51Talk Reports 93% Revenue Growth Narrowing Q1 Loss

51Talk Online Education Group reported strong financial and operational growth in the first quarter of 2025, with net revenues rising 93.1% year-over-year to $18.2 million and gross billings increasing by 74.6% to $21.9 million. The number of active students expanded by 75.5% to approximately 81,100, driving the company’s momentum despite continuing operating losses, which narrowed significantly from $4.0 million to $1.3 million compared to the previous year. Adjusted net loss per ADS improved to $0.20 from $0.64 last year, reflecting enhanced operational efficiency, though challenges remain as the company still reported a Non-GAAP EPADS loss of $0.20. 51Talk maintains a strong liquidity position with $29.5 million in cash and equivalents and forecasts continued growth in the second quarter with expected gross billings between $24.5 million and $25.5 million. While the company’s financial risks persist, including a negative P/E ratio and lack of dividend yield, its expanding market presence and improved cash flow suggest potential for future profitability. Investors are advised to consider both the robust revenue growth and ongoing profitability challenges when evaluating 51Talk’s stock.