June 12, 2026

‍

51Talk Online Education Group (NYSE: COE) reported first-quarter 2026 results with strong revenue growth, higher gross billings, and a sharp increase in active students, though gross margin declined and net loss widened.
‍

51Talk is a global online education platform focused on English-language learning, combining online tutors, localized products, and AI-supported learning tools.

‍

Growth Was Strong Across Key Metrics

‍

Net revenues increased 70.9% to $31.2 million, up from $18.2 million in the prior-year quarter.
‍

Gross billings rose 51.9% to $33.3 million, exceeding the high end of management’s guidance. Active students with attended lesson consumption increased 63.9% to about 132,900, compared with 81,100 a year earlier.
‍

Gross profit increased 63.9% to $23.0 million, but gross margin declined to 73.7% from 76.8%. The margin decline was mainly tied to higher payment processing fees as the company expanded payment channels.

‍

Expenses Rose as 51Talk Invested in Growth

‍

Operating expenses increased 57.2% to $24.4 million, mainly due to higher sales and marketing expenses.
‍

Sales and marketing expenses rose 59.0% to $17.9 million, driven by higher sales personnel costs and increased promotional activity. Product development expenses increased 84.9% to $1.9 million as 51Talk continued building its AI-plus-human learning experience.
‍

Operating loss narrowed slightly to $1.4 million from $1.5 million a year earlier. Non-GAAP operating loss improved to $0.9 million from $1.2 million.
‍

Net loss attributable to ordinary shareholders widened to $2.3 million from $1.7 million, while non-GAAP net loss widened to $1.8 million from $1.4 million.

‍

Balance Sheet and Outlook

‍

51Talk ended the quarter with $35.5 million in cash, cash equivalents, and time deposits, down from $39.0 million at year-end 2025.
‍

Advances from students increased to $78.9 million from $76.6 million, showing continued prepaid demand for course packages.
‍

For the second quarter, 51Talk expects gross billings of $36.0 million to $38.0 million, representing 8.1% to 14.1% sequential growth and 26.5% to 33.5% year-over-year growth.

‍

The Bigger Picture

‍

51Talk’s quarter showed strong demand for online English learning.
‍

Revenue, gross billings, and active students all grew sharply, while operating loss narrowed slightly despite heavier investment in marketing and product development. The next test is whether the company can keep growing while improving margins and reducing net losses.
‍

Platforms like LevelFields track earnings beats, layoffs, dividend increases, leadership changes, dividend updates, helping investors identify when online education stocks are moving on real operating momentum.