JG

Ladies and gentlemen, thank you for standing by and welcome to the Aurora Mobile first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Christian Arnell. Thank you. Please go ahead, sir.

Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.jiguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Shan-Nen Bong, Chief Financial Officer, and Mr. Guangyan Chen, General Manager. Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, and/or factors are included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under applicable law. With that, I'd now like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Christian. Hi, everyone. Welcome to Aurora Mobile's 2026 first quarter earnings call. Before I comment on our Q1 results, I would like to remind everyone that we have uploaded the quarterly earnings deck on our IR website. You may refer to the deck as we proceed with the call today. As we've done in the past, the suitable description that I would give to the first quarter of 2026 is, a good spring brings a good year.

Within this first quarter of 2026, our achievements are as follows. Firstly, in this quarter, the group recorded revenue of CNY 93.3 million, representing a solid 5% year-over-year growth. Secondly, our global flagship product, EngageLab, continues to shine. The EngageLab ARR for March 2026 surged to a record high of $11.7 million, representing 172% year-over-year growth. Thirdly, gross profit grew by 13% year-over-year.

Gross margin improved by 490 basis points between the years. Along the way, we delivered the fourth consecutive quarters of GAAP net profit. Trust you would agree with me. The Q1 that we have delivered was indeed a fairly good set of financials, and this is a great way to kick off a brand-new 2026 financial year. Let me now share more on the business aspect. Q1 of each year is always the top quarter for majority, if not all, of businesses. Just to share, within the first quarter of the year, we have the shorter month of February, coupled with the long Chinese New Year holidays, business activities tend to be slower at this time of the year.

Despite the slower quarter of the year, we worked harder and smarter and managed to pull through with relatively excellent results. Our total Q1 group revenue reached CNY 93.3 million, representing a solid 5% year-over-year growth. In this quarter, developer services recorded great 15% revenue growth year-over-year, but vertical applications revenues dipped 19% year-over-year. Developer services revenues, which consist of subscription service and Value-Added Services, delivered strong performance with 15% growth year-over-year, but decreased 6% quarter-over-quarter.

Our core business, Developer Subscription Services, delivered another quarter of excellent revenue number of CNY 64.9 million, representing growth of 21% year-over-year and 5% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increases in both customer number and ARPU. In this quarter, subscription revenue recorded its highest level in history yet, at CNY 64.9 million, surpassing the CNY 61.9 million high level in Q4 of 2025. Let's move on to the update on our global flagship product, EngageLab.

As we have seen in the past 12 to 18 months, EngageLab is now the indisputable primary driver of revenue growth for Aurora Mobile, and it is on great acceleration path. First, EngageLab ARR has refreshed its own record and achieved a new milestone of $11.7 million as of March 2026. For the second consecutive quarter, we recorded very remarkable year-over-year ARR growth. In this quarter, the growth was 172%. Secondly, EngageLab continues to record another strong quarter. Cumulated signed contract value amounted to RMB 185 million by the end of Q1 of 2026.

In Q1 alone, we won and signed up about RMB 28 million worth of new contracts. It has again shown the great growth momentum for this business. Thirdly, we continue to witness the influx of new global customers signing up to purchase EngageLab. In this quarter alone, we have converted and won over 223 new customers all over the world. The customer number has grown by 120% year-over-year to 1,864. We are very pleased with the new wins.

Fourthly, the recognized revenue for EngageLab in Q1 of 2026 reached CNY 24 million, representing an outstanding 210% growth year-over-year. We continue to see great strength in EngageLab business expansion. The revenue growth, new wins, and great ARR numbers were all results of the great work done by the team to meet and exceed overseas customers' needs and expectations quarter-over-quarter. We saw more customers converted to using EngageLab platform due to the superior suite of products we have to address their needs.

Equally important is our service-oriented mindset to attend to and resolve customer issues on a timely basis. Let me take a few minutes to share with you on our Aurora Mobile competitive advantages based on what I have witnessed for the past 18 to 24 months, and why we can grow the EngageLab revenue with strength quarter-over-quarter. Firstly, over the years, we have built mature, highly concurrent, and elastically scalable underlying infrastructure polished through years of commercial operation.

This infrastructure supports massive data processing, real-time delivery, and global traffic scheduling for our customers. Secondly, we have completed global market layout at an early stage and have established solid brand recognition in overseas digital service sectors. Thirdly, we possess exclusive capabilities helping our customers to unify their full lifecycle user data, covering acquisition, activation, engagement, retention, and conversion.

Fourthly, our products are equipped with self-developed native AI technology deeply embedded in full-product scenarios, together with standardized automated workflow engines. Our solutions help customers boost operational efficiency, realize intelligent management, and cut labor costs significantly. Fifthly, we have spent considerable effort ensuring we fully comply with global stringent data regulations, including privacy protection, cross-border data transmission, and regional data residency rules, meeting market access requirements across Europe, America, Southeast Asia, and other key regions.

Sixth, equally important is our lightweight architecture features easy access and low development barriers, friendly to developers and enterprise technical teams for fast integration and launch. It can times the lower potential customers' reaching decision barriers and greatly improve market replication efficiency. I believe these competitive advantages will no doubt solidify our position in the global user engagement space and market. These advantages are pivotal to long-term revenue acceleration in the years to come.

On to our global expansion roadmap. We made great progress in Q1 of 2026. Within the first three months of 2026, we managed to sign up and finalize nine other new overseas partners. These overseas partners will help us to sell into the local customers in their respective countries. As of now, we have 26 independent partners globally working together to help us further expand our reach and footprint to more overseas customers.

Within subscription revenue, some of the notable wins in this quarter include, but are not limited to, the largest courier delivery company in the world for their China operations, SF Express, Guotai Junan Securities, Somu Security, and Cheg International. Value-added services revenues were CNY 6.7 million, down 53% quarter-over-quarter. The decrease was mainly attributable to the absence of the traditional quarterly online shopping festivals, namely the Double 11 or Double 12 in Q1. Let me pass the call over to Shan-Nen Bong, who will take you through the metrics on vertical applications and financial performance for this quarter.

Okay. Thanks, Chris. Next, I'll go over the revenue for vertical applications that includes Financial Risk Management and Market Intelligence. Overall, vertical application revenue decreased year-over-year and quarter-over-quarter. Within vertical application, Financial Risk Management revenue decreased 18% year-over-year and 29% quarter-over-quarter. The recent regulatory updates within the financial industry have resulted more headwinds for this segment of the business, but we are making necessary adjustments in terms of products and go-to-market approach to move forward.

