The 25 were the last to be freed of a group of 153 schoolchildren kidnapped by IS in northern Aleppo province on May 29, the Britain-based monitoring group said.
The group of children, most aged between 13 and 15, was intercepted and taken hostage en route to their hometown of Kobane, also known as Ain al-Arab, after sitting exams in Aleppo city.
In the weeks after, five children managed to escape and another 37 were released in batches, including 10 girls among the group.
Observatory director Rami Abdel Rahman told AFP several children had been released individually since the group of 70 was freed in September, and that today's release represented the last of the child hostages.
The releases come despite ongoing clashes between IS and Kurdish forces for control of Kobane, a strategic town on the Syria-Turkey border.
Kurdish forces have so far kept IS from overrunning the town, but have relied on US-led air support and US arms drops.
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