Scienjoy Holding Corporation Reports Second Quarter and First Half 2026 Unaudited Financial Results

BEIJING, Oct. 26, 2026 /PRNewswire/ -- Scienjoy Holding Corporation ("Scienjoy", the "Company", or "we") (NASDAQ: SJ), an AI technology company powered by a dual engine of "digital entertainment + enterprise AI solutions", today announced its financial results for the second quarter and first half of fiscal year 2026 ended June 30, 2026.  

Second Quarter 2026 Operating and Financial Summaries 

• Total revenue decreased to RMB305.4 million (US$45.0 million) for the three months ended June 30, 2026 from RMB349.0 million in the same period of 2025.
• Gross profit decreased to RMB55.4 million (US$8.2 million) for the three months ended June 30, 2026 from RMB63.7 million in the same period of 2025. Gross margin decreased slightly to 18.1% for the three months ended June 30, 2026 from 18.2% in the same period of 2025.
• Income from operations decreased to RMB12.8 million (US$1.9 million) for the three months ended June 30, 2026 from RMB23.3 million in the same period of 2025.
• Net income decreased to RMB11.2 million (US$1.7 million) for the three months ended June 30, 2026 from RMB22.7 million in the same period of 2025.
• Net income attributable to the Company's shareholders decreased to RMB11.1 million (US$1.6 million) for the three months ended June 30, 2026 from RMB22.6 million in the same period of 2025.
• Adjusted net income attributable to the Company's shareholders decreased to RMB12.9 million (US$1.9 million) for the three months ended June 30, 2026 from RMB24.9 million in the same period of 2025.

First Half 2026 Operating and Financial Summaries

• Total revenue decreased to RMB588.1 million (US$86.7 million) for the six months ended June 30, 2026 from RMB656.4 million in the same period of 2025.
• Gross profit decreased to RMB105.5 million (US$15.6 million) for the six months ended June 30, 2026 from RMB123.2 million in the same period of 2025. Gross margin decreased to 17.9% for the six months ended June 30, 2026 from 18.8% in the same period of 2025.
• Income from operations decreased to RMB24.1 million (US$3.5 million) for the six months ended June 30, 2026 from RMB37.0 million in the same period of 2025.
• Net income increased by 92.7% to RMB18.8 million (US$2.8 million) for the six months ended June 30, 2026 from RMB9.7 million in the same period of 2025.
• Net income attributable to the Company's shareholders increased by 48.0% to RMB20.0 million (US$2.9 million) for the six months ended June 30, 2026 from RMB13.5 million in the same period of 2025.
• Adjusted net income attributable to the Company's shareholders increased by 15.1% to RMB22.3 million (US$3.3 million) for the six months ended June 30, 2026 from RMB19.4 million in the same period of 2025.
• As of June 30, 2026, the Company had RMB329.9 million (US$48.6 million) in cash and cash equivalents, which represented an increase of RMB22.3 million from RMB307.7 million as of December 31, 2025.

Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "The first half of 2026 marked continued progress in executing our AI-driven growth strategy. While maintaining a resilient livestreaming business, we further advanced the commercialization of our AI technologies across our existing business ecosystem and new industry applications.

"A key milestone during the period was the continued expansion of AI Vista Live (AI Performer), our flagship AI platform for real-time interactive digital humans serving both consumer and enterprise markets. By integrating AI technology into our core livestreaming business, we are enhancing operational efficiency, and unlocking new monetization opportunities for AI-powered services, particularly through forward deployed engineer (FDE) solutions that embed our AI engines directly within customers' organization to address real-world operational needs. During this transformation, we also achieved meaningful progress in our global expansion. Building on our growing AI ecosystem in Dubai, we entered into a comprehensive strategic partnership with a leading enterprise technology channel provider under a listed conglomerate, which is also a partner of the Microsoft Cloud Ecosystem. We believe this collaboration will strengthen the commercial deployment of AI Vista Live across East and Southeast Asia and further expand our global market presence.

"Beyond livestreaming, we are steadily extending our AI capabilities into the education sector, with solutions designed to support course content development, administrative system management, and the organization and utilization of teaching and research outcomes. These initiatives reflect our broader strategy of translating AI capabilities into practical solutions for diverse enterprise and institutional needs.

"Looking ahead, we remain focused on accelerating commercialization, expanding our international footprint, and broadening the application of our AI solutions across industries and business scenarios. By leveraging our established industry expertise and technology capabilities, we aim to build a scalable, AI-driven business platform and create sustainable, long-term value for our shareholders."

Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "Our financial strategy continues to emphasize disciplined capital allocation, operational efficiency, sustainable profitability, and long-term value creation. At the same time, we have maintained strategic investment in AI innovation and global commercialization while exercising prudent expense management. These efforts contributed to a 48.0% year-over-year increase in net income attributable to the Company's shareholders during the first half of 2026.

