YXT

This article first appeared on GuruFocus. Total Revenue: RMB162.1 million, up 6% year-over-year. Corporate Learning Solutions Revenue: RMB158.2 million, compared with RMB152 million in the same period last year. Subscription-Based Corporate Learning Solutions Revenue: RMB151.8 million. Gross Margin: 70.1%, up 5 percentage points from 65.1% a year earlier. Cost of Revenues: RMB48.5 million, down 9.1% year-over-year. Net Loss: Narrowed to RMB14.4 million from RMB73.9 million in the same period last year. Adjusted Net Loss: Narrowed by 80.9% year-over-year to RMB12.2 million. AI Product-Related Revenue: Achieved nearly ninefold growth; monthly recurring revenue reached RMB4.4 million as of June 30, 2026, compared with RMB500,000 a year earlier. SalesSmart Revenue: Over RMB5 million in the first half of 2026. Subscription Customers: 2,391 as of June 30, 2026, compared with 2,358 as of June 30, 2025. Net Revenue Retention Rate: Improved to 102.6%, up from 100.3% in the same period last year. Newly Signed Customers: Increased by nearly 50% year-over-year in the first half of 2026. Sales and Marketing Expenses: Decreased by 3% year-over-year. Research and Development Expenses: Increased by 9.8% year-over-year. Warning! GuruFocus has detected 6 Warning Signs with YXT. Is YXT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AI product-related revenue grew nearly ninefold year-over-year, with monthly recurring revenue from AI products reaching RMB4.4 million as of June 30, 2026. Newly signed customers increased by nearly 50% in the first half of 2026 compared to the same period last year. Net dollar retention rate improved by 2.3 percentage points to 102.6%, indicating stronger customer stability and quality. Gross margin expanded significantly to 70.1%, up 5 percentage points from 65.1% a year earlier, driven by higher-quality revenue mix and AI-enabled productivity gains. Net loss narrowed dramatically to RMB14.4 million from RMB73.9 million in the same period last year, with adjusted net loss down 80.9% year-over-year. SalesSmart, the AI-native sales enablement solution, achieved over RMB5 million in sales and won over 20 new clients, marking successful expansion into productivity enablement. Total revenues returned to growth, increasing 6% year-over-year to RMB162.1 million, with subscription-based corporate learning solutions reaching RMB151.8 million. Management expects gross margin to continue improving in the second half of 2026 and beyond, driven by ongoing AI transformation and operational efficiencies. The company decided to stop marketing AI Box as a separate business line, integrating it into other product suites, which may limit standalone growth potential. Research and development expenses increased by 9.8% year-over-year, reflecting continued investment in AI capabilities that could pressure near-term profitability. Despite improvements, the company still reported a net loss of RMB14.4 million in the first half of 2026, indicating ongoing profitability challenges. The subscription customer base grew only modestly, from 2,358 to 2,391 customers, suggesting limited expansion in the overall customer count. The company's strategic shift to focus on large enterprise customers may limit its ability to capture smaller or mid-sized market segments. The AI product revenue, while growing rapidly, remains relatively small at RMB4.4 million monthly recurring revenue, indicating early-stage adoption and potential scalability risks. The company's transformation and AI adoption may lead to organizational disruptions or execution risks as it continues to optimize workflows and reduce staff costs. Q: Could you talk me through the progress you've made with each of your four product lines: TalentNova, NeoLearning, SalesSmart, and AIBox?A: Alan Wang, Vice President of YXT.com, provided updates on all four lines. TalentNova, the main corporate learning business, signed over 120 new clients, a 48% increase year-over-year, driven by successful AI integration. NeoLearning signed RMB32.7 million in contract value, a 26.8% increase, with most growth coming from AI-related products like AI-augmented blended learning and AI-orchestrated practice. SalesSmart, the AI-native sales enablement solution, won over 20 new clients with a total signed contract value exceeding RMB5.3 million. AIBox is no longer marketed as a separate business line but has been integrated into the TalentNova and NeoLearning product suites to provide AI infrastructure to clients. Q: Looking at the gross margin, there was a big expansion year-over-year in H1. Are you able to give any sense of whether that margin can carry on increasing into H2 and then also into future years?A: CFO Shen Cao confirmed that gross margin reached 70.1% in H1 2026, up 5 percentage points from 65.1% in the same period last year. He attributed this to a higher quality revenue mix, AI-driven operational efficiencies, and optimized organizational structure. He explicitly stated the company expects to achieve a higher gross margin in the second half of 2026. CEO Peter Lu added that they expect to continue boosting gross margin in future years as AI transformation is a continuous process that will yield ongoing benefits in operational efficiency and business outcomes. Q: What was the driving force behind the nearly ninefold growth in AI product-related revenue?A: CEO Peter Lu explained that the growth was driven by two key strategies: integrating AI into existing business lines to improve competitiveness in acquiring new clients and expanding existing engagements, and innovating AI-native new businesses. He noted that the number of newly signed customers increased by nearly 50% year-over-year, and the net dollar retention rate improved by about 2.3 percentage points. SalesSmart, the AI-native sales intelligence solution, achieved sales of over RMB5 million during the period, marking the first successful step in expanding from corporate learning to productivity enablement. Q: What were the key financial results for the first half of 2026?A: CFO Shen Cao reported that total revenues increased by 6% year-over-year to RMB162.1 million. Revenues from Corporate Learning Solutions were RMB158.2 million, with subscription-based solutions reaching RMB151.8 million. The company had 2,391 subscription customers as of June 30, 2026, and the net revenue retention rate improved to 102.6%. Gross margin expanded to 70.1%, up 5 percentage points. Net loss narrowed significantly to RMB14.4 million from RMB73.9 million in the same period last year, and adjusted net loss narrowed by 80.9% to RMB12.2 million. Q: How did the company's customer structure and retention metrics evolve during the period?A: CFO Shen Cao highlighted that the customer structure continued to improve, with a focus on large enterprise customers. The company had 2,391 subscription customers as of