ATA, Inc. Sponsored ADR Stock price
Is ATA, Inc. Sponsored ADR a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $33.13m | Revenue (TTM) = $39.99m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $22.81m | Revenue (TTM) = $39.99m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
ATA, Inc. Sponsored ADR Stock Analysis
Analyst Opinions
7 Analysts have issued a ATA, Inc. Sponsored ADR forecast:
Analyst Opinions
7 Analysts have issued a ATA, Inc. Sponsored ADR forecast:
ATA, Inc. Sponsored ADR Events
Past Events
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MAR
25
Q4 2025 Earnings Call
7 months ago
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NOV
12
Q3 2025 Earnings Call
11 months ago
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StocksGuide Free
ATA, Inc. Sponsored ADR — Q4 2025 Earnings Call
1. Management Discussion
Greetings, welcome to ATA Creativity Global Fourth Quarter and Year-End 2025 Financial Results Call. [Operator Instructions] Please note this conference is being recorded.
I will now turn the conference over to Alice Zhang for The Equity Group. Please proceed.
Thank you, operator. Good evening to all of you joining us from the United States, and good morning to all of you joining us from China. Please be advised that the discussions on today's call may include forward-looking statements. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the company's most recent SEC filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.
Regarding the disclaimer language, I would also like to refer you to Slide 2 of the conference call presentation, which is accessible via the IR section of ACG's website. Simultaneous audio webcast is also accessible via the IR section of ACG's website, including the replay, which will be available for the next 90 days.
ACG's Chairman and CEO, Mr. Kevin Ma, will start this call by highlighting the company's fourth quarter 2025 key operational achievements and financial highlights. CFO, Mr. Ruobai Sima, will provide an overview of financial and operating results for fourth quarter 2025 and full year 2025. President, Mr. Jun Zhang, will conclude the prepared remarks with an update on the company's long-term growth strategy before opening the floor for questions. For those of you following the accompanying slide presentation, please refer to the slides for further details.
With that, I'll turn the call over to ACG's Chairman and CEO, Mr. Kevin Ma. Please go ahead, Mr. Ma.
Thank you, Alice, and welcome, everyone. Good evening to those in America. We appreciate everyone's time. As Alice mentioned, please refer to our earnings deck available on the IR site of our website as we go through our prepared remarks.
As we have discussed in previous quarters, 2025 overall student demand normalized following the [ surge ] of student enrollment in the previous year while we report lower total revenues during fourth quarter 2025 as compared to the same period of last year.
Revenues from research-based learning and other educational services increased year-over-year, primarily as we hosted more project and provided more service to institutional partners. In fourth quarter 2025 due to cost saving initiatives, we have been implementing and resulting streamlined operations compared to fourth quarter 2024. We reported a 15.7% lower operating expenses excluding a onetime goodwill impairment charge in quarter 4 2025.
For fiscal year 2025, despite overall normalized market demand, total revenues were stable, supported by our core portfolio training service and increased contribution from research-based learnings, overseas study counseling and other educational services. Full year 2025 was also marked by lower operating expenses as compared to full year 2024.
During fourth quarter 2025, our main revenue contributor remained the portfolio training service, accounting for 68.8% of total net revenues.
Project-based programs have become the main choice for our students, accounting for 74.9% of total credit hours delivered with 66.8% in fourth quarter 2024.
Revenues from research-based learning and overseas study counseling increased by 4.6% during fourth quarter 2025 as a result of more services delivered for in-school art class in partnership or schools.
During fourth quarter 2025, our highly diversified research-based learning services continued to get student interest, especially during the winter vacation where students have the time to participate in more intense projects, either in person or online.
As usual, in addition to our Open Hack Shanghai Fashion Week project, we hosted 10 online Master Class covering a wide area of art topics, given by lectures from top universities including Carnegie Mellon University, Harvard University as well as the University of Arts London, Royal College of Art.
We also made continuous investments to ensure ACG students has access to world-class educational infrastructure and academic resources when preparing for overseas study journeys.
