ATA Creativity Global Reports RMB26.3 Million Q4 Loss; Revenue Falls 11.7%
ATA Creativity Global reported a RMB26.3 million net loss in Q4 2025, with total net revenue down 11.7% to RMB89.1 million and gross margin slipping to 56.4% from 63.1% year-over-year. Operating expenses rose to RMB73.3 million due to a RMB33.9 million goodwill impairment, though core expenses excluding impairment fell 15.7%.
1. Q4 2025 Financial Results
ATA Creativity Global recorded total net revenue of RMB89.1 million in the fourth quarter of 2025, an 11.7% decrease year-over-year. Gross profit amounted to RMB50.2 million, yielding a 56.4% gross margin down from 63.1%, and the period ended with a net loss of RMB26.3 million compared to net income last year.
2. Operating Expenses and Impairment
Total operating expenses climbed to RMB73.3 million in Q4 2025 from RMB46.8 million a year earlier, driven by a one-time goodwill impairment charge of RMB33.9 million. Excluding this impairment, operating expenses decreased by 15.7%, reflecting cost controls in core operations.
3. Service Revenue Contributions
Portfolio training services remained the largest revenue contributor at 68.8% of total net revenues, with project-based programs accounting for 74.9% of delivered credit hours. Growth in research-based learning and other educational services partially offset declines in overseas study counseling.
4. 2026 Strategic Initiatives
Management plans to optimize the service portfolio by emphasizing higher-fee, higher-margin offerings, expand online course offerings, and streamline operations to improve efficiency and drive margin expansion throughout 2026.