US Market News
1月前
Gaotu Techedu Announces First Quarter 2026 Unaudited Financial ResultsJune 2, 2026 2:10 AM
PR Newswire (US) BEIJING, June 2, 2026 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) ("Gaotu" or the "Company"), a leading technology-driven education company in China focused on enabling lifelong learning through AI-powered solutions, today announced its unaudited financial results for the first quarter ended March 31, 2026.First Quarter 2026 Highlights[1]Net revenues were RMB1,689.5 million, increased by 13.2% from RMB1,493.0 million in the same period of 2025.Gross billings[2] were RMB996.3 million, increased by 12.1% from RMB888.7 million in the same period of 2025.Income from operations was RMB6.9 million, compared with income from operations of RMB34.8 million in the same period of 2025.Net income was RMB34.5 million, compared with net income of RMB124.0 million in the same period of 2025.Non-GAAP net income was RMB41.4 million, compared with non-GAAP net income of RMB137.3 million in the same period of 2025.Net operating cash outflow was RMB828.4 million, compared with net operating cash outflow of RMB477.2 million in the same period of 2025.First Quarter 2026 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the three months ended March 31,
2025
2026
Pct. ChangeNet revenues
1,493,043
1,689,475
13.2 %Gross billings
888,725
996,262
12.1 %Income from operations
34,773
6,873
(80.2) %Net income
123,991
34,511
(72.2) %Non-GAAP net income
137,339
41,416
(69.8) %Net operating cash outflow
(477,236)
(828,358)
73.6 %
[1] For a reconciliation of non-GAAP numbers, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" at the end of this press release. Non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses.[2] Gross billings is a non-GAAP financial measure, which is defined as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. See "About Non-GAAP Financial Measures" and "Reconciliations of non-GAAP measures to the most comparable GAAP measures" elsewhere in this press release.Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented, "Gaotu continued to drive profitable growth in the first quarter, while further strengthening its operational quality and long-term capabilities. Net revenues grew by 13.2% year over year to RMB1,689.5 million, with non-GAAP income from operations and non-GAAP net income reaching RMB13.8 million and RMB41.4 million, respectively. As AI becomes more deeply embedded across teaching, curriculum development, learning services and operations, we are accelerating the development of our 'Scale with AI' framework. This has enabled high-quality teaching services and educational products to be delivered more consistently and at greater scale, enhancing the user experience while unlocking organizational efficiency and operating leverage. Meanwhile, we remain committed to enhancing shareholder value, repurchasing approximately RMB704 million through our aggregated share repurchase programs as of June 1, 2026.In education, long-term value is built on user trust—earned through sustained engagement and high-quality delivery—which over time translates into higher retention, stronger word-of-mouth, and compounding brand equity. Looking ahead, Gaotu will continue to integrate technological innovation with our educational mission to better support users throughout their growth journey while creating sustainable long-term value for our shareholders."Bin Luo, COO of the Company, added, "During the quarter, we advanced our refined operations centered on user needs, product value, and service experience, achieving first-quarter profitability for the second consecutive year. R&D and G&A expenses as a percentage of net revenues declined by 0.7 percentage points year over year, reflecting continued improvements in management efficiency and organizational collaboration driven by AI capabilities. Deferred revenue totaled nearly RMB1.8 billion, up 24.1% year over year, providing clear visibility into revenue recognition in the coming quarters and supporting our full-year roadmap. We will continue to concentrate on product-market fit, service quality, and resource allocation, driving healthy and sustainable growth across each business segment according to its respective stage of development."Financial Results for the First Quarter of 2026Net RevenuesNet revenues increased by 13.2% to RMB1,689.5 million from RMB1,493.0 million in the first quarter of 2025, which was mainly due to the continued year-over-year growth in gross