Revenue has plummeted by 86.19% year-over-year, while the 15.8% operating margin suggests that the current cost structure remains fundamentally misaligned with the company's diminished scale.
| Sales/Revenue | 51.94M | 9.47M | 68.55M | 65.04M | 102.35M | 113.22M | 120.17M |
| Revenue Growth % | -22.28% | -86.19% | 5.4% | -36.46% | -9.6% | -5.79% | - |
| Cost of Goods Sold | 27.78M | 4.28M | 32.15M | 47.34M | 100.39M | 97.82M | 105.52M |
| COGS % of Revenue | - | 45.24% | 46.9% | 72.78% | 98.09% | 86.4% | 87.81% |
| Gross Profit | 24.16M | 5.18M | 36.4M | 17.7M | 1.96M | 15.4M | 14.65M |
| Gross Margin % | 46.51% | 54.76% | 53.1% | 27.22% | 1.91% | 13.6% | 12.19% |
| Gross Profit Growth % | - | -85.76% | 105.63% | 803.74% | -87.28% | 5.07% | - |
| Operating Expenses | 27.77M | 5.07M | 41.67M | 48.26M | 67.4M | 70.25M | 65.89M |
| OpEx % of Revenue | - | 53.57% | 60.79% | 74.2% | 65.85% | 62.05% | 54.83% |
| Selling, General & Admin | 24.43M | 4.45M | 38.47M | 44.82M | 62.87M | 70.25M | 59.29M |
| SG&A % of Revenue | - | 46.94% | 56.12% | 68.92% | 61.42% | 62.05% | 49.34% |
| Research & Development | 3.34M | 628K | 3.2M | 3.44M | 0 | 0 | 0 |
| R&D % of Revenue | - | 6.63% | 4.66% | 5.28% | - | - | - |
| Other Operating Expenses | 3 | 0 | 0 | 0 | 4.53M | 0 | 6.6M |
| Operating Income | -4.19M | 112K | -5.27M | -30.56M | -65.44M | -54.86M | -51.23M |
| Operating Margin % | -8.06% | 1.18% | -7.69% | -46.98% | -63.94% | -48.45% | -42.63% |
| Operating Income Growth % | - | 102.13% | 82.75% | 53.31% | -19.29% | -7.07% | - |
| EBITDA | -4.1M | 977K | -5.15M | -30.43M | -63.88M | -52.45M | -47.02M |
| EBITDA Margin % | -7.89% | 10.32% | -7.52% | -46.79% | -62.41% | -46.33% | -39.12% |
| EBITDA Growth % | 91.74% | 118.96% | 83.06% | 52.37% | -21.78% | -11.57% | - |
| D&A (Non-Cash Add-back) | 89.64K | 865K | 116.78K | 127.76K | 1.56M | 2.4M | 4.22M |
| EBIT | -4.63M | 112K | -5.27M | -30.56M | -60.91M | -54.86M | -44.63M |
| Net Interest Income | -205.83K | 103K | -63K | -57K | -101K | 238K | 144.64K |
| Interest Income | 0 | 103K | 0 | 0 | 0 | 1.41M | 1.45M |
| Interest Expense | 205.93K | 0 | 63K | 57K | 101K | 1.17M | 1.31M |
| Other Income/Expense | 21.19M | 1.25M | 1.4M | 8.12M | 1.63M | 9.14M | 39.92M |
| Pretax Income | 17M | 1.36M | -3.87M | -22.44M | -63.81M | -45.72M | -11.32M |
| Pretax Margin % | 32.74% | 14.42% | -5.64% | -34.5% | -62.34% | -40.38% | -9.42% |
| Income Tax | 500.86K | 6K | -6.12M | 99.37K | 0 | -3.21M | -3.64M |
| Effective Tax Rate % | 2.95% | 0.44% | 158.3% | -0.44% | 0% | 7.02% | 32.2% |
| Net Income | 16.5M | 1.36M | 2.26M | -22.54M | -97.06M | 2.99M | -62.71M |
| Net Margin % | 31.77% | 14.35% | 3.29% | -34.65% | -94.83% | 2.64% | -52.18% |
| Net Income Growth % | 224.6% | -39.74% | 110.01% | 76.78% | -3349.63% | 104.76% | - |
| Net Income (Continuing) | 16.5M | 1.36M | 2.26M | -22.54M | -63.81M | -42.51M | -7.67M |
| Discontinued Operations | 0 | 0 | 0 | 0 | -5.06M | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 76.09K | -301.23K |
| EPS (Diluted) | 5.78 | 0.47 | 15.80 | -170.40 | -524.20 | -364.40 | -69.20 |
| EPS Growth % | 130.98% | -97.03% | 109.27% | 67.49% | -43.85% | -426.59% | - |
| EPS (Basic) | - | 0.48 | 15.80 | -160.00 | -516.00 | -364.40 | -69.20 |
| Diluted Shares Outstanding | 2.86M | 2.88M | 142.82K | 140.83K | 123.64K | 116.64K | 110.93K |
| Basic Shares Outstanding | 2.86M | 2.86M | 143.06K | 132.29K | 185.17K | 8.2K | 906.53K |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Liquidity and regulatory insolvency