"Moving forward, we believe our strong technology capabilities, disciplined financial management, and healthy balance sheet provide the flexibility to support future growth initiatives while maintaining operational resilience. With cash and cash equivalents increasing by RMB22.3 million compared with the end of fiscal year 2025, we are well positioned to pursue strategic opportunities, invest in innovation, and continue creating long-term shareholder value." 

Second Quarter 2026 Financial Results

Total revenue decreased to RMB305.4 million (US$45.0 million) for the three months ended June 30, 2026 from RMB349.0 million in the same period of 2025, primarily caused by a decrease in paying users due to competitive landscape of China's mobile live streaming market, partially offset by an increase of RMB295 in overall average live streaming revenue per paying user ("ARPPU") to RMB2,353 for the three months ended June 30, 2026 from RMB2,058 for the same period of 2025. Total paying users were 125,028 for the three months ended June 30, 2026, as compared to 165,239 in the same period of 2025.    

Cost of revenue decreased to RMB250.1 million (US$36.9 million) for the three months ended June 30, 2026 from RMB285.4 million in the same period of 2025. The decrease was primarily attributable to a decrease of RMB29.2 million in the Company's revenue sharing fees and a decrease of RMB9.0 million in the Company's user acquisition costs, partially offset by an increase of RMB2.9 million in other costs.

Gross profit decreased to RMB55.4 million (US$8.2 million) for the three months ended June 30, 2026 from RMB63.7 million in the same period of 2025. Gross margin decreased to 18.1% for the three months ended June 30, 2026 from 18.2% in the same period of 2025 due to higher revenue sharing fees ratio in oversea mobile live streaming market during the second quarter in 2026.

Total operating expenses increased by 5.4% to RMB42.6 million (US$6.3 million) for the three months ended June 30, 2026 from RMB40.4 million in the same period of 2025.

• Sales and marketing expenses decreased to RMB1.0 million (US$0.2 million) for the three months ended June 30, 2026 from RMB1.3 million in the same period of 2025, primarily attributable to fewer sales and marketing activities.
• General and administrative expenses decreased to RMB17.3 million (US$2.6 million) for the three months ended June 30, 2026 from RMB21.0 million in the same period of 2025, primarily caused by a decrease of RMB2.0 million in professional consulting fee and a decrease of RMB1.7 million in amortization of intangible assets.
• Research and development expenses increased by 43.2% to RMB25.0 million (US$3.7 million) for the three months ended June 30, 2026 from RMB17.4 million in the same period of 2025, due to an increase of RMB6.2 million in employee salary and welfare and an increase of RMB2.3 million in technical service fee, offset by a decrease of RMB0.9 million in share-based compensation.  
• Reversal of credit losses was RMB0.7 million (US$0.1 million) for the three months ended June 30, 2026, as compared to allowance for credit losses of RMB0.6 million in the same period of 2025, due to improved collection.

Income from operations decreased to RMB12.8 million (US$1.9 million) for the three months ended June 30, 2026 from RMB23.3 million in the same period of 2025.

Change in fair value of investment in marketable security decreased to a loss of RMB3.8 million (US$0.6 million) for the three months ended June 30, 2026 from RMB6.8 million in the same period of 2025. The change was primarily attributable to the fair value changes in investments in a publicly traded company. 

Investment loss decreased to RMB0.2 million (US$0.03 million) for the three months ended June 30, 2026 from RMB0.6 million in the same period of 2025. The decreased investment loss was primarily attributable to more income distributed by long-term investments. 

Interest income, net increased by 202.4% to RMB1.4 million (US$0.2 million) for the three months ended June 30, 2026 from RMB0.5 million in the same period of 2025. The increase was primarily due to higher average bank deposits held. 

Other expenses net was RMB1.1 million (US$0.2 million) for the three months ended June 30, 2026, as compared to other income, net of RMB7.6 million in the same period of 2025, due to decreased government subsidies.

Foreign exchange loss, net decreased to RMB0.2 million (US$0.03 million) for the three months ended June 30, 2026 from RMB1.6 million in the same period of 2025.

Income tax benefit increased by 793.8% to RMB2.4 million (US$0.4 million) for the three months ended June 30, 2026 from RMB0.3 million in the same period of 2025.

Net income decreased to RMB11.2 million (US$1.7 million) for the three months ended June 30, 2026 from RMB22.7 million in the same period of 2025 as a result of the foregoing.

Net income attributable to the Company's shareholders decreased to RMB11.1 million (US$1.6 million) for the three months ended June 30, 2026 from RMB22.6 million in the same period of 2025.

