Classover Holdings Reports Q1 2025 Financial Results, Revenue Declines 8%

Classover Holdings, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $816,016, a decrease of 8% from $885,285 in the same period of 2024. The decline was primarily attributed to the absence of consulting revenue, which had contributed $100,000 in the previous year. Service revenues, however, increased by 4%, rising from $785,285 to $816,016, driven by a growth in credit-based subscriptions and the number of courses delivered. The company's gross profit also fell to $405,366, down from $475,136, resulting in a gross profit margin decrease from 54% to 50%.

The company's operating expenses increased by 10% to $701,273, compared to $640,253 in the prior year. This rise was largely due to higher general and administrative expenses, which grew by 13% to $573,539, reflecting increased consulting and professional fees associated with the company's merger activities. The net loss for the quarter widened to $297,207 from $167,089, marking a 78% increase in losses year-over-year. The company reported a working capital deficit of $3,509,780 and a stockholders' deficit of $4,816,361 as of March 31, 2025.

In terms of operational metrics, Classover Holdings reported a total of 65,614 registered users as of March 31, 2025, up from 61,387 at the end of 2024. The company also maintained a stable educator partner base, with 977 independent educators engaged in delivering courses. The increase in registered users is seen as a positive indicator for future revenue growth, as these individuals represent potential conversions to paid subscribers.

Strategically, Classover Holdings completed a business combination with Battery Future Acquisition Corp. on April 4, 2025, which is expected to enhance its financial position. The merger provided the company with $1,075,936 from BFAC’s trust account and an additional $4,700,000 from a PIPE investor. Furthermore, the company entered into an Equity Purchase Facility Agreement with Solana Strategic Holdings LLC, allowing for the potential issuance of up to $400 million in Class B common stock. This financing strategy aims to bolster liquidity and support ongoing operations.

Looking ahead, Classover Holdings is focused on leveraging its expanded user base and enhancing its course offerings to drive revenue growth. The management has expressed confidence that the recent financing arrangements will provide sufficient liquidity to meet operational needs over the next twelve months. However, the company acknowledges the challenges of converting registered users into paid subscribers and retaining existing customers as critical factors for future profitability.