Revenues for the quarter fell to RMB 182.5 million, down from RMB 210.4 million in 2025, while monthly active users dropped to 23.62 million. Management attributed the downturn primarily to a shrinking newborn population and more conservative consumer spending patterns. Despite these headwinds, the company increased its sales and marketing expenditure by 21.6% to RMB 50.2 million, signaling a push to capture remaining market share and promote new product initiatives.

To counter the decline, iHuman is pivoting toward an AI-centric ecosystem. The company recently finalized the acquisition of All Knowledge and Perfect Lingo to diversify its content library and broaden its reach across age groups. CEO Peng Dai stated that the firm is prioritizing long-term value through the development of AI agents like Xiaoyudian, which is designed to provide personalized learning insights. While these investments in new product exploration and international expansion have impacted near-term financial results, leadership maintains that these capabilities are essential for sustainable growth in a changing educational landscape.