Beijing – – September 29, 2026 -- iHuman Inc. (NYSE: IH) reported a second-quarter net loss of RMB17.5 million (US$2.6 million), reversing a net income of RMB30.7 million in the same period last year, as revenues fell 17.8% to RMB173.4 million (US$25.6 million) from RMB210.9 million.
Revenue Decline Tied to Falling Birth Rates and Cautious Spending
The company attributed the drop directly to China's declining newborn population and more conservative consumer spending. Average total monthly active users fell to 20.72 million from 23.97 million a year earlier, a 13.6% decrease also linked to the demographic downturn.
Operating Loss Emerges as Costs Outpace Shrinking Revenue Base
Gross profit fell to RMB111.2 million (US$16.4 million) from RMB140.6 million, with gross margin compressing to 64.1% from 66.7%. Total operating expenses rose 7.9% to RMB132.0 million (US$19.5 million), driven by a 17.2% jump in sales and marketing spend to RMB52.3 million (US$7.7 million) for promotional activities and brand enhancement. The combination pushed the company to an operating loss of RMB20.8 million (US$3.1 million), compared with operating income of RMB18.3 million a year earlier.
Cash Reserves Shrink Following Acquisition Payments and Dividends
Cash, cash equivalents and short-term investments declined to RMB1,007.4 million (US$148.5 million) as of June 30, 2026, from RMB1,154.2 million at year-end 2025. The company cited annual bonus payments, cash dividends, and first-installment payments for the acquisitions of All Knowledge and Perfect Lingo as the primary drivers of the cash outflow.
Smartwatch Edition of Liamiao English Tops One Million Downloads
CFO Vivien Weiwei Wang said a smartwatch edition of the Liamiao English app, developed with children's smartwatch brand Xiaotiancai, recorded more than one million downloads on the Xiaotiancai platform since its late-June launch. Separately, the company's original English-learning IP Liamiao has surpassed 300,000 followers on its Xiaohongshu account and was integrated into the core iHuman English app as a dedicated module.
Aha World Adds DreamWorks' Gabby's Dollhouse Through Universal Partnership
CEO Peng Dai said iHuman partnered with Universal Products & Experiences, a division of NBCUniversal's Universal Destinations & Experiences, to launch a dedicated Gabby's Dollhouse module within Aha World, its international product. The company's Reading Stars app was also named a Consumer Apps Honoree in the Education, Culture & Learning category at the 30th Annual Webby Awards.
Post-Acquisition Units Launch AI Tools Aligned with China's Education Push
Co-CEO Teng Li said All Knowledge launched AI Tianti in support of China's "AI Plus Education" initiative and released version 3.0 of News Critical Thinking, which pairs video content with AI-powered exercises. Perfect Lingo introduced AI-assisted read-aloud practice, grammar explanations, and personalized AI agents calibrated to individual proficiency levels.
Deferred Revenue Edges Down as Customer Advances Contract
Deferred revenue and customer advances stood at RMB231.5 million (US$34.1 million) as of June 30, 2026, down from RMB245.1 million at the end of 2025. Basic and diluted net loss per ADS was RMB0.34 (US$0.05), compared with net income per ADS of RMB0.60 and RMB0.57, respectively, a year earlier.