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China Online Education Group
(COE)
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Rating:46Neutral
Price Target:
$10.00
▼(-38.08% Downside)
Action:Reiterated
Date:09/15/26
The score is held down primarily by continued operating/net losses and a weakened balance sheet with negative equity, alongside bearish technicals with the stock trading well below key moving averages. Offsetting these risks are improving cash generation and a constructive earnings update featuring strong growth, positive operating cash flow, and narrowing losses, but profitability and balance-sheet repair remain the main hurdles.
Positive Factors
Revenue and student growth
Rapid revenue growth alongside a large increase in active students indicates stronger adoption and lesson consumption across the platform. If sustained, this expanding learner base can improve operating leverage, reinforce market presence, and provide a durable foundation for future cash generation.
Negative Factors
Persistent unprofitability
The company has not yet demonstrated sustainable operating leverage despite revenue recovery and narrower losses. Continued negative operating and net results can constrain reinvestment flexibility, make growth more dependent on disciplined execution, and delay the transition to durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and student growth
Rapid revenue growth alongside a large increase in active students indicates stronger adoption and lesson consumption across the platform. If sustained, this expanding learner base can improve operating leverage, reinforce market presence, and provide a durable foundation for future cash generation.
Read all positive factors
China Online Education Group (COE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$69.84M
Dividend YieldN/A
Average Volume (3M)53.98K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth74.92%
EPS Growth-149.51%
CountryUS
Employees729
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-167.40
Shares Outstanding4,280,532
10 Day Avg. Volume55,272
30 Day Avg. Volume53,982
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.10
Price to Sales (P/S)0.03
P/FCF Ratio0.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)$1.13B
China Online Education Group Business Overview & Revenue Model
Company Description
51Talk Online Education Group, through its subsidiaries, engages in providing online education platform with English language education services to students in the People's Republic of China, Hong Kong, the Philippines, Singapore, Malaysia, and Th...
How the Company Makes Money
COE primarily makes money by selling online English learning services to individual students, generally through prepaid packages or subscriptions that bundle a set number of live lessons and related learning services delivered via its platform. Re...
China Online Education Group Earnings Call Summary
Earnings Call Date:Sep 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
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.Positive Updates
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.
Negative Updates
Operating Expenses Increased
Second-quarter operating expenses rose 41.8% year-over-year to $26 million.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
For the remainder of 2026, the company’s priority is to sustain healthy growth by building on last year's success; following an exceptionally strong quarter in Q3 2025, it is investing more efficiently in the third quarter of 2026, moving toward profitability and a long-term shareholder value. For the third quarter of 2026, the company currently expects net gross billings to be between $41 million and $43 million. This outlook is based on current market conditions and reflects the company’s current and preliminary estimates of the market and operating conditions and customer demands, which are all subject to change.China Online Education Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 120.81M | 95.85M | 50.69M | 27.11M | 15.05M | 788.00K |
| Gross Profit | 88.58M | 70.84M | 39.53M | 20.79M | 11.85M | 658.00K |
| EBITDA | -13.44M | -15.22M | -6.91M | -14.81M | -12.68M | -3.99M |
| Net Income | -16.63M | -16.85M | -7.24M | -15.03M | -42.56M | 18.74M |
Balance Sheet | ||||||
| Total Assets | 69.63M | 66.09M | 43.94M | 31.16M | 27.63M | 187.07M |
| Cash, Cash Equivalents and Short-Term Investments | 40.07M | 38.96M | 29.19M | 23.39M | 23.06M | 31.11M |
| Total Debt | 2.54M | 2.94M | 2.68M | 631.00K | 734.00K | 1.63M |
| Total Liabilities | 106.44M | 97.35M | 58.65M | 39.35M | 21.06M | 300.50M |
| Stockholders Equity | -36.94M | -31.36M | -15.00M | -8.34M | 6.58M | -113.43M |
Cash Flow | ||||||
| Free Cash Flow | 9.52M | 9.52M | 5.52M | 272.00K | -45.71M | -105.15M |
| Operating Cash Flow | 11.81M | 11.81M | 5.83M | 559.00K | -45.70M | -105.03M |
| Investing Cash Flow | -952.00K | -952.00K | 468.00K | 2.45M | 2.51M | 98.31M |
| Financing Cash Flow | 218.00K | 218.00K | 240.00K | 0.00 | 20.48M | -2.35M |
China Online Education Group Technical Analysis
Negative
16.15
Price Trends
15.38
Negative
18.06
Negative
22.16
Negative
Market Momentum
-1.15
Negative
39.37
Neutral
73.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COE, the sentiment is Negative. The current price of 16.15 is above the 20-day moving average (MA) of 12.21, above the 50-day MA of 15.38, and below the 200-day MA of 22.16, indicating a bearish trend. The MACD of -1.15 indicates Negative momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 73.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COE.
China Online Education Group Risk Analysis
China Online Education Group disclosed 68 risk factors in its most recent earnings report. China Online Education Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The M&A Rules and certain other regulations of mainland China establish complex procedures for some acquisitions of Chinese companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in mainland China. Q4, 2023
2.
Governmental regulation of currency conversion in mainland China may affect the value of your investment. Q4, 2023
3.
Our mainland China subsidiaries are subject to restrictions on paying dividends or making other payments to us, which may restrict our ability to satisfy our liquidity requirements. Q4, 2023
China Online Education Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.78B | 2.40 | 24.59% | 0.41% | 32.55% | 846.04% | |
74 Outperform | $8.00B | 19.04 | 11.94% | 2.15% | 15.64% | 32.37% | |
73 Outperform | $58.78M | 1.08 | 7.52% | 8.70% | -11.84% | -26.71% | |
63 Neutral | $40.02M | -2.28 | -39.66% | ― | 80.33% | 31.05% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $578.23M | -18.00 | -26.91% | ― | 24.86% | 48.69% | |
46 Neutral | $69.84M | -0.07 | 52.88% | ― | 74.92% | -149.51% |
* Consumer Defensive Sector Average
COE
China Online Education Group
11.80
-32.45
-73.33%
EDU
New Oriental Education Tech
54.48
2.58
4.98%
TAL
TAL Education Group
11.73
0.53
4.73%
GOTU
Gaotu Techedu
2.44
-0.82
-25.15%
IH
iHuman
1.14
-1.61
-58.58%
YQ
17 Education & Technology Group
3.60
-0.69
-16.00%
China Online Education Group Corporate Events
51Talk Online Education Group Posts Strong Q2 2026 Growth and Launches AI-Powered Learning Product
Sep 15, 2026
51Talk reported unaudited second-quarter 2026 results on September 15, showing strong top-line growth and expanding student demand for its English-focused online education services. Net revenues rose 58.8% year on year to US$32.4 million, gross bi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.