In October, we hosted the 2025 ACG Expert Tour in several cities bring academia and industry experts to Shanghai, Wuhan, Chengdu, Chongqing and Suzhou to site face-to-face with over 1,000 students. Experts gave lectures on industrial and academic trends of interdisciplinary designs and mainly with 30 students one-on-one, providing feedback on their artwork and application portfolios and sharing their input in career plan.
During quarter 4 2025, we established the ACG's first music preparatory center in Chengdu, working in exclusive partnership with lead conservatory, which is the first and only music-focused preparatory center in collaboration with the overseas institute to provide a 1-year intensive study program before students hit to the U.K. to finish their bachelor's degree.
We also implemented a series of service enhancements to our existing ACG Japan center, which now hosted more Master Class projects and provide improved class offerings and courses customization, working in collaboration with more Japanese art schools. Additionally, we began providing services to more institutional partners contributing to increased revenues from other educational service.
With that, I hand over the call to Sima for a detailed overview of our financial and operating results for fourth quarter and full year 2025.
Thank you, Kevin, and I will start with fourth quarter 2025 key financial metrics. Total net revenue for fourth quarter 2025 was RMB 89.1 million, decreased 11.7% as compared to the fourth quarter 2024. The decrease was primarily due to decreased revenue contribution from portfolio training programs and overseas study counseling services, partially offset by increased revenue contributions from research-based learning services and other educational services.
Gross profit for fourth quarter 2025 was RMB 50.2 million, compared to RMB 63.7 million in fourth quarter 2024, affected by lower revenues and higher cost of revenues related to research-based learning services, outsourcing costs and part-time teacher costs. Gross margin was 56.4% during the fourth quarter 2025 compared to 63.1% in the prior year period.
Total operating expenses was RMB 73.3 million in fourth quarter 2025 compared to RMB 46.8 million in fourth quarter 2024, increased primarily as a result of onetime goodwill impairment charge for RMB 33.9 million or USD 4.8 million recorded in Q4 2025, which was not recorded in Q4 2024 and partially offset by an RMB 7.4 million decrease in sales expenses related to lower headcount in sales personnel and decreased sales incentives during the period.
Excluding the onetime goodwill impairment charge, total operating expenses decreased by 15.7% from fourth quarter 2024 and as a percentage of net revenues, decreased to 44.2% during fourth quarter 2025 compared to 46.3% in the prior year period. As a result, loss from operations in the fourth quarter 2025 was RMB 23 million compared to income from operations of RMB 17 million in fourth quarter 2024.
Net loss attributable to ACG during the fourth quarter 2025 was RMB 26.3 million compared to the net income attributable ACG of RMB 13.3 million in the prior year period.
During the full year 2025, total net revenue was RMB 268.1 million, flat from prior year period. Revenues were impacted by lower contribution from portfolio training services and offset by increased contribution from research-based learning and overseas study counseling and other educational services.
Gross profit for full year 2025 was RMB 130.3 million, a decrease of 7.8% from RMB 141.3 million in full year 2024. As a result of increased outsourcing costs during the period, gross margin was 48.6% compared to 52.7% in full year 2024.
Total operating expenses were RMB 194.6 million in full year 2025, an increase of 5.5% from RMB 184.5 in full year 2024. Increase in operating expenses during the year was primarily due to a onetime goodwill impairment charge of RMB 33.9 million recorded in Q4 2025, will partially offset by lower operating expenses and RMB 3.8 million collection of prior impaired loans and other receivables recorded in Q1 2025. Excluding the onetime goodwill impairment charge and collection of prior impaired loans and other receivables, total operating expense decreased by 10.8% from full year 2024 and as a percentage of net revenues decreased to 61.3% from 68.8% in the prior year period.
We recorded a RMB 17.3 million decrease in sales expenses as a result of lower headcount in sales personnel and decreased sales incentives compared to full year 2024 and RMB 2.1 million decrease in general and administrative expenses mainly as a result of decreased administrative personnel expenses and a decrease in amortization expenses related to purchase price accounting from a previous completed acquisition as well as RMB 0.6 million decrease in research and development expenses.
