Revenue growth remains inconsistent with an 11.7% contraction in 2025Q4, while gross margins have fluctuated significantly between 39.2% and 63.1% over the last ten quarters.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 |
|---|
| Sales/Revenue | 268.11M | 268.06M | 221.62M | 206.82M | 202.21M | 162.17M | 97.77M | 1.34M | 7.49M | 472.39M | 417.14M | 350.16M | 384.67M | 366.68M | 352.09M | 303.9M | 245.03M | 217.55M | 172.12M | 84.88M | 68.99M |
| Revenue Growth % | 0.02% | 20.96% | 7.16% | 2.28% | 24.69% | 65.87% | 7203.96% | -82.14% | -98.41% | 13.24% | 19.13% | -8.97% | 4.91% | 4.14% | 15.85% | 24.03% | 12.63% | 26.39% | 102.78% | 23.03% | - |
| Cost of Goods Sold | 137.8M | 126.8M | 106.96M | 104.32M | 97.41M | 104.43M | 79.35M | 4.25M | 4.98M | 239.85M | 208.02M | 172.54M | 188.48M | 188.83M | 158.82M | 149.22M | 129.54M | 92.61M | 66.96M | 41.1M | 33.97M |
| COGS % of Revenue | 51.4% | 47.3% | 48.26% | 50.44% | 48.17% | 64.39% | 81.15% | 317.61% | 66.52% | 50.77% | 49.87% | 49.27% | 49% | 51.5% | 45.11% | 49.1% | 52.86% | 42.57% | 38.9% | 48.42% | 49.23% |
| Gross Profit | 130.31M | 141.26M | 114.66M | 102.51M | 104.8M | 57.74M | 18.42M | -2.91M | 2.51M | 232.53M | 209.12M | 177.62M | 196.19M | 177.84M | 193.27M | 154.69M | 115.5M | 124.94M | 105.16M | 43.78M | 35.03M |
| Gross Margin % | 48.6% | 52.7% | 51.74% | 49.56% | 51.83% | 35.61% | 18.85% | -217.61% | 33.48% | 49.23% | 50.13% | 50.73% | 51% | 48.5% | 54.89% | 50.9% | 47.14% | 57.43% | 61.1% | 51.58% | 50.77% |
| Gross Profit Growth % | -7.75% | 23.21% | 11.86% | -2.19% | 81.49% | 213.39% | 732.53% | -216.1% | -98.92% | 11.19% | 17.74% | -9.47% | 10.31% | -7.98% | 24.94% | 33.93% | -7.56% | 18.8% | 140.21% | 24.99% | - |
| Operating Expenses | 160.51M | 184.31M | 156.15M | 159.09M | 171.19M | 165.22M | 136.2M | 64.88M | 91.5M | 160.73M | 157.39M | 145.55M | 142.8M | 150.83M | 128.78M | 133.8M | 145.55M | 98.55M | 81.73M | 63.38M | 36.12M |
| OpEx % of Revenue | 59.87% | 68.76% | 70.46% | 76.92% | 84.66% | 101.88% | 139.3% | 4846.82% | 1221.06% | 34.02% | 37.73% | 41.57% | 37.12% | 41.13% | 36.58% | 44.03% | 59.4% | 45.3% | 47.48% | 74.66% | 52.35% |
| Selling, General & Admin | 140.22M | 180.78M | 151.55M | 152.32M | 159.41M | 153.6M | 116.04M | 49.08M | 42.19M | 116.6M | 120.86M | 110.79M | 115.13M | 128.98M | 110.38M | 111.04M | 122.84M | 82.31M | 68.84M | 54.05M | 31.27M |
| SG&A % of Revenue | 52.3% | 67.44% | 68.38% | 73.65% | 78.83% | 94.72% | 118.68% | 3666.39% | 563.03% | 24.68% | 28.97% | 31.64% | 29.93% | 35.18% | 31.35% | 36.54% | 50.13% | 37.84% | 40% | 63.68% | 45.32% |
| Research & Development | 2.99M | 3.7M | 4.63M | 6.79M | 11.8M | 8.83M | 11.82M | 19.59M | 19.71M | 43.43M | 36.53M | 36.84M | 27.67M | 21.85M | 18.4M | 22.76M | 22.71M | 16.24M | 12.88M | 9.32M | 4.85M |
| R&D % of Revenue | 1.11% | 1.38% | 2.09% | 3.28% | 5.84% | 5.45% | 12.09% | 1463.81% | 263.06% | 9.19% | 8.76% | 10.52% | 7.19% | 5.96% | 5.23% | 7.49% | 9.27% | 7.47% | 7.49% | 10.98% | 7.03% |
