ATA Creativity Reports Q4 Financial Results with Increased Losses

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: Mar 25 2026

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Source: seekingalpha

Revenue Decline: ATA Creativity reported Q4 revenue of $12.7 million for FY 2025, an 8% year-over-year decrease, indicating pressure from market competition and reduced customer demand, which may impact future market share.
Gross Margin Erosion: The gross profit for FY 2025 was RMB 130.3 million ($18.6 million), down 7.8% from RMB 141.3 million in FY 2024, with gross margin declining from 52.7% to 48.6%, primarily due to rising costs associated with outsourced research-based learning services and part-time teacher expenses, highlighting challenges in cost control.
Increased Operating Expenses: Total operating expenses reached RMB 194.6 million ($27.8 million), a 5.5% increase from RMB 184.5 million in FY 2024, driven by a one-time goodwill impairment charge of RMB 33.9 million ($4.8 million), which poses long-term implications for the company's financial health.
Widened Net Loss: The net loss attributable to ATA Creativity for FY 2025 was RMB 48.0 million ($6.9 million), an increase from RMB 36.1 million in FY 2024, reflecting a worsening operating loss, although partially offset by a one-time investment gain, indicating significant challenges in achieving profitability.

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About AACG

ATA Creativity Global is a holding company primarily engaged in the provision of international educational services. The Company primarily provides four services. Portfolio training services include fundamental courses, creativity courses, and professional courses. Research-based learning services mainly include academic educational learning, workshop experience, themed educational travel and other research-based learning programs. Overseas study counselling services include background development, university and program selection, paper writing, interview simulation and application preparation. Other educational services include in-school classes and junior art education. The Company mainly conducts its businesses within domestic market.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

ATA Creativity Global Reports Q4 2025 Financial Results

Mar 26 2026Yahoo Finance

Revenue Decline: ATA Creativity Global reported total net revenue of RMB 89.1 million for Q4 2025, an 11.7% decrease compared to Q4 2024, primarily due to reduced revenue from portfolio training programs and overseas study counseling services, despite growth in research-based learning services indicating market demand volatility.
Gross Margin Decline: The gross profit for Q4 was RMB 50.2 million, with a gross margin of 56.4%, significantly down from 63.1% in the prior year, reflecting challenges in cost control, particularly due to a RMB 33.9 million one-time goodwill impairment charge.
Increased Operating Expenses: Total operating expenses for Q4 2025 were RMB 73.3 million, up from RMB 46.8 million in Q4 2024, primarily due to the aforementioned impairment charge; however, excluding this charge, operating expenses decreased by 15.7%, showcasing the company's cost-saving efforts in other areas.
Decrease in Student Enrollment: Total student enrollment for Q4 2025 was 921, down from 1,038 in Q4 2024, reflecting a normalization of service demand, which may pose pressure on future revenue growth.