billings as a result of our sufficient and effective response to the strong market demand. Furthermore, our high-quality educational products and learning services resulted in improved recognition of our product and service offerings.Cost of RevenuesCost of revenues increased by 13.8% to RMB514.8 million from RMB452.5 million in the first quarter of 2025. The increase was mainly due to expansion of instructors and tutors workforce, increased learning materials cost, higher rental cost, and increased depreciation and amortization cost.Gross Profit and Gross MarginGross profit increased by 12.9% to RMB1,174.7 million from RMB1,040.6 million in the first quarter of 2025. Gross profit margin decreased to 69.5% from 69.7% in the same period of 2025.Non-GAAP gross profit increased by 12.7% to RMB1,175.1 million from RMB1,042.7 million in the first quarter of 2025. Non-GAAP gross profit margin decreased to 69.6% from 69.8% in the same period of 2025.Operating ExpensesOperating expenses increased by 16.1% to RMB1,167.8 million from RMB1,005.8 million in the first quarter of 2025. The increase was primarily due to a higher expenditure on marketing and branding activities, as well as the expansion of employees workforce.Selling expenses increased to RMB844.1 million from RMB709.4 million in the first quarter of 2025.Research and development expenses increased to RMB159.0 million from RMB150.5 million in the first quarter of 2025.General and administrative expenses increased to RMB164.7 million from RMB145.9 million in the first quarter of 2025.Income from OperationsIncome from operations was RMB6.9 million, compared with income from operations of RMB34.8 million in the first quarter of 2025.Non-GAAP income from operations was RMB13.8 million, compared with non-GAAP income from operations of RMB48.1 million in the first quarter of 2025.Interest Income and Realized Gains from InvestmentsInterest income and realized gains from investments, on aggregate, were RMB17.9 million, compared with a total of RMB17.1 million in the first quarter of 2025.Other Income, netOther income, net was RMB8.6 million, compared with other income, net of RMB71.6 million in the first quarter of 2025.Net IncomeNet income was RMB34.5 million, compared with net income of RMB124.0 million in the first quarter of 2025.Non-GAAP net income was RMB41.4 million, compared with non-GAAP net income of RMB137.3 million in the first quarter of 2025.Cash FlowNet operating cash outflow in the first quarter of 2026 was RMB828.4 million.Basic and Diluted Net Income per ADSBasic and diluted net income per ADS were both RMB0.14 in the first quarter of 2026.Non-GAAP basic and diluted net income per ADS were both RMB0.17 in the first quarter of 2026.Share OutstandingAs of March 31, 2026, the Company had 158,697,626 ordinary shares outstanding.Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term InvestmentsAs of March 31, 2026, the Company had cash and cash equivalents, restricted cash, short-term and long-term investments of RMB3,264.8 million in aggregate, compared with a total of RMB3,972.5 million as of December 31, 2025.Share RepurchaseIn November 2022, the Company's board of directors authorized a share repurchase program ("2022 Share Repurchase Program"), under which the Company may repurchase up to US$30 million of its shares, effective until November 22, 2025. In November 2023, the Company's board of directors authorized modifications to the share repurchase program, increasing the aggregate value of shares that may be repurchased from US$30 million to US$80 million, effective until November 22, 2025.As of September 22, 2025, the Company's repurchase amount had reached US$80 million and the 2022 Share Repurchase Program was completed.In May 2025, the Company's board of directors authorized a new share repurchase program ("2025 Share Repurchase Program"), under which the Company may repurchase up to an aggregate value of US$100 million of its shares during the three-year period beginning upon the completion of the Company's 2022 Share Repurchase Program.As of June 1, 2026, the Company had cumulatively repurchased approximately 33.1 million ADSs for approximately US$97.9 million under aforesaid two share repurchase programs.Business OutlookBased on the Company's current estimates, total net revenues for the second quarter of 2026 are expected to be between RMB1,578 million and RMB1,598 million, representing an increase of 13.6% to 15.0% on a year-over-year basis. These estimates reflect the Company's current expectations, which are subject to change.Conference CallThe Company will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, June 2, 2026 (8:00 PM Beijing/Hong Kong Time on Tuesday, June 2, 2026). Dial-in details for the earnings conference call are as follows:International: 1-412-317-6061
