China Online Education Group (COE) AI Stock Analysis

Established in 2011 and headquartered in Shenzhen, China, China Online Education Group operates under the 51Talk brand, delivering online English language education services to students across China, the Philippines, and globally. Through its online and mobile platform, students participate in live interactive English lessons taught by international teachers. The company's educational portfolio spans foundational programs such as Classic English Junior and Classic English, as well as situational and specialized offerings including Small Class lessons, Business English, IELTS Speaking, and Travel English.

China Online Education Group reported revenue of $95.9M in FY2025, an 89.1% increase from $50.7M in FY2024 and $27.1M in FY2023. Gross margin was 73.9% in FY2025, compared to 78.0% in FY2024 and 76.7% in FY2023. Operating margin stood at -15.1% in FY2025, improving from -15.9% in FY2024 and -50.4% in FY2023. Net income was -$16.8M in FY2025 compared to -$7.2M in FY2024, resulting in an EPS of -$1.93. For the trailing twelve months ended June 30, 2026, revenue totaled $120.5M with an operating margin of -6.5%. In the quarter ended June 30, 2026, revenue increased 58.8% year-over-year, while quarterly earnings grew 116.0%.

As of June 30, 2026, China Online Education Group held $40.1M in cash and short-term investments against total debt of $2.5M, resulting in net cash of $37.5M. Total assets were $69.6M, current ratio was 0.62, and shareholders' equity was -$36.9M. In FY2025, operating cash flow reached $11.8M and free cash flow was $9.5M after capital expenditures of $2.3M. The company's share count expanded 7.4% over five years.

At the close of $11.34 on October 16, 2026, China Online Education Group held a market cap of $68.1M and an enterprise value of $32.0M. The stock trades at a forward P/E of 3.0x, an EV/EBITDA of 2.1x, and a price-to-sales ratio of 0.6x. These figures compare to the median of its US-listed Consumer Defensive peers, which carries a forward P/E of 14.3x, an EV/EBITDA of 11.7x, and a price-to-sales ratio of 0.7x. Over the past year, COE fell 75.8% compared to a 16.8% return for the S&P 500 (SPY), while its five-year return of 5.4% lagged the benchmark's 83.0% gain.

Wall Street analyst coverage consists of 1 Buy and 1 Hold rating, with no Sell or Strong Sell ratings. The mean price target is $7.94, which is 30.0% below the last close of $11.34. The consensus revenue estimate for the current fiscal year ending December 31, 2026, is $1.13B. The company recorded 0 EPS beats over the last 4 quarters.

This page is an AI-written research summary of China Online Education Group (COE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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