TCTM Kids IT Education Inc. (VSA) AI Stock Analysis
VSA AI stock analysis summary
AI ResearchVisionSys AI Inc. (VSA), formerly TCTM Kids IT Education Inc., provides STEM education services for children in Mainland China. In FY2025, revenue contracted 99.9% to $1.0M, down from $1.17B in FY2024, alongside an operating margin of -3848.0%. The company held $53.4M in cash and short-term investments as of March 31, 2026, while its share price fell 99.9% over the past year.
- Market cap
- $5.4M
- Revenue (TTM)
- $1.0M
- P/E
- — fwd 23.5x
- 1Y return
- -99.9% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company ended the quarter on March 31, 2026, with a solid liquidity buffer consisting of $53.4M in cash and short-term investments and a current ratio of 14.43.
- VisionSys AI reported net income of $1.72B in FY2025 despite severe operating headwinds.
- The stock trades at an EV-to-EBITDA ratio of 0.3x, which compares favorably to the peer median of 11.7x.
Bear case
- Annual revenue collapsed 99.9% in FY2025 to $1.0M, continuing a five-year revenue CAGR of -77.7%.
- Free cash flow burned -$264.4M in FY2025 alongside an operating cash flow loss of -$188.1M.
- The stock experienced substantial dilution, with its share count increasing by 4923.3% over five years as the share price dropped 99.9% over the past year.
What TCTM Kids IT Education does
VisionSys AI Inc., formerly known as TCTM Kids IT Education Inc., provides supplementary science, technology, engineering, and mathematics (STEM) education services to children aged between three and eighteen in Mainland China. The company delivers its programs through online learning models as well as instructors operating from online or offline learning centers. Its educational platform supports live-distance instruction, classroom-based learning, and online learning modules. In addition, the organization offers specialized IT-focused education programs, including computer coding and robotics programming courses. Founded in 2002 and based in Sanhe, the company employs 17 individuals.
Growth and profitability
Revenue declined from $1.24B in FY2021 to $1.40B in FY2022, before falling to $1.38B in FY2023, $1.17B in FY2024, and $1.0M in FY2025, reflecting a five-year revenue CAGR of -77.7%. Gross margin dropped from 48.0% in FY2022 to 36.2% in FY2024 and 22.0% in FY2025. Operating margin worsened from 1.0% in FY2023 to -43.2% in FY2024 and -3848.0% in FY2025. Despite an operating cash outflow, net income reached $1.72B in FY2025. In the latest quarter ended June 30, 2023, revenue dropped 84.5% year-over-year, and trailing twelve-month revenue totaled $1.0M with an operating margin of -1825.0%.
Balance sheet and cash flow
As of March 31, 2026, the company reported $53.4M in cash and short-term investments, total assets of $106.6M, and shareholders' equity of $102.7M. The current ratio stood at 14.43. For FY2025, operating cash flow was -$188.1M, free cash flow was -$264.4M, and capital expenditures reached $76.3M. In addition, the company's share count expanded by 4923.3% over a five-year period.
Valuation and performance
VisionSys AI closed at $1.92 on October 16, 2026, representing a market capitalization of $5.4M and an enterprise value of $33.4M. The stock trades at a price-to-sales multiple of 5.2x, above the 0.7x median of its US-listed Consumer Defensive peers, while its forward P/E of 23.5x exceeds the peer median of 14.3x. Its EV-to-EBITDA stands at 0.3x compared to the peer median of 11.7x. Over the past year, the stock dropped 99.9%, compared to a 16.8% return for the S&P 500 (SPY). Over five years, the stock dropped 99.9% while the benchmark gained 83.0%.
What analysts expect
Over the last 4 quarters, the company recorded 2 EPS beats against published forecasts. Additional consensus analyst recommendations, rating counts, and mean price targets are not recorded, nor is a specific next earnings date scheduled. The stock closed at $1.92 on October 16, 2026, which sits well below its 52-week high of $1545.00 and just above its 52-week low of $1.85, reflecting recent volatility surrounding its quarterly reporting cycle.
Key risks and what to watch
- Revenue contracted sharply by 84.5% year-over-year in the latest reported quarter ended June 30, 2023.
- FY2025 operating margin deteriorated drastically to -3848.0%, demonstrating severe core business losses.
- The stock exhibits extreme drawdown risks, trading 76.4% below its 200-day average and down from a 52-week high of $1545.00.
- Trailing twelve months return on assets was -11.4%, underscoring ongoing asset efficiency concerns.
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 VSA AI stock analysis
This page is an AI-written research summary of TCTM Kids IT Education Inc. (VSA). 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: VSA income statement, VSA balance sheet, VSA key metrics, VSA chart. See the VSA stock overview for the latest quote and news.
VSA AI stock analysis FAQ
What was VSA's revenue in FY2025?
VisionSys AI reported revenue of $1.0M for FY2025, representing a 99.9% decline from $1.17B in FY2024.
Does VSA pay a dividend?
VisionSys AI does not have a recorded dividend payment or dividend yield.
What is the cash position of VisionSys AI?
As of March 31, 2026, the company held $53.4M in cash and short-term investments, with a current ratio of 14.43.
How has VSA stock performed compared to the broader market?
Over the past year, VSA shares declined 99.9%, while the S&P 500 (SPY) returned 16.8% over the same timeframe.