Ambow Education Announces Second Half and Full-Year 2024 Financial Results

Rhea-AI Summary

Ambow Education (NYSE American: AMBO) reported its 2024 financial results, achieving full-year profitability with net revenues of $9.4 million, up 2.2% from 2023. The company's Q4 2024 performance showed net revenues of $3.5 million, with a gross profit margin of 65.7%.

The growth was primarily driven by HybriU, their AI-powered phygital learning platform, which secured a significant $1.3 million licensing agreement in Q4. The company reported a net income of $0.3 million ($0.005 per share) for FY2024, compared to a net loss of $3.2 million in 2023.

The company maintains $8.4 million in cash resources, including $1.1 million in cash and equivalents and $7.3 million in restricted cash. However, Ambow faces legal challenges with two ongoing lawsuits regarding leased property, with potential significant financial implications.

Positive

• Achieved full-year profitability in 2024 with $0.3 million net income vs. $3.2 million loss in 2023
• Q4 2024 revenue increased 45.8% to $3.5 million from $2.4 million in Q4 2023
• Secured $1.3 million HybriU licensing agreement in Q4
• Gross profit margin improved to 65.7% in Q4 2024 from 50.0% in Q4 2023
• Operating expenses decreased 16.2% year-over-year

Negative

• Modest 2.2% annual revenue growth to $9.4 million
• Operating loss of $0.7 million in FY2024
• Facing two significant lawsuits with potential liabilities of $2.26 million and $4.47 million
• Large portion of cash ($7.3M out of $8.4M) is restricted

Insights

Financial Analyst

Ambow Education's financial turnaround in 2024 represents a significant milestone, with the company achieving full-year profitability after previous losses. Fourth quarter results show substantial improvement with $3.5 million in revenue (up 46% year-over-year) and net income of $1.3 million. The gross margin expansion to 65.7% from 50.0% indicates improving operational efficiency.

For the full fiscal year, Ambow posted modest revenue growth of 2.2% to $9.4 million, but more importantly, swung to a $0.3 million profit from a $3.2 million loss in 2023. This profit improvement stems from both revenue growth from their HybriU platform and substantial cost reductions, with operating expenses declining 16.2%.

While the $8.4 million cash position appears strong relative to Ambow's $7.16 million market cap, it's concerning that $7.3 million is restricted cash, limiting operational flexibility. The $1.3 million HybriU licensing agreement demonstrates commercial traction, but the pending legal contingencies create substantial financial risk. The two lawsuits totaling potentially $6.7 million represent approximately 71% of annual revenue, posing a significant threat that could erase recent gains. The court's preliminary decision favoring the plaintiffs in one case increases this risk materially.

Legal Expert

The legal contingencies disclosed in Ambow's financial results present material risks to the company's financial stability. The first lawsuit involves an unlawful detainer action seeking $2,255,984.44 in past rent and CAM fees, with the San Diego Superior Court having already issued a Proposed Statement of Decision favoring the plaintiffs. This ruling grants the plaintiffs possession of premises previously occupied by NewSchool and awards damages, plus attorney's fees estimated between $80,000-$100,000.

The second lawsuit is potentially more damaging, with Art Block Investors seeking $4,466,247.80 for breach of contract and guaranty against both NewSchool and Ambow Education Holdings directly. While this case remains in earlier stages with no trial dates set, the combination of both lawsuits creates a potential liability of approximately $6.7 million.

Notably, the company's statement that "a reasonable estimate of the amount of any possible loss or range of loss cannot be made" suggests these contingencies aren't accounted for in the financial statements. This represents a significant risk given that these potential liabilities nearly equal Ambow's entire market capitalization of $7.16 million and would consume most of their cash reserves if judgments are enforced in full.

HybriU Expanding Digital Learning Opportunities, Powered by AI

CUPERTINO, Calif., March 28, 2025 (GLOBE NEWSWIRE) -- Ambow Education Holding Ltd. (NYSE American: AMBO) (“Ambow” or the “Company”), an AI-driven educational technology company, today announced its financial and operating results for the 2024 second half¹ and full fiscal year,² ended December 31, 2024.

