YXT.com Group Holding Limited reported full‑year 2025 revenue of RMB340.2 million (US$48.7 million), a 2.7 % increase from RMB331.2 million in 2024. The company’s cost of revenues fell 14.9 % to RMB107.7 million, driven by AI‑enabled productivity gains and a shift to subscription‑based corporate learning solutions. The result was a gross margin of 68.3 %, up 6.5 percentage points from 61.8 % in 2024, underscoring the pricing power and cost discipline achieved through the AI‑first strategy.
YXT.com’s net loss widened to RMB158.9 million (US$22.7 million) from RMB92.1 million in 2024, while the adjusted net loss improved to RMB146.6 million (US$21.0 million) from RMB199.3 million. The broader loss reflects the company’s continued investment in scaling its AI platform, which has increased cash burn as cash and short‑term investments fell from RMB418.2 million to RMB134.7 million. Subscription customers declined from 2,405 to 2,301, a deliberate move to focus on larger enterprise accounts, and AI‑related monthly recurring revenue rose from RMB0.3 million to RMB1.1 million.
Sales and marketing expenses rose 0.5 % to RMB144.9 million, while research and development costs fell 4.0 % to RMB111.4 million and general & administrative expenses dropped 11.9 % to RMB122.0 million. These shifts illustrate the company’s emphasis on cost control amid heavy investment in AI capabilities. Net loss per share stood at RMB0.87 (US$0.12) for both basic and diluted shares, reflecting the ongoing loss‑making nature of the business as it expands its AI platform.
Management highlighted the company’s net revenue retention of 101.4 %, a slight improvement over 100.9 % in 2024, and emphasized that the AI‑first strategy is delivering higher‑margin, higher‑quality revenue. Peter Lu, the company’s founder and chairman, noted that the 2025 year was a defining period for accelerating the AI transformation and pivoting to large‑enterprise customers. Chief Financial Officer Shen Cao added that the shift to a higher‑quality revenue mix has stabilized NRR, AI‑driven efficiencies raised gross margin, and that adjusted net loss is expected to decline further in 2026.
The results signal a company in a transition phase: revenue growth is modest, but margin expansion and a stronger revenue mix point to a more profitable future. The widening net loss and significant cash burn highlight the investment required to build the AI platform, while the decline in subscription customers reflects a strategic focus on larger, higher‑margin accounts. Together, these dynamics suggest that YXT.com is prioritizing long‑term profitability over short‑term earnings, with the AI‑first strategy positioned to drive future revenue quality and cost efficiency.
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