Despite the tough operating environment, we still managed to win new contracts as the demand for our products and services is still there. The customers that sign up or renew in Q1 include, but not limited to, Fenqile, Xiaoying Puhui, Ping An Puhui, Zhonglian Xiaojin, and many more licensed credit or financial institutions throughout China. Market intelligence revenue increased by 3% quarter-over-quarter but decreased by 25% year-over-year due to the weak market condition and demand for Chinese APP data. This result is in line with our expectations. Coming to the other P&L items.

Our gross profit recorded another good quarter with 13% year-over-year growth. The remaining CNY 66.3 million gross profit that we had in Q1 gave a great foundation for the rest of the year in 2026. Our gross margin also recorded significant improvement by 490 basis point year-over-year. This again signifies the healthy business model that we are operating in. With this healthy level of margin, we are poised to record good bottom-line numbers going forward. On net profit, following the great momentum that we had in 2025, we started year 2026 with another GAAP net profit quarter.

This is a great achievement as Q1 is a cyclically slow quarter for each year. On to operating expenses. Q1 OPEX was at CNY 66.1 million, down 3% quarter-over-quarter, but up 9% year-over-year. The OPEX is within our forecast, and we're happy with the level where they are. I'll now dive deeper into the individual OPEX category. For R&D expenses, it increased by 17% year-over-year to CNY 28.7 million, mainly due to the higher staff cost and associated expenses. Technical service fee also contributed to the year-over-year increase.

Selling and marketing expenses increased by 11% year-over-year to CNY 25.9 million, mainly due to the higher staff cost driven by overseas business expansion. G&A expenses decreased by 9% year-over-year to CNY 11.5 million, mainly due to the decrease in bad debt provision resulting from improved collection efficiency. Next, I'll share three very important KPI that we closely monitor. On net dollar retention rate, a commonly used KPI for SaaS company, stood at 103% for our core developer subscription business for the trailing 12-month period ended March 31st, 2026.

This is the third consecutive quarter where the NDR number has exceeded the 100% threshold. This is the best testimony on the great product and services we are selling. In summary, customers continue to increase their spending with us over time. Secondly, another financial KPI for tracking the performance of SaaS company is the total deferred revenue. This represents cash collected in advance from customers for future contract performance, and it stood at RMB 173.9 million as of March 31st, 2026. This high deferred revenue balance is the best proof that SaaS business model that we are in is working well.

In short, we have secured CNY 173.9 million worth of future revenue as of March 31st, 2026. Thirdly, we continue to maintain a healthy level of AR turnover days at 42 days. This low turnover days ensure we have great cash liquidity while mitigating the risk of bad and doubtful debts. Cash collection is one of the key KPIs that we have for our sales team. Let us now recap on Chris' comment on, "A good spring brings a good year," at the beginning of this call. In view of the slower quarter in Q1 of each year, we have achieved and delivered a terrific set of Q1 numbers.

Firstly, we achieved GAAP net profit in the very first quarter of 2026. This marks our fourth consecutive quarter of net profit. Secondly, our core developer subscription business achieved a historical record high of CNY 64.9 million revenue this quarter. Third, our flagship product, EngageLab, continued to scale rapidly across the globe. Our EngageLab business exceeded its own past record in this quarter. The ARR in March reached $11.7 million. This represents a stunning 172% year-over-year growth.

Fourth, gross margin grew by 490 basis points year-over-year, the highest it has been for the past eight quarters, and the gross profit grew by 13% year-over-year. Last but not least, our net dollar retention for core developer service stood strongly at 103%. Although Q1 has been a tough quarter, but we have been resilient and managed to navigate through these rough waters. In Q1 2026 result that we have presented today's big volume, we deliver revenue growth, and our EngageLab business continued to scale new highs, and this lays solid foundation for the rest of 2026.

We are very committed to expanding the business on a global level and continue to be highly disciplined in our spending. We believe this combination is the appropriate strategy to bring the business forward. Lastly, before I conclude, I'll give a quick update on the share repurchase plan. In this quarter, ended March 31st, 2026, we repurchased 42,000 ADS. Cumulatively, we have repurchased a total of 441,000 ADS since the start of our repurchase program. This concludes our prepared remarks. We are happy to take the question now. Operator, please proceed.

Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. One moment for our first question. The first question comes from the line of William Chan from Spiga Capital. Please go ahead.

Good evening, Edmund. Thank you for taking my question. Based on the Q1 numbers you have released earlier today, it is a really good set of financial statements. We have revisited and reanalyzed the company IR for the past five quarters. It appears that things are moving in the right direction operationally and financially.

The revenue, especially EngageLab, has been showing great growth momentum. Gross profits and margins are pretty solid. Most importantly, the company has turned a full-year profit in 2025 and again in this quarter. My question for the management is how we should look at Aurora Mobile for the financial year 2026. Thank you.

Hi, William. Let me take this question. Yes, you are right. We are very pleased with the Q1 results for the beginning of 2026, and you are right to point out too, for the entire financial year of 2025 and Q1 of 2026, we have been consistently delivering solid financial numbers quarter-over-quarter without fail. This has proven that the business model and the execution capability of the management are standing up to the test quarter-over-quarter and year-over-year. In the call earlier, you have heard Chris share on Aurora Mobile's competitive advantages in the market that propel the growth that we have seen today.

These competitive advantages are real and continue to fuel our growth acceleration in the future. Customers are switching to us and buy our services because of these advantages that we have in the marketplace. At this point, I'd like to add that maybe it is time now to re-look at Aurora Mobile and why it is time to invest right now. There's no doubt that the current valuation is at the low side. Let me share with you on our long-term valuation logic. I believe our valuation logic includes the following aspects.

One, our solid and foundational domestic core business delivers stable cash flow and strong cyclical resilience. Secondly, through our global flagship product, EngageLab, our scalable global SaaS expansion brings clear, predictable long-term growth curves. Through GPTBots.ai, the in-depth native AI integration empower us and our business to gain tech premium and valuation re-rating upside. Our exclusive full-scenario contextual platform builds replicable competitive moats and operational defensibility. Equally important is the alignment of outcome-based enterprise software trend.

This significantly enhance our long-term monetization capability and profit elasticity. What all this means is, I think Aurora Mobile should not be valued purely as a traditional infrastructure company, nor as a purely as a single point AI tool. Our corporate framework should reflect platform synergy, global SaaS growth, and AI upside altogether. I believe the above is a better way to view and value Aurora Mobile as a whole for now. Hope this answer your question, William.

Thank you. Thank you.

Thank you. Our next question comes from the line of Jack Sun from Gangan Research. Please go ahead.

