iHuman swings to quarterly loss as revenue and app usage decline

iHuman ($IH) reported second-quarter revenue of RMB173.4 million, down from RMB210.9 million a year earlier, and an operating loss of RMB20.8 million versus an RMB18.3 million operating profit. The net result moved to an RMB17.5 million loss from an RMB30.7 million profit. Average total monthly active users fell to 20.72 million from 23.97 million.

The deterioration points to weaker monetization and operating leverage in the educational-app business, even as the company expands its product portfolio and overseas activities. Comparisons require care: the prior-year financial figures and user counts were retrospectively adjusted to include All Knowledge, acquired under common control. The user metric also adds activity across individual apps without removing people accessing multiple products. These are unaudited quarterly results, not evidence that new content partnerships have already reversed the revenue decline.

Sources:

• iHuman PRNewswire quarterly results