United States: 1-888-317-6003
Hong Kong: 800-963-976
Mainland China: 400-120-6115
Passcode: 3745949A telephone replay will be available two hours after the conclusion of the conference call through June 9, 2026. The dial-in details are:International: 1-412-317-0088
United States: 1-855-669-9658
Passcode: 1174517Additionally, a live and archived webcast of this conference call will be available at https://ir.gaotu.cn/home.Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to attract students to enroll in its courses; the Company's ability to continue to recruit, train and retain qualified teachers; the Company's ability to improve the content of its existing course offerings and to develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.About Gaotu Techedu Inc.Gaotu is a leading technology-driven education company in China focused on enabling lifelong learning through AI-powered solutions that cultivate interest and drive continuous growth. The Company provides AI-powered, product-led learning solutions for learners from pre-school to adulthood. By combining rare, high-caliber teaching resources with AI-enhanced tools and content, Gaotu creates engaging and effective learning experiences delivered through both online and offline channels. AI and data analytics permeate throughout the Company's operations to adapt content and teaching methods to individual learner needs, enhance efficiency and drive sustained learning progress.About Non-GAAP Financial MeasuresThe Company uses gross billings, non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss), each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.The Company defines gross billings for a specific period as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. The Company's management uses gross billings as a performance measurement because the Company generally bills its students for the entire course fee at the time of sale of its course offerings and recognizes revenue proportionally as the classes are delivered. For some courses, the Company continues to provide students with 12 months to 36 months access to the pre-recorded audio-video courses after the online live courses are delivered. The Company believes that gross billings provides valuable insight into the sales of its course packages and the performance of its business. As gross billings have material limitations as an analytical metrics and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.Non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business.The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.Exchange RateThe Company's business is primarily conducted in China and a significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("USD") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to USD are made at a rate of RMB6.8980 to USD1.0000, the effective noon buying rate for March 31, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on March 31, 2026, or at any other rate.For further information, please contact:Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn Piacente Financial Communications
Brandi Piacente
Tel: +1 212 481-2050
Jenny Cai
Tel: +86 10 6508-0677
E-mail: Gaotu@tpg-ir.com Gaotu Techedu Inc.Unaudited condensed consolidated balance sheets(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31,
As of March 31,
2025
2026
2026
RMB
RMB
USDASSETS
Current assets
Cash and cash equivalents
596,195
654,247
94,846 Restricted cash
115,828
36,947
5,356 Short-term investments
2,708,788
2,072,265
300,415 Inventory, net
54,950
43,268
6,273 Prepaid expenses and other current assets, net
504,779
474,136
68,735Total current assets
3,980,540
3,280,863
475,625
Non-current assets
Operating lease right-of-use assets
476,705
465,685
67,510 Property, equipment and software, net
1,009,132
1,083,610
157,090 Land use rights, net
78,105
77,631
11,254 Long-term investments
551,641
501,355
72,681 Rental deposit
49,199
46,033
6,673 Other non-current assets
54,364
52,343
7,588TOTAL ASSETS
6,199,686
5,507,520
798,421
LIABILITIES
Current liabilities
Short-term borrowings of the consolidated VIEs without recourse
to the Group
100,000
300,000
43,491 Accrued expenses and other current liabilities (including accrued