As a result, loss from operations in full year 2025 was RMB 64.1 million compared to RMB 43.2 million in full year 2024. Net loss attributable to ACG full year 2025 was RMB 48 million compared to RMB 36.1 million as a result of widened operating loss and was partially offset by a onetime impairment gain from previous investments.
Moving to the balance sheet highlights. At December 31, 2025, we had RMB 85.2 million in cash and cash equivalents, total assets of RMB 408.3 million, total liabilities of RMB 376.3 million and total shareholders' equity of RMB 32 million.
Moving on to year-to-date enrollment trends. Starting with students enrollment. For fourth year -- for fourth quarter 2025, total student enrollment was 921 compared to 1,038 in prior year period, decreased as a result of normalized demand for our service in 2025.
Portfolio training students enrollment for fourth quarter 2025 was 568 and student enrollment for all the other program for fourth quarter 2025 was 353.
Moving on to credit hours delivered. For fourth quarter 2025, total credit hours delivered decreased by 10.5% compared to prior year period. Project-based programs accounting for 74.9% of total credit hours delivered.
With that, I will now turn it over to Jun, who will expand our long-term business strategy, Jun, please go ahead.
[Foreign Language]
[Interpreted] We will now discuss ACG's business strategy in 2026. In 2026 and beyond, our goal is to maintain our leading position in China's creative art education industry despite increased market competition. On one hand, we believe our competitive advantages are rooted in our skilled and highly experienced teaching team, our strong portfolio of high-quality existing and new offerings as well as an extensive network of global partnerships with leading art institutions. Our teaching faculty brings together academic excellence and real-world industry experience, enabling us to deliver education that is both creative and practical.
Meanwhile, our broad institutional collaborations provide students with greater international exposure, enriched learning opportunities and smoother pathways to top global arts programs. Together, these strengths form the foundation of ACG's sustained leadership and continued growth in the creative education sector.
On the other hand, we plan to continue executing our existing operational initiatives while introducing additional measures aimed at driving cost savings and reducing operating expenses. To that end, we're optimizing our service portfolio and enhancing classroom utilization by expanding online course offerings and increasing student capacity.
We're hosting more online classes and accommodating more students, strategically allocating sales and teaching resources to larger campus locations and consolidating select campuses in less active markets to maximize efficiency. In addition, we're streamlining sales organization and prioritizing cost-effective and proven student acquisition channels. Collectively, this initiative should position us well for an overall improved operational and financial performance in 2026 and beyond.
For Q1 2026, we have a strong pipeline of research-based learning projects, highlighted by the Finland Sustainable Design & Art Research Program. This winter camp offers participating students the opportunity to visit Aalto University in Finland, one of the world's leading institutions in design, architecture and engineering and take part in Arctic Center sustainable development workshops to learn about Arctic and Sámi culture and hand create art works, such as reindeer antler sculptures.
Furthermore, in response to multiple contest opportunities our students are interested in, we're holding the 2026 Competition Winter Camp in January through a hybrid format of online and in-person classes. The camp includes multiple workshops for students with various areas of focus, including fashion design, digital design, future architecture and more with customized class offerings and hands-on guidance from ACG teaching staff, students prepare their interdisciplinary portfolios for participation in various international and national competitions and strengthen their application portfolios.
This relevant, well-designed and carefully delivered project along with our core portfolio training services that would continue to improve, demonstrate our long-term commitment to delivering state-of-the-art products and services to ACG students as they pursue their aspirations in creative arts.
Over the long term, we remain focused on strengthening our portfolio of existing higher fee and higher-margin services while driving innovation and introduction of new services. These efforts, combined with disciplined call management initiatives, are designed to enhance overall margin improvement and drive results for ACG and our shareholders.
Driving positive student outcome has been the center of our business for years. Through continuous investment in our teaching team and continuous enhancement of our service portfolio, we're able to cater to student populations that covers 6 major arts disciplines, a wide age range and those with different backgrounds and knowledge in their respective areas of arts and addressing their evolving needs. We remain dedicated to serving ACG students as they pursue their academic and professional goals in 2026 and beyond.
With that, operator, let's open it up for questions.
[Operator Instructions] There are no questions at this time. I would like to turn the conference back over to Kevin Ma for closing remarks.