| Other Operating Expenses | 17.22M | -175K | -30.86K | -16.52K | -22.02K | 2.79M | 8.34M | -3.79M | 694.46M | 694.46K | -127.85K | -1.23M | 1.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -30.2M | -43.04M | -41.5M | -56.59M | -66.39M | -107.48M | -117.77M | -67.79M | -59.4M | 71.81M | 51.73M | 31.76M | 41.38M | 27.01M | 64.49M | 20.89M | -30.06M | 26.39M | 23.43M | -19.6M | -1.09M |
| Operating Margin % | -11.26% | -16.06% | -18.72% | -27.36% | -32.83% | -66.28% | -120.46% | -5064.42% | -792.61% | 15.2% | 12.4% | 9.07% | 10.76% | 7.37% | 18.32% | 6.87% | -12.27% | 12.13% | 13.61% | -23.09% | -1.58% |
| Operating Income Growth % | 29.83% | -3.73% | 26.67% | 14.77% | 38.23% | 8.74% | -73.73% | -14.14% | -182.71% | 38.8% | 62.9% | -23.25% | 53.18% | -58.11% | 208.66% | 169.51% | -213.9% | 12.61% | 219.58% | -1697.51% | - |
| EBITDA | -8.7M | -18.82M | -19.51M | -34M | -43.36M | -77.56M | -100.23M | -54.46M | -47.16M | 82.1M | 60.35M | 39.34M | 52.13M | 37.63M | 75.76M | 34.53M | -17.3M | 31.59M | 26.13M | -17.76M | 23.15M |
| EBITDA Margin % | -3.25% | -7.02% | -8.8% | -16.44% | -21.45% | -47.83% | -102.51% | -4068.5% | -629.27% | 17.38% | 14.47% | 11.24% | 13.55% | 10.26% | 21.52% | 11.36% | -7.06% | 14.52% | 15.18% | -20.92% | 33.56% |
| EBITDA Growth % | 53.75% | 3.55% | 42.61% | 21.6% | 44.09% | 22.61% | -84.04% | -15.49% | -157.44% | 36.05% | 53.39% | -24.54% | 38.54% | -50.33% | 119.43% | 299.53% | -154.77% | 20.9% | 247.15% | -176.7% | - |
| D&A (Non-Cash Add-back) | 21.5M | 24.23M | 21.98M | 22.59M | 23.03M | 29.91M | 17.55M | 13.33M | 12.24M | 10.29M | 8.61M | 7.58M | 10.75M | 10.62M | 11.28M | 13.64M | 12.75M | 5.21M | 2.7M | 1.84M | 24.24M |
| EBIT | -30.2M | -43.04M | -41.5M | -56.59M | -66.39M | -104.36M | -108.84M | -67.79M | -59.4M | -56.8M | 51.73M | 32.07M | 54.46M | 27.01M | 64.49M | 20.89M | -30.06M | 26.39M | 23.43M | -18.58M | -2.58M |
| Net Interest Income | 0 | 1M | 978.53K | 756.89K | 0 | 169.78K | 3.27M | 2.41M | -3.91B | 1.5M | 3.57M | 4.14M | 4.77M | 3.12M | 2.06M | 1.04M | 731.18K | 395.11K | 473.83K | 599.87K | -22.38M |
| Interest Income | 0 | 1M | 978.53K | 756.89K | 0 | 169.78K | 3.27M | 0 | 970.26K | 3.99M | 3.57M | 4.14M | 4.77M | 3.12M | 2.06M | 1.04M | 731.18K | 395.11K | 473.83K | 599.87K | 331.68K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | - | - | 2.41M | 3.91B | 75.92K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22.7M |
| Other Income/Expense | -21.42M | 544.59K | 973.65K | 2.07M | 28.44M | -3.38M | -23.49M | -261.52K | 28.69B | -1.42M | -6.76M | 872.55K | 4.72M | 3.2M | 5.69M | 2.17M | 447.31K | 3.06M | 4.06M | 1.01M | -24.2M |
| Pretax Income | -51.63M | -42.5M | -40.52M | -54.52M | -37.95M | -110.85M | -141.26M | -68.06M | -88.02M | 28.63M | 44.97M | 32.63M | 47.17M | 30.21M | 70.18M | 23.07M | -29.61M | 29.45M | 27.5M | -18.58M | -25.28M |
| Pretax Margin % | -19.26% | -15.85% | -18.28% | -26.36% | -18.77% | -68.36% | -144.48% | -5084.55% | -1174.63% | 6.06% | 10.78% | 9.32% | 12.26% | 8.24% | 19.93% | 7.59% | -12.08% | 13.54% | 15.97% | -21.89% | -36.64% |
| Income Tax | -3.58M | -6.4M | -6.81M | -5.92M | -1.54M | -10.27M | -7.15M | -922.98M | 19.92M | 38.6M | 18.92M | 9.58M | 19.9M | 7M | 14.34M | 3.31M | 5.74M | 6.64M | 7.32M | -1.79M | -485.14K |
