven by lower sales and administrative costs. Net loss narrowed to RMB 2.4 million (vs. RMB 14.7 million in Q3 2024), with a 10.6 million operating loss improvement.

**【CEO (Jun Zhang) Strategy Update】**
- **Project-Based Growth**: Credit hours for project-based programs increased 22.9% year-over-year, accounting for 80% of total credit hours. New initiatives include online Master Classes with Carnegie Mellon, Harvard, and Royal College of Art, focusing on emerging art topics like digital media and user experience design. Strategic campus consolidation in less active markets is underway, alongside online classroom expansion to support digital-first learning trends.

**【Operational & Financial Outlook】**
- Full-year 2025 revenue guidance: RMB 2276-281 million (3-5% YoY growth), driven by portfolio training and new program introductions. Gross margin challenges persist due to cost pressures, but operating efficiency improvements (e.g., 34.9% expense-to-revenue ratio in Q3 2025 vs. 7.9% in Q3 2024) highlight cost control progress.

ATA Creativity Global(AACG)-20251113-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

AACG

AACG fundamentals

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