“In 2024, we achieved full-year profitability and reached key milestones that position us for sustained long-term growth, driven by our sharpened focus on HybriU adoption,” said Dr. Jin Huang, Ambow’s President, Chief Executive Officer, and acting Chief Financial Officer. “We increased revenue, improved margins and strengthened profitability throughout the year, highlighted by a $1.3 million HybriU licensing agreement in the fourth quarter—marking our continued expansion into international markets.”

HybriU is a cutting-edge, AI-powered phygital (physical + digital) innovation that transforms education, corporate conferencing and events by seamlessly integrating the physical and digital worlds for a smarter, more immersive experience. Designed to bridge the gap between in-person and remote interaction, HybriU delivers real-time AI automation, immersive engagement and intelligent collaboration across industries.

In the education sector, HybriU offers the only patented, plug-and-play solution that seamlessly integrates lecture capture, connectivity, AI, immersive technologies and big data analytics. This all-in-one platform simplifies deployment while delivering a rich, connected and data-informed phygital learning experience.

“Looking ahead to 2025, we will accelerate HybriU’s adoption across U.S. and international markets and further enhance our AI capabilities to deliver greater value to our partners. With a strong financial foundation, a lean operational structure, favorable AI tailwinds and a differentiated first-to-market solution, we are well-positioned to drive continued growth and increasing profitability,” Dr. Huang concluded.

Fourth Quarter 2024 Financial Highlights

• Net revenues in the fourth quarter of 2024 were $3.5 million, compared with $2.4 million in the same period of 2023. The increase was primarily due to the launch of HybriU.
  
  
• Gross profit in the fourth quarter of 2024 was $2.3 million, compared with $1.2 million in the same period of 2023. Gross profit margin was 65.7%, compared with 50.0% in the fourth quarter of 2023.
  
  
• Operating expenses in the fourth quarter of 2024 decreased by 13.3% to $1.3 million from $1.5 million in the same period of 2023. The decrease was primarily due to reduction in shared center expenses.
  
  
• Operating income in the fourth quarter of 2024 improved to $1.0 million, compared with an operating loss of $0.3 million in the same period of 2023.
  
  
• Net income attributable to the Company’s ordinary shareholders was $1.3 million, or $0.02 per basic and diluted share for the fourth quarter of 2024 and 2023.

¹ Financial results for the second half of 2024 have not been audited or reviewed by the Company’s independent registered accounting firm.

² Financial results for the full fiscal year ended December 31, 2024 have been audited by the Company’s independent registered accounting firm.

Fiscal Year 2024 Financial Highlights

• Net revenues in fiscal year 2024 increased by 2.2% to $9.4 million from $9.2 million in 2023. The increase was primarily driven by revenue growth from the launch of HybriU, while partially offset by the closure of Bay State College.
  
  
• Gross profit in fiscal year 2024 was $5.0 million, increasing from $2.5 million in 2023. The increase was primarily attributable to an increase in net revenues from HybriU and a reduction in payroll expenses and teaching costs upon the closure of Bay State College.
  
  
• Operating expenses in fiscal year 2024 decreased by 16.2% to $5.7 million from $6.8 million in 2023. The decrease was primarily driven by reduced payroll expenses following the closure of Bay State College.
  
  
• Operating loss in fiscal year 2024 narrowed to $0.7 million, compared with a loss of $4.3 million in 2023.
  
  
• Net income attributable to the Company’s ordinary shareholders in fiscal year 2024 was $0.3 million, or $0.005 per basic and diluted share, compared with a net loss of $3.2 million, or $0.06 per basic and diluted share in 2023.
  
  
• As of December 31, 2024, Ambow maintained solid cash resources of $8.4 million, including cash and cash equivalents of $1.1 million and restricted cash of $7.3 million.

