iHuman (NYSE:IH), a leading provider of tech-powered intellectual development products in China, announced third-quarter financial results on Monday that reflected the persistent headwinds facing the country's early childhood education sector.
The company saw a broad contraction across its key financial metrics and user engagement levels compared to the previous year.
Total revenues for the quarter ended September 30, 2025, fell to RMB205.8 million ($28.9 million), a 14% decrease from the RMB239.4 million reported in the same period of 2024.
The revenue slump was accompanied by a decline in average total monthly active users (MAUs), which dropped to 26.13 million from 29.12 million a year ago.
The company’s performance continues to be pressured by macro-demographic trends in its home market.
A declining newborn population in China has fundamentally altered the addressable market for iHuman’s core early-learning products.
In response, CEO Dr. Peng Dai noted that the company is strategically expanding its offerings to serve "older age cohorts," leveraging its existing technological expertise and intellectual property to reach children beyond the traditional preschool age.
Despite the top-line pressure, iHuman maintained a robust gross margin of 68.3%, nearly identical to the prior year.