Based on the provided financial report, the title of the article is: "Form 10-Q: Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934" This title indicates that the report is a quarterly financial report filed by Ambow Education Holding Ltd. with the United States Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.
Based on the provided financial report, the title of the article is: "Form 10-Q: Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934" This title indicates that the report is a quarterly financial report filed by Ambow Education Holding Ltd. with the United States Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.
Ambow Education Holding Ltd. (the “Company”) reported its quarterly financial results for the period ended June 30, 2026. The Company’s revenue increased by 15% to $123.4 million, driven by growth in its education services segment. Net income rose to $21.4 million, or $0.41 per diluted share, compared to $14.2 million, or $0.27 per diluted share, in the same period last year. The Company’s cash and cash equivalents increased to $143.8 million, and its total assets reached $243.9 million. The Company’s management discussed its financial performance and highlighted its strategic initiatives to drive growth and improve profitability.
A. Operating Results
Overview
Our current mission is to shape the future of learning, collaboration and communication through innovative, AI-powered Phygital solutions that seamlessly connect the physical and digital worlds. At the core of this mission is HybriU, a cutting-edge platform that transforms education, corporate conferencing and live events by delivering immersive, intelligent and real-time experiences across industries.
Designed to bridge the gap between in-person and remote interaction, HybriU enables AI-driven automation, deep engagement and seamless collaboration. With HybriU, Ambow is redefining how people connect, learn and grow, empowering greater access, equity and innovation in education and beyond.
For the six months ended June 30, 2026, net revenues increased by $0.1 million to $5.2 million from $5.1 million in the same period of 2025. The increase was primarily due to net revenues generated by educational program and services. For the three months ended June 30, 2026, net revenues decreased by $0.4 million to $2.4 million from $2.8 million in the same period of 2025. The decrease was primarily attributable to the decline in net revenues from HybriU licensing and sales, partially offset by growth in educational programs and services.
Net income for the six months ended June 30, 2026, was $0.3 million, compared to $1.9 million in the same period of 2025. Net loss for the three months ended June 30, 2026, was $0.1 million, compared to net income of $1.8 million in the same period of 2025. The decrease in net income for the six months ended June 30, 2026, and the net loss for the three months ended June 30, 2026, were primarily due to a one-time gain on lease settlement of $1.5 million for the first half of 2025.
Factors Affecting the Results of Operations
General factors affecting the results of operations:
- The number of student enrollments and fees we charge
- The number of orders and contracts we obtain
- Our costs and expenses
Effects of disposals and other strategic plans:
- There were no acquisitions or disposals during the six-month period ended June 30, 2026.
Key financial performance indicators:
| For the six months ended June 30 | 2025 | 2025 % | 2026 | 2026 % |
|---|---|---|---|---|
| Net revenues | $5,080 | 100.0 | $5,192 | 100.0 |
| Cost of revenues | $(2,269) | (44.7) | $(2,276) | (43.8) |
| Gross Profit | $2,811 | 55.3 | $2,916 | 56.2 |
| For the three months ended June 30 | 2025 | 2025 % | 2026 | 2026 % |
|---|---|---|---|---|
| Net revenues | $2,766 | 100.0 | $2,393 | 100.0 |
| Cost of revenues | $(1,291) | (46.7) | $(1,163) | (48.6) |
| Gross Profit | $1,475 | 53.3 | $1,230 | 51.4 |
Net revenues In the six months ended June 30, 2025 and 2026, net revenues were $5.1 million and $5.2 million, respectively. The increase was primarily due to revenues generated by educational program and services. In the three months ended June 30, 2025 and 2026, net revenues were $2.8 million and $2.4 million, respectively. The decrease was primarily attributable to lower net revenues from HybriU licensing and sales, partially offset by growth in educational programs and services.
Cost of revenues Cost of revenues for our educational programs and services and HybriU licensing and sales primarily consists of:
- Teaching fees and performance-linked bonuses paid to our teachers
- Rental, utilities, water and other operating expenses for the operation of our school properties, as well as inventory associated with HybriU
- Depreciation and amortization of properties, leasehold improvement and equipment used in the provision of educational services
Gross profit and gross profit margin Gross profit was $2.8 million, $2.9 million, $1.5 million and $1.2 million in the six months ended June 30, 2025, and 2026 and the three months ended June 30, 2025, and 2026, respectively.