June 30, 2026, compared with 2,358 a year earlier. More importantly, the net revenue retention rate improved to 102.6% from 100.3% in the same period last year, demonstrating the stability and quality of the subscription customer base. This improvement was supported by AI-enabled products and the focus on large enterprise customers. Q: What were the main drivers of the significant improvement in profitability?A: CFO Shen Cao explained that the improvement was driven by a higher quality revenue mix, continued focus on large enterprise subscription customers, AI-enabled productivity gains, and ongoing cost optimization. Cost of revenues decreased by 9.1% year-over-year to RMB48.5 million, and sales and marketing expenses decreased by 3%, reflecting improved productivity in customer acquisition, conversion, and retention. Research and development expenses increased by 9.8% as the company continued to invest in AI product capabilities and R&D talent. Q: What are the company's three strategic priorities going forward?A: CFO Shen Cao outlined three priorities: first, deepening focus on large enterprise customers and improving customer lifetime value; second, scaling AI-related products, including SalesSmart and other AI-enabled knowledge and productivity solutions; and third, balancing investment in AI innovation with disciplined cost control and operational efficiency. He emphasized that the first half of 2026 was a period in which the AI-native transformation began to translate into business momentum and financial improvements. Q: How has the company's own operation transformed through AI adoption?A: CEO Peter Lu shared that during the first half of 2026, the company adopted AI more systematically and transformed how it builds products, delivers customer value, and markets itself. The benefits of this AI adoption and transformation are indicated by improvements in gross margin, operational efficiency, and cash flow. He noted that having meaningful AI with productivity-level value became the key differentiator, and the company proved its strategy of intelligent productivity to be effective. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SUZHOU, China, Aug. 13, 2026 (GLOBE NEWSWIRE) -- YXT.com Group Holding Limited (NASDAQ: YXT) (“YXT.com” or the “Company”), a provider of AI-native enterprise productivity solutions, today announced its unaudited financial results for the first six months ended June 30, 2026, highlighting AI-native milestone and improved operating leverage. Financial Highlights for the First Six Months of 2026 Total revenues were RMB162.1 million (US$23.9 million), compared with RMB152.9 million in the same period of last year, representing an increase of 6.0%. Gross margin was 70.1% in the six months ended June 30, 2026, compared with 65.1% in the same period of last year, representing an increase of 5.0 percentage points. Net loss was RMB14.4 million (US$2.1 million), compared with RMB73.9 million in the same period of last year, representing a decrease of RMB59.5 million, or 80.5%. Adjusted net loss was RMB12.2 million (US$1.8 million), compared with RMB64.0 million in the same period of last year, representing a decrease of RMB51.8 million, or 80.9%. Number of subscription customers was 2,391 as of June 30, 2026, compared with 2,358 as of June 30, 2025. Net revenue retention rates (“NRR”1) of subscription customers was 102.6%, compared with 100.3% in the same period of last year. The change reflects the Company’s strategic shift towards large enterprise accounts with consistent demand for corporate learning solutions and the launch of AI-products, leading to the increase of subscription customers and NRR. Monthly Recurring Revenue (“MRR”2) of AI-related product was RMB4.4 million (US$0.7 million) as of June 30, 2026, compared with RMB0.5 million as of June 30, 2025. Mr. Peter Lu, Director, Founder and Chairman of the Board of YXT.com, commented, “The first half of 2026 marked an important milestone in YXT.com’s evolution into an AI-native enterprise. Our AI transformation has renewed growth momentum in our core corporate learning business, with newly signed customers increasing by nearly 50% year over year. AI-related products are also emerging as a new growth driver, with monthly recurring revenue reaching RMB4.4 million (US$0.7 million) as of June 30, 2026, compared with RMB0.5 million a year earlier. SaleSmart, our AI-powered sales intelligence solution, achieved sales of over RMB5 million (US$0.7 million) during the period. We will continue to deepen AI integration across learning, knowledge operations and sales intelligence to drive sustainable growth.” Shen Cao, Chief Financial Officer of YXT.com, said, “In the first half of 2026, the impact of our AI transformation became increasingly visible, driving growth in revenue, gross margin, and customer base while significantly reducing net losses. AI-driven operational efficiencies also helped optimize our organizational structure and workflows, leading to meaningful reductions in staff costs. These improvements in revenue growth and cost efficiency have strengthened our financial foundation and brought us closer to achieving key financial milestones.” Financial Results for the First Six Months of 2026 Revenues Revenues were RMB162.1 million (US$23.9 million), compared with RMB152.9 million in the same period of last year, representing an increase of 6.0%. Revenues from corporate learning solutions were RMB158.2 million (US$23.3 million), compared with RMB152.4 million in the same period of last year. Revenues from others were RMB3.9 million (US$0.6 million), compared with RMB0.5 million in the same period of last year. A few customized software projects completed in the six months ended June 30, 2026. Cost of revenues Cost of revenues was RMB48.5 million (US$7.2 million), compared with RMB53.4 million in the same period of last year, representing a decrease of 9.1%. This was mainly due to (i) raise in productivity in the Company’s operation leveraging AI tools; (ii) decreased staff expenses through operational optimization; and partially offset by the increase of amortization of online course contents. Gross margin Gross margin was 70.1%, compared with 65.1% in the same period of last year, representing an increase of 5.0 percentage points. This was mainly driven by the Company's continual focus on large enterprise subscription customers, higher-marginal-contribution solutions and ongoing cost optimization efforts. Sales and marketing expenses Sales and marketing expenses were RMB60.1 million (US$8.9 million), compared with RMB61.9 million in the same period of last year, representing a decrease of 3.0%. This was mainly due to decreases in compensation paid to sales and marketing staff due to the Company’s efforts in better relocating its human resources, which was also resulted from the raise in productivity