Thanks again to all of you for joining us. If anyone has questions for us, please feel free to reach out directly to us or our Investor Relations firm, The Equity Group. We are always available to speak to investors and look forward to speaking with you all during our next earnings call. Thank you.
Thank you. This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
ATA, Inc. Sponsored ADR — Q4 2025 Earnings Call
ATA, Inc. Sponsored ADR — Q3 2025 Earnings Call
1. Management Discussion
Greetings. Welcome to ATA Creativity Global Third Quarter 2025 Financial Results. [Operator Instructions] Please note this conference is being recorded.
I will now turn the conference over to Alice Zhang with the Equity Group. Thank you, Alice. You may begin.
Thank you, operator. Good evening to all of you joining us from the States and good morning to all of you joining us from China.
Please be advised that the discussions on today's call may include forward-looking statements. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the company's most recent SEC filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.
Regarding the disclaimer language, I would also like to refer you to Slide 2 of the conference call presentation, which is accessible via the IR section of ACG's website. A simultaneous audio webcast is also accessible via the IR section of ACG's website, including the replay, which will be available for the next 90 days.
ACG CFO, Mr. Ruobai Sima, will start this call by highlighting the company's third quarter 2025 key operational achievements and financial highlights and then provide an overview of financial and operating results for third quarter and 9 months 2025 and briefly discuss expectations for full year 2025. President, Mr. Jun Zhang, will conclude the prepared remarks with an update on the company's long-term growth strategy before opening the floor for questions. For those of you following the accompanying slide presentation, please refer to the slides for further details.
With that, I'll turn the call over to ACG's CFO, Mr. Ruobai Sima. Please go ahead, Mr. Sima.
Thank you, Alice, and welcome, everyone, and good evening to those in America. We appreciate everyone's time. As Alice mentioned, please refer to our earnings deck available on the IR side of our website and we go through our prepared remarks.
We reported relatively stable net revenue for third quarter 2025 while for 9 months 2025, we delivered revenue growth for 7.1% as a result of increased contribution from research-based learnings, overseas study counseling and other educational services.
During third quarter 2025, our main revenue contributors remain portfolio training services accounting for 71.9% of total net revenues. Project-based program credit hours delivered increased by 22.9% compared to third quarter 2024 and contributed to over 80% of total credit hours delivered.
Revenues from research-based learnings and overseas study counseling increase during the period compared to the prior year period. As a result of more services delivered, during this summer, we had a series of online and in-person research-based learnings experience that accommodated over 500 students. These experiential projects included recruiting and new ones from online Master Classes to our U.S. Sustainable Goals Arts Boot Camp, a total of 14 summer labs lectured by instructors from prestigious schools in the U.K. and in the U.S. to our New York Fashion Week program. In addition, we co-developed an in-person 10-day summer lab with Hong Kong Polytechnic University focusing on digital entertainment, media design that was held on the PolyU campus.
At this intensive summer lab, students gather firsthand learning experience on the state-of-the-art virtual reality and augmented reality technologies and walked away from -- with their own design solutions and certificate of attendance issued by PolyU.
As we enter the registration period of 2026academic year, our national network of campus locations as well as our ACG Beijing Foundation Center continue to welcome and support new students who are exploring study abroad opportunities with our expanding services offering, prepare them for the upcoming application season.
I will now move on to a detailed overview of our financial and operating results for third quarter and 9 months 2025. I'll provide some additional color on expectations for fiscal year 2025.
Starting with third quarter 2025 key financial metrics. Total net revenues for third quarter 2025 was RMB 67.3 million, relatively stable as compared to the third quarter of 2024.
Gross profit for third quarter 2025 was RMB 26.4 million compared to RMB 30 million in the third quarter 2024. Affected by higher cost of revenues related to research-based learning services outsourcing costs and part-time teacher costs, gross margin was 39.2% during the third quarter 2025 compared to 44.6% in the prior year period.
Total operating expense was RMB 37 million in the third quarter of 2025, a decrease of 22.4% from RMB 47.7 million in the third quarter 2024.
