iHuman Inc. (IH) AI Stock Analysis
IH AI stock analysis summary
AI ResearchiHuman Inc. (IH) provides intellectual development and educational products for children, kindergartens, and distributors across China. In FY2025, revenue fell 12.5% to $807.0M, while net income reached $95.4M with free cash flow of $45.1M. The company holds $1.01B in cash and short-term investments against $8.3M in total debt, giving it $999.4M in net cash.
- Market cap
- $59.3M
- Revenue (TTM)
- $744.1M
- P/E
- 19.3x fwd 58.8x
- 1Y return
- -57.2% S&P 500 16.8%
- Avg. target
- $3.86 232.8% vs last close
Bull case
- The company maintains a strong liquidity cushion with $1.01B in cash and short-term investments compared to just $8.3M in total debt as of June 30, 2026.
- Despite lower revenues, iHuman generated positive free cash flow of $45.1M and net income of $95.4M in FY2025.
- Analysts set a mean price target of $3.86, implying a 232.8% premium above the stock's closing price of $1.16.
Bear case
- Revenue contracted 12.5% in FY2025 to $807.0M, followed by a 13.4% year-over-year quarterly revenue decline as of June 30, 2026.
- Operating profitability turned negative on a trailing twelve-month basis, recording an operating margin of -12.0%.
- The stock has lost 57.2% over the trailing 1-year period, significantly underperforming the S&P 500 benchmark gain of 16.8%.
What iHuman does
Headquartered in Beijing and established in 1996, iHuman Inc. specializes in intellectual development products designed for individual users, kindergartens, and distributors in China. The company delivers interactive, self-directed learning applications such as iHuman Chinese, iHuman ABC, iHuman Pinyin, and iHuman Magic Thinking to support language acquisition and cognitive growth. Alongside its software applications, iHuman offers physical materials including books, interactive tools, and smart devices that foster speaking, critical thinking, independent reading, and creativity. It reaches young learners through both retail channels and educational institutions across China.
Growth and profitability
iHuman posted a 5-year revenue CAGR of 8.7% from FY2020 to FY2025, though sales peaked at $1.02B in FY2023. Revenue fell 9.4% in FY2024 to $922.2M and declined 12.5% in FY2025 to $807.0M. Gross margin shifted from 70.8% in FY2023 to 67.9% in FY2025, while operating margin declined from 15.7% to 8.3%. Net income decreased from $180.9M in FY2023 to $95.4M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue growth fell 13.4% year-over-year and quarterly earnings declined 82.3%, leaving trailing twelve-month revenue at $744.1M with an operating margin of -12.0%.
Balance sheet and cash flow
As of June 30, 2026, iHuman held $1.01B in cash and short-term investments against total debt of $8.3M, resulting in net cash of $999.4M. Shareholders' equity was $832.2M, total assets stood at $1.24B, and the current ratio was 2.91 with a debt-to-equity ratio of 0.01. During FY2025, operating cash flow was $49.9M and free cash flow was $45.1M. Capital expenditures totaled $4.8M, while the company allocated $16.7M to share buybacks and paid $38.0M in dividends.
Valuation and performance
iHuman trades at a trailing P/E of 19.3x compared to 18.6x for the median of its US-listed Consumer Defensive peers. Its forward P/E stands at 58.8x versus the peer median of 14.3x. The stock trades at a price-to-sales multiple of 0.1x and an EV/EBITDA of 0.8x, both below the peer medians of 0.7x and 11.7x. With a market capitalization of $59.3M, its enterprise value is -$102.3M. Over the past year, the stock fell 57.2%, while the S&P 500 gained 16.8%.
What analysts expect
Wall Street coverage on iHuman features a mean price target of $3.86, representing a potential upside of 232.8% over its last close of $1.16 on October 16, 2026. Regarding its earnings track record, the company achieved 2 EPS beats out of the last 4 quarters. The stock traded at a 52-week low of $1.10 and a 52-week high of $2.99, currently sitting 23.7% below its 200-day moving average.
Key risks and what to watch
- Quarterly earnings dropped 82.3% year-over-year in the quarter ended June 30, 2026, signaling ongoing profitability pressures.
- Annual research and development spending fell from $415.3M in FY2021 to $208.4M in FY2025, which may constrain product innovation.
- With a forward P/E of 58.8x compared to the peer median of 14.3x, valuation multiples could compress if earnings fail to rebound.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this IH AI stock analysis
This page is an AI-written research summary of iHuman Inc. (IH). 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.
Related: IH income statement, IH chart. See the IH stock overview for the latest quote and news.
IH AI stock analysis FAQ
What does iHuman Inc. do?
iHuman Inc. develops intellectual development apps and learning materials, including iHuman Chinese, iHuman ABC, and smart devices for children, kindergartens, and distributors in China.
How much cash and debt does iHuman hold?
As of June 30, 2026, iHuman held $1.01B in cash and short-term investments and $8.3M in total debt, yielding net cash of $999.4M.
What is the analyst price target for IH stock?
The mean price target is $3.86, which is 232.8% above the stock's last close of $1.16.
What was iHuman's revenue and earnings performance in FY2025?
In FY2025, iHuman recorded revenue of $807.0M, down 12.5% from FY2024, and net income of $95.4M with diluted EPS of $1.15.