Adjusted net income attributable to the Company's shareholders decreased to RMB12.9 million (US$1.9 million) for the three months ended June 30, 2026 from RMB24.9 million in the same period of 2025. 

Basic and diluted net income per ordinary share was RMB0.26 (US$0.04) and RMB0.26 (US$0.04) for the three months ended June 30, 2026, respectively. In comparison, basic and diluted net income per ordinary share was RMB0.54 and RMB0.54 in the same period of 2025, respectively.

Adjusted basic and diluted net income per ordinary share was RMB0.31 (US$0.05) and RMB0.31 (US$0.05) for the three months ended June 30, 2026, respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB0.60 and RMB0.60 in the same period of 2025, respectively.

First Half 2026 Financial Results

Total revenues decreased to RMB588.1 million (US$86.7 million) for the six months ended June 30, 2026 from RMB656.4 million in the same period of 2025, primarily caused by decrease of paying users due to competitive landscape of China's mobile live streaming market, partially offset by an increase of RMB390 in overall ARPPU to RMB2,908 for the six months ended June 30, 2026 from RMB2,518 for the same period of 2025. Total paying users were 196,374 for the six months ended June 30, 2026, decreased by approximately 23% as compared to 253,888 in the same period of 2025.  

Cost of revenues decreased to RMB482.6 million (US$71.1 million) for the six months ended June 30, 2026 from RMB533.2 million in the same period of 2025. The decrease was primarily attributable to a decrease of RMB39.3 million in the Company's revenue sharing fees and RMB15.4 million in the Company's user acquisition costs, offset by an increase of RMB4.0 million in the Company's other costs. 

Gross profit decreased to RMB105.5 million (US$15.6 million) for the six months ended June 30, 2026 from RMB123.2 million in the same period of 2025. The gross margin decreased to 17.9% for the six months ended June 30, 2026 from 18.8% in the same period of 2025 due to higher revenue sharing fees ratio in oversea mobile live streaming market during the six months ended June 30, 2026. 

Total operating expenses decreased to RMB81.4 million (US$12.0 million) for the six months ended June 30, 2026 from RMB86.2 million in the same period of 2025.

• Sales and marketing expenses decreased to RMB1.9 million (US$0.3 million) for the six months ended June 30, 2026 from RMB3.4 million in the same period of 2025, primarily attributable to fewer sales and marketing activities.
• General and administrative expenses decreased to RMB35.7 million (US$5.3 million) for the six months ended June 30, 2026 from RMB44.4 million in the same period of 2025. The decrease was primarily due to a decrease of RMB5.0 million in professional consulting fee and a decrease of RMB3.4 million in amortization of intangible assets.
• Research and development expenses increased by 20.5% to RMB44.6 million (US$6.6 million) for the six months ended June 30, 2026 from RMB37.0 million for the six months ended June 30, 2025, due to an increase of RMB8.4 million in employee salary and welfare and an increase of RMB2.6 million in technical service fee, offset by a decrease of RMB3.1 million in share-based compensation.
• Reversal for credit losses was RMB0.7 million (US$0.1 million) for the six months ended June 30, 2026, as compared to allowance for credit losses of RMB1.4 million in the same period of 2025, primarily due to improved collection.

Income from operations decreased to RMB24.1 million (US$3.5 million) for the six months ended June 30, 2026 from RMB37.0 million in the same period of 2025.

Change in fair value of investment in marketable security decreased to a loss of RMB5.2 million (US$0.8 million) for the six months ended June 30, 2026 from RMB31.1 million in the same period of 2025. The decrease was primarily attributable to the fair value changes in investments in publicly traded company. 

Investment loss decreased to RMB0.07 million (US$0.01 million) for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The decreased investment loss was primarily attributable to more income distributed by long-term investments. 

Interest income, net increased by 105.0% to RMB2.0 million (US$0.3 million) for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The increase was primarily due to higher average bank deposits held. 

Other expense, net was RMB1.0 million (US$0.2 million) for the six months ended June 30, 2026, as compared to other income, net of RMB9.1 million in the same period of 2025. The change was primarily due to decreased government subsidies and one-time compensation income.

Foreign exchange loss, net decreased to RMB0.5 million (US$0.1 million) for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025.

Income tax expense decreased to RMB0.5 million (US$0.1 million) for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025. 

Net income increased by 92.7% to RMB18.8 million (US$2.8 million) for the six months ended June 30, 2026 from RMB9.7 million in the same period of 2025 as a result of the foregoing. 

Net income attributable to the Company's shareholders increased by 48.0% to RMB20.0 million (US$2.9 million) for the six months ended June 30, 2026 from RMB13.5 million in the same period of 2025.