in acquiring, converting and retaining customers and realizing revenues aided by AI tools and the Company’s branding campaign; and partially offset by the increase of marketing expenses for the promotion activities, especially for the AI-related products. Research and development expenses Research and development expenses were RMB53.0 million (US$7.8 million), compared with RMB48.3 million in the same period of last year, representing an increase of 9.8%. This was mainly due to increases in compensation paid to research and development staff for the increase of R&D staff for the research of development of AI products. General and administrative expenses General and administrative expenses were RMB11.9 million (US$1.8 million), compared with RMB54.2 million in the same period of last year, representing a decrease of 78.0%. This was mainly due to (i) the decrease of professional service fees and reversal of litigation accruals; and (ii) the decrease of share-based compensation to general and administrative staff because part of the share incentive plan was completed in 2025. Net loss and adjusted net loss Net loss was RMB14.4 million (US$2.1 million), compared with RMB73.9 million in the same period of last year. Adjusted net loss was RMB12.2 million (US$1.8 million), compared with RMB64.0 million in the same period of last year, representing a decrease of 80.9%. Loss per share Basic and diluted net loss per share was RMB0.08 (US$0.01), compared with basic and diluted net loss per share of RMB0.41 in the same period of last year. The change in basic and diluted net loss per share was primarily attributable to the decrease of the net loss. Balance Sheet As of June 30, 2026, the Company had cash and cash equivalents and short-term investment of RMB31.4 million (US$4.6 million), compared with RMB134.7 million as of December 31, 2025. Conference Call Information The Company's management team will hold a conference call at 7:30 A.M. U.S. Eastern Time on Thursday, August 13, 2026 (or 7:30 P.M. Beijing Time on Thursday, August 13, 2026) to discuss the financial results. Details for the conference call are as follows: All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call. A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.yxt.com/. Non-GAAP Financial Measures In evaluating our business, we consider and use adjusted net loss as a supplemental non-GAAP measure to review and assess our operating performance. Adjusted net loss is net loss excluding share-based compensation, to the extent applicable. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP measure facilitates investors’ assessment of our operating performance. The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. We compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. About YXT.com YXT.com (NASDAQ: YXT) is a technology company focusing on enterprise productivity solutions. With a mission to "Empower people and organization development through technology," the Company strives to become the supreme provider in building and boosting enterprise productivity by combining over a decade of experience in tech-enabled talent learning and development and with AI-augmented task copilots and unleashing the power of knowledge and synergy. Since its inception, YXT.com has supported and received recognition from numerous Global and China Fortune 500 companies. ContactInvestor RelationsYXT.comE-mail: [email protected] HuangOctans Capital GroupE-mail: [email protected]: +86-10-6580-0653 _______________________1 NRR is calculated by specifying a measurement period consisting of the trailing twenty-four months from the given period end, and using (i) the total subscription revenue for the first twelve months of the measurement period from the group of customers as of the end of the first twelve months as the denominator, and (ii) the total subscription revenue for the second twelve months of the measurement period from the same group of customers as the numerator.2 MRR is calculated based on the total contract value divided by the total number of months of the agreement based on the start and end dates of each contracted line item.

SUZHOU, China, March 31, 2026 (GLOBE NEWSWIRE) -- YXT.com Group Holding Limited (NASDAQ: YXT) (“YXT.com” or the “Company”), a provider of AI-enabled enterprise productivity solutions, today announced its unaudited financial results for the full year ended December 31, 2025. Financial Highlights for the Full Year of 2025 Total revenues were RMB340.2 million (US$48.7 million) for the full year of 2025, compared with RMB331.2 million in the prior year, representing an increase of 2.7%. Gross margin was 68.3% for the full year of 2025, compared with 61.8% in the prior year, representing an increase of 6.5 percentage points. Net loss was RMB158.9 million (US$22.7 million), compared with RMB92.1 million in the prior year. Adjusted net loss was RMB146.6 million (US$21.0 million), compared with RMB199.3 million in the prior year, representing a decrease of RMB52.7 million. Number of subscription customers was 2,301 as of December 31, 2025, compared with 2,405 as of December 31, 2024. Net revenue retention rates (“NRR”1) of subscription customers remained stable at 101.4%, compared with 100.9% in the prior year. The change reflects the Company’s strategic shift towards large enterprise accounts with consistent demand for corporate learning solutions and the launch of AI-products, leading to the increase of revenue and anticipated churn of small and medium-sized customers from the Company’s portfolio. Monthly Recurring Revenue (“MRR”2) of AI-related product was RMB1.1 million (US$0.2 million) as of December 31, 2025, compared with RMB0.3 million as of December 31, 2024. Mr. Peter Lu, Director, Founder and Chairman of the Board of YXT.com, commented, “2025 was a defining year for us as we accelerated our ‘AI-first’ transformation. By strategically pivoting to the large enterprise market and refining our customer portfolio, we have validated the immense value our solutions bring to industry leaders through steady core business growth. The exponential leap in our AI-related MRR signals our successful evolution from a traditional digital learning platform into an AI-driven corporate productivity engine. Looking ahead, we will continue to unleash the potential of AI to define a transformative paradigm of organizational efficiency for leading global enterprises.” Mr. Shen Cao, Chief Financial Officer of YXT.com, added, “Our strategic shift toward a higher-quality revenue mix has stabilized NRR at 101.4%. Meanwhile, AI-powered efficiencies propelled our gross margin to 68.3% while allowing us to cut costs even as revenue grew. This synergy of 'higher revenue quality and lower cost structures' is a clear testament to our enhanced operating leverage. With the increased efficiencies, refined revenue mix and ongoing