iHuman Inc. Announces Second Quarter 2026 Unaudited Financial Results, marking a reporting period characterized by shifting macroeconomic conditions and strategic corporate developments. iHuman Inc. released its unaudited financial results for the second quarter ended June 30, 2026, outlining a decline in overall revenues and active user metrics compared to the same period in the previous year. Management attributed these financial figures to a persistently challenging operating environment, pointing specifically to demographic shifts and consumer spending patterns.
What Changed in the Second Quarter of 2026
During the second quarter ended June 30, 2026, iHuman Inc. reported total revenues of RMB173.4 million (US$25.6 million). This compares with revenues of RMB210.9 million recorded in the same period last year. Gross profit for the quarter dropped to RMB111.2 million (US$16.4 million), down from RMB140.6 million in the corresponding period of 2025.
Operating performance also saw a downturn. The company recorded an operating loss of RMB20.8 million (US$3.1 million) for the second quarter of 2026, contrasting with an operating income of RMB18.3 million during the same period in the prior year. Net loss for the quarter stood at RMB17.5 million (US$2.6 million), compared with a net income of RMB30.7 million in the second quarter of 2025. Basic and diluted net loss per ADS were both reported at RMB0.34 (US$0.05).
User engagement metrics reflected similar pressures. Average total Monthly Active Users (MAUs) for the second quarter of 2026 dropped to 20.72 million, compared with 23.97 million in the same period last year. Total operating expenses increased by 7.9% to RMB132.0 million (US$19.5 million), up from RMB122.3 million in the comparable period of 2025.
Context and Corporate Restructuring
The financial results incorporate specific organizational adjustments completed during the period. Financial information for the second quarter of 2025 was retrospectively adjusted to include the historical results of All Knowledge, which was acquired in June 2026 under common control. Additionally, iHuman Inc. acquired certain assets related to Perfect Lingo in June 2026 as an asset acquisition under common control.
Despite the contraction in quarterly revenues and operating income, the company maintained a substantial liquidity position. Cash, cash equivalents, and short-term investments totaled RMB1,007.4 million (US$148.5 million) as of June 30, 2026, though down from RMB1,154.2 million as of December 31, 2025.
Management Commentary and Strategic Focus
Executive leadership emphasized maintaining a steady strategic direction despite short-term headwinds. Management stated that in the second quarter of 2026, amid a persistently challenging operating environment, the company maintained a clear strategic focus and advanced priorities designed to drive long-term growth.
Company executives noted that following the acquisitions announced earlier in the year, All Knowledge and Perfect Lingo have continued to make progress in product innovation. Furthermore, management highlighted ongoing investments in key areas, including the broader product portfolio, artificial intelligence innovation capabilities, and international expansion.
Executives expressed belief that these continuous investments will strengthen core capabilities and build a more resilient business over the medium and long term. Specific initiatives noted during the period included progress within the Liamiao intellectual property ecosystem. The official Xiaohongshu account for the Liamiao IP surpassed 300,000 followers, and the Liamiao English app recorded more than one million downloads on the Xiaotiancai platform following its late June launch.
Sector Impact and Market Drivers
Management attributed the decrease in revenues and MAUs primarily to external macroeconomic and demographic factors, specifically the decline in China’s newborn population and more conservative consumer spending habits. These structural shifts impact demand patterns across early childhood educational products and consumer applications.
Industry observers note that digital learning and educational technology providers operating in this region face acute pressures from changing family demographics and tighter discretionary household budgets. Companies are increasingly forced to balance cost discipline against the necessity of funding technological upgrades, such as AI integration and expanded app portfolios.
Limitations and Forward-Looking Uncertainties
While corporate leadership maintains an optimistic outlook regarding international expansion and product diversification, the financial disclosures are subject to inherent risks. Forward-looking statements concerning future business development, financial condition, results of operations, user retention and conversion rates, market demand, and business partner relationships involve substantial uncertainties. Actual results may differ materially from current expectations due to shifts in competitive dynamics, regulatory changes, or broader macroeconomic volatility.
What to Watch Next
Stakeholders and market analysts will monitor how effectively iHuman Inc. integrates its recent acquisitions under common control, including All Knowledge and Perfect Lingo. Key metrics to watch in subsequent reporting periods include the stabilization of Monthly Active Users, the monetization trajectory of new digital properties like Liamiao English, and the return on investments directed toward AI capabilities and international markets.
Attribution and reporting are based strictly on the unaudited financial results and statements released by iHuman Inc. on September 29, 2026.