Hi, Management. I'm Jack from Gangan Research. I look at the Q1 earnings with one particular focus on EngageLab. We have been seeing EngageLab growing every quarters with good numbers from customer numbers, contractual value signed to impressive ARR growth. My question for the Management is how much fuel is left in the tank for EngageLab? In other words, how long can this EngageLab growth can be sustained? Thanks.

Jack, let me take this question, too. Yeah, this is a good question, but a very tough one that you have for us today. My short answer to your question is, yeah, we still have a long way to go in terms of the growth of EngageLab. You're right, and a lot of people have been saying our EngageLab business has been growing from day one of its launch about three years ago. As of now, after three years, we are still growing, but we are only gaining a fraction of the market globally. Let me share with you on your question. Let me answer your question in two aspects.

Firstly, let's look at the geography. If we zoom further into Southeast Asia market, where we generate about 40% of EngageLab business, we are nowhere near market dominant position. What that means is the room for growth, even in just Southeast Asia itself, is huge. Overall, the global user engagement market is vast. Besides Southeast Asia, the other markets are sizable too. For example, Asia Pacific includes Australia and New Zealand, Middle East, and European market.

Right now, we are just at the tip of the iceberg. The market is so huge that we believe it can provide many years of growth to come. The second aspect is the industry that we are selling into. Again, as of now, we have not dominated any particular industry vertical at all. As a matter of fact, majority, if not all businesses in all industry vertical have needs to engage with their users. Let me share with you on the actual examples.

One, all apps will need to send notification to its user, be it promotional or simply inform its user to update the latest version of app. A second example is online merchant would like to send notification to its user on the timing of the merchant delivery. Coffee apps such as Starbucks and Luckin Coffee, both are our clients, informing customers that their lattes or americanos are ready to pick up. Fourthly, airline companies needing to inform their passenger on upcoming flight, the check-in gate or the boarding gate.

These are just some of the real-life examples that notifications are being deployed in daily life, and I'm sure you can appreciate its application. Notifications or user engagement are simply omnipresent for most, if not all, enterprise in all industry. Therefore, the market is there for us to capture with both hands. Back to your question, there's still a lot of fuel left in the tank for our EngageLab business. The EngageLab market landscape remains vast, which equips us with a substantial multi-year growth headroom for further penetrate for more markets and drive steady revenue growth. Hope this answers your question.

Yeah. That's very clear. Thanks a lot.

Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone. That is star one and one to ask a question. We are now going to take our next question. This question comes from the line of Mike Tang from Barcad Research. Please go ahead.

Hi. Good evening. Thanks for taking my question, and congratulations on a great quarter. Just a quick question from me. I've noticed that from a year-over-year perspective, both revenue and gross profit, in terms of the growth rate, seems to have fallen a bit compared to fourth quarter. Can you just maybe talk about some of the reasons behind that? Thank you.

Sure, Michael, thanks for your interest on Aurora Mobile and your question. Let me take this call. Probably you appreciate Q1 is a traditionally slow quarter amongst the four quarters within a year, but still managed to see great results from our core developer solution business, where year-over-year revenue achieved a solid 21% growth that Chris talked about too, reaching an all-time high of CNY 64.9 million. Also in this quarter, gross profit rose by 13% year-over-year. The overall slow growth that you mentioned was mainly attributable to the revenue from other sector, which is the value-added service and vertical application.

Let me share with you the reason. One is the fact that advertising business was pressured by the seasonality, Q1 is traditionally a slow season for the industry. Without the traffic catalyst such as e-commerce shopping festival and coupled with the long Chinese New Year holidays, marketing spending by brand clients remains slow and leading to the current market condition that you have seen in Q1. Secondly, the slower demand for vertical application.

The macroeconomic headwinds have softened our overall client demand. In particular, the Financial Risk Management business was also impacted by the recent regulatory adjustment that I shared earlier on. For the remaining three quarters of 2026, our core developer solution business is poised for substantial growth with meaningful revenue expansion. Meanwhile, our overseas business, EngageLab, is expected to accelerate and benefit from our global footprint will further be unlocked and realized. Hope we answered your question, Mike.

Thank you.

Thank you. There are no further questions for today. I will now hand the call back to Christian Arnell for closing remarks.

Thank you everyone for joining our call tonight. If you have any further questions and comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good evening, and thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Ladies and gentlemen, thank you for standing by. Welcome to the Aurora Mobile Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Christian Arnell. Please go ahead, sir.

Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.jiguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer; Mr. Shan-Nen Bong, Chief Financial Officer; and Mr. Guangyan Chen, General Manager. Following their prepared remarks, they will be available to take your questions and give you answers during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements made within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties and/or factors are included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. With that, I'd now like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Christian. Hi, everyone. Welcome to Aurora Mobile's 2025 Fourth Quarter Earnings Call. Before I comment on our Q4 results, I would like to remind everyone that we have uploaded the quarterly earnings day on our IR website. You may reference the deck as we proceed with the call today. I'm truly excited about the various things that are going here at Aurora Mobile. Revenue is surging and our financials are as strong as ever. By the end of this call, I trust you will agree with me, our 2025 and Q4 numbers are truly exceptional. As we have done in the past, when looking at the fourth quarter and the year as a whole, a single phase comes to mind a year of pure brilliance. Why? Because we recorded first ever full year net GAAP profit in our history. Not only that, but we achieved 3 consecutive quarters of non-GAAP profit leading to this quarter, which just as importantly achieved quarterly revenue exceeding RMB 100 million mark. It's been a truly historic year. Let me now dive deeper into the outstanding work and numbers that make this success possible. Firstly, the group's revenue this quarter surged to RMB 105.2 million, representing a remarkable double-digit 13% year-over-year and 16% sequential growth. This performance brought through the guidance we shared in our Q3 earnings call. Secondly, our global flagship product, EngageLab continued to fire on all cylinders, winning new customers across the globe. This momentum drove EngageLab's ARR for December 2025 to a record high of USD 10 million, representing 186% year-over-year growth. Further, gross profit grew by 23% year-over-year and by 9% quarter-over-quarter. This is the highest gross profit we have seen over the past 16 quarters. Last but not least, we delivered another standout quarter on cash management. Net operating cash inflow hit RMB 35.1 million, the highest we have seen since Q4 of 2020. With so many record highs this quarter, I am incredibly proud of what our team has managed to accomplish. It's truly gratifying to share these results with you today, and it was driven by our strategy, hard work and passion, not by luck. Everyone in Aurora Mobile for the effort and energy toward our collective growth day in and day out, 2025 stands as one of our most successful year-to-date, the result of true commitment and strong execution. With that said, the work is not done. The solid foundation we have built over the past few years position us to achieve even great things. I sincerely believe we are ready to seize the next wave of global opportunities and our track record proves we can. As we move into 2026, we will continue on our expansion path with the same discipline and focus we show in the past years, enhancing our products and services, accelerating growth and maintaining strong financial management. I am optimistic of what 2026 will bring. The path ahead is rich with opportunities and our brightest moments are still to come. After a year of pure brilliance, I think for 2026 is clear growth acceleration. Now let me share more on the individual business performance. Our total Q4 group revenue has exceeded RMB 100 million mark for the first time in history since the transition to pure SaaS business model. It has grown both year-over-year and quarter-over-quarter. In particular, the lion's share of year-over-year revenue was contributed by strong numbers from developer subscription services. Our solid execution in 2025 across different markets provided an excellent platform to drive our top line performance. In this quarter, both developer subscription services and vertical application record solid acceleration with double-digit year-over-year revenue growth. Developer Services revenue, which consists of subscription services and Value-Added Services delivered strong performance with 7% growth year-over-year and 18% growth quarter-over-quarter. Subscription revenue performed well, increasing by 13% year-over-year and 7% quarter-over-quarter. Value-Added Services revenue grew by an impressive 101% quarter-over-quarter, but decreased 13% year-over-year. Our core business developer subscription services gave a revenue of RMB 61.9 million, representing growth of 13% year-over-year and 8% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increase in both customer number and ARPU. In this quarter, subscription revenue both for the RMB 60 million 1 quarter revenue mark and reached its highest level in history. Now it's time for what many of you have been waiting for, an update on our global flash product, EngageLab, which continued its remarkable growth trajectory quarter after quarter since it was launched. First, EngageLab's ARR has achieved a new and important milestone, USD 10 million as of December 2025. Following triple-digit growth in Q3, we record 186% year-over-year ARR growth this quarter. Secondly, we delivered another very strong quarter of EngageLab. Cumulative signed contract value amount to RMB 157 million by the end of Q4 of 2025. In Q4 alone, we signed up more than RMB 29 million worth of new contracts. This, in our view, is simply outstanding. We expect this revenue growth momentum to continue for the next 24 months. Thirdly, we secured new wins from global customers across all corners of the world. Our number of customers increased by 142% year-over-year to reaching 1,641. Our global go-to-market initiatives are proving highly effective in driving this growth. Fourthly, our EngageLab products and services are now sold to customers in more than 70 different countries and regions globally. We expanded our footprint into 18 new countries in Q4 alone. Ultimately, the rollout of EngageLab into global market has been a resounding success. Looking back to 2025, we are immensely pleased with the expansion of our global flash product. We have come a long way since we launched EngageLab in Q4 of 2022. In a nutshell, EngageLab provides a suite of products and services for omnichannel infrastructure, helping our customers to strengthen engagement with their users in an efficient and effective manner. The customers of EngageLab are from various industry verticals with no specific industry concentration risk. The very strong numbers we have recorded in 2025 have given us great confidence in the acceleration profit of this business. Historical 2025 numbers aside, in the beginning from 2026, we have seen healthy signs from the overseas markets in terms of potential needs and customers. Let me also touch on the excellent partners we have globally. As of December 2025, within our EngageLab ecosystem, we have 17 partners in different countries and regions. These partners are selected to strengthen, rigorous and often multistage process. We think that our representative in different markets, which means we have high expectation of the contribution from this partner in overseas market in the future. They are another important driver of our sustainable long-term growth. We will continue to work and engage with more local partners to better utilize their resource and local networks. Within subscription revenue, some of the notable wins in this quarter include but are not limited to Kimi large language model, J&T Express, Citibank and China Unicom. Value-Added Services revenue were RMB 14.2 million, up 101% quarter-over-quarter. The solid revenue quarter-over-quarter growth was mainly due to the significant increase in spend by advertisers. The traditional quarterly online shopping festival in Q4 also contributed to significant revenue growth sequentially. Now let me pass the call over to Shan-Nen, who will take you through the metrics of vertical applications and financial performance for this quarter. Take it away.

