YXT · Yxt.Com Group Holding Ltd

YXT.com Group Holding Limited reported its full year 2025 unaudited financial results, highlighting a strategic pivot towards an 'AI-first' model and large enterprise accounts. Total revenues grew 2.7% year-over-year to RMB340.2 million, primarily driven by a 5.2% increase in subscription-based corporate learning solutions, which reached RMB317.4 million. This growth offset a decline in non-subscription and other revenues, reflecting the company's deliberate shift away from offline and customized software projects. A significant highlight was the improvement in gross margin, which expanded by 6.5 percentage points to 68.3%. Management attributed this expansion to AI-powered operational efficiencies, a higher mix of large enterprise subscription customers, and reduced instructor compensation costs. Operating expenses showed mixed trends: sales and marketing expenses remained relatively flat, while research and development expenses decreased by 4.0% and general and administrative expenses fell by 11.9%, indicating successful cost optimization efforts. Consequently, the adjusted net loss narrowed by 26.4% to RMB146.6 million, demonstrating enhanced operating leverage. The company also reported a notable milestone in its AI transformation, with Monthly Recurring Revenue (MRR) for AI-related products increasing nearly fourfold to RMB1.1 million. Net revenue retention rates remained stable at 101.4%. However, the balance sheet revealed a significant reduction in liquidity, with cash, restricted cash, and short-term investments totaling RMB134.7 million at year-end, down from RMB418.2 million in the prior year. Looking forward, management expressed confidence that adjusted net loss would continue to decrease significantly in 2026, driven by ongoing efficiency gains and a refined revenue mix.