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Jun 30
YXT.COM Group Holding Ltd Q1 2025 Earnings Report
YXT.COM reported a net loss as it continued investing in AI-powered enterprise solutions while reducing expenses across key functions.
Key Takeaways
YXT.COM generated $21.3 million in revenue during the first half of 2025, reflecting a decline as the company shifted its focus to large enterprise customers. While gross margin improved to 65.1%, net loss totaled $10.3 million. The company also saw improved efficiency through AI implementation and cost control.
Revenue declined 7.8% year-over-year to $21.3 million, mainly due to strategic exit from small customer segments.
Gross margin improved to 65.1% from 61.1%, aided by operational efficiency and product focus.
Net loss was $10.3 million; adjusted net loss narrowed to $8.9 million year-over-year.
Subscription customer count decreased to 2,358, while MRR for AI products rose to $69.9K.
YXT.COM Group Holding Ltd
YXT.COM Group Holding Ltd
YXT.COM Group Holding Ltd Revenue by Segment
YXT.COM Group Holding Ltd Revenue by Geographic Location
Revenue by Segment
Subscription Learning Revenue
CapyFin.comNon-Sub Learning Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
China Revenue
CapyFin.com Forward Guidance
YXT.COM plans to continue focusing on high-margin enterprise clients and AI-powered offerings while managing costs to move toward profitability.
Positive Outlook
- Shift to large enterprise clients driving higher-margin deals.
- Improved gross margin through AI and cost optimization.
- MRR from AI products more than doubled year-over-year.
- Strategic elimination of lower-yield segments aiding profitability path.
- Continued investment in AI-powered adaptive learning solutions.
Challenges Ahead
- Revenue decline due to reduced SMB customer base.
- Losses continue despite margin improvement.
- Customer churn tied to shift in strategic focus.
- Cash reserves significantly decreased from prior year-end.
- No guidance on return to profitability timeline.
Revenue & Expenses
Visualization of income flow from segment revenue to net income