Ambow Education(US:AMBO)2026-02-13 22:21Financial Performance - Net revenues increased by 1.1% from $9.4 million in 2024 to $9.5 million in 2025, primarily driven by revenue growth from the HybriU platform [392][414]. - Net income rose significantly from $0.3 million in 2024 to $1.4 million in 2025, reflecting improved operational performance [393][417]. - Gross profit increased from $5.0 million in 2024 to $5.2 million in 2025, with gross margin improving from 53.1% to 54.8% during the same period [400][415]. Operating Expenses - Total operating expenses decreased by 10.5% from $5.7 million in 2024 to $5.1 million in 2025, mainly due to lower rental expenses following relocation [416]. - General and administrative expenses decreased from $4.3 million in 2024 to $3.4 million in 2025 due to reduced rental costs [403]. - Research and development expenses increased from $0.4 million in 2024 to $0.6 million in 2025, primarily for the development of HybriU [405]. - Research and development expenses increased by 50.0% from $0.4 million in 2024 to $0.6 million in 2025, driven by the development of HybriU [423]. - General and administrative expenses decreased by 20.9% from $4.3 million in 2024 to $3.4 million in 2025 due to lower rental expenses [423]. Cash Flow and Liquidity - The company had net cash provided by operating activities of $1.6 million in 2024, which decreased to $0.1 million in 2025 [419]. - Net cash provided by operating activities was $1.6 million in 2024, decreasing to $0.1 million in 2025 [424]. - Net cash used in investing activities was $2.0 million in 2024 and $1.0 million in 2025 [427]. - Net cash provided by financing activities shifted from a usage of $1.2 million in 2024 to a provision of $0.5 million in 2025 [428]. - Cash, cash equivalents, and restricted cash at the end of 2025 were $8.1 million, down from $8.4 million at the end of 2024 [422]. - The company expects to require additional capital to execute its long-term business plan and may need to take measures to conserve liquidity [421]. Assets and Liabilities - As of December 31, 2025, consolidated current assets exceeded current liabilities by $5.9 million, with net assets totaling $8.3 million [418]. Capital Expenditures - Capital expenditures were $1.2 million in 2024 and decreased to $1.0 million in 2025, primarily for equipment and software investments [431]. Employment - As of December 31, 2025, the company employed nine full-time and part-time software and educational professionals [435]. Interest Rates - The weighted average interest rate of borrowings was 6.16% in 2024 and increased to 6.28% in 2025 [429]. Future Outlook - The company faces uncertainties regarding future profitability, dependent on revenue growth and effective cost management [420].