51Talk’s rapid growth signals potential rebound amid profitability pressure

Despite a challenging 2026 marked by a share slump, 51Talk’s latest results reveal strong revenue growth and expanding student numbers, raising questions about whether a market-driven recovery is on the horizon.

51Talk Online Education Group has had a difficult 2026 on the market, with its shares down 39.9% year to date, a sharp reversal after gains late last year. Yet the company’s recent operating figures suggest the story is more complicated than the share price implies, even if it may still be too early to say the latest rally has fully run its course.

According to the company’s first-quarter 2026 results, gross billings rose 51.9% from a year earlier to $33.3 million, while net revenue increased 70.9% to $31.2 million. Active students consuming lessons climbed 63.9% to about 132,900. But the stronger sales trend came with pressure on profitability: gross margin edged down to 73.7%, operating expenses jumped 57.2% to $24.4 million and the quarter ended with a net loss of $2.3 million.

That mix of rapid growth and rising costs follows a strong 2025. In the third quarter, gross billings more than doubled to $40.5 million and revenue rose 87.5% to $26.3 million, while active students increased 71.4% to roughly 112,600. For the full year, gross billings reached $127.6 million and revenue came in at $95.6 million, both up sharply from 2024, with operating cash inflow of $11.8 million. The company has framed its expansion around an AI-driven learning model and has said it plans a more personalised product later this year.

For investors, the key question is whether that momentum can keep offsetting the weaker share performance. 51Talk’s latest numbers point to a business still growing quickly, but one that is also spending heavily to do so. That leaves room for further upside if execution remains strong, though the recent decline suggests the market is no longer willing to pay for growth alone.