ATA (NASDAQ:AACG) Releases Earnings Results

ATA (NASDAQ:AACG) posted its quarterly earnings results on Wednesday. The company reported ($0.06) earnings per share for the quarter, FiscalAI reports. The business had revenue of $12.74 million during the quarter. ATA had a negative return on equity of 13.12% and a negative net margin of 3.08%.

Here are the key takeaways from ATA’s conference call:

• Total Q4 net revenue fell 11.7% year-over-year to RMB 89.1 million and Q4 student enrollment declined to 921 from 1,038, driven by normalized demand and lower portfolio training contributions.
• Excluding the one-time charge, operating expenses decreased 15.7% in Q4 and 10.8% for full‑year 2025, and OPEX as a percentage of revenue improved, reflecting effective cost-saving and efficiency measures.
• A RMB 33.9 million goodwill impairment in Q4 materially increased expenses and helped drive a Q4 net loss of RMB 26.3 million and a full‑year net loss of RMB 48 million, while shareholders’ equity remained low at RMB 32 million.
• Management is pivoting to higher‑margin research-based learning, expanding online offerings, consolidating underperforming campuses, and leveraging global partnerships (e.g., Finland program, Leeds Conservatoire) to boost utilization and margins in 2026 and beyond.

ATA Stock Performance

Shares of NASDAQ:AACG opened at $1.01 on Thursday. The stock’s 50-day simple moving average is $0.99 and its two-hundred day simple moving average is $1.18. The stock has a market capitalization of $21.70 million, a price-to-earnings ratio of -50.50 and a beta of 0.70. ATA has a 52-week low of $0.74 and a 52-week high of $2.58. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.33 and a current ratio of 0.33.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered ATA from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, December 29th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock presently has an average rating of “Sell”.

About ATA

ATA Creativity Global (NASDAQ: AACG) is a China-based provider of after-school art education services, delivering supplemental training to students from preschool through high school. The company’s curriculum spans traditional techniques such as sketching, watercolor and calligraphy, as well as digital art instruction, including digital illustration and multimedia design.

ATA Creativity Global combines in-person instruction at its learning centers with a proprietary online platform, enabling students to access course materials, interactive lessons and instructor feedback remotely.