Revenue growth has accelerated to 89.4% year-over-year by 2025Q4, though this is offset by a negative operating margin of -16.9% due to heavy sales and marketing expenditures.
| Sales/Revenue | 95.85M | 50.69M | 27.11M | 15.05M | 788K | 314.4M | 211.31M | 166.52M | 129.89M | 60.24M | 23.83M | 8.42M | 3.57M |
| Revenue Growth % | 89.09% | 86.98% | 80.16% | 1809.64% | -99.75% | 48.79% | 26.89% | 28.21% | 115.62% | 152.82% | 183.08% | 135.44% | - |
| Cost of Goods Sold | 25.01M | 11.16M | 6.32M | 3.19M | 130K | 88.84M | 62.87M | 59.73M | 48.11M | 21.19M | 9.19M | 3.58M | 1.53M |
| COGS % of Revenue | 26.09% | 22.02% | 23.32% | 21.23% | 16.5% | 28.26% | 29.75% | 35.87% | 37.04% | 35.18% | 38.58% | 42.55% | 42.94% |
| Gross Profit | 70.84M | 39.53M | 20.79M | 11.85M | 658K | 225.56M | 148.43M | 106.79M | 81.77M | 39.05M | 14.63M | 4.84M | 2.04M |
| Gross Margin % | 73.91% | 77.98% | 76.68% | 78.77% | 83.5% | 71.74% | 70.25% | 64.13% | 62.96% | 64.82% | 61.42% | 57.45% | 57.06% |
| Gross Profit Growth % | 79.22% | 90.14% | 75.38% | 1701.52% | -99.71% | 51.96% | 39% | 30.59% | 109.43% | 166.8% | 202.65% | 137.04% | - |
| Operating Expenses | 85.31M | 47.57M | 34.45M | 24.21M | 5.25M | 209.58M | 163.81M | 165.62M | 169.2M | 112.8M | 64.21M | 19.93M | 4.74M |
| OpEx % of Revenue | 89% | 93.85% | 127.08% | 160.9% | 666.24% | 66.66% | 77.52% | 99.46% | 130.27% | 187.26% | 269.49% | 236.74% | 132.65% |
| Selling, General & Admin | 79.82M | 44M | 31.36M | 21.35M | 5.12M | 191.3M | 141.3M | 138.73M | 135.01M | 90.81M | 55.8M | 18.19M | 4.24M |
| SG&A % of Revenue | 83.27% | 86.8% | 115.69% | 141.86% | 649.11% | 60.85% | 66.87% | 83.31% | 103.95% | 150.75% | 234.19% | 216.09% | 118.72% |
| Research & Development | 5.49M | 3.57M | 3.09M | 2.87M | 135K | 24.92M | 22.51M | 26.89M | 34.19M | 21.99M | 8.41M | 1.74M | 498K |
| R&D % of Revenue | 5.73% | 7.04% | 11.39% | 19.04% | 17.13% | 7.93% | 10.65% | 16.15% | 26.32% | 36.51% | 35.3% | 20.65% | 13.93% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -14.47M | -8.05M | -13.66M | -12.36M | -4.59M | 15.98M | -15.37M | -58.83M | -87.43M | -73.75M | -49.57M | -15.09M | -2.7M |
| Operating Margin % | -15.09% | -15.87% | -50.4% | -82.12% | -582.74% | 5.08% | -7.27% | -35.33% | -67.31% | -122.44% | -208.07% | -179.29% | -75.59% |
| Operating Income Growth % | -79.81% | 41.11% | -10.56% | -169.12% | -128.73% | 203.97% | 73.87% | 32.71% | -18.54% | -48.77% | -228.52% | -458.45% | - |
| EBITDA | -14.03M | -7.91M | -13.56M | -12.26M | -4.5M | 18.88M | -11.57M | -54.04M | -82.98M | -71.37M | -48.43M | -14.86M | -2.67M |
| EBITDA Margin % | -14.64% | -15.6% | -50.03% | -81.44% | -570.43% | 6.01% | -5.47% | -32.45% | -63.89% | -118.47% | -203.26% | -176.58% | -74.77% |
| EBITDA Growth % | -77.43% | 41.69% | -10.68% | -172.64% | -123.81% | 263.25% | 78.59% | 34.88% | -16.28% | -47.36% | -225.85% | -456.03% | - |
| D&A (Non-Cash Add-back) | 434K | 137K | 99K | 103K | 97K | 2.9M | 3.81M | 4.79M | 4.44M | 2.39M | 1.14M | 227.63K | 29.21K |
| EBIT | -15.66M | -7.05M | -14.91M | -12.78M | -4.09M | 0 | -12.85M | -58.57M | -86.38M | -73.12M | -49.57M | -15.09M | -2.7M |
| Net Interest Income | 358.95K | 229K | 165K | 27K | 282K | -10.1K | 1.17M | -111.79K | -869.85K | -148.33K | -54.38K | -195.55K | -117.16K |
| Interest Income | 358.95K | 229K | 165K | 27K | 282K | 5.89M | 2.52M | 1.33M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 10.1K | 1.35M | 1.44M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.19M | 1M | -1.25M | -426K | 501K | 0 | 1.17M | -1.18M | -869.85K | -148.33K | -54.38K | -195.55K | -117.16K |
| Pretax Income | -15.66M | -7.05M | -14.91M | -12.78M | -4.09M | 21.87M | -14.2M | -60.01M | -88.3M | -73.9M | -49.63M | -15.29M | -2.82M |
| Pretax Margin % | -16.33% | -13.9% | -55.01% | -84.95% | -519.16% | 6.95% | -6.72% | -36.04% | -67.98% | -122.68% | -208.3% | -181.61% | -78.86% |
| Income Tax | 1.25M | 276K | 118K | 60K | 100K | -627.71K | 724.33K | 564.03K | 665.06K | 232.72K | 755.26K | 1.11M | 117.16K |
| Effective Tax Rate % | -7.95% | -3.92% | -0.79% | -0.47% | -2.44% | -2.87% | -5.1% | -0.94% | -0.75% | -0.31% | -1.52% | -7.26% | -4.16% |
| Net Income | -16.85M | -7.24M | -15.03M | -42.56M | 18.74M | 21.24M | -14.92M | -60.57M | -88.96M | -74.13M | -50.38M | -16.4M | -2.94M |
| Net Margin % | -17.58% | -14.27% | -55.45% | -282.8% | 2377.92% | 6.76% | -7.06% | -36.38% | -68.49% | -123.07% | -211.47% | -194.79% | -82.14% |
| Net Income Growth % | -132.87% | 51.87% | 64.68% | -327.11% | -11.78% | 242.33% | 75.36% | 31.91% | -20% | -47.14% | -207.31% | -458.33% | - |
