iHuman (IH) AI Stock Analysis

• Market Cap: $99.64M
• Dividend Yield: 3.93%
• Average Volume (3M): 17.50K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.38
• Revenue Growth: -8.09%
• EPS Growth: -15.28%
• Country: US
• Employees: 723
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.06
• Shares Outstanding: 22,544,950
• 10 Day Avg. Volume: 15,971
• 30 Day Avg. Volume: 17,505
• PEG Ratio: -0.03
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.53
• Enterprise Value/Market Cap: -4.10
• Enterprise Value/Revenue: -0.46
• Enterprise Value/Gross Profit: -0.68
• Enterprise Value/Ebitda: -5.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $2.00 ▲(0.00% Upside)

Score is driven primarily by stable financial positioning (low leverage and solid operating margins) but offset by declining revenue, weaker net profitability, and a sharp free-cash-flow drop. Valuation is supportive (low P/E and strong yield), while technical indicators are notably bearish and pull the score down.

Positive Factors

Low leverage / strong balance sheet

Extremely low leverage and a high equity ratio provide lasting financial flexibility. This reduces interest burden and preserves capacity to fund R&D, content investment, partnerships or M&A during downturns, supporting durable operations and strategic optionality over months.

High gross margins and sustained profitability

Sustained gross margins near ~68-69% and a long profit streak indicate a scalable content/app model with favorable unit economics. Durable margin strength supports reinvestment in product and content, cushioning earnings even if revenue growth is uneven over the medium term.

Product innovation and strategic distribution expansion

Launching AI-powered hardware and broadening distribution to smart speakers and in-car systems diversifies revenue and deepens engagement. These structural moves can expand addressable market beyond app subscriptions and improve retention over multiple quarters.

Negative Factors

Declining revenue

A near-double-digit topline decline signals weakening demand or monetization, which undermines scale economics. Persistent revenue contraction reduces ability to absorb fixed costs, threatens long-term growth trajectory, and limits scope for sustainable margin recovery.

Sharp free cash flow deterioration

A steep FCF drop materially weakens internal funding for content, product development and marketing. Even with strong cash on hand, prolonged cash generation deterioration raises funding risk for strategic initiatives and could force slower investment or external financing.

Net margin compression and falling profitability metrics

Meaningful net margin decline reduces retained earnings and return on equity, signaling either higher operating costs or weaker pricing power. If sustained, margin compression will impair cash flow resilience and limit resources available for product and content investment.

iHuman Business Overview & Revenue Model

Company Description

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People's Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, and iHuman Readers. It also provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children's abilities in speaking, critical thinking, independent reading, and creativity. The company was founded in 1996 and is based in Beijing, the People's Republic of China.

How the Company Makes Money

iHuman generates revenue through a subscription-based model, where users pay for access to its suite of educational apps and content. This recurring revenue stream is complemented by in-app purchases for additional features, content, and enhancements within their applications. Furthermore, iHuman partners with educational institutions and organizations to provide tailored solutions, which can involve licensing fees and collaborative projects that expand their market reach. The company's focus on high-quality, engaging content also attracts sponsorships and advertising partnerships, contributing to its overall earnings.

iHuman Financial Statement Overview

Summary

iHuman presents a mixed financial performance. The company showcases strong operational efficiency with healthy gross and EBIT margins, although recent declines in revenue and net profit margins raise concerns about growth. The balance sheet remains strong with low leverage, indicating financial stability and resilience. Cash flow generation has weakened, posing potential risks for future investments and liquidity. Overall, while the company is financially stable, it faces challenges in sustaining growth and profitability.

Income Statement

The income statement shows a generally positive trend in profitability metrics. The company achieved a gross profit margin of approximately 69.4% in 2024, indicating efficient cost control relative to revenue. However, the net profit margin has declined from 17.8% in 2023 to 10.7% in 2024, suggesting pressure on bottom-line profitability. Revenue has decreased by 9.4% from 2023 to 2024, which is a concern for growth prospects. Despite these challenges, positive EBIT and EBITDA margins highlight operational efficiency improvements over the years.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of approximately 0.02 in 2024, indicating minimal reliance on debt financing. The equity ratio stands at about 67.7%, showcasing a robust equity base relative to total assets. However, there is a slight decrease in total assets and equity from 2023 to 2024, which may indicate reduced investment or asset turnover. Return on equity has decreased, reflecting reduced profitability.