| Effective Tax Rate % | 6.93% | 15.06% | 16.81% | 10.86% | 4.06% | 9.26% | 5.06% | 1356.1% | -22.63% | 134.82% | 42.07% | 29.34% | 42.18% | 23.19% | 20.43% | 14.36% | -19.39% | 22.54% | 26.63% | 9.65% | 1.92% |
| Net Income | -48.05M | -36.1M | -33.66M | -47.89M | -33.65M | -92.2M | -122.25M | 854.92M | -114M | -9.72M | 26.05M | 23.06M | 27.28M | 23.21M | 55.84M | 19.75M | -35.35M | 22.81M | 20.17M | -16.79M | -24.79M |
| Net Margin % | -17.92% | -13.47% | -15.19% | -23.16% | -16.64% | -56.85% | -125.04% | 63866.96% | -1521.25% | -2.06% | 6.25% | 6.58% | 7.09% | 6.33% | 15.86% | 6.5% | -14.43% | 10.49% | 11.72% | -19.78% | -35.94% |
| Net Income Growth % | -33.1% | -7.24% | 29.72% | -42.33% | 63.5% | 24.58% | -114.3% | 849.95% | -1073.29% | -137.3% | 12.99% | -15.47% | 17.53% | -58.44% | 182.68% | 155.88% | -254.97% | 13.07% | 220.15% | 32.28% | - |
| Net Income (Continuing) | -48.05M | -36.1M | -33.71M | -48.59M | -36.41M | -100.58M | -134.11M | -68.05M | -107.94M | -59.74M | 26.05M | 23.06M | 27.28M | 23.21M | 55.84M | 19.75M | -35.35M | 22.81M | 20.17M | -16.79M | -24.81M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 4.89M | 918.67M | 82.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -64.33K | -64.26K | -64.16K | 414.86K | 3.13M | 49.34M | 7.23M | 39.58M | 36.65M | 1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.94 | -2.30 | -2.16 | -3.04 | -2.30 | -6.28 | -10.52 | 73.00 | -9.96 | -0.84 | 2.28 | 1.96 | 2.36 | 2.00 | 4.76 | 1.76 | -3.16 | 1.96 | 2.12 | -3.26 | -4.52 |
| EPS Growth % | -27.83% | -6.48% | 28.95% | -32.17% | 63.38% | 40.3% | -114.41% | 832.93% | -1085.71% | -136.84% | 16.33% | -16.95% | 18% | -57.98% | 170.45% | 155.7% | -261.22% | -7.55% | 165.03% | 27.88% | - |
| EPS (Basic) | -2.94 | -2.30 | -2.16 | -3.06 | -2.30 | -6.28 | -10.54 | 74.68 | -9.96 | -0.84 | 2.28 | 1.96 | 2.36 | 2.00 | 4.88 | 1.76 | -3.16 | 2.00 | 1.96 | -3.26 | -4.52 |
| Diluted Shares Outstanding | 15.85M | 15.75M | 15.58M | 15.75M | 15.69M | 15.67M | 12.73M | 11.71M | 11.45M | 11.57M | 11.4M | 11.4M | 11.31M | 11.28M | 11.42M | 11.12M | 11.2M | 11.61M | 9.51M | 5.15M | 5.48M |
| Basic Shares Outstanding | 15.85M | 15.75M | 15.58M | 15.69M | 15.69M | 15.67M | 12.71M | 11.45M | 11.45M | 11.57M | 11.4M | 11.4M | 11.31M | 11.24M | 11.18M | 11.12M | 11.2M | 11.34M | 10.28M | 5.15M | 5.48M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 253.08% | - | 109.15% | 113.96% | - | - | - | - | - | - |
Regulatory and Enrollment Volatility
As reported in recent financial statements, AACG's revenue growth has exhibited significant volatility, with a notable 11.7% contraction in 2025Q4 following a period of inconsistent gains, suggesting that the company's core portfolio training services are struggling to maintain a stable trajectory in a competitive market.
The erratic revenue performance indicates that the business model remains highly sensitive to seasonal enrollment cycles and potentially shifting consumer demand for overseas art education. Investors should monitor whether the recent decline reflects a structural plateau or merely the timing of project-based revenue recognition.