| Net Income (Continuing) | -16.9M | -7.32M | -15.03M | -12.84M | -4.19M | 21.24M | -14.92M | -60.57M | -88.96M | -74.13M | -50.38M | -16.4M | -2.94M |
| Discontinued Operations | 0 | 0 | 0 | -29.71M | 22.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 104K | 288K | 149K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -171.00 | -72.00 | -144.00 | -468.00 | 175.20 | 237.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | -137.5% | 50% | 69.23% | -367.12% | -26.08% | - | - | - | - | - | - | - | - |
| EPS (Basic) | -171.00 | -72.00 | -144.00 | -468.00 | 180.60 | 253.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 98.61K | 96.42K | 94.74K | 93.23K | 94.43K | 94.86K | 85.66K | 84.59K | 83.78K | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 98.61K | 96.42K | 94.74K | 93.23K | 91.25K | 88.76K | 85.66K | 84.59K | 83.78K | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Customer Acquisition Costs
As reported in recent financial filings, 51Talk has achieved an 89.4% year-over-year revenue growth rate by 2025Q4, signaling a successful initial market penetration following the strategic divestment of its legacy mainland China K-12 operations and the subsequent pivot toward international markets in Southeast Asia.
The acceleration in top-line performance suggests that the company is effectively capturing demand in its new target territories. However, investors should monitor whether this growth is sustainable or merely a reflection of a low-base effect following the 2022 restructuring.
Based on the provided income statement data, 51Talk maintains a robust gross margin of 72.4% as of 2025Q4, which appears to validate the structural cost advantages inherent in its proprietary Filipino teacher supply chain model compared to higher-cost Western-centric educational competitors.
This high gross margin indicates significant pricing power and efficient labor cost management. The stability of this metric suggests that the core unit economics remain intact despite the company's ongoing transition and geographic shift.
According to the latest quarterly results, 51Talk's operating margin remains negative at -16.9%, indicating that the company has yet to achieve the necessary scale to offset its heavy investment in sales and marketing expenses required to fuel its current international growth trajectory.
The widening gap between gross profit and operating income suggests that customer acquisition costs are currently outpacing the revenue generated per student. Achieving profitability will likely require a significant improvement in marketing efficiency or a shift toward organic user growth.
Financial statements reveal that SG&A expenses reached $25.9M in 2025Q4, significantly exceeding the $22.3M in gross profit, which highlights the aggressive spending strategy currently employed by management to secure market share in the competitive international online education landscape.
The high concentration of costs in SG&A warrants further investigation into the long-term return on investment for these marketing outlays. Without a clear path to reducing these expenses relative to revenue, the company may continue to face significant bottom-line pressure.
While revenue growth is accelerating, the company's persistent net losses and reliance on high-cost customer acquisition suggest that the current business model may face long-term viability risks if it fails to reach an inflection point toward positive operating cash flow soon.
Short-term growth metrics may be masking underlying challenges in student retention and lifetime value. Investors should be cautious, as the current burn rate may necessitate future capital raises if the international pivot does not yield sustainable profitability in the near term.
Quick answers to the most common questions about buying COE stock.
For fiscal year 2025, 51Talk Online Education Group (COE) reported total revenue of $95.9M. This represents a 2581.3% increase compared to $3.6M in 2013.
51Talk Online Education Group (COE) reported a net loss of $16.8M for the fiscal year ending 2025.
51Talk Online Education Group (COE) reported an operating income of $-14.5M, resulting in an operating profit margin of -15.1%. This margin reflects the operational efficiency of the business before interest and taxes.
51Talk Online Education Group (COE) generated $70.8M in gross profit for the year, representing a gross profit margin of 73.9%. This demonstrates the company's core pricing power and production efficiency.