expense optimization efforts, we expect the adjusted net loss will still decrease significantly in 2026.” Financial Results for the Full Year of 2025 Revenues Revenues were RMB340.2 million (US$48.7 million), compared with RMB331.2 million in the prior year, representing an increase of 2.7%. Revenues from corporate learning solutions were RMB337.7 million (US$48.3 million), compared with RMB325.6 million in the prior year. Revenues from subscription based corporate learning solutions were RMB317.4 million (US$45.4 million), compared with RMB301.8 million in the prior year. The change was primarily due to our business expansion strategy to focus on large enterprises with strong and steady demand for corporate learning solutions and the launch of AI-related products, leading to the increase of revenues. Revenues from non-subscription based corporate learning solutions were RMB20.3 million (US$2.9 million), compared with RMB23.8 million in the prior year. The change was primarily due to reduced offline solutions reflecting the Company’s strategic emphasis on subscription-based, digitized corporate learning solutions. Revenues from others were RMB2.5 million (US$0.4 million), compared with RMB5.6 million in the prior year. The change primarily reflects fewer customized software projects completed in 2025, aligning with the Company’s new strategic focus. Cost of revenues Cost of revenues was RMB107.7 million (US$15.4 million), compared with RMB126.5 million in the prior year, representing a decrease of 14.9%. This was mainly due to (i) raise in productivity in the Company’s operation leveraging AI tools; (ii) decreased staff expenses and third-party infrastructure costs through operational optimization; and (iii) lower instructor compensation costs due to the reduction of offline solutions, aligning with our strategic emphasis on subscription-based, digitized and AI-powered corporate learning solutions. Gross margin Gross margin was 68.3%, compared with 61.8% in the prior year, representing an increase of 6.5 percentage points. This was mainly driven by the Company's continual focus on large enterprise subscription customers, higher-marginal-contribution solutions and ongoing cost optimization efforts. Sales and marketing expenses Sales and marketing expenses were RMB144.9 million (US$20.7 million), compared with RMB144.2 million in the prior year, representing an increase of 0.5%. This was mainly due to (i) the increase of marketing expenses for the promotion activities, especially for the AI-related products; and partially offset by (ii) decreases in compensation paid to sales and marketing staff due to the Company’s efforts in better relocating its human resources, which was also resulted from the raise in productivity in acquiring, converting and retaining customers and realizing revenues aided by AI tools and the Company’s branding campaign. Research and development expenses Research and development expenses were RMB111.4 million (US$15.9 million), compared with RMB116.1 million in the prior year, representing a decrease of 4.0%. This was mainly due to (i) increased R&D return on investment due to the Company’s new discipline and approach to product-market-fit; and (ii) decreases in compensation paid to research and development staff due to the Company’s efforts in better relocating its human resources. General and administrative expenses General and administrative expenses were RMB122.0 million (US$17.4 million), compared with RMB138.4 million in the prior year, representing a decrease of 11.9%. This was mainly due to (i) the decrease in compensation paid to general and administrative staff due to the Company’s efforts in better relocating its human resources; and (ii) the decrease of general office and administrative expenses for the ongoing expense optimization efforts. Net loss and adjusted net loss Net loss was RMB158.9 million (US$22.7 million), compared with RMB92.1 million in the prior year. Adjusted net loss was RMB146.6 million (US$21.0 million), compared with RMB199.3 million in the prior year, representing a decrease of 26.4%. Income/(loss) per share Basic and diluted net loss per share was RMB0.87 (US$0.12), compared with basic net income per share of RMB2.90 and diluted net loss per share of RMB0.55 in the prior year. The change in basic and diluted net income/(loss) per share was primarily attributable to the impact of deemed contribution to ordinary shareholders due to modifications and extinguishment on convertible redeemable preferred shares in prior year. Balance Sheet As of December 31, 2025, the Company had cash and cash equivalents and restricted cash and short-term investment of RMB134.7 million (US$19.3 million), compared with RMB418.2 million as of December 31, 2024. Non-GAAP Financial Measures In evaluating our business, we consider and use adjusted net loss as a supplemental non-GAAP measure to review and assess our operating performance. Adjusted net loss is net loss excluding gain on deconsolidation of CEIBS Publishing Group, share-based compensation, change in fair value of derivative liabilities, net of income taxes, to the extent applicable. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP measure facilitates investors’ assessment of our operating performance. The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. We compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB6.9931 to US$1.00, the exchange rate on December 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. About YXT.com YXT.com (NASDAQ: YXT) is a technology company focusing on enterprise productivity solutions. With a mission to "Empower people and organization development through technology," the Company strives to become the supreme provider in building and boosting enterprise productivity by combining over a decade of experience in tech-enabled talent learning and development and with AI-augmented task copilots and unleashing the power of knowledge and synergy. Since its inception, YXT.com has supported and received recognition from numerous Global and China Fortune 500 companies. Contact Investor Relations YXT.com E-mail: [email protected] Serena Huang Octans Capital Group E-mail: [email protected] Tel: +86-10-6580-0653 _________________________ 1 NRR is calculated by specifying a measurement period consisting of the trailing twenty-four months from the given period end, and using (i) the total subscription revenue for the first twelve months of the measurement period from the group of customers as of the end of the first twelve months as the denominator, and (ii) the total subscription revenue for the second twelve months of the measurement period from the same group of customers as the numerator. 2 MRR is calculated based on the total contract value divided by the total number of months of the agreement based on the start and end dates of each contracted line item.