Based on the provided income statement data, AACG's gross margin has fluctuated between 39.2% and 63.1% over the last ten quarters, indicating that the company lacks the pricing power or cost control necessary to maintain consistent profitability across its specialized art training service offerings.
The wide variance in gross margins suggests that the company's high fixed-cost base, primarily driven by physical training centers, is not being efficiently utilized. This inconsistency implies that the firm may be struggling to optimize its instructor-to-student ratios, which is critical for a high-touch service business.
According to the company's reported figures, AACG has consistently failed to achieve positive operating leverage, with SG&A expenses frequently exceeding gross profit, leading to persistent operating losses that highlight the difficulty of scaling its current high-touch, center-based educational model in the Chinese market.
The inability to scale operating income faster than gross profit suggests that the administrative and marketing overhead required to acquire students is disproportionately high. This structural imbalance warrants further investigation into whether the current center-based strategy can ever reach a sustainable break-even point.
As evidenced by the quarterly data, AACG's net income is highly erratic, swinging from a $13.3M profit in 2024Q4 to a $26.3M loss in 2025Q4, which suggests that reported earnings are heavily influenced by non-operating items rather than core operational performance.
The disconnect between operating losses and periodic net income spikes indicates that investors should be cautious of relying on headline EPS figures. The presence of significant fluctuations suggests that non-operating gains or tax anomalies may be masking the underlying challenges of the core business.
Based on the persistent negative operating margins and stagnant revenue growth, a strong counter-argument exists that AACG's current business model is fundamentally unviable without significant restructuring, as the company continues to burn through cash while failing to achieve the necessary scale for profitability.
Short-sellers would likely focus on the company's inability to convert its specialized niche into a self-sustaining profit engine. The reliance on cash reserves to fund ongoing operations suggests that the current trajectory may lead to further value erosion if management cannot demonstrate a clear path to operational efficiency.
Quick answers to the most common questions about buying AACG stock.
For fiscal year 2025, ATA Creativity Global (AACG) reported total revenue of $268.1M. This represents a 288.6% increase compared to $69.0M in 2005.
ATA Creativity Global (AACG) reported a net loss of $48.0M for the fiscal year ending 2025.
ATA Creativity Global (AACG) reported an operating income of $-30.2M, resulting in an operating profit margin of -11.3%. This margin reflects the operational efficiency of the business before interest and taxes.
ATA Creativity Global (AACG) generated $130.3M in gross profit for the year, representing a gross profit margin of 48.6%. This demonstrates the company's core pricing power and production efficiency.