Well, as a percentage of net revenues, total operating expenses significantly decreased to 34.9% during the third quarter 2025 compared to 70.9% in the prior year period. The decrease in operating expenses was due to a RMB 5.9 million decrease in sales expenses related to lower headcount in sales personnel. And RMB 4.8 million decrease in general and administrative expenses as a result of decreased professional fees and lower investments in new project development while research and development expenses remained relatively stable.
As a result of lowering operating expenses, loss from operating in the third quarter 2025 narrowed to RMB 10.6 million from RMB 17.6 million in the third quarter 2024.
Net income attributable to ACG during third quarter 2025 was RMB 2.4 million compared to a net loss attributable to ACG of RMB 14.7 million in the prior year period, primarily due to a onetime gain from previous investments.
Turning to 9 months 2025. Total net revenues increased 7.1% to RMB 179 million from RMB 167.1 million in the prior year period. The increase was primarily attributable to increased contribution from research-based learnings and overseas study counselings and other educational services.
Gross profit for 9 months 2025 was RMB 80.1 million, an increase of 3.2% from RMB 77.6 million in 9 months 2024. As a result of increased revenues, it was partially offset by increased outsourcing costs during the period. Gross margin was 44.7% compared to 46.4% in 9 months 2024.
Total operating expenses was RMB 121.3 million in 9 months 2025, a decrease of 11.9% from RMB 137.7 million in 9 months 2024. As a percentage of net revenues, total operating expenses decreased to 67.8% from 82.4% in the prior year period. The decrease were primarily due to a RMB 9.8 million decrease in sales expenses as a result of lowering headcount in sales personnel and decreased sales incentive compared to 9 months 2024.
And then RMB 0.5 million decrease in research and development expenses as well as RMB 2.3 million decrease in general and administrative expenses, reflecting of the accounting impact on purchasing price allocation from previous completed acquisitions.
As a result, increased revenues and decreased operating expenses, loss from operating operations in 9 months 2025 narrowed to RMB 41.1 million compared to RMB 60 million in 9 months 2024.
Net loss attributable to ACG in 9 months 2025 was RMB 21.7 million compared to RMB 49.4 million.
Moving to the balance sheet highlights. As of September 30, 2025, we had RMB 96.8 million in cash and cash equivalents. Total assets of RMB 462.5 million, total liabilities of RMB 403.7 million and total shareholders' equity of RMB 58.8 million.
Moving on to year-to-date enrollment trends, starting with student enrollment. For third quarter 2025, total student enrollment was 1,052 compared to 1,289 in the prior year period, decreased as a result of normalized demand in our service in 2025.
Portfolio training student enrollment for third quarter 2025 was 585 and the students enrollment for all other programs for third quarter 2025 was 457.
Moving on to credit hours delivered. For third quarter 2025, credit hours delivered slightly increased by 5.6% compared to prior year period. We reported a 22.9% increase in project-based programs, which has become the primary student's choice as a result of our conscious efforts to encourage students to these more flexible and customizable track.
With that, let's move to our expectation for full year 2025. We believe we are on track of achieving total net revenues of between RMB 276 million to RMB 281 million for the year-end December 31, 2025, which represents a year-over-year increase of around 3% to 5% from full year 2024. We anticipate portfolio training to remain the main pillar of our revenue accompanied by increased contribution from all other lines of business. And we continue to improve current offerings and introduce new programs.
Our fiscal year 2025 guidance range and relevant assumptions are based on the company's current business operations, initiatives underway for the year-end December 31, 2025, and the current and preliminary view of existing domestic and international market conditions, which are all subject to change.
I'd now like to turn it over to Jun, who will expand upon our long-term growth strategy. Jun, please go ahead.
[Interpreted]
Thank you, Sima. I will now discuss more recent execution highlights of our long-term growth initiatives. For years, ACG is proud to have been recognized by the industry and our students for our capability to drive positive outcomes for those interested in creative arts. Our organic growth is built on providing relevant and mindfully designed course offerings to satisfy our students' evolving needs.
During the past quarters, in addition to our intentional efforts that led to project-based portfolio training service accounting for the majority of our credit hours delivered, we also actively take -- took on approaches to ensure our product mixture keeps up with our students' demand, thus maintaining a high satisfaction level towards our main portfolio training services, the cornerstone of our key business.