Gross margin was 55.3%, 56.2%, 53.3% and 51.4% in the six months ended June 30, 2025, and 2026 and the three months ended June 30, 2025, and 2026, respectively. The higher gross margin for the six-month period in 2026 was mainly attributable to the higher profit margins in HybriU-related activities.
Operating expenses
| For the six months ended June 30 | 2025 | 2025 % | 2026 | 2026 % |
|---|---|---|---|---|
| Net revenues | $5,080 | 100.0 | $5,192 | 100.0 |
| Operating expenses: | ||||
| Selling and marketing | $(499) | (9.8) | $(619) | (11.9) |
| General and administrative | $(1,642) | (32.3) | $(1,446) | (27.9) |
| Research and development | $(203) | (4.0) | $(376) | (7.2) |
| Impairment loss | $— | — | $(161) | (3.1) |
| Total operating expenses | $(2,344) | (46.1) | $(2,602) | (50.1) |
| For the three months ended June 30 | 2025 | 2025 % | 2026 | 2026 % |
|---|---|---|---|---|
| Net revenues | $2,766 | 100.0 | $2,393 | 100.0 |
| Operating expenses: | ||||
| Selling and marketing | $(273) | (9.9) | $(331) | (13.8) |
| General and administrative | $(771) | (27.9) | $(646) | (27.0) |
| Research and development | $(102) | (3.6) | $(220) | (9.2) |
| Impairment loss | $— | — | $(161) | (6.7) |
| Total operating expenses | $(1,146) | (41.4) | $(1,358) | (56.7) |
Selling and marketing expenses increased by 20.0% to $0.6 million for the six months ended June 30, 2026, from $0.5 million for the same period of 2025, primarily due to higher spending on digital marketing and advertising campaigns to promote brand awareness.
General and administrative expenses decreased by 12.5% to $1.4 million for the six months ended June 30, 2026, from $1.6 million for the same period of 2025, and decreased by 25.0% to $0.6 million for the three months ended June 30, 2026, from $0.8 million for the same period of 2025. The decreases were primarily due to our continued cost control measures and efficient cost management.
Research and development expenses increased to $0.4 million for the six months ended June 30, 2026, from $0.2 million for the same period of 2025, and increased to $0.2 million for the three months ended June 30, 2026, from $0.1 million for the same period of 2025. The increase was primarily driven by increased share-based compensation recognized in research and development expenses.
Impairment loss was $161 thousand for the six months ended June 30, 2026, compared to nil for the same period of 2025. For the three months ended June 30, 2026, impairment loss was $161 thousand, compared to nil for the same period of 2025.
Six and three months ended June 30, 2026, compared with the six and three months ended June 30, 2025
Net revenues: Net revenues increased by $0.1 million to $5.2 million for the six months ended June 30, 2026, from $5.1 million in the same period of 2025, primarily due to net revenues generated by Educational program and services. Net revenues decreased by $0.4 million to $2.4 million for the three months ended June 30, 2026, from $2.8 million in the same period of 2025, primarily due to lower net revenues from HybriU licensing and sales, partially offset by growth in educational programs and services.
Cost of revenues: Cost of revenues amounted to $2.3 million for the six months ended June 30, 2026, remaining relatively flat compared to $2.3 million in the same period of 2025. For the three months ended June 30, 2026, cost of revenues decreased by $0.1 million to $1.2 million, from $1.3 million in the same period of 2025.
Gross profit and gross profit margin: Gross profit increased to $2.9 million in the six months ended June 30, 2026, from $2.8 million in the same period of 2025, and decreased to $1.2 million in the three months ended June 30, 2026, from $1.5 million in the same period of 2025. Gross margin increased to 56.2% in the six months ended June 30, 2026, from 55.3% in the same period of 2025, and decreased to 51.4% in the three months ended June 30, 2026, from 53.3% in the same period of 2025.
Operating expenses: Total operating expenses increased by 13.0% to $2.6 million for the six months ended June 30, 2026 from $2.3 million for the same period of 2025, and increased by 27.3% to $1.4 million for the three months ended June 30, 2026 from $1.1 million for the same period of 2025. The increases were primarily driven by higher selling and marketing expenses, research and development expenses, and impairment loss.
Income / (loss): In line with the above-mentioned factors, there was an income of $0.3 million for the six months ended June 30, 2026, compared with the income of $1.9 million in the same period of 2025. Loss for the three months ended June 30, 2026 was $0.1 million, compared with the income of $1.8 million in the same period of 2025.