This article first appeared on GuruFocus. Total Revenue: Declined by 7.8% year-over-year to RMB152.9 million. Net Revenue Retention Rate: Moderated to 100.3% from 102.8% in the same period last year. Subscription Revenue: Accounted for 94.6% of total revenue. AI Product Monthly Recurring Revenue: More than doubled to RMB0.5 million from RMB0.2 million last year. Gross Margin: Improved by 4 percentage points to 65.1%. Cost of Revenues: Fell by 17.1% due to lower staff expenses and optimized infrastructure. Sales and Marketing Expenses: Declined by 13.5% year-over-year. R&D Expenditure: Decreased by 19.2%. G&A Expenses: Increased by 20.5% due to professional service fees and share-based compensation. Net Loss (GAAP): RMB73.9 million compared to net income of RMB21.4 million last year. Adjusted Net Loss: Improved by 15% year-over-year to RMB64 million. Cash and Short-term Investments: Ended the period at RMB235.7 million, down from RMB418.2 million at year-end 2024. Warning! GuruFocus has detected 5 Warning Signs with YXT. Is YXT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yxt.Com Group Holding Ltd (NASDAQ:YXT) has shifted its focus towards large enterprise clients, which are more stable and have higher lifetime value. The company's AI-related product monthly recurring revenue more than doubled, indicating successful investment in AI solutions. Gross margin improved by 4 percentage points to 65.1%, driven by enhanced operational efficiency and optimized product mix. Cost of revenues fell by 17.1% due to lower staff expenses and reduced reliance on costly offline solutions. The company achieved meaningful cost reductions in sales and marketing expenses, which declined by 13.5% year-over-year. Total revenue declined by 7.8% year-over-year to RMB152.9 million, primarily due to the strategic shift away from small- and medium-sized businesses. Net revenue retention rate moderated to 100.3% from 102.8% in the same period last year, indicating a slight decrease in client retention. The company reported a GAAP net loss of RMB73.9 million compared to a net income of RMB21.4 million in the same period last year. Cash and short-term investments decreased to RMB235.7 million from RMB418.2 million at the end of 2024, reflecting planned investments in AI R&D. General and administrative expenses increased by 20.5% due to higher professional service fees and share-based compensation expenses. Q: You mentioned that the gross margin of the company has increased by 4 percentage points to 65% in the first half. What specific improvements in operation or product innovation contributed to this expansion, and will this continue in the second half of the year? A: The improvement in gross margin is due to enhanced operational efficiencies, optimizing our product mix, and reducing reliance on costly offline solutions. By focusing on higher-margin subscription and AI products, we have improved profitability while maintaining product quality. We anticipate that the trend of margin expansion will continue into the second half of the year. - Shen Cao, CFO Q: Could you elaborate on how the strategic shift towards larger enterprises will impact the company in the long run, especially regarding revenue growth and customer retention? A: The shift from small- to medium-sized enterprises to large enterprises is driven by the resilience and profitability of larger companies, which are more willing to invest in learning and development. This transition is expected to improve our gross margin, retention rate, and customer lifetime value. We will continue to focus on large enterprises while maintaining relationships with smaller ones that choose to stay with us. - Allan Wang, Chief Growth Officer Q: Your AI-related products have shown significant growth in monthly recurring revenue. Could you provide more insight into the specific AI solutions driving this growth and expectations for future growth? A: Our AI solutions, such as AI-course maker, AI test making, AI simulations, and AI candidate screening, leverage large language models to provide high-quality, cost-effective solutions. These products have seen fast-growing penetration, and we anticipate continued growth driven by marketing campaigns and the Chinese market's willingness to adopt AI solutions. - Allan Wang, Chief Growth Officer Q: How has the company's cost structure changed, and what are the implications for future profitability? A: We have achieved meaningful cost reductions across key operating areas, including a 17.1% decrease in the cost of revenues and a 13.5% decline in sales and marketing expenses. These changes, along with a focus on higher-margin products, have improved profitability and are expected to support sustainable growth. - Shen Cao, CFO Q: What are the company's strategic priorities moving forward? A: Our strategy focuses on deepening enterprise relationships, scaling AI solutions, and maintaining cost management. We aim to deliver more value to large clients, drive growth and profitability through AI, and optimize our expense structure while making targeted investments for higher returns. - Shen Cao, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SUZHOU, China, Aug. 20, 2025 (GLOBE NEWSWIRE) -- YXT.com Group Holding Limited (NASDAQ: YXT) (“YXT.com” or the “Company”), a provider of AI-enabled enterprise productivity solutions, today announced its unaudited financial results for the first six months ended June 30, 2025. Financial Highlights for the First Six Months of 2025 Total revenues were RMB152.9 million (US$21.3 million), compared with RMB165.8 million in the same period of last year. Gross margin was 65.1% in the six months ended June 30, 2025, compared with 61.1% in the same period of last year, representing an increase of 4.0 percentage points. Net loss was RMB73.9 million (US$10.3 million), compared with a net income of RMB21.4 million in the same period of last year. Adjusted net loss was RMB64.0 million (US$8.9 million), compared with an adjusted net loss of RMB75.3 million in the same period of last year, representing a decrease of RMB11.3 million. Number of subscription customers was 2,358 as of June 30, 2025, compared with 2,481 as of June 30, 2024. Net revenue retention rates of subscription customers decreased to 100.3% for the six months ended June 30, 2025 from 102.8% in the same period of last year. The change reflects the Company’s strategic shift towards large enterprise accounts with consistent demand for corporate learning solutions, and an anticipated churn of small and medium-sized customers from the Company’s portfolio. Monthly Recurring Revenue (“MRR”1) of AI-related product was RMB0.5million (US$69.9 thousand) as of June 30, 2025, compared with RMB0.2 million as of June 30, 2024. Mr. Peter Lu, Director, Founder and Chairman of the Board of YXT.com, commented, “Amid evolving market dynamics, we are successfully incorporating AI-powered corporate learning solutions into our product portfolio, maintaining strong customer retention while strategically prioritizing large enterprise accounts. This strategic focus reflects a broader industrial shift, as organizations increasingly prioritize measurable workforce productivity gains over traditional training metrics. Furthermore, our AI Coach-driven model moves beyond conventional, course-based training to deliver adaptive, interactive learning and personalized tutoring. This approach has fueled the rapid growth of our AI-related product revenue, significantly enhancing enterprise productivity.” Mr. Shen Cao, Chief Financial Officer of YXT.com, added, “We are making meaningful progress in our path to profitability, driven