Thanks, Chris. And next, I'll go over the revenue for vertical application that includes financial risk management and market intelligence. Overall, Vertical Applications had a good quarter where revenue grew both year-over-year and quarter-over-quarter. And within vertical application, financial risk management recorded a strong 43% growth in revenue year-over-year and 12% quarter-over-quarter. Financial Risk Management delivered another excellent performance. We recorded robust revenue growth of 43% year-over-year and 11% quarter-over-quarter. Notably, this segment achieved revenue of more than RMB 22 million in each of the 4 quarters in 2025. In particular, the strong year-over-year performance was driven by impressive 20% in customer number growth and a 20% increase in ARPU. The customers that we signed up or renewed in Q4 include, but not limited to ChongXiing, Xiao, Chengduinhang and many more licensed credit or financial institutions throughout China. Market Intelligence revenue, on the other hand, decreased by 24% year-over-year and 3% quarter-over-quarter due to the continued weak market demand for Chinese APP data. This result is in line with our expectation. Next, I'll go over some of the profit and loss items. Our gross profit delivered another exceptional quarter, growing 23% year-over-year and 9% quarter-over-quarter. The RMB 69.7 million gross profit we had also was the highest gross profit recorded among any of the past 16 quarters. In this quarter, our revenue grew 13% year-over-year, yet our gross profit grew by 23% year-over-year. Notably, we saw this trend in Q3 as well. This tells a clear story. We are strengthening our ability to generate high-quality revenue with higher margins. Our strong gross profit number has proven instrumental in bringing us to a full year profitability in 2025. On net profit, after 3 consecutive profitable quarters, we have landed ourselves in a new territory, our first ever full year GAAP net profit for 2025. This is a great way for us to conclude our brilliant Q4 and full year 2025 story on a high note. On to operating expenses. Q4 operating expenses was at RMB 68.2 million, up 13% year-over-year and 6% quarter-over-quarter. Overall, we are pleased with the trending of OpEx to support revenue and profitability growth. I'll now dive deeper into the individual OpEx category. R&D expenses increased 16% year-over-year to RMB 28.3 million, mainly due to the higher staff costs and associated expenses. Technical service fee also contributed to the year-over-year increase in R&D expenses. Selling and marketing expenses increased by 16% as well year-over-year and to RMB 28.4 million, mainly due to the higher sales commission in line with the revenue growth and cash collection recorded in this quarter. Marketing expenses for investment in global business expansion also contributed to the year-over-year increase in SMS -- in selling and marketing expenses. G&A expenses remained flat at RMB 11.4 million, representing no change from the same quarter of last year. Next, I will share 3 very important KPIs that we closely monitor. Our net dollar retention rate, NDR, a commonly used KPI for SaaS companies stood at 103% for our core developer subscription business for the trailing 12-month period ended December 31, 2025. This is the second consecutive quarter where the NDR number has exceeded the 100% threshold. We are proud of this number as this demonstrates how our SaaS business model is widely accepted by the market. Customers have increased their spending on our platform over time. Secondly, another financial KPI for tracking the performance of SaaS company is the total deferred revenue. This represents cash collected in advance from customers for future contract performance, which exceeded the historical high we had last quarter and stood at RMB 178.7 million in Q4 of 2025. This historical high deferred revenue balance is a hallmark of high-quality, scalable business. It signifies strong customer loyalty, predictable future revenues, healthy cash flow and an effective sales strategies. Thirdly, we continue to maintain a healthy level of AR turnover days at 37 days. This number is simply fantastic. It shows we are collecting cash quickly and effectively. And this has really improved our financial liquidity while mitigating the risk of bad and doubtful debts. And there was no shortcut to achieving this. It was simply due to the result of our team's diligence, hard work and timely effort to engage with customers. On to the cash flow. We recorded yet another great number this quarter. For the quarter ended December 31, we recorded net operating activity cash inflow of RMB 35.1 million. This exceeds the last quarter and is now our best quarterly cash flow result since Q4 of 2020. Another metric to share with you, between the years, our cash and cash equivalent balance has increased by RMB 53.8 million. It represents a whopping 45% increase to RMB 173 million as of December 31, 2025. This reflects not only the significant step-up in our financial results, but also a meaningful improvement in the overall quality of our operations. Now let me take a few minutes here to recap. As you have heard Chris mention a year of pure brilliance at the beginning of this call. And throughout the entire 12 months of 2025, we have been operating under a high level of focus and rigor together with financial discipline. Our financial profile has fundamentally improved and moving in the right direction. And we closed a very strong and exceptional fiscal 2025. The numbers we have presented today speak for themselves. And this quarter, we achieved many historical milestones. Each one, a strong statement about the exceptional 2025 we have had and each one building momentum as we look forward to the next 12 months ahead of 2026. First, we achieved our very first full year GAAP net profit in history. Number two, the group quarterly revenue exceeded RMB 100 million mark, a historical first since we transitioned to the pure SaaS business model. Third, our core developer subscription business achieved a record of RMB 61.9 million in revenue this quarter, breaking through the RMB 60 million threshold for the first time. Our flagship product, EngageLab, continues to shine. Our EngageLab business reached another very important key milestone, ARR of USD 10 million in December 2025. This represents a stunning 186% of year-over-year growth. Number five, gross profit grew significantly at 23% year-over-year and the highest it has been for the past 16 quarters. Number six, operating activities brought in a net cash flow of RMB 35.1 million. Our net dollar retention, NDR, for core developer service surpassed 100%, reaching 103%. The 2025 numbers demonstrate our excellent execution. We have exceeded most, if not all, of our targets. With this in mind, Chris and I believe we are exceptionally well positioned to continue this momentum into 2026. Now let's turn to the business outlook. Based on the current available information, the company sees the 2026 full year revenue guidance to be in the range of RMB 450 million to RMB 480 million, representing a very solid and strong growth of 20% to 28% year-over-year compared to 2025. And the above outlook is based on current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and the customer demand, which are all subject to change. Lastly, before I conclude, I'll give a quick update on the share repurchase plan. In this quarter ended December 31, 2025, we repurchased 73,000 ADSs. Cumulatively, we have repurchased a total of 400,000 ADS since the start of our repurchase program. And this concludes our prepared remarks. We're happy to take your questions now. Operator, please proceed.

[Operator Instructions] And our first question is going to come from Calvin Wong with Spica Capital.

First of all, congrats to you guys for delivering a year of pure brilliant financials today. Both the Q4 and the full year 2025 numbers have been very, very impressive. One question for me, if I may. Can the management shed some light on the top 3 things that you have done well to deliver this set of such good financials.

Calvin, good to hear from you, and thanks for the kind words. Let me take this question. Yes, we are very proud of ourselves to be able to share such a wonderful set of financials earlier on during the call. And to get to where we are, it is by no means easy, and we work very hard and smart to navigate the volatile business environment globally. As on the 3 things that we have done well, let me have a go. First, it has to be the courage to venture outside our comfort zone. And looking back in 2022, when the idea of going overseas was first brought up by Chris as the next important strategic initiative for Aurora Mobile. At that time, I think we didn't have any single overseas employees nor did we have any partners outside of China. But then forward-looking vision was a brief one. So making -- I think making the right decision to go overseas would be my #1 thing that we have done right. If we did not make such brave or bold decision, we will not have this conversation today. And secondly, making the monumental shift of the product service offering outside of China is another game changer. We will not be as successful as we are today if we're simply making slip service of going overseas. Over the course of the past, I think, 2 to 3 or 3 to 4 years, we have made considerable amount of investment and resources to actually having a brand-new EngageLab product, specifically for our overseas market with its own distinct spec and features for global customers, along with the overseas data centers catering for the needs of our global customers. If you were lazy or took a shortcut of simply using what we had before in China for overseas market, it will not work. The third factor would be the commitment to excel throughout the organization to support this going overseas initiative that Chris brought up. When we started, there was no how to go overseas guide book to show us the way. We took the hard way by figuring out all ourselves and doing it all ourselves. I still remember at the early stage when we started EngageLab, Chris and I were standing at our booth in Singapore Tech Expo to introduce EngageLab and to answer questions from potential customers, and we have since come a long way. Just to recap, looking back, one, we made the right decision to venture overseas. Two, we make serious commitment in terms of investment in the right product offering. Third, the entire organization was in sync and aligned to this strategic initiative. And this took us back a little bit to the memory lane. I hope I answered your question, Calvin.

And our next question will come from Jack Sun with Gelonghui Research.

I'm Jack Sun from Gelonghui Research. Congratulations to the management team on another quarter with good numbers. in particular, a full year GAAP net profit is a really great turning point. My question for the management is, how should we look at Aurora's financials for the first quarter of 2026 and beyond?

Jack, thanks for the question. And you're right, we have a great 2025 when we achieved our very first GAAP profit for the year. And equally important was the spectacular Q4 numbers that we have presented earlier today. And in Q4, our total revenue exceeded RMB 100 million and go through the revenue guidance we have provided in Q3 and marking the best quarter revenue in our history. And of course, you heard about the fact that our global flagship product, EngageLab continues its great acceleration path. All the KPIs we have achieved has done through meaningful and significant growth year-over-year and quarter-over-quarter, be it ARR, customer numbers, total contract value signed or revenue recognized, they just exceeded all our internal targets. And of course, all these were the fruit of a hard labor that we started 3 years back. Results like this will not happen overnight or over 1 quarter. And we sowed the seeds of EngageLab growth when we committed to venture overseas in late 2022. We invested the appropriate resources in terms of capital and infrastructure with a balance of ensuring expansion without blinding spending for sake of spending. And now that we have laid a solid foundation for EngageLab, the growth prospect is very certain. We have presented and delivered such sequential growth without fear in the past. If I may summarize on how one should view Aurora Mobile, you can think of our business as, one, we have proven to be able to achieve full year net profit with positive cash inflow. Two, domestic business continued its solid and relatively stable growth. Three, our global flagship product, EngageLab will provide the lion's share of the growth momentum for the next 3 years. Four, our AI strategy will provide the next phase of growth momentum. And thus, we -- management as a whole are very confident on the business prospects in 2026 and beyond. And I hope this answers your question, Jack.

And I'm showing no further questions at this time. I would now like to turn the call back over to Christian for closing remarks.

Thank you, everyone, for joining the call tonight. If you have any further questions or comments, please don't hesitate to reach out to the Jiguang IR team. This concludes the call. Have a great evening or morning. Thank you.

This does conclude the conference call. Thank you for participating, and you may now disconnect.

Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Third Quarter 2025 Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. You will then hear an automated message advising your hand is raised. And to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host today, Rene Vanguestaine. Please go ahead, sir. Thank you, Michelle.

Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.gguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Shan-Nen Bong, Chief Financial Officer, and Mr. Guanyang Chen, General Manager. Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and is defined in The US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, and or factors are included in the company's filings with the US Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, as required under applicable law. With that, I would now like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Rene. Greetings to all. Welcome to Aurora Mobile's 2025 Third Quarter Earnings Call. Before I comment on our Q3 results, I would like to remind everyone that the quarterly earnings are available on our IR website. You may refer to that as we proceed with the call today. Without further ado, let's get started. As we did in the past, based on the Q3 earnings numbers, the suitable discretion I will give to the fourth quarter result is good things. Kind of impulse. Because we record the first-ever back-to-back quarterly net GAAP profit in our history. Following the Mandan net debt profit last quarter, our strong business performance carried us across the line again in Q3. Let me elaborate more on the strong business we have had in this quarter. Firstly, the group's revenue this quarter of RMB 19,900,000, achieving a remarkable 15% year-over-year and 1% sequential growth. This RMB 19,900,000 was at a very high end of the guidance we have provided. Secondly, our global flagship product, Engagement, continued its great momentum with another quarter of great numbers. Engagement app recorded a very strong quarterly growth in customer number and contract value growth. In particular, Engage Labs ARR for September 2025 stood strongly and reached a new milestone at RMB 53,700,000. It has grown by 160% year-over-year. Thirdly, our financial risk management business had its best quarter yet, recording the highest quarterly revenue of RMB 222,600,000 with growth of 43% year-over-year. Fourthly, gross profit exceeded our expectation and grew strongly by 20% year-over-year while achieving the highest growth gross profit for the past fifteen quarters. Gross margin has also improved year-over-year and quarter-over-quarter. Last but not least, have you ordered a great number about its grade? It's equally important that we are generating positive cash flow and in great cash position. Indeed, we are. The net operating cash inflow of RMB 23,300,000 recorded the highest level since 2020. It is very humbling for me to share with you all on yeah. And others, there are quarterly financial results. As I mentioned in the pre-earnings call, assuming historical GAAP net profit was not easy. For us to have back-to-back GAAP net profit is simply a great achievement for Aurora Mobile. To achieve that, all the processes in the organization worked really well for the entire fourth quarter of 2025. Our hard work and commitment to excel throughout Aurora Mobile will not stop here. There are more we need to achieve together. And we will. Short of giving our promise on this call, I truly hope for all the team's dedication or execution on our group's strategy and going forward. Now let me share more on the individual business performance. Our total Q3 group revenue has grown both year-over-year and quarter-over-quarter. In particular, revenue grew 15% year-over-year driven by strong numbers from developer services and financial risk management basis. Again, in this quarter, all business segments, many developers' subscription services, video ad services, and vertical applications, record story acceleration, with double-digit year-over-year revenue growth. This is the second consecutive quarter we have such a strong revenue growth momentum. Developer services revenue, which consists of subscription services and value-added services, increased by a strong 12% growth year-over-year and flat quarter-over-quarter. Subscription revenue has solid revenue numbers, well, it increased by 11% year-over-year and increased 7% quarter-over-quarter. Value-added services revenue grew by an impressive 22% year-over-year, but decreased 44% quarter-over-quarter. Our core business developer subscription services with revenue of RMB 57,300,000, record year growth of 11% year-over-year and 7% quarter-over-quarter. Year-over-year revenue growth was mainly driven by an increase in both customer numbers and ARPU. Subscription revenue recorded the fifth consecutive quarter of renminbi 50,000,000 plus revenue and reached its highest level in history in this quarter. Next, Amy Shea Moore on our global Flex global flagship product. Engaged App, which continues its excellent growth acceleration path quarter after quarter since its introduction. Firstly, Engage Labs ARR has reached a new and important milestone of RMB 53,700,000 mark in September 2025. This 160% year-over-year ARR growth was just impressive. Secondly, we had another very strong quarter for engagement where the cumulative contract value we get signed amount to renminbi 128,000,000 by the 2025. In Q3 alone, we signed up more than maybe $15,000,000 worth of new contracts. This is just outstanding. We do expect this revenue growth momentum to continue for the next twelve to twenty-four months. Thirdly, global customers from all corners of the world continue to purchase our products and services. The customer number has increased by 156% year-over-year, reaching 1,312. This was driven by the continued progress we are making for our global go-to-market effort. Firstly, our engagement products and services are now sold to customers in more than 52 different countries and regions globally. This is a great testament that our global flagship product, Engager, is indeed a globally accepted product. From customers originated from all four corners of the world. Our global flagship product, Engagement, has a very unique and different position in the market. We have been taking market share from competitors in all the overseas markets we operate in. This is evident from the growth rate of engagement we have seen today. From the market intelligence, we have gathered it shows that the demand for our engagement products and services remains strong. With this great result delivered by EngagedLab, once again reinforced my strong belief that this global flash product is the to spare as far as revenue growth is concerned for us in the next twelve months or twenty-four months. Within subscription revenue, some of the notable wins this quarter include anonymity two, LipSig, Shanghai Disneyland, BYD, and China Eastern Airlines, just to name a few. Value-added services revenue will remain b 7,100,000, increased by 22% year-over-year, but decreased by 34% quarter-over-quarter. Solid revenue year-over-year growth was mainly due to the increase in new advertisers acquired between the years. The absence of traditional quarter online shopping festival will result in a negative revenue growth sequentially. Now let me pass the call over to Shan-Nen Bong, who will share more about the application and other aspects of our financial performance for this quarter. Thanks, Chris.

And next, I'll go over the revenue for a particular application that includes financial risk management and market intelligence. Overall, vertical application had a good quarter. Where revenue grew both year-over-year and quarter-over-quarter. Within vertical application, financial risk management recorded significant 33% growth in revenue year-over-year and 3% quarter-over-quarter. Financial Risk Management had its Following the strong Q2, sequential excellent quarter. It is now the third consecutive quarters of revenue in excess of RMB 21,000,000 under its belt. Another significant milestone for this business is that it recorded the highest quarterly revenue in history of RMB 22,600,000 in this quarter. This 33% year-over-year revenue growth mainly due to a strong 44% in customer number growth. The customers that we sign up or renew in QT in Q3 include, but not limited to, nursing. And many more licensed credit and financial institutions throughout China. Market intelligence revenue, on the other hand, decreased by 23% year-over-year and 2% quarter-over-quarter due to the weak the continued weak demand for the Chinese APP data. And this result is in line with our expectation. Next, I'll go over some of the P&L and balance sheet items. Our gross profit had spectacular results too. In this quarter where it grew 20% year-over-year and 7% quarter-over-quarter. The rupee 63,800,000 gross profit we had was also the highest gross profit for the past fifteen quarters. With the group revenues grew 15% year-over-year, yet our gross profit grew by 20% year-over-year, it shows that we had recorded very high margin revenue in this quarter. This is certainly a key target that we would like to maintain and extend beyond this quarter. Onto operating expenses. The Q3 operating expenses was at RMB 64,400,000, representing a 12.8% increase year-over-year, an increase of 5.8% quarter-over-quarter. Operationally, our Q3 revenue grew by 15% year-over-year while OpEx only grew by 12.8%. Overall, we are pleased to see how we have been controlling OpEx to support the double-digit revenue growth across our business line. I'll now dive deeper into the individual OpEx category. For R&D, expenses increased by 7% year-over-year to renminbi $25,900,000, mainly due to the increase in staff costs and associated expenses. Technical service fee and cloud cost also contributed to the year-over-year increase in R&D expenses. Selling and marketing expenses increased by 19% year-over-year to RMB 26,600,000, mainly due to the increase in sales commission in line with revenue growth and the cash collection in this quarter. Marketing expenses for investment in global business expansion also contributed to the year-over-year increase in selling and marketing expenses. G&A expenses increased by 13% year-over-year to RMB 11,900,000. Mainly due to increase in staff cost, professional fees, better provision. Next, I'll share three very important KPI that we closely monitor. For NDR, you should I mean, net dollar pension rate, a commonly used KPI for SaaS companies, is stood at 104% for our core developer service business for the trailing twelve months ended 09/30/2025. And this is the very first time where NDR numbers have exceeded 100% milestone. The number says it's all. It means customer retention rate coupled with the fact that our customer has increased their spending with us through upsell, upgrades, and extension. And this is the best testament of our sustainable SaaS business. Secondly, another important financial KPI for tracking the performance of staff company is total deferred revenue. Which represents cash collected in advance from customers for future contract performance. Which was at historical high of RMB 166,300,000. And this higher deferred revenue balance is a hallmark of a high-quality scalable business. It signifies the strong customer loyalties, predictable future revenue, healthy cash flow, and effective sales strategy. Thirdly, we continue to maintain healthy AR turnover days level at forty-nine days. And this remains at an industry-leading level. Cash from customers. We will continue to work hard to ensure we actively and timely collecting and at the same time mitigating the risk of bad and doubtful debts. On the cash flow, we recorded another great numbers. For the quarter ended 09/30/2025, recorded net operating activities cash inflow of 33,300,000. This is the best quarterly cash flow numbers we have since 2020. Onto balance sheet. Total assets were renminbi $3.08 8,200,000 as of 09/30/2025. This includes cash and cash equivalent of $1.01 1,200,000. Accounts receivable of 43,900,000. Prepayments and other assets of 15,700,000. Operating lease right of use assets of 15,900,000 fixed assets of 2,900,000, long term investment of $1.01 3,000,000, goodwill of 37,800,000, and intangible assets of 11,500,000 resulting from Sendcloud acquisition in March 2022. Total current liabilities were $2.07 4,600,000 as of 09/30/2025. And this includes accounts payable of 31,900,000. Other operating at least liability of 4,100,000. Deferred revenue of $1.06 6,300,000. Accrued liabilities of 72,300,000. Now let me take a few minutes here to recap the description. Good things come in pairs. That Chris mentioned at the beginning of this call. This quarter, we have many great achievements that I would like to take a few minutes to reiterate.

First, we achieved our very first back-to-back GAAP net profit in history. Number two, our core developer subscription business had its best revenue in history of 57,300,000. As did the financial risk management business. Our flagship product, EngagedLab, continued its expansion beyond the shores. Apart from great growth in customers' number and contract value, EngagedLab business reached another very important key milestone. Where the ARR was at 53,700,000 in September 2025. Representing a stunning 160% year-over-year growth. Gross profit grew 20% year-over-year and recorded its highest levels for the past fifteen quarters. Number five, operating activities brought in net cash inflow of RMB 33,300,000. Our NDR net dollar retention for core developers to be recorded at the best number in history of 104%. And now let's turn to business outlook. Based on the current available information, the company sees the Q4 2025 revenue guidance to be in the range of RMB 94,000,000 to RMB 96,000,000. Representing a solid growth of one to 3% year-over-year compared to the same quarter 2024. The above outlook is based on the current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and customer demands, which are all subject to change. Before I conclude, I'll give a quick update on the share repurchase plan. In this quarter ended 09/30/2025, we repurchased 4,000 ADS. Cumulatively, we have repurchased a total 327,000 ADS since the start of our repurchase program. And today, our board of directors of the company approved a share repurchase program whereby the company is authorized to repurchase up to US dollars 10,000,000 worth of its ordinary share, including in the form of ADS. During the twelve-month period starting today. And this is a 100% increase from the US dollars 5,000,000 program we had previously. The company proposed repurchase will be made from time to time in the open market at a prevailing market price. In private negotiated transaction, in block trades, and or other to other legally permissible means. Depending on the market conditions and in accordance with applicable rules and regulation. Company's board of directors will review the share repurchase program periodically and may authorize adjustment in terms of size and terms. The company expects to fund the repurchase of its existing cash. And this concludes our prepared remarks. We'll be happy to take your question now. Operator, please proceed.

