51Talk (NYSEAMERICAN: $COE) is a major global online education platform. It is mainly known for connecting students from China with qualified teachers, mainly from the Philippines for live, interactive English lessons. Its goal is to make quality education accessible and help China talk to the world.
The platform operates on a shared economy model, letting students book on-demand lessons with teachers for a personalized learning experience. On Monday, December 8, 2025, it released its Q3 fiscal 2025 results. Let us take a deep dive into those results.
51Talk Q3 Results
For the third quarter, 51Talk posted gross billings of $40.5 million, a 104.6% YoY increase. It reported net revenue of $26.3 million, an 87.5% YoY increase. The company reported a 71.4% YoY increase in active students, with attended lesson consumption to 112,600.
Gross profits came in at 19.3 million for a gross margin of 73.3%, which was a 5.4 ppt decline YoY. The company ended the quarter with $6.6 million in operating cash inflow. Meanwhile, cash, cash equivalents, and time deposits came in at $36.6 million.
51Talk reported an operating loss of $4.2 million and a net loss of $4.8 million. It reported a non-GAAP net loss of $4.4 million. It ended the quarter with $70.7 million in advances from students compared to $45.1 million last year.
At the end of the quarter, the basic and diluted net loss per share was $0.01, compared to $0.002 last year. Its non-GAAP basic and diluted net loss per share was $0.01, compared to $0.001 last year.
Q4 Outlook
For Q4 fiscal 2025, 51Talk expects net gross billings of $35 million to $38 million. That would represent a 6.1% to 13.5% sequential decline, and a 63.7% to 77.7% YoY increase.
Share Performance
Following the Q3 results, $COE shares fell 12.20% at the close of trading on December 8, 2025, to $36.21. However, the stock is still up 9058% year to date. Over the past 12 months, the stock has gained 160.69%, while over the past month, it has dipped 19.60%.
It is currently trading at a massive discount to its 52-week high of $56.13, below its 50-day moving average of $44.45, and above its 200-day moving average of $31.33.
Analysts remain neutral on the future of $COE shares. They give the stock a hold rating and forecast an average price of $36.48, which is a 0.73% upside from the last closing price. The two analysts give the same price forecast of $36.48.
Is 51Talk A Buy?
While 51Talk has demonstrated growth, investment in the stock still has to be weighed against the risk of investing in highly regulated international stocks. Due to ongoing trade tensions between the US and China, and given 51Talk’s massive reliance on China for most of its revenue, a new policy restriction could upend its entire business model. As such, the neutral rating by analysts could potentially be the right course of action at the moment.
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