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EarningsQ2 2026 Earnings Report
COE Q2 2026 EPS Results
Actual EPS>-$0.01
Consensus EPS―
Beat/Miss―
One Year Ago EPS-$0.08
COE Q2 2026 Revenue Results
Actual Revenue$32.44M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+58.45%
Earnings Announcement Details
QuarterQ2 2026
Date09/15/2026
TimeBefore Open
Conference CallTuesday, September 15, 2026
COE Upcoming Earnings
China Online Education Group's next earnings date is estimated for December 16, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
COE Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive: the company reported strong revenue and gross billings growth, robust demand, positive operating cash flow, a new AI-powered product launch, and narrower operating and net losses. These positives were partly offset by substantial increases in operating, sales and marketing, and product development expenses, along with continued losses and negative earnings per ADS.Company Guidance
Gross Billings Exceeded Guidance
Second-quarter gross billings reached $39.3 million, exceeding the high end of the guidance announced in June 2026 and increasing 38.1% year-over-year.
Robust Demand Across Key Markets
Management stated that demand across 51Talk's key markets remains robust.
Positive Operating Cash Flow
The company generated $4.9 million of net operating cash inflows during the second quarter.
Strong Net Revenue Growth
Second-quarter net revenues were $32.4 million, up 58.8% year-over-year, largely driven by an increase in active students with attended lesson consumption.
Healthy Gross Margin
Second-quarter gross margin was 73.9%.
Global Communicator Product Launch
On July 1, 51Talk launched Global Communicator, its next-generation learning product developed with strategic partner Oxford University Press.
AI-Powered Content Platform
Global Communicator uses an AI-powered content production platform to generate the world's students learn in, the characters they meet, and the lessons themselves end to end. Management said the platform will also power new regions, languages, and subjects.
Focus on Efficient Investment and Growth
Management said its priority for the remainder of 2026 is to sustain healthy growth by building on last year's success, while investing more efficiently in the third quarter and moving toward profitability and long-term shareholder value.
Narrower Operating Loss
Second-quarter operating loss narrowed to $2.1 million from $3.2 million in the same quarter last year.
Narrower Net Loss
Net loss attributable to ordinary shareholders improved to $3.1 million from $3.5 million in the same quarter last year.
Cash and Student Advances
Total cash equivalents and time deposits were $40.1 million at the end of the second quarter, while advances from students were $86.7 million.
Third-Quarter Gross Billings Outlook
The company expects third-quarter 2026 net gross billings to be between $41 million and $43 million, based on current market conditions, operating conditions, and customer demand; management noted that these estimates are preliminary and subject to change.
COE Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed