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YXT

Yxt.Com Group Holding Ltd

YXT

Yxt.Com Group Holding Ltd • NASDAQ
$0.63 ▲ 5.26% (+0.03)
Market Cap $37.39 M
52w High $3.00
52w Low $0.47
Dividend Yield 0%
P/E 1.25
Volume 399
Outstanding Shares 59.70M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $76.447M $81.981M $-36.939M -48.32% $-0.63 $-28.897M
Q1-2025 $76.447M ▼ $81.981M ▼ $-36.939M ▲ -48.32% ▲ $-0.63 ▲ $-28.897M ▲
Q4-2024 $89.465M ▲ $126.734M ▲ $-77.172M ▼ -86.259% ▼ $-1.32 ▼ $-64.678M ▼
Q3-2024 $75.969M ▼ $90.281M ▲ $-36.24M ▼ -47.704% ▼ $9.42 ▲ $-33.367M ▼
Q2-2024 $82.54M $80.018M $-13.68M -16.574% $-3.84 $-27.443M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $235.497M $623.156M $462.886M $160.27M
Q1-2025 $235.497M ▼ $623.156M ▼ $462.886M ▼ $160.27M ▼
Q4-2024 $420.749M ▼ $821.936M ▼ $594.706M ▲ $227.23M ▼
Q3-2024 $488.464M ▲ $871.073M ▲ $582.742M ▼ $288.331M ▲
Q2-2024 $449.615M $836.48M $4.471B $-3.635B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-36.939M $0 $0 $0 $0 $0
Q1-2025 $-36.939M ▼ $0 $0 $0 $0 $0
Q4-2024 $-10.573M ▼ $0 $0 $0 $0 ▲ $0
Q2-2024 $-1.882M ▼ $0 ▲ $0 ▲ $0 ▲ $-30.312M ▲ $0 ▲
Q1-2024 $35.039M $-58.491M $-29.509M $-13.4M $-101.619M $-59.486M

Five-Year Company Overview

Income Statement

Income Statement YXT is still a loss‑making software company, but its income statement shows a gradual move in the right direction. Revenue grew from a very small base over the past few years, then slipped a bit most recently, suggesting growth is not yet stable. The good news is that gross profit has been consistently positive, meaning the core services have economic value once they are sold. The challenge is that operating costs – especially for people, sales, and product development – remain much higher than gross profit. This has meant recurring operating and net losses every year. Those losses, however, have been shrinking, indicating better cost control, more efficient operations, or a higher mix of profitable business. Earnings per share are volatile and affected by capital structure changes, so they do not yet reflect a steady underlying earnings power. Overall, the income statement tells the story of a company still in investment mode, working toward scale and profitability but not there yet.

Balance Sheet

Balance Sheet The balance sheet shows a business with a relatively light asset base, as is typical for a software company, and a large share of its assets held in cash and equivalents. Debt is present but not overwhelming relative to total assets. Still, it has risen over time, which makes the company more sensitive to funding conditions and interest costs. Equity was negative for several years and only recently turned positive, which signals a history of accumulated losses and likely capital injections or other balance sheet repairs. The recent return to positive equity is encouraging, but the equity cushion is still thin. This leaves less room to absorb future losses or shocks without new capital. In short, the balance sheet has improved from a stressed position but remains relatively fragile and dependent on continued progress in reducing losses.

Cash Flow

Cash Flow Cash flow is one of the weaker areas. The company has consistently used cash in its day‑to‑day operations, meaning the core business is not yet self‑funding. Operating cash outflows have trended somewhat better over time, but they are still clearly negative. Capital spending is modest, which fits a software model; the bulk of cash burn comes from operating expenses, not heavy investment in physical assets. Free cash flow is therefore negative in every year shown, reflecting ongoing cash burn to support growth, product development, and the AI pivot. This pattern implies continued reliance on external funding (equity, debt, or both) until the business model becomes cash‑generative. The gradual improvement is a positive sign, but the path to sustainably positive cash flow is not yet proven.

Competitive Edge

Competitive Edge YXT operates in a crowded and fast‑moving space, but it does have several strengths. It has long experience in digital corporate learning in China and relationships with many large enterprises, including a substantial number of major global and domestic brands. Those relationships create switching costs and provide data and feedback that can improve its AI models. Its “software + content + services” model is more comprehensive than pure software platforms, which can make it stickier once embedded in a client’s training and HR processes. The move toward AI “copilots” that embed directly into workflows is an attempt to deepen that integration and move closer to daily productivity tools rather than occasional training. On the risk side, the market for AI and enterprise productivity tools is highly competitive, with both local and global players investing heavily. YXT’s scale is small relative to many rivals, and it must execute well on its AI strategy to maintain relevance against larger firms with more resources. Regulatory and macro conditions in China also add another layer of uncertainty for enterprise software spending.

Innovation and R&D

Innovation and R&D Innovation and R&D are at the center of the YXT story. The company is heavily focused on building proprietary AI technology, including its own models and tools for generating training content, exams, simulations, and role‑playing scenarios. This in‑house approach can allow deeper customization and closer integration with client workflows, but it also requires significant and sustained investment. Its new product suite spans HR transformation, role‑based skill enhancement, sales enablement, and employee learning, all centered on AI “copilots” that assist workers in real time. This is a clear move from being a training platform to being a broader enterprise productivity platform. The company is also experimenting with global expansion under a separate brand and pursuing ecosystem partnerships and acquisitions in HR tech and AI. These initiatives could expand its addressable market and technology base but raise execution risk, integration challenges, and ongoing cash requirements. Overall, R&D is a differentiator but also a financial strain: success depends on turning this heavy spending into scalable, repeatable products with strong adoption and retention.

Summary

YXT is a small, evolving software company transitioning from corporate learning into AI‑driven enterprise productivity. Financially, it shows some encouraging trends – improving losses and a repaired balance sheet – but still faces clear weaknesses: persistent operating and cash losses, a thin equity base, and dependence on external funding. Revenue traction exists but is not yet strong or stable enough to fully support its cost structure. Strategically, the company’s strengths lie in its established corporate client base in China, an integrated software‑plus‑content‑plus‑services model, and a focused push into proprietary AI copilots across HR, sales, and learning. Its innovation agenda is ambitious, and early signs of AI product uptake are promising, but it operates in a fiercely competitive, capital‑intensive segment where larger players also compete. The key questions going forward are whether YXT can: (1) convert its AI products into durable, growing recurring revenue, (2) achieve positive cash flow without over‑stretching its balance sheet, and (3) execute its international and partnership strategies effectively. The company appears to be in the middle of a high‑risk, high‑potential transformation, with execution and financial discipline as the critical variables.

NEWS

October 22, 2025 · 5:30 PM UTC

YXT.com Regains Compliance with Nasdaq's Minimum Bid Price Requirement

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