Executive Summary

Record Q3 2025 revenue of $1.29M (+31.5% y/y; +77.4% q/q) and GAAP net income of $2.52M driven largely by non-operating gains (crypto fair value, warrants), while core operations remained loss-making .
Gross margin expanded to 70% (vs 55% y/y; 44% q/q), reflecting improved unit economics and lower streaming/payment processing costs alongside higher service revenues .
Balance sheet strength underscored by ~~$15M cash and digital assets (~~$0.55/share), SOL holdings 56,909 as of Sep 30 and 58,142 as of Nov 11; deferred tax liability recognized on crypto gains .
No Wall Street consensus (S&P Global) available; company did not update 2025 revenue guidance in Q3 (prior: $10–$15M) and highlighted AI Tutor commercialization targeting 2026 .

What Went Well and What Went Wrong

Revenue and margin inflection: Service revenues up 46% y/y; gross margin up 1,400 bps y/y to 70% on lower compensation, streaming, and processing costs per unit and higher service mix .
Positive GAAP earnings: Net income of $2.52M, with material contribution from fair value gains on crypto assets ($3.16M in Q3) and warrant revaluation ($0.91M) .
Strategic progress: “We are building a company designed for scalability, where AI innovation is matched with financial discipline and Web3 liquidity” — Stephanie Luo, Founder/CEO .

Core operations still loss-making: Operating loss widened to -$0.60M vs -$0.17M y/y, driven by higher G&A (public company costs, consulting, insurance, compensation) .
Earnings quality reliance on non-operating items: Crypto and warrant fair value changes, and deferred tax accounting on crypto gains ($0.66M tax provision in Q3), materially drove profitability .
Consulting revenue dropped to zero in Q3 (vs $0.10M y/y) and remains uncertain; suggests less diversified revenue streams near-term .

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$0.98	$0.73	$1.288
Gross Margin %	55%	44%	70%
Operating Income ($USD Millions)	-$0.174	N/A	-$0.605
Net Income ($USD Millions)	-$0.177	-$3.870	$2.521
EPS (GAAP)	N/A	N/A	N/A

Notes:

No S&P Global consensus estimates were available for revenue/EPS for Q3 2025 at time of retrieval.

KPI	Q3 2024 / YE 2024	Q3 2025
Registered users	61,387 (Dec 31, 2024)	71,556 (Sep 30, 2025)
Active educator partners	936 (Dec 31, 2024)	1,144 (Sep 30, 2025)

Metric	Dec 31, 2024	Sep 30, 2025	Nov 11, 2025
Cash ($USD)	$50,682	$3,428,824	N/A
Investment accounts (crypto + cash) ($USD)	$0	$12,060,203	N/A
Total cash + digital assets ($USD)	~$0.051M	~$15.5M (cash + investments)	~$15M (press)
SOL tokens (units)	N/A	56,909	58,142
Fair value gain on crypto (period) ($USD)	N/A	$3,342,651 (YTD through Q3)	N/A

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$10–$15M	No update in Q3	Maintained/Not reiterated
AI Tutor commercialization	2026	N/A	Targeting commercialization in 2026	New/Specified timeline

Earnings call transcript was not available; tracking based on filings and press releases.

Topic	Q-2 (prior quarter)	Q-1 (two quarters prior)	Current Period (Q3 2025)	Trend
AI/technology initiatives	BitGo MOU for digital asset infrastructure; validator launch with Everstake	2025 guidance, platform growth	AI Tutor beta progress; senior AI advisors; MiniMax partnership	Expanding ecosystem and capabilities
Digital assets/treasury	SOL holdings expanded; staking strategy	Financing facilities enabling SOL purchases	~$15M cash/digital assets; SOL 56,909 Sep 30; fair value gains	Larger balance and income statement impact
Macro/regulatory (crypto)	Risk statements in releases	Risk cautions in guidance note	Crypto volatility, custody/regulatory risks (forward-looking statements)	Ongoing risk disclosures
Product performance	N/A	2024 metrics baseline (users, classes)	Service revenue mix shift; margin expansion	Improving core unit economics
Regional trends/supply chain	N/A	N/A	Not specifically discussed	N/A
R&D execution	N/A	N/A	IP acquisition; amortization schedule	Building IP base
M&A pipeline	N/A	N/A	Evaluating AI/Web3/RWA M&A/investments	Opportunistic

“The third quarter of 2025 marks a pivotal quarter for Classover — our first full quarter as a publicly listed company and what we believe is a clear demonstration of the strength of our hybrid AI and Web3 business model.” — Stephanie Luo, Founder/CEO .
Focus ahead includes commercialization of AI Tutor in 2026, optimizing capital-light growth, increasing SOL holdings through equity purchase facility, and pursuing strategic M&A aligned to technology and capital objectives .

Earnings call transcript was not available; no Q&A themes or clarifications to report this quarter [ListDocuments search showed none].

S&P Global consensus estimates for Q3 2025 revenue and EPS were unavailable at time of retrieval; therefore, no beat/miss determination versus Street can be provided.

Revenue inflection and margin expansion: Service revenue growth and 70% gross margin indicate improving unit economics and pricing/mix; however, operating losses persisted due to elevated public company and growth-related G&A .
Earnings quality caution: GAAP profitability was driven by non-operating fair value gains (crypto and warrants) and carries volatility and tax effects; core operating profit remains negative .
Liquidity optionality: ~$15M cash/digital assets and multiple financing facilities (equity purchase, convertible notes) support runway and strategic initiatives, but note potential dilution and crypto volatility .
Product roadmap: AI Tutor beta progress and 2026 commercialization target could be a narrative catalyst, contingent on execution and adoption .
Mix shift: Credit-based subscriptions now dominate; consulting revenue is uncertain, suggesting focus on core education services scaling .
Digital asset exposure: SOL holdings and staking rewards contribute to financials; crypto market movements will add earnings variability and deferred tax dynamics .
Watch for guidance updates: Prior 2025 revenue guidance ($10–$15M) was not updated; monitoring Q4 cadence and any revised targets will be key .