Thank you. As a reminder to ask a question, please press 11 on your telephone and wait for your name to be announced. And to withdraw your question, please press 11 again. And our first question will come from Calvin Wong with Spica Capital. Your line is now open.

Good evening, management. Thank you for taking my questions. First of all, congrats for delivering another set of stunning results this quarter. I have only one question. Based on my reading of the earnings release, I noticed the strength of engagement that business. And how it strengthened the group's financial result. So I would appreciate if management could tell us more about EngageLab. And why the growth trajectory has been so strong since day one. Thank you.

Let me take this call. Kevin, to hear from you again, and thanks for interest. And I'll take your earlier statement about EngagedLab rules to track has been strong since day one. And this is factual, and we are very proud of the achievement since day one. And for those listeners, have access to our ER deck that we have uploaded to the IR web page, You can refer to, I think, slide number three we have the pictorial display or diagram of engagement of EngishLab business to date. And one new particular data point that we have included in this quarter's earning deck is the ARR. It's the annual recurring revenue for English lab business. For the month of September, 2025, the ARR was at 53,700,000. And this is a 160% jump from a year ago. And we are very encouraged by this number. Because it shows that the business has a very significant growth trajectory, and we have made great revenue expansion in just twelve months. I would say the success of EnglishLab is not by chance that we are lucky. It was a result of endless improvement upgrades that we made to the product and service offering that help us to acquire more new customers and retain existing customers globally. If you look back, when Chris decided to launch English Lab back in 2022, the mission was pure and direct. Just to address our customers' main needs of reaching out and engaging with their users in a cost-efficient and effective manner. And through EngageLab, our customers are able to reach and engage with the users who anyone or all of the following messaging channels such as app push, web push, email, SMS, WhatsApp, and OTP. And also from a technical standpoint, have done all the heavy lifting for our customers too. To deliver the global solution for our customers, we have invested heavily in data facility in eight cities globally. And just this week, we have launched a new data center in Turkey. Further expanding our global infrastructure. That aside, we have also incorporated our notification channel for all different operating from iOS to Androids. From Harmony OS to others. And it makes it easy and efficient for our customers to ensure that their notifications are delivered no matter where the users are and what phone they are using. And maybe you can think of EnglishLab as reaching your users without borders. And for service-wise, we have received countless compliments from our customers. Our customer service team is very responsive and delivers a much better service than our peers. And this says a lot from a customer standpoint. And they when they encounter issues, they need solutions. And this is something that we can deliver, and we are proud of it. And therefore, with such a great value proposition, customers can get a one-stop engagement platform and great services all wrapped in one it is not hard to see why EngagedLab has been able to deliver such great numbers quarter over quarters. And historical results aside, and both Chris and myself had great hopes and confidence in the English lab business going forward. As Chris rightly called out during the call earlier, EnglishLab is the touch bearer for our revenue growth in the next twenty-four months. And, Kevin, hope this answers your question adequately.

Great to hear that. It's very clear then.

Thank you. And our next question will come from Jack Sun with Gullingway Research. Your line is open.

Good evening. I'm Jack Sun from Gong Fu Research. Thank you, management, for taking my question. Congratulations on another good quarter with solid earnings. In particular, two consecutive quarters with getting that profit. Well done. I have a question for the management. Help me to recap what went well in Q3 that delivered another quarter with a GAAP net profit. Thank you.

Hi. Hi, Jack. Thanks for the question. Yeah. It was a great quarter indeed. I think Chris mentioned we executed very well operationally and everything just went well. And this flow on to our financials number that we have released earlier today. There are a couple of things I can share more. Firstly, revenue in Q3 has been very strong. All business lines recorded great year-over-year double-digit growth. What I mean is we are now head and shoulders above where we were a year ago. And both the subscription business and the financial risk management recorded their own best revenue quarter in history. Equally important is the revenue by EnglishLab where it contributed RMB 13,000,000 in this quarter alone. Also a historical high. We grew our revenue not at the expense of sacrificing margins. This is evident that while we grew our revenue significantly, our gross profit reached the highest level for the past fifteen quarters. At the same time, our gross margin increased year-over-year and quarter-over-quarter too. And this is a really hard act to follow. And since revenue, gross profit grew at a faster pace than our OpEx, the US GAAP net profits is a certainty. And which is why we had a second quarter of US GAAP net profit. And two other important and great KPIs that I would like to reiterate here. One is the NDR. Where we reach 104% for our core developer sufficient business. And this is the very first time NDR exceeded 100%. And what that means is simple and straightforward. Our customers have been buying more of our services between the periods through upgrades, upsell, and other services. And this is a great number to have. And secondly, is the deferred revenue balance of 166,300,000, another historical high balance. In short, we have 166,300,000 worth of secure revenue that we can recognize in the future. And the best part is we have already received cash. So for this 166,300,000, we don't need even have to worry about cash collection effort or the risk of bad debt in the future. And managing cash flow has also yielded great results. In this quarter, we have net operating cash inflow of 23,300,000, the highest level for the past twenty quarters, which is actually the five years the past five years, the best results. And with that positive inflow of cash, our $9.30 quarter-end cash balance has also climbed to 141,200,000, the highest balance in the past fourteen quarters. It improved by 40% year-over-year. And you can see, it's not hard for you or anyone to conclude that this quarter has been great. And however, rest assured that we are not contented by the present. We need to move faster and expand more. Therefore, we will continue to invest as part of our global growth plan. And lastly, if time permits, I would like to quarterly invite you and other investors to drop by our central or head office. We are more than happy to host you and chat with greater detail any question you might have. Yeah. This is my answer to your question, Jack.

Okay. Thank you. That's very clear. Appreciate that.

Thank you. I show no further questions in the queue at this time. I would like to turn the call back over to Rene for closing remarks.

Thank you, everyone, for joining our call tonight. If you have any further questions and comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good night. Thank you all.

This does conclude the conference call. Thank you for participating and you may now disconnect.