tiprankstipranks
ATA Creativity Global (AACG)
NASDAQ:AACG

ATA Creativity Global (AACG) AI Stock Analysis

189 Followers

Top Page

AACG

ATA Creativity Global

(NASDAQ:AACG)

Select Model
Select Model
Select Model
Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$1.00
▲(20.48% Upside)
Action:UpgradedDate:01/18/26
The score is held back primarily by weak financial performance—ongoing losses and worsening operating/free cash flow alongside declining equity. Technicals provide some near-term support with price above key moving averages, but overbought signals temper that strength. Valuation remains constrained by unprofitability and no dividend support.
Positive Factors
Consistent revenue growth
Sustained top-line growth demonstrates persistent demand for AACG’s education offerings and expanding service adoption. Growth is supported by research-based learning and overseas study counseling, indicating the company can scale core programs and credit hours over the medium term.
Negative Factors
Persistent unprofitability
Continued net losses and negative operating margins undermine retained earnings and limit internal funding for growth. Without a credible multi-quarter path to positive EBIT/EBITDA, the company will remain dependent on external capital and face pressure on long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Sustained top-line growth demonstrates persistent demand for AACG’s education offerings and expanding service adoption. Growth is supported by research-based learning and overseas study counseling, indicating the company can scale core programs and credit hours over the medium term.
Read all positive factors

ATA Creativity Global (AACG) vs. SPDR S&P 500 ETF (SPY)

ATA Creativity Global Business Overview & Revenue Model

Company Description
ATA Creativity Global (AACG) is a leading education and creative arts company focused on providing innovative learning experiences through technology-enhanced education. The company operates in various sectors, including online and in-person educa...
How the Company Makes Money
ATA Creativity Global generates revenue through multiple streams, primarily from tuition fees collected for its educational programs, both online and in-person. The company also earns income from partnerships with schools and educational instituti...

ATA Creativity Global Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with significant revenue growth and improved financial performance. While there were some challenges, such as a decrease in student enrollment and minimal growth in credit hours delivered, the company showed strong progress with reduced losses and substantial growth in key revenue sectors.
Positive Updates
Significant Revenue Growth in Key Services
Combined revenue from overseas study counseling services, other educational services, and research-based learning services increased by more than 50% year-over-year.
Negative Updates
Decline in Student Enrollment
Total student enrollment for Q2 2025 was 1,050, a decrease of 3.1% from the prior year period, attributed to normalized demand versus a rebound in previous years.
Read all updates
Q2-2025 Updates
Negative
Significant Revenue Growth in Key Services
Combined revenue from overseas study counseling services, other educational services, and research-based learning services increased by more than 50% year-over-year.
Read all positive updates
Company Guidance
During the ATA Creativity Global second quarter 2025 financial results call, key metrics highlighted a year-over-year increase in net revenues and gross profit, with a notable 50% growth in revenue from overseas study counseling, other educational services, and research-based learning services. Total net revenues for Q2 2025 were RMB 55.9 million, an 8% increase from Q2 2024, and gross profit rose by 10.2% to RMB 28.3 million. Operating expenses decreased by 9.4% to RMB 42.1 million, resulting in a narrowed operational loss of RMB 13.7 million. For the first half of 2025, net revenues increased by 11.8% to RMB 111.7 million, with gross profit up 12.8% to RMB 53.7 million. Total operating expenses for the half-year decreased by 6.4% to RMB 84.3 million. Looking ahead, the company expects total net revenues for the full year 2025 to be between RMB 276 million and RMB 281 million, reflecting a 3% to 5% year-over-year increase. ACG's focus remains on organic growth, enhancing cost discipline, and expanding international partnerships to maintain its position as a leader in creative art education services.

