Full Transcript: 51 Talk Online Education Q2 2026 Earnings Call

51 Talk Online Education (NYSE: COE ) released second-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below. This content is powered APIs. 1% year-over-year growth.

The company launched a new product, Global Communicator, in partnership with Oxford University Press, utilizing AI-powered content production. 4 million, driven by higher active student engagement. 8% to $26 million, with significant increases in sales and marketing expenses due to headcount growth and promotional activities. 1 million, showing a slight improvement from the prior year.

The company expects third quarter 2026 gross billings to range between $41 million and $43 million, reflecting confidence in sustaining growth. Full Transcript OPERATOR Hello, ladies and gentlemen. Thank you for standing by for 51 Talk Online Education's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode.

Today's conference call is being recorded. I will now turn the call over to your host, Mr. David Chung, Investor Relations for the company. Please go ahead, David.

David Chung, Investor Relations Thank you. Hello, everyone, and welcome to the second quarter 2026 earnings conference call of 51 Talk Online Education. The company's results were issued via Newswire Services earlier today and are posted online. 51Talk.

Mr. Jack Huang, our CEO, and Ms. Cindy Tang, our CFO, will begin with some prepared remarks. Following the prepared remarks, there will be a Q&A session.

S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today.

S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that the earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures.

51 Talk Online Education's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I will now turn the call over to our CEO, Jack Huang. Jack, please go ahead. Jack Huang, Founder&CEO Thank you, David.

Hello, everyone. Thank you very much for joining our conference call today. 1% year over year. Demand across our key markets remains robust.

S. dollars of net operating cash inflow during the quarter. On July 1st, we launched our next-generation learning product, Global Communicator, built with our strategic partner Oxford University Press. The worlds students learn in, the characters they meet, and the lessons themselves are all generated end to end by our AI-powered content production platform.

The same platform will power new regions, new languages, and even new subjects. It is the foundation for what we build next. Our priority for the remainder of 2026 is to sustain healthy growth by building on last year's success. Following an exceptionally strong quarter in Q3 2025, we are investing more efficiently in the third quarter of 2026, moving us toward profitability and long-term shareholder return value.

With that, I will now turn the call over to Cindy, our CFO. Cindy Tang, CFO Thank you, Jack. Now let me walk you through our second quarter financial details. 8% increase from the same quarter last year, largely driven by the increase of active students with attended lesson consumption.

9%. 3 million. 8% compared to the same quarter last year. 8% increase from the same quarter last year, primarily attributable to higher sales personnel costs driven by headcount growth in the sales and marketing team, as well as increased marketing and branding expenses from intensified promotional activities.

6% increase from the same quarter last year. 3 million, broadly flat compared to the same quarter last year. 2 million in the same quarter last year. 5 million in the same quarter last year.

43, respectively. 1 million at the end of the second quarter. 7 million at the end of the second quarter. Looking forward to the third quarter of 2026, we currently expect gross billings to be between US$41 million and US$43 million.

The outlook is based on our 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. This concludes our prepared remarks. We will now open the line for questions. Operator, please go ahead.

OPERATOR We will now begin the question and answer session. To ask a question, please press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2.

At this time, we will pause momentarily to assemble our roster. Once again, if you would like to ask a question, please press star, then one. As we are reaching the end of our conference call, I'd like to turn the call back over to the company for closing remarks. Mr.

David, please go ahead. David Chung, Investor Relations Thank you once again for joining us today. If you have further questions, please contact 51 Talk Online Education Investor Relations through the contact information provided on our website. OPERATOR This concludes this conference call.

You may now disconnect your line. Thank you. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription.

For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.