Adjusted net income attributable to the Company's shareholders increased by 15.1% to RMB22.3 million (US$3.3 million) for the six months ended June 30, 2026 from RMB19.4 million in the same period of 2025. 

Basic and diluted net income per ordinary share was RMB0.48 (US$0.07) and RMB0.48 (US$0.07) for the six months ended June 30, 2026, respectively. In comparison, basic and diluted net income per ordinary share was RMB0.32 and RMB0.32 in the same period of 2025, respectively.

Adjusted basic and diluted net income per ordinary share was RMB0.53 (US$0.08) and RMB0.53 (US$0.08) for the six months ended June 30, 2026, respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB0.47 and RMB0.47 in the same period of 2025, respectively.

As of June 30, 2026, the Company had cash and cash equivalent balance of RMB329.9 million (US$48.6 million), which represented an increase of RMB22.3 million from RMB307.7 million as of December 31, 2025. 

Use of Non-GAAP Financial Measures

Adjusted net income attributable to the Company's shareholders is calculated as net income attributable to the Company's shareholders adjusted for share-based compensation. Adjusted basic and diluted net income per ordinary share is non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with U.S. GAAP. 

For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been, or could be, converted, realized or settled in U.S. dollars at that rate on June 30, 2026, or at any other rate.

Recent Developments

On July 1, 2026, the Company signed an investment agreement to invest up to RMB70.0 million into Hangzhou Puhongtianze Management Consulting Partnership ("Puhong"), a limited partnership, for a 23.3% equity interest and was subsequently admitted as a limited partner of Puhong.

On July 26, 2026, the Company signed an investment agreement, pursuant to which it invested HK$45.0 million into Ventus Value Investment LPF Partnership (the "Ventus Partnership") as a limited partner. The term of the Ventus Partnership is for five years, provided that the term may be extended by the general partner of the Ventus Partnership for an additional two-year period. The Ventus Partnership raised total capital of HK$100.0 million, in which another limited partner contributed the remaining HK$55.0 million.

On September 2, 2026, the Company entered a sale and purchase agreement (the "SPA" and the transaction as contemplated therein, the "Transaction"), through its wholly-owned subsidiary Scienjoy Innovation Labs Inc. ("Scienjoy Innovation", incorporated on July 16, 2026), to acquire 239,234,000 ordinary shares (the "Shares") of Leader Education Limited ("Leader Education", a listed company on the HKEX), an investment holding company that provides private higher education services in China, from Shuren Education Limited ("Shuren"), Leader Education's controlling shareholder, for HK$102.69 million. The Shares represent 29.9% of the issued and outstanding share capital of Leader Education. The closing of the Transaction is subject to mutually agreed conditions, which includes: (i) Scienjoy Innovation being satisfied with the results of its due diligence of Leader Education and its subsidiaries; (ii) the absence of any material breach of warranties in the SPA by Shuren; (iii) all necessary waivers, consents, and/or notifications having been obtained; (iv) the continued listing of Leader Education's ordinary shares on the Main Board of The Stock Exchange of Hong Kong Limited on or before the closing date; and (v) no suspension in trading of Leader Education's ordinary shares had occurred for more than ten consecutive business days. The Transaction was closed on October 15, 2026. This Transaction is deemed to be a related party transaction since the Company's independent director, Jun Lu, is also an executive director of Leader Education.

About Scienjoy Holding Corporation

Scienjoy Holding Corporation ("Scienjoy" or the "Company", NASDAQ: SJ) is a technology company powered by a dual engine of "digital entertainment + enterprise AI solutions," with AI at the core of its business strategy. The Company has a long track record of providing digital entertainment services to global users, building extensive expertise in digital content, multimodal interaction, and business operations. Leveraging its foundational AI technologies and business agent engines, which have been validated through real-world applications, Scienjoy is extending its capabilities to enterprise customers across a range of industries. Through its forward deployed engineer (FDE) model, AI applications, and intelligent solutions, the Company integrates AI into real-world business processes and operational systems, transforming technological capabilities into tangible business value.

Looking ahead, Scienjoy aims to further strengthen its AI capabilities across the application, model, and computing layers, while driving the synergistic development of its consumer-facing (2C) and enterprise-facing (2B) businesses. By continuously expanding the practical applications of AI across industries and business scenarios, the Company seeks to build a scalable AI-driven business platform and extend the boundaries of AI commercialization.

For more information, please visit http://ir.scienjoy.com/.

Safe Harbor Statement

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission ("SEC") from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release. 

For investor and media inquiries, please contact:

Investor Relations Contacts

Denny Tang

Chief Financial Officer

Scienjoy Holding Corporation

+86-10-64428188

ir@scienjoy.com

Ascent Investor Relations LLC

Tina Xiao

+1-646-932-7242

investors@ascent-ir.com