At the same time, we focused on expanding our research-based learning and overseas study counseling services, catering to a growing student population with an expanded age group and diverse arts backgrounds.
Our business growth is driven by our commitment to delivering high-quality portfolio training services and growing student interest in our value-adding offerings that together contribute to a strong and competitive application portfolio.
In the meantime, ACG has been exploring initiatives to improve overall operating efficiency, highlighted by our efforts to streamline selling expenses and the strategic reallocation of regional teaching app resources.
Going forward, ACG plans to gradually consolidate select campuses in less active markets while continuing to expand online classroom capacity to accommodate our students across the country. This approach is especially relevant at many disciplines such as computer design, gaming design and user interaction continue to evolve toward more digital and technology-driven formats.
In Q4, we're introducing new online Master Classes, co-developed and lectured by instructors from Carnegie Mellon University, Harvard University as well as the University of Arts London and Royal College of Art.
Through the long-term partnerships we have built with overseas schools and lecturers, we made these Master Classes available to ACG students, offering them the opportunity to explore emerging art topics such as user design, digital love language design, digital media prototype and installation arts.
As part of our fashion design programs that immerse students for fashion weeks all over the world for hands-on backstage experiences, we continue to host our traditional Shanghai Fashion Week project. Through this initiative, students gained firsthand exposure to a full spectrum of our brand fashion week activities from marketing and photoshooting to interviews and full execution, providing a dynamic and comprehensive learning experience.
As a leading provider of creative art educational services in China, we are dedicated to empowering ACG students to achieve their full potential and realize their academic and professional goals, guiding and supporting them every step of the way toward admission to their dream schools.
For the remainder of 2025 and into 2026, we remain confident that our ongoing investments and strategic growth initiatives, combined with disciplined execution and strong focus on cost management will drive sustainable value creation for the company by carefully balancing the expansion with operating efficiency.
We expect these efforts to strengthen our market position, enhance student outcomes and support a long-term trajectory of profitable growth. Our approach ensures that as we scale, we continue to deliver high-quality educational services while maintaining financial resilience and operational agility in a dynamic and competitive market.
With that, operator, let's open it up for questions.
[Operator Instructions] There are no questions at this time. I would like -- there are no further questions at this time. I would like to turn the conference back over to Mr. Sima for closing remarks.
Thank you, and thanks again to all of you for joining us. If anyone has questions for us, and please feel free to reach out directly to us or our Investor Relations team from the Equity Group. We are always available to speak to investors and look forward to speaking with you all during our next earnings call. Thank you.
Thank you. This will conclude today's conference. You may disconnect at this time and thank you for your participation.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
ATA, Inc. Sponsored ADR — Q3 2025 Earnings Call
Financial data from ATA, Inc. Sponsored ADR
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Dec '25 |
+/-
%
|
||
| Revenue | 40 40 |
0%
0%
100%
|
|
| - Direct Costs | 21 21 |
9%
9%
51%
|
|
| Gross Profit | 19 19 |
8%
8%
49%
|
|
| - Selling and Administrative Expenses | 24 24 |
11%
11%
60%
|
|
| - Research and Development Expense | 0.46 0.46 |
-
1%
|
|
| EBITDA | -1.30 -1.30 |
-
-3%
|
|
| - Depreciation and Amortization | 3.21 3.21 |
-
8%
|
|
| EBIT (Operating Income) EBIT | -4.50 -4.50 |
31%
31%
-11%
|
|
| Net Profit | -7.17 -7.17 |
30%
30%
-18%
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In millions USD.
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Company Profile
ATA Creativity Global engages in the provision of computer-based testing services. It serves professional licensure and certification tests in various industries, which include IT services, banking, teaching, and insurance. The company was founded by Kevin Xiaofeng Ma and Walter Lin Wang in 1999 and is headquartered in Beijing, China.
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| Head office | Cayman Islands |
| CEO | Mr. Ma |
| Employees | 489 |
| Founded | 1999 |
| Website | www.ata.net.cn |