ATA Creativity Global Financial Statement Overview

Summary
Revenue growth is positive, but profitability remains weak with ongoing losses and negative EBIT/EBITDA margins. Operating cash flow turned negative and free cash flow deteriorated, while the balance sheet shows manageable leverage but declining equity and assets.
Income Statement
35
Negative
Balance Sheet
40
Negative
Cash Flow
30
Negative
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue279.90M268.06M221.62M206.82M202.21M162.17M
Gross Profit143.73M141.26M114.66M102.51M104.80M57.74M
EBITDA-5.93M-18.82M-19.51M-34.00M-43.36M-74.44M
Net Income-8.49M-36.10M-33.66M-47.89M-33.65M-92.20M
Balance Sheet
Total Assets462.53M456.93M448.94M474.46M507.18M575.62M
Cash, Cash Equivalents and Short-Term Investments96.81M36.52M60.17M54.98M71.34M112.72M
Total Debt65.88M35.21M22.61M36.45M40.72M47.78M
Total Liabilities403.71M377.28M335.97M330.95M316.28M327.87M
Stockholders Equity58.89M79.71M113.04M143.10M187.77M198.40M
Cash Flow
Free Cash Flow0.00-23.37M6.51M-16.23M-36.29M-32.78M
Operating Cash Flow0.00-3.35M8.75M-14.61M-31.83M-27.87M
Investing Cash Flow0.00-20.26M-3.97M-2.49M-10.03M-19.09M
Financing Cash Flow0.00-93.70K403.44K188.21K827.52K6.30M

ATA Creativity Global Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.83
Price Trends
50DMA
0.99
Positive
100DMA
1.01
Positive
200DMA
1.22
Negative
Market Momentum
MACD
0.01
Negative
RSI
54.24
Neutral
STOCH
56.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACG, the sentiment is Positive. The current price of 0.83 is below the 20-day moving average (MA) of 0.99, below the 50-day MA of 0.99, and below the 200-day MA of 1.22, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 56.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AACG.

ATA Creativity Global Risk Analysis

ATA Creativity Global disclosed 64 risk factors in its most recent earnings report. ATA Creativity Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ATA Creativity Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
49
Neutral
$24.39M-0.28%32.23%321.98%
49
Neutral
$5.71M5.80
48
Neutral
$32.07M-1.87-13.01%11.62%80.22%
46
Neutral
$10.33M-2.84-48.49%44.99%61.58%
43
Neutral
$20.53M-1.67-45.82%-48.17%35.62%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AACG
ATA Creativity Global
1.01
0.01
1.20%
FEDU
Four Seasons Education (Cayman)
10.79
0.78
7.79%
AMBO
Ambow Education Holding
2.00
-0.50
-20.00%
EDTK
Skillful Craftsman Education Technology
1.01
-0.01
-0.98%
YQ
17 Education & Technology Group
2.31
0.39
20.31%
EEIQ
Elite Education Group International
6.98
-4.70
-40.24%

ATA Creativity Global Corporate Events

ATA Creativity Global Announces AGM Results and Director Re-elections
Dec 3, 2025
On December 3, 2025, ATA Creativity Global held its Annual General Meeting of Shareholders in Beijing, China, where all proposals were approved. The shareholders re-elected Hope Ni and Alec Tsui as class C directors and re-appointed Audit Alliance...
ATA Creativity Global Reports Financial Results for Nine Months Ending September 2025
Nov 17, 2025
ATA Creativity Global reported its financial results for the nine-month period ending September 30, 2025, showing a net revenue increase from RMB167.1 million in 2024 to RMB179.0 million in 2025. Despite a net loss reduction from RMB49.4 million t...
ATA Creativity Global Announces $8.85 Million ADS Offering
Nov 17, 2025
On November 17, 2025, ATA Creativity Global announced a subscription agreement with three purchasers for a registered direct offering of 11,067,547 American Depositary Shares (ADSs), priced at $0.8 per ADS. The offering is expected to generate app...
ATA Creativity Global Announces Q3 2025 Financial Results and Strategic Initiatives
Nov 12, 2025
ATA Creativity Global reported its Q3 2025 financial results, showing stable net revenues of RMB67.3 million and a gross profit decline to RMB26.4 million compared to the previous year. Despite a decrease in student enrollment, the company saw a 5...
ATA Creativity Global Schedules Virtual Annual Meeting for December 2025
Oct 20, 2025
ATA Creativity Global announced that it will hold its annual general meeting of shareholders on December 3, 2025, in a virtual format. The meeting will address the re-election of directors and the re-appointment of the company’s independent ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 18, 2026