Ruanyun Edai Technology Incorporation (RYET) AI Stock Analysis

• Market Cap: $35.78M
• Dividend Yield: N/A
• Average Volume (3M): 99.41K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.97
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 96
• Sector: Technology
• Sector Strength: 88
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 33,750,004
• 10 Day Avg. Volume: 89,648
• 30 Day Avg. Volume: 99,411
• PEG Ratio: -1.08
• Price to Book (P/B): 633.52
• Price to Sales (P/S): 16.63
• P/FCF Ratio: -189.36
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 12.51
• Enterprise Value/Gross Profit: 26.02
• Enterprise Value/Ebitda: 45.71
• 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: 48 Neutral
• Price Target: $1.00 ▼(-21.26% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and high leverage. Technical analysis provides some neutral signals, but valuation remains a concern due to the lack of profitability indicators. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strengthened governance and audit oversight

Adding a veteran accounting academic and financial management expert as audit chair materially strengthens board-level financial oversight and internal controls. Durable governance upgrades reduce reporting risk, improve compliance, and support steadier strategic execution and investor confidence over time.

Committed $100M equity facility increases liquidity optionality

A committed, multi-year equity facility provides a non-debt source of optional liquidity to fund investment in educational AI platforms and manage timing risks. This structural financing flexibility lowers immediate refinancing pressure and supports multi-quarter product and partnership scaling plans.

International product expansion and validation

Successful pilot results in Saudi schools demonstrate product-market fit for the AI language platform and validate scalable adoption outside China. Durable geographic expansion and institutional school partnerships can diversify revenue, support subscription growth, and enhance long-term competitive positioning.

Negative Factors

High leverage and negative equity

Negative equity and elevated leverage materially constrain financial flexibility, increase refinancing and covenant risk, and limit capacity to fund growth internally. Over a multi-quarter horizon, this structural balance-sheet weakness raises the chance of dilutive financings or distressed outcomes if performance doesn't improve.

Declining revenues and persistent losses

A sustained revenue decline combined with continued net losses erodes operating scale and makes fixed-cost absorption harder. This structural sales weakness undermines margin recovery and hampers reinvestment in product development and sales channels, threatening medium-term viability if trends persist.

Weak cash generation and negative operating cash flow

Persistent negative operating and free cash flow reduces runway and forces reliance on external capital or rescue facilities. Structurally weak cash generation constrains R&D and go-to-market spending, increases funding cost or dilution risk, and limits the company's ability to execute strategic initiatives reliably.

Ruanyun Edai Technology Incorporation Business Overview & Revenue Model

Company Description

Ruanyun Edai Technology Incorporation (RYET) is a pioneering technology firm specializing in advanced electronic solutions and innovative software applications. Operating primarily in the sectors of consumer electronics, artificial intelligence, and IoT (Internet of Things), RYET focuses on developing smart devices that enhance user experience and connectivity. The company’s core products include smart home devices, wearable technology, and proprietary software platforms that integrate seamlessly with its hardware offerings to provide users with comprehensive smart living solutions.

How the Company Makes Money

RYET generates revenue through multiple streams, primarily from the sale of its smart devices and software applications. The company utilizes a direct-to-consumer sales model through its online platform, as well as partnerships with major retail chains for broader distribution. Additionally, RYET offers subscription-based services for its software applications, providing ongoing revenue as customers pay for enhanced features and updates. Strategic partnerships with technology companies also enable RYET to leverage co-branding opportunities and shared technology development, further diversifying its revenue sources. Advertising revenue from its software platforms and potential licensing agreements for its technology solutions contribute to additional income, reinforcing the company’s financial stability.

Ruanyun Edai Technology Incorporation Financial Statement Overview

Summary

Ruanyun Edai Technology Incorporation faces significant financial challenges, with declining revenues, persistent losses, and high leverage. While there are some improvements in gross profit margin, the overall financial health is concerning, with negative equity and cash flow issues.