Contingencies

We are currently involved in two lawsuits concerning our leased property. Filed on July 15, 2024, by Art Block Investors, LLC et al., in the San Diego Superior Court (the “Court”), this unlawful detainer action seeks possession of premises occupied by NewSchool and recovery of $2,255,984.44 in past rent and common area maintenance (CAM) fees. Following trial, the Court issued a Proposed Statement of Decision awarding the plaintiffs possession and damages, with attorney's fees and costs (estimated $80,000–$100,000) to be determined. NewSchool has objected, but judgment is expected within 30 days, followed by a motion for fees. In addition, filed on September 6, 2024, in the San Diego Superior Court, Art Block Investors, LLC et al. alleges breach of contract and guaranty against NewSchool and Ambow Education Holdings Ltd., seeking $4,466,247.80, potentially offset by amounts recovered in the first lawsuit. We, as defendants, have answered and are contesting the claims; no pretrial or trial dates have been set. The Company continues to evaluate these matters. A reasonable estimate of the amount of any possible loss or range of loss cannot be made as of December 31, 2024.

About Ambow

Ambow Education Holding Ltd. is a U.S.-based, AI-driven technology company offering phygital (physical + digital) solutions for education, corporate conferencing and live events. Through its flagship platform, HybriU, Ambow is shaping the future of learning, collaboration and communication—delivering immersive, intelligent and real-time experiences across industries. For more information, visit Ambow’s corporate website at https://www.ambow.com/.

Follow us on X: @Ambow_Education
Follow us on LinkedIn: Ambow-education-group

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Ambow and the industry. All information provided in this press release is as of the date hereof, and Ambow undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Ambow believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

For more information, please contact:
Ambow Education Holding Ltd.
E-mail: ir@ambow.com

or

Piacente Financial Communications
Tel: +1 212 481 2050
E-mail: ambow@tpg-ir.com

AMBOW EDUCATION HOLDING LTD. CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data)
		As of December 31,				As of December 31,
		2023				2024
		As Revised
ASSETS
Current assets:
Cash and cash equivalents		$	274			$	1,123
Restricted cash			9,781				7,318
Accounts receivable, net			2,280				2,541
Prepaid and other current assets			178				659
Total current assets			12,513				11,641
Non-current assets:
Property and equipment, net			6				1,200
Intangible assets, net			522				512
Operating lease right-of-use asset			4,896				2,722
Other non-current assets, net			2,629				1,296
Total non-current assets			8,053				5,730
Total assets		$	20,566			$	17,371
LIABILITIES
Current liabilities:
Short-term borrowings			3,939				2,700
Accounts payable			1,386				749
Accrued and other liabilities			1,468				1,029
Income taxes payable, current			510				12
Operating lease liability, current			2,486				2,357
Total current liabilities			9,789				6,847
Non-current liabilities:
Operating lease liability, non-current			4,349				3,787
Total non-current liabilities			4,349				3,787
Total liabilities		$	14,138			$	10,634
EQUITY
Preferred shares
(US$ 0.003 par value; 1,666,667 shares authorized, nil issued and outstanding as of December 31, 2023 and 2024)			-				-
Class A Ordinary shares
(US$ 0.003 par value; 66,666,667 and 66,666,667 shares authorized; 52,419,109 and 52,419,109 shares issued and outstanding as of December 31, 2023 and 2024, respectively)			146				146
Class C Ordinary shares
(US$ 0.003 par value; 8,333,333 and 8,333,333 shares authorized; 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2023 and 2024, respectively)			13				13
Additional paid-in capital			517,031				517,031
Accumulated deficit			(510,634	)			(510,325	)
Accumulated other comprehensive income			(128	)			(128	)
Total equity			6,428				6,737
Total liabilities and equity		$	20,566			$	17,371

