ATA Creativity Global Reports Strong Q1 2025 Results

Ata Creativity Global ( (AACG) ) has released its Q1 earnings. Here is a breakdown of the information Ata Creativity Global presented to its investors.

ATA Creativity Global, an international educational services company, focuses on enhancing students’ creativity through portfolio training, research-based learning, and overseas study counseling. In its Q1 2025 financial report, the company announced a 15.9% increase in both net revenues and gross profit compared to the same period last year, despite a decrease in student enrollment. The company reported net revenues of $7.7 million and a reduced net loss of $1.8 million, attributing the financial improvements to higher contributions from portfolio training and research-based learning services.

Key financial highlights include a 15.9% increase in gross profit to $3.5 million, with a stable gross margin of 45.5%. Operating expenses saw a slight decrease, contributing to a reduced net loss. The company also noted a significant increase in credit hours delivered for project-based programs, which grew by 15.5%. Despite a 19.4% drop in student enrollment, the company managed to increase total credit hours by 5.8%.

Operationally, ACG launched new research-based projects and organized various in-person and online classes, including international tours and themed camps. The company continues to see favorable admission results for its students, with many receiving offers from prestigious universities worldwide. ACG remains committed to expanding its educational services and international partnerships, aiming to leverage its resources to grow its student population.

Looking ahead, ACG expects to achieve a year-over-year revenue increase of 3% to 5% for the fiscal year 2025. The company plans to continue expanding its core portfolio training services and research-based learning projects, while focusing on operational efficiency and strategic marketing to enhance classroom utilization and program value.