Income Statement

The company has experienced declining revenue over the past few years, with a significant drop in the latest period. Gross profit margin has improved recently, but net profit margin remains negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet shows high leverage with a negative equity position in the latest period, indicating financial instability. The debt-to-equity ratio has worsened significantly, and return on equity is negative, highlighting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a declining trend. The free cash flow to net income ratio is positive, suggesting some efficiency in cash management despite losses. However, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.21M	6.69M	9.15M	9.13M	12.80M	11.50M
Gross Profit	1.54M	3.79M	2.94M	3.24M	5.62M	3.88M
EBITDA	878.34K	-124.62K	-1.49M	-564.37K	-51.13K	1.21M
Net Income	759.10K	-396.56K	-2.01M	-1.18M	-730.69K	522.08K
Balance Sheet
Total Assets	8.03M	5.87M	5.22M	8.03M	11.06M	8.83M
Cash, Cash Equivalents and Short-Term Investments	1.78M	673.40K	1.10M	1.78M	1.15M	2.18M
Total Debt	2.42M	4.41M	2.47M	2.42M	4.70M	2.37M
Total Liabilities	5.88M	6.38M	5.19M	5.88M	7.39M	4.55M
Stockholders Equity	2.29M	-161.80K	240.26K	2.29M	3.75M	4.35M
Cash Flow
Free Cash Flow	-417.15K	-1.96M	-803.84K	2.74M	-3.14M	-2.00M
Operating Cash Flow	-303.98K	-1.82M	-799.45K	3.06M	-2.55M	-1.62M
Investing Cash Flow	-113.17K	-162.78K	65.37K	-326.49K	-588.97K	-368.33K
Financing Cash Flow	-30.02K	1.56M	138.13K	-1.88M	2.05M	683.29K

Ruanyun Edai Technology Incorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RYET	48 Neutral	$35.78M	―	―	―	―	―
WAFU	45 Neutral	$8.03M	-17.25	-4.26%	―	-14.35%	-744.00%
JZ	40 Underperform	$6.36M	-0.18	-238.22%	―	-87.12%	74.35%
GV	37 Underperform	$7.07M	-0.34	―	―	―	―

Ruanyun Edai Technology Incorporation Corporate Events

Ruanyun Edai Technology Revamps Board and Audit Leadership After November 2025 Director Resignations

Ruanyun Edai Technology Inc., a foreign private issuer listed in the United States, operates from its principal executive offices in Nanchang, Jiangxi, China, and is subject to U.S. securities regulation as evidenced by its periodic filings with the Securities and Exchange Commission. The company’s governance structure includes a board of directors and key committees such as audit, compensation, and nomination and governance.

In a filing dated January 23, 2026, the company reported that on November 24, 2025, independent director Ying Tang and director Zejiong Zou resigned from the board and its committees, with both stating their departures were not due to disagreements over company operations, policies, or procedures. On the same date, the board appointed veteran accounting academic and financial management expert Menglin Luo as an independent director, chair of the audit committee, and member of the compensation and nomination committees, and investment banking and corporate governance specialist You Zhan as a director, moves that refresh board oversight with deep expertise in auditing, internal controls, securities, and corporate strategy and may strengthen the company’s governance and financial oversight profile for investors and regulators.

The most recent analyst rating on (RYET) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Ruanyun Edai Technology Incorporation stock, see the RYET Stock Forecast page.

Ruanyun Edai Technology Sets Up $100 Million Equity Facility with ARC Group to Bolster Financial Flexibility

On December 17, 2025, Ruanyun Edai Technology Inc. entered into a three-year, $100 million equity purchase agreement with ARC Group International Ltd., giving the company the right, but not the obligation, to sell ordinary shares to ARC at a small discount to market prices, subject to a resale registration statement becoming effective and a 4.99% ownership cap for ARC. As consideration for ARC’s commitment, Ruanyun issued 1.2 million ordinary shares, bringing ARC’s stake to about 3.49%, while stressing in its December 18, 2025 announcement that the facility is intended as an optional, flexible source of liquidity to support investment in its educational AI platforms, expand partnerships and manage market and regulatory timing, with no immediate plans to draw on the funding and no requirement to use it, thereby bolstering the company’s financial flexibility as a newly listed edtech AI player navigating market cycles.

The most recent analyst rating on (RYET) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Ruanyun Edai Technology Incorporation stock, see the RYET Stock Forecast page.

Ruanyun Edai Expands AI-Powered Language Platform in Saudi Arabia

On November 17, 2025, Ruanyun Edai Technology Inc. announced the successful launch of its AI-powered Chinese language learning platform, HanLink, in Saudi Arabia. The platform, which integrates AI with cultural exchange, was piloted at Riyadh’s Education & Skills International School, showing impressive results with an 80% homework accuracy rate and an average oral proficiency score of 75/100. Following the pilot’s success, Ruanyun plans to expand HanLink to more schools in Saudi Arabia, enhancing its market presence and supporting local students in acquiring global skills.

The most recent analyst rating on (RYET) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on Ruanyun Edai Technology Incorporation stock, see the RYET Stock Forecast page.