As reported in recent financial filings, Ambow's revenue has experienced a severe contraction of 86.19% year-over-year, signaling a fundamental shift away from its legacy tutoring model toward a significantly smaller, institutional-focused service footprint that remains highly vulnerable to ongoing regulatory and market-driven demand volatility.
The precipitous decline in top-line performance suggests that the company's previous reliance on high-volume retail education has been effectively dismantled by regulatory intervention. Investors should monitor whether the remaining revenue base, now centered on institutional partnerships, can achieve a stable floor or if further erosion is likely as the company attempts to re-orient its business model.
Based on the latest income statement data, the company's gross margin of 54.76% appears deceptively healthy, yet the razor-thin operating margin of 1.18% indicates that the current cost structure is fundamentally misaligned with the significantly reduced scale of the business operations.
The wide disparity between gross and operating margins suggests that the company has failed to adequately rightsize its overhead following the revenue collapse. This structural inefficiency implies that any further revenue weakness could rapidly push the company into sustained operating losses, as fixed costs remain disproportionately high relative to current output.
According to recent quarterly disclosures, the net margin of 14.35% significantly exceeds the operating margin of 1.18%, which warrants further investigation into the sustainability of earnings that appear to be bolstered by non-operating gains rather than core educational service delivery.
The reliance on non-operating items to drive bottom-line results suggests that the company's core business is not yet self-sustaining. Analysts should be cautious of these accounting anomalies, as they may obscure the underlying cash-burning nature of the current operational model.
As indicated by the provided financial data, the company's high fixed-cost structure, primarily tied to physical school leases and personnel, creates a precarious environment where the current revenue scale is insufficient to cover the necessary operating expenses without further capital intervention.
The persistence of high SG&A expenses despite the massive revenue contraction suggests a lack of expense discipline or an inability to quickly shed legacy costs. This cost structure appears to be a primary risk factor, as it limits the company's flexibility to navigate the current, highly constrained regulatory and economic environment.
Quick answers to the most common questions about buying AMBO stock.
For fiscal year 2025, Ambow Education Holding Ltd. (AMBO) reported total revenue of $9.5M. This represents a 92.1% decline compared to $120.2M in 2020.
Ambow Education Holding Ltd. (AMBO) is profitable, generating $1.4M in net income for the fiscal year ending 2025 with a net profit margin of 14.4%.
Ambow Education Holding Ltd. (AMBO) reported an operating income of $0.1M, resulting in an operating profit margin of 1.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Ambow Education Holding Ltd. (AMBO) generated $5.2M in gross profit for the year, representing a gross profit margin of 54.8%. This demonstrates the company's core pricing power and production efficiency.