primarily by expanding gross margins that reflected both cost optimization and product improvements. This margin growth reflects our successful transition toward higher-value offerings, particularly our AI-powered corporate learning solutions.” Financial Results for the First Six Months of 2025 Revenues Revenues were RMB152.9 million (US$21.3 million), compared with RMB165.8 million in the same period of last year, representing a decrease of 7.8%. Revenues from corporate learning solutions were RMB152.4 million (US$21.3 million), compared with RMB164.5 million in the same period of last year. Revenues from subscription based corporate learning solutions were RMB144.7 million (US$20.2 million), compared with RMB151.9 million in the same period of last year. The change was primarily due to (i) a net impact of RMB4.8 million from operational adjustments, due to (1) our strategic suspension of certain ancillary online teaching tools; (2) our business expansion strategy to focus on large enterprises with strong and steady demand for corporate learning solutions, leading to an expected loss of portion from some small and medium-sized customers and therefore the decrease in the number of our subscription customers during the same periods; and (ii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB2.4 million. Revenues from non-subscription based corporate learning solutions were RMB7.7 million (US$1.1 million), compared with RMB12.6 million in the same period of last year. The change was primarily due to (i) reduced offline solutions reflecting the Company’s strategic emphasis on subscription-based, digitized corporate learning solutions; and (ii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB0.8 million. Revenues from others were RMB0.5 million (US$66.0 thousand), compared with RMB1.3 million in the same period of last year. The change primarily reflects fewer customized software projects completed in the six months ended June 30, 2025, aligning with the Company’s new strategic focus. Cost of revenues Cost of revenues was RMB53.4 million (US$7.5 million), compared with RMB64.4 million in the same period of last year, representing a decrease of 17.1%. This was mainly due to (i) raise in productivity in the Company’s operation leveraging AI tools; (ii) decreased staff expenses and third-party infrastructure costs through operational optimization; (iii) lower instructor compensation costs due to the reduction of offline solutions, aligning with our strategic emphasis on subscription-based, digitized and AI-powered corporate learning solutions; and (iv) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB0.7 million. Gross margin Gross margin was 65.1%, compared with 61.1% in the same period of last year, representing an increase of 4.0 percentage points. This was mainly driven by the Company's continual focus on large enterprise subscription customers, higher-marginal-contribution solutions and ongoing cost optimization efforts. Sales and marketing expenses Sales and marketing expenses were RMB61.9 million (US$8.6 million), compared with RMB71.6 million in the same period of last year, representing a decrease of 13.5%. This was mainly due to (i) raise in productivity in acquiring, converting and retaining customers and realizing revenues aided by AI tools and the Company’s branding campaign; (ii) decreases in compensation paid to sales and marketing staff due to the Company’s efforts in better relocating its human resources; and (iii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB1.7 million. Research and development expenses Research and development expenses were RMB48.3 million (US$6.7 million), compared with RMB59.8 million in the same period of last year, representing a decrease of 19.2%. This was mainly due to (i) increased R&D ROI due to the Company’s new discipline and approach to product-market-fit; (ii) decreases in compensation paid to research and development staff due to the Company’s efforts in better relocating its human resources; and (iii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB0.2 million. General and administrative expenses General and administrative expenses were RMB54.2 million (US$7.6 million), compared with RMB45.0 million in the same period of last year, representing an increase of 20.4%. This was mainly due to (i) the increase of professional service fees; and (ii) an increase in share-based compensation paid to general and administrative staff due to the execution of the share incentive plan in January 2025. The increase was partially offset by (i) the decrease in compensation paid to general and administrative staff; and (ii) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB1.4 million. Net loss and adjusted net loss Net loss was RMB73.9 million (US$10.3 million), compared with a net income of RMB21.4 million in the same period of last year. Adjusted net loss was RMB64.0 million (US$8.9 million), compared with an adjusted net loss of RMB75.3 million in the same period of last year, representing a decrease of 15.0%. Loss per share Basic and diluted net loss per share was RMB0.41 (US$0.06), compared with basic and diluted net loss per share of RMB3.82 in the same period of last year. The decrease in basic and diluted net loss per share was primarily attributable to (i) the net accretion of convertible redeemable preferred shares for the six months ended June 30, 2024; and (ii) the increase of weighted average number of ordinary shares. Balance Sheet As of June 30, 2025, the Company had cash and cash equivalents and restricted cash and short-term investment of RMB235.7 million (US$32.9 million), compared with RMB418.2 million as of December 31, 2024. Conference Call Information The Company's management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on Wednesday, August 20, 2025 (or 8:00 P.M. Beijing Time on Wednesday, August 20, 2025) to discuss the financial results. Details for the conference call are as follows: All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call. A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.yxt.com/. Non-GAAP Financial Measures In evaluating our business, we consider and use adjusted net loss as a supplemental non-GAAP measure to review and assess our operating performance. Adjusted net loss is net loss excluding gain on deconsolidation of CEIBS PG, share-based compensation, change in fair value of derivative liabilities, net of income taxes, to the extent applicable. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP measure facilitates investors’ assessment of our operating performance. The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. We compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. About YXT.com YXT.com (NASDAQ: YXT) is a technology company focusing on enterprise productivity solutions. With a mission to "Empower people and organization development through technology," The Company strives to become the supreme provider in building and boosting enterprise productivity by combining over a decade of experience in tech-enabled talent learning and development and with AI-augmented task copilots and unleashing the power of knowledge and synergy. Since its inception, YXT.com has supported and received recognition from numerous Global and China Fortune 500 companies. Contact Investor Relations YXT.com E-mail: [email protected] Serena Huang Octans Capital Group E-mail: [email protected] Tel: +86-10-6580-0653 ______________________________ 1 MRR is calculated based on the accounting adjusted total contract value divided by the number of months of the agreement based on the start and end dates of each contracted line item.

