iHuman Inc. (NYSE: IH) reported unaudited financial results for the third quarter ended September 30, 2025. Revenue fell 14% year‑over‑year to RMB205.8 million (US$28.9 million) from RMB239.4 million in the same period a year earlier, reflecting a continued contraction in the company’s core Chinese market driven by a shrinking newborn population and cautious consumer spending. Net income declined 14% to RMB21.6 million (US$3.0 million) from RMB25.1 million in Q3 2024, underscoring the impact of the revenue slide on profitability.
Operating income dropped 19% to RMB16.7 million (US$2.3 million) from RMB20.7 million a year earlier, while gross profit fell 14% to RMB140.6 million (US$19.8 million) from RMB163.9 million. Average total monthly active users (MAUs) for the quarter were 26.13 million, down 10% from 29.12 million a year earlier, mirroring the revenue trend and highlighting the demographic headwind that is eroding the company’s user base.
Operating expenses fell 13.4% to RMB124.0 million (US$17.4 million), with research and development costs down 6.8% to RMB55.3 million (US$7.8 million) and sales and marketing expenses down 24.9% to RMB45.7 million (US$6.4 million). Cash, cash equivalents and short‑term investments stood at RMB1,128.2 million (US$158.5 million) as of September 30, 2025, providing a robust liquidity buffer that supports ongoing international expansion and product development initiatives.
CEO Dr. Peng Dai said the company remains focused on product updates, smart‑device launches, and content expansion while navigating a challenging market environment. He noted that the decline in MAUs is primarily attributable to China’s shrinking newborn population, but emphasized the company’s commitment to diversifying its user base through international markets and AI‑driven content offerings.
In addition to the earnings results, iHuman extended its share repurchase program through December 31 2026, signaling management’s confidence in the company’s intrinsic value and its ability to generate sustainable cash flow.
The results illustrate a company that is weathering demographic headwinds while maintaining profitability and a strong balance sheet. The continued cost discipline and strategic investments in AI and international expansion position iHuman to adapt to a shifting market, though the revenue and earnings decline underscore the need for accelerated growth in new geographies and product lines.
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