AACG ATA Creativity Global

Overview and Growth

Fiscal 2025 results for ATA Creativity Global combined $38.34M of revenue with net loss of $6.87M and an operating cash outflow of $2.26M. The $38.34M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 4.4% from $36.72M in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were -$0.11, translating the period’s attributable earnings into the amount reported for each diluted share. The company employed $58.39M of total assets, the balance-sheet base supporting its current operating and cash-flow results. The revenue-to-assets relationship was 0.66x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $18.63M as gross profit before recognizing operating expenses and other items. Gross margin was 48.6%, so that share of each revenue unit remained after the cost of revenue reported for the period. The company recorded an operating loss of $9.17M after the reported operating expense base. Relative to revenue, the operating deficit measured 23.9%, showing the shortfall after operating costs. After all below-operating-line items, the company recorded a net loss of $6.87M for the fiscal year. Measured against revenue, the bottom-line deficit represented 17.9% after all recognized items. Before income taxes, the company recorded a loss of $7.38M, bridging the operating result to the final net loss. Measured against revenue, the pretax deficit represented 19.3%. An income-tax benefit of $511.68K improved the final result relative to pretax income or loss. The loss-to-equity relationship was 150.2%, placing the bottom-line deficit against shareholder capital. Relative to total assets, the net loss represented 11.8%. The net loss widened to $6.87M from $4.95M in fiscal 2024.

Liquidity and Capital Structure

Total assets were $58.39M, supported by $53.81M of liabilities and $4.57M of shareholder equity. Current assets were $15.93M against $49.27M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered only 0.32x of current liabilities, so current liabilities exceeded current assets at period end. The company held $12.19M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 24.7%, excluding receivables and other current assets. Total debt was $2.29M, establishing the amount of borrowing carried within the company’s capital structure. Against book equity, debt measured 0.5x, placing the company’s financial leverage in clear balance-sheet terms. Debt represented 3.9% of total assets, placing borrowing in the context of the company’s full resource base. The liabilities-to-assets relationship was 92.2%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 20.9%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 6.7% from $62.60M in fiscal 2024, leaving current total assets lower year over year. Book equity was 58.1% lower than fiscal 2024 equity of $10.91M, showing how shareholder capital changed year over year. Compared with $5.00M in fiscal 2024, the current cash balance moved 143.6% and finished higher.

Cash Flow and Earnings Quality

Cash flow from operations was an outflow of $2.26M, showing that operations absorbed cash during the period. Capital spending of $183.21K added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. The company recorded a $2.45M cash deficit after capital spending for the period. The free-cash-flow deficit equaled 6.4% of revenue, showing the post-investment cash shortfall relative to sales. The cash deficit after capital spending represented 4.2% of the period-end asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.