51Talk Online Education

COE

Education & Training Services · Consumer Defensive

Price

$16.08

+0.48 (+3.08%)

Market Cap

$94.9M

Exchange

New York Stock Exchange American

Winston Score

–

No score yet — Winston is napping.

We couldn’t gather enough financial data to score this stock reliably.

Share count rising — dilution

+4.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 94K (2021) → 99K (2025)

51Talk Online Education Group is a Chinese online education company that teaches English to students in China and the Philippines. Its main product is live, one-on-one English lessons delivered over the internet, connecting Chinese learners with teachers based primarily in the Philippines. The company targets children and adults in China who want to improve their English skills.

51Talk makes money by charging students for lesson packages, which they purchase upfront and then use over time. The company operates mainly in China, with its teacher network concentrated in the Philippines, where labor costs are lower — this cost structure helps explain its high gross margins despite overall losses at the operating level. The biggest risk the company faces is China's regulatory environment: in 2021, Beijing sharply restricted for-profit tutoring for school-age children, which forced 51Talk to restructure its business model, and ongoing policy uncertainty remains a significant challenge for future growth.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+71.4% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

-56.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$5M/ year

↑ Rising (+54% vs prior year)

5.7% of revenue

2.9x the sector average (2%)

R&D investment increasing — building for the future

Insider Activity

16.6%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$36M cash & investments

Quarterly Free Cash Flow

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

51Talk Online Education is growing revenue at 71% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

73.7%

Premium pricing power — 73.7% gross margin

Operating Margin

-4.6%

Losing money on operations — -4.6%

ROCE

N/A

—

Data not available

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Growth

Sales YoY

+82.8%

Fast-growing sales (82.8% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

8.8%

Modest free cash flow (8.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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