AMBOW EDUCATION HOLDING LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (All amounts in thousands, except for share and per share data)
		For the three months ended September 30,								For the three months ended December 31,
		2023				2024				2023				2024
NET REVENUES
Educational program and services		$	671			$	1,168			$	2,395			$	1,527
HybriU licensing			-				-				-				1,924
Total net revenues			671				1,168				2,395				3,451
COST OF REVENUES
Educational program and services			(1,400	)			(1,004	)			(1,187	)			(1,193	)
GROSS (LOSS) PROFIT			(729	)			164				1,208				2,258
Operating expenses:
Selling and marketing			(330	)			(236	)			(296	)			(227	)
General and administrative			(903	)			(1,004	)			(912	)			(974	)
Research and development			(242	)			(144	)			(242	)			(144	)
Total operating expenses			(1,475	)			(1,384	)			(1,450	)			(1,345	)
OPERATING LOSS (INCOME)			(2,204	)			(1,220	)			(242	)			913
OTHER INCOME (EXPENSES)
Interest (expenses) income			(39	)			(114	)			15				(15	)
Foreign exchange gain (loss), net			21				-				(12	)			-
Other (expenses) income, net			(12	)			146				94				49
Gain on disposal of assets			-				-				1,400				-
Total other (expenses) income			(30	)			32				1,497				34
(LOSS) INCOME BEFORE INCOME TAX AND NON-CONTROLLING INTEREST			(2,234	)			(1,188	)			1,255				947
Income tax (expenses) benefit			(1	)			-				-				334
NET (LOSS) INCOME		$	(2,235	)		$	(1,188	)		$	1,255			$	1,281
Less: Net (loss) income attributable to non-controlling interests			-				-				-				-
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS			(2,235	)			(1,188	)			1,255				1,281
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX			-				-				-				-
TOTAL COMPREHENSIVE (LOSS) INCOME			(2,235	)			(1,188	)			1,255				1,281
Net (loss) income per share – basic and diluted		$	(0.04	)		$	(0.02	)		$	0.02			$	0.02
Net (loss) income per ADS – basic and diluted		$	(0.78	)		$	(0.42	)		$	0.44			$	0.45
Weighted average shares used in calculating basic and diluted net (loss) income per share			57,127,524				57,127,524				52,127,524				57,127,524

  

AMBOW EDUCATION HOLDING LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data)
		For the years ended December 31,
		2023				2024
NET REVENUES
Educational program and services		$	9,163			$	7,468
HybriU licensing			-				1,924
Total net revenues		$	9,163				9,392
COST OF REVENUES
Educational program and services			(6,669	)			(4,405	)
GROSS PROFIT			2,494				4,987
Operating expenses:
Selling and marketing			(1,051	)			(1,013	)
General and administrative			(5,264	)			(4,258	)
Research and development			(484	)			(438	)
Total operating expenses			(6,799	)			(5,709	)
OPERATING LOSS			(4,305	)			(722	)
OTHER INCOME (EXPENSES)
Interest expenses			(57	)			(63	)
Other (expenses) income, net			(199	)			255
Gain on disposal of assets			1,400				-
Total other income			1,144				192
LOSS BEFORE INCOME TAX AND NON-CONTROLLING INTEREST			(3,161	)			(530	)
Income tax (expenses) benefit			(14	)			839
NET (LOSS) INCOME		$	(3,175	)		$	309
Less: Net (loss) income attributable to non-controlling interests			-				-
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS			(3,175	)			309
OTHER COMPREHENSIVE LOSS, NET OF TAX			-				-
TOTAL COMPREHENSIVE LOSS			(3,175	)			309
Net (loss) income per share – basic and diluted		$	(0.06	)		$	0.0054
Net (loss) income per ADS – basic and diluted		$	(1.20	)		$	0.1080
Weighted average shares used in calculating basic and diluted net (loss) income per share			56,333,003				57,127,524

FAQ

What were Ambow Education's (AMBO) key financial metrics for Q4 2024?

In Q4 2024, AMBO reported net revenues of $3.5 million, gross profit of $2.3 million with 65.7% margin, and net income of $1.3 million ($0.02 per share).

How much revenue did AMBO generate in full-year 2024?

Ambow Education generated $9.4 million in net revenues for fiscal year 2024, representing a 2.2% increase from 2023.

What is the value of AMBO's HybriU licensing agreement secured in Q4 2024?

Ambow secured a $1.3 million HybriU licensing agreement in the fourth quarter of 2024.

What legal challenges does AMBO currently face?

AMBO faces two lawsuits regarding leased property, with one seeking $2.26 million in past rent and fees, and another claiming $4.47 million for breach of contract.

How much cash does AMBO have available as of December 31, 2024?

As of December 31, 2024, AMBO had $8.4 million in total cash resources, including $1.1 million in cash and cash equivalents and $7.3 million in restricted cash.