Investors appear disappointed with YXT.COM Group Holding Limited's (NASDAQ:YXT) recent earnings, despite the decent statutory profit number. We did some digging and found some worrying factors that they might be paying attention to. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to December 2024, YXT.COM Group Holding recorded an accrual ratio of 7.46. As a general rule, that bodes poorly for future profitability. To wit, the company did not generate one whit of free cashflow in that time. Over the last year it actually had negative free cash flow of CN¥213m, in contrast to the aforementioned profit of CN¥283.9m. Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of CN¥213m, this year, indicates high risk. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. Check out our latest analysis for YXT.COM Group Holding Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of YXT.COM Group Holding. Given the accrual ratio, it's not overly surprising that YXT.COM Group Holding's profit was boosted by unusual items worth CN¥64m in the last twelve months. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's as you'd expect, given these boosts are described as 'unusual'. YXT.COM Group Holding had a rather significant contribution from unusual items relative to its profit to December 2024. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. YXT.COM Group Holding had a weak accrual ratio, but its profit did receive a boost from unusual items. For the reasons mentioned above, we think that a perfunctory glance at YXT.COM Group Holding's statutory profits might make it look better than it really is on an underlying level. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for YXT.COM Group Holding (of which 2 are a bit concerning!) you should know about. Our examination of YXT.COM Group Holding has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Board Approves US$10 million Share Repurchase Program SUZHOU, China, March 28, 2025 (GLOBE NEWSWIRE) -- YXT.com Group Holding Limited (NASDAQ: YXT) (“YXT.com” or the “Company”), a provider of AI-enabled enterprise productivity solutions, today announced its unaudited financial results for the full year ended December 31, 2024 and a US$10 million Share Repurchase Program. Financial Highlights for the Full Year of 2024 Total revenues were RMB331.2 million (US$45.4 million) for the full year of 2024, compared with RMB424.0 million in the prior year. On the pro forma basis as if the deconsolidation of CEIBS Publishing Group Limited (“CEIBS PG”) occurred as of the beginning of 2022, the pro forma revenues would have been RMB327.9 million (US$44.9 million) for the full year of 2024, compared with RMB324.6 million for the full year of 2023, representing an increase of 1.0%. Gross margin was 61.8% for the full year of 2024, compared with 54.1% in the prior year, representing an increase of 7.7%. Net loss was RMB92.1 million (US$12.6 million), compared with RMB229.8 million in the prior year, representing a decrease of 59.9%. Number of subscription customers was 2,405 as of December 31, 2024, compared with 3,230 as of December 31, 2023. After adjusting for the deconsolidation of CEIBS PG, which accounted for 686 customers, the net change of 139 customers reflects the Company’s strategic shift toward large enterprise accounts with consistent demand for corporate learning solutions, and reflects a planned reduction of small and medium-sized customers from the Company’s portfolio. Net revenue retention rates of subscription customers remained stable at 100.9%, compared with 101.4% in the prior year. Mr. Peter Lu, Director, Founder and Chairman of the Board of YXT.com, commented, “The rapid development of AI has created tremendous opportunities for our company, allowing us to successfully transform from digital learning to intelligent learning and expand our offerings into talent management. In 2024, our AI initiatives delivered tangible results in cost reduction and efficiency improvement, significantly narrowing our losses while enhancing value for both customers and shareholders. Our three new AI-powered business lines have already entered customer validation phase and will soon be brought to market, further expanding our business portfolio. As we execute our global expansion strategy this year, YXT.com is positioned at the forefront of the AI-driven industry transformation, ready to create sustainable value for our customers and investors alike.” Mr. Pun Leung Liu, Chief Financial Officer of YXT.com, added, “Our financial results for the full year of 2024 demonstrate the effectiveness of our operational optimization initiatives. Through strategic cost management and AI-enabled operational improvements across our business, we significantly narrowed our net loss to RMB92.1 million from RMB229.8 million. We remain committed to disciplined cost control while continuing to invest in strategic areas that drive long-term growth, particularly our technology capabilities and enterprise-focused solutions. With a healthy balance sheet and solid development strategy, we believe we are well-positioned to create long-term value for our shareholders.” Financial Results for the Full Year of 2024 Revenues Revenues were RMB331.2 million (US$45.4 million), compared with RMB424.0 million in the prior year, representing a decrease of 21.9%. On the pro forma basis as if the deconsolidation of CEIBS PG occurred as of the beginning of 2022, the pro forma revenues would have been RMB327.9 million (US$44.9 million) for the full year of 2024, compared with RMB324.6 million for the full year of 2023, representing an increase of 1.0%. Revenues from corporate learning solutions were RMB325.6 million (US$44.6 million), compared with RMB411.8 million in the prior year. Revenues from subscription based corporate learning solutions were RMB301.8 million (US$41.3 million), compared with RMB347.8 million in the prior year. The change was primarily due to (i) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB64.9 million; and (ii) the strategic suspension of certain ancillary online teaching tools. This was partially offset by an RMB18.9 million increase driven by the Company’s updated business expansion strategy of focusing on large enterprise subscription customers with strong and steady demand for corporate learning solutions. Revenues from non-subscription based corporate learning solutions were RMB23.8 million (US$3.3 million), compared with RMB64.0 million in the prior year. The change was primarily due to (i) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB31.2 million; and (ii) reduced offline activities reflecting the Company’s strategic shift towards subscription-based corporate learning solutions. Revenues from others were RMB5.6 million (US$0.8 million), compared with RMB12.2 million in the prior year. The change primarily reflects fewer customized software projects completed in 2024, aligning with the Company’s new strategic focus. Cost of revenues Cost of revenues was RMB126.5 million (US$17.3 million), compared with RMB194.5 million in the prior year, representing a decrease of 34.9%. This was mainly due to (i) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB44.5 million; and (ii) cost reductions resulting from operational