Cash Flow

Cash flow analysis indicates a decrease in free cash flow from 2023 to 2024, with a growth rate of -69.2%. The operating cash flow to net income ratio is favorable at 0.59 in 2024, suggesting effective conversion of earnings into cash. However, the decline in free cash flow growth highlights potential challenges in cash generation or increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	882.69M	922.20M	1.02B	985.52M	944.72M	531.91M
Gross Profit	599.83M	640.15M	721.27M	691.17M	660.62M	365.44M
EBITDA	76.70M	85.57M	171.58M	122.41M	-47.83M	-41.64M
Net Income	110.03M	98.59M	180.91M	109.82M	-37.05M	-37.48M
Balance Sheet
Total Assets	1.34B	1.42B	1.45B	1.33B	1.10B	1.05B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.17B	1.21B	1.05B	855.36M	861.68M
Total Debt	12.28M	14.91M	3.86M	9.02M	34.25M	6.61M
Total Liabilities	365.70M	458.80M	492.69M	563.95M	492.51M	404.29M
Stockholders Equity	969.39M	960.85M	957.80M	769.45M	608.37M	642.65M
Cash Flow
Free Cash Flow	0.00	51.10M	165.61M	1.25B	5.93M	207.08M
Operating Cash Flow	0.00	58.55M	172.12M	1.29B	38.21M	222.99M
Investing Cash Flow	0.00	-52.76M	-6.51M	-225.03M	-31.95M	-15.91M
Financing Cash Flow	0.00	-102.28M	-9.45M	-47.66M	410.00K	571.96M

iHuman Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IH, the sentiment is Negative. The current price of 2 is below the 20-day moving average (MA) of 2.14, below the 50-day MA of 2.50, and below the 200-day MA of 2.52, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 30.48 is Neutral, neither overbought nor oversold. The STOCH value of 15.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IH.

iHuman Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STG	68 Neutral	$83.91M	1.58	51.70%	―	-0.84%	-11.01%
IH	67 Neutral	$99.64M	7.10	11.71%	3.93%	-8.09%	-15.28%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COE	47 Neutral	$164.07M	-15.49	―	―	92.26%	-1.18%
SKIL	40 Underperform	$77.95M	-0.56	-215.67%	―	-3.55%	61.83%
GNS	40 Underperform	$52.44M	-1.07	-62.24%	―	-64.39%	-305.82%

iHuman Corporate Events

iHuman Posts Lower Q3 2025 Revenue but Extends Profit Streak and Expands AI Learning Ecosystem

On December 29, 2025, iHuman Inc. reported unaudited financial results for the third quarter ended September 30, 2025, showing that revenues declined to RMB205.8 million from RMB239.4 million a year earlier, with gross profit, operating income and net income also down year-on-year amid a shrinking newborn population and weaker consumer spending in China. Despite lower revenues and a drop in average total MAUs to 26.13 million from 29.12 million, the company recorded its 15th consecutive quarter of profitability, maintained a robust gross margin of 68.3%, and ended the quarter with RMB1,128.2 million in cash, cash equivalents and short-term investments, while deferred revenue and customer advances fell to RMB230.4 million. Management highlighted continued strategic investment in product innovation and content, including upgrades to the iHuman English app, the launch of the AI-powered, screen-free plush companion iHuman AI Pal, and the successful second season of the Rainbow Crew animation franchise, as well as distribution expansion via leading smart speaker platforms and in-car integrations with NIO, moves aimed at deepening user engagement, broadening the addressable market and reinforcing iHuman’s positioning in China’s children’s learning sector even as demographic and macroeconomic headwinds weigh on topline growth.

The most recent analyst rating on (IH) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on iHuman stock, see the IH Stock Forecast page.