adjustments. Improved cost efficiencies were achieved through lower instructor compensation costs stemming from reduced offline activities, aligning with the Company’s strategic shift towards subscription-based corporate learning solutions, as well as through continuous efforts in optimizing human resources and effectively managing expenses. Gross margin Gross margin was 61.8%, compared with 54.1% in the prior year, representing an increase of 7.7%. This was mainly due to the Company’s new strategic focus on large enterprise subscription customers and ongoing cost optimization efforts. Sales and marketing expenses Sales and marketing expenses were RMB144.2 million (US$19.8 million), compared with RMB244.4 million in the prior year, representing a decrease of 41.0%. This was mainly due to (i) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB62.7 million; and (ii) decreases in compensation paid to sales and marketing staff due to the Company’s efforts in optimizing its human resources. Research and development expenses Research and development expenses were RMB116.1 million (US$15.9 million), compared with RMB176.5 million in the prior year, representing a decrease of 34.2%. This was mainly due to (i) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB22.5 million; and (ii) decreases in compensation paid to research and development staff due to the Company’s efforts in optimizing its human resources and increasing its research and development efficiency. General and administrative expenses General and administrative expenses were RMB138.4 million (US$19.0 million), compared with RMB142.9 million in the prior year, representing a decrease of 3.1%. This was mainly due to (i) the deconsolidation of CEIBS PG starting from January 15, 2024, resulting in a decrease of RMB17.3 million; and (ii) a decrease in share-based compensation paid to general and administrative staff due to the completion of the amortization of certain share-based incentives. The decrease was partially offset by one-time IPO-related professional fees and litigation costs occurring in 2024. Net loss and adjusted net loss Net loss was RMB92.1 million (US$12.6 million), compared with a net loss of RMB229.8 million in the prior year, representing a decrease of 59.9%. Adjusted net loss was RMB199.3 million (US$27.3 million), compared with an adjusted net loss of RMB277.6 million in the prior year, representing a decrease of 28.2%. Earnings/(loss) per share Basic net income per share was RMB2.90 (US$0.40) and diluted net loss per share was RMB0.55 (US$0.07), compared with basic and diluted net loss per share of RMB4.71 in the prior year. The improvement in basic earnings per share was primarily attributable to (i) the deemed contribution to ordinary shareholders due to modifications and extinguishment of the Company’s convertible redeemable preferred shares on July 1, 2024; and (ii) lower net loss in the full year of 2024 as compared with the prior year. The improvement was partially offset by net accretion on convertible redeemable preferred shares to redemption value in the full year of 2024. Recent Development On March 27, 2025, the Company has successfully completed a strategic rebranding initiative, adopting the "Radnova" name for its potential international operations. YXT.com operates its business in China through Jiangsu Radnova Intelligence Technology Co., Ltd. (formerly Jiangsu Yunxuetang Network Technology Co., Ltd.). As part of its global expansion, the Company has established a new entity in Singapore to serve as a headquarter for its overseas business to be conducted in the future. This strategic location will enable YXT.com to better serve and expand into international markets. The "Radnova" trademark will be used for the Company’s future international operations, symbolizing its transition from a China-focused e-learning company to a global AI-enabled enterprise productivity solutions provider. YXT.com today announced that its board of directors has authorized the Company to adopt a share repurchase program under which the Company may repurchase up to US$10 million of its ordinary shares in the form of American depositary shares (“ADSs”) during a two-year period (the “Share Repurchase Program”). The Company’s proposed repurchases, if adopted, may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in derivative transactions, and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing, structure and dollar amount of repurchase transactions will be subject to among others, the market conditions, terms to be agreed with the relevant repurchase agent, the trading prices of ADSs, and the Securities and Exchange Commission (the “SEC”) Rule 10b-18 and/or Rule 10b5-1 requirements. The Company’s board of directors will review the Share Repurchase Program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company plans to fund repurchases from its existing cash balance. Balance Sheet As of December 31, 2024, the Company had cash and cash equivalents and restricted cash, short-term investments and long-term bank deposits of RMB418.2 million (US$57.3 million), compared with RMB496.2 million as of December 31, 2023. Conference Call Information The Company's management team will hold a conference call at 9:00 P.M. U.S. Eastern Time on Thursday, March 27, 2025 (or 9:00 A.M. Beijing Time on Friday, March 28, 2025) to discuss the financial results. Details for the conference call are as follows: All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call. A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.yxt.com/. Non-GAAP Financial Measures In evaluating our business, we consider and use adjusted net loss as a supplemental non-GAAP measure to review and assess our operating performance. Adjusted net loss is net loss excluding amortization of incremental intangible assets resulting from business combination, gain on deconsolidation of CEIBS PG, share-based compensation, change in fair value of derivative liabilities, net of income taxes, to the extent applicable. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP measure facilitates investors’ assessment of our operating performance. The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. We compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. About YXT.com YXT.com (NASDAQ: YXT) is a technology company focusing on enterprise productivity solutions. With a mission to "Empower people and organization development through technology," The Company strives to become the supreme provider in building and boosting enterprise productivity by combining over a decade of experience in tech-enabled talent learning and development and with AI-augmented task copilots and unleashing the power of knowledge and synergy. Since its inception, YXT.com has supported and received recognition from numerous Global and China Fortune 500 companies. YXT.com operates its business in China through "Jiangsu Radnova Intelligence Technology Co., Ltd.," formerly known as "Jiangsu Yunxuetang Network Technology Co., Ltd.". YXT.com has established an entity in Singapore to serve as a headquarter for its overseas business to be conducted in the future, with the "Radnova" trademark to serve international markets. Contact Robin Yang ICR, LLC [email protected] +1 (646) 405-4883