expenses and other current liabilities of the consolidated VIEs
without recourse to the Group of RMB1,131,781 and
RMB984,869 as of December 31, 2025 and March 31,
2026, respectively)
1,537,477
1,371,068
198,762 Amounts due to related party of the consolidated VIEs without
recourse to the Group
181,757
181,761
26,350 Deferred revenue, current portion (including current portion of
deferred revenue of the consolidated VIEs without recourse to the
Group of RMB2,288,255 and RMB1,626,993 as of December
31, 2025 and March 31, 2026, respectively)
2,289,322
1,628,710
236,113 Operating lease liabilities, current portion (including current
portion of operating lease liabilities of the consolidated VIEs
without recourse to the Group of RMB129,258 and RMB133,925
as of December 31, 2025 and March 31, 2026, respectively)
136,709
142,162
20,609 Income tax payable (including income tax payable of the
consolidated VIEs without recourse to the Group of RMB171
and RMB30 as of December 31, 2025 and March 31, 2026,
respectively)
222
79
11Total current liabilities
4,245,487
3,623,780
525,336 Gaotu Techedu Inc.Unaudited condensed consolidated balance sheets(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31,
As of March 31,
2025
2026
2026
RMB
RMB
USDNon-current liabilities
Deferred revenue, non-current portion of the consolidated VIEs
without recourse to the Group
276,620
163,983
23,773 Operating lease liabilities, non-current portion (including
non-current portion of operating lease liabilities of the
consolidated VIEs without recourse to the Group of RMB309,940
and RMB294,486 as of December 31, 2025 and March 31,
2026, respectively)
316,703
301,078
43,647 Deferred tax liabilities (including deferred tax liabilities of the
consolidated VIEs without recourse to the Group of RMB75,248
and RMB73,927 as of December 31, 2025 and March 31,
2026, respectively)
75,248
74,002
10,728 Long-term borrowings of the consolidated VIEs without recourse
to the Group
31,883
117,480
17,031TOTAL LIABILITIES
4,945,941
4,280,323
620,515
SHAREHOLDERS' EQUITY
Ordinary shares
116
116
17 Treasury stock, at cost
(496,132)
(518,775)
(75,207) Additional paid-in capital
7,933,515
7,918,181
1,147,895 Accumulated other comprehensive loss
(48,072)
(71,154)
(10,315) Statutory reserve
66,042
66,042
9,574 Accumulated deficit
(6,201,724)
(6,167,213)
(894,058)TOTAL SHAREHOLDERS' EQUITY
1,253,745
1,227,197
177,906
TOTAL LIABILITIES AND TOTAL
SHAREHOLDERS' EQUITY
6,199,686
5,507,520
798,421 Gaotu Techedu Inc.Unaudited condensed consolidated statements of operations (In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended March 31,
2025
2026
2026
RMB
RMB
USDNet revenues
1,493,043
1,689,475
244,922Cost of revenues
(452,461)
(514,815)
(74,633)Gross profit
1,040,582
1,174,660
170,289Operating expenses:
Selling expenses
(709,421)
(844,111)
(122,370)Research and development expenses
(150,455)
(158,956)
(23,044)General and administrative expenses
(145,933)
(164,720)
(23,879)Total operating expenses
(1,005,809)
(1,167,787)
(169,293)Income from operations
34,773
6,873
996Interest income
13,041
9,027
1,309Realized gains from investments
4,038
8,903
1,291Other income, net
71,580
8,635
1,252Income before provision for income tax and share of results of equity investees
123,432
33,438
4,848Income tax benefits
559
1,073
156Net income
123,991
34,511
5,004Net income attributable to Gaotu Techedu Inc.'s ordinary shareholders
123,991
34,511
5,004Net income per ordinary share
Basic
0.74
0.22
0.03Diluted
0.73
0.21
0.03Net income per ADS
Basic
0.50
0.14
0.02Diluted
0.49
0.14
0.02Weighted average shares used in net income per share
Basic
166,745,668
159,160,553
159,160,553Diluted
169,581,622
160,820,398
160,820,398
Note: Three ADSs represent two ordinary shares. Gaotu Techedu Inc.Reconciliations of non-GAAP measures to the most comparable GAAP measures(In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended March 31,
2025
2026
2026
RMB
RMB
USDNet revenues
1,493,043
1,689,475
244,922Less: other revenues(1)
14,824
23,846
3,457Add: VAT and surcharges
93,376
134,561
19,507Add: ending deferred revenue
1,444,967
1,792,693
259,886Add: ending refund liability
86,025
95,134
13,792Less: beginning deferred revenue
2,085,893
2,565,942
371,983Less: beginning refund liability
127,969
125,813
18,239Gross billings
888,725
996,262
144,428
Note (1): Include miscellaneous revenues generated from services other than courses.
For the three months ended March 31,
2025
2026
2026
RMB
RMB
USDGross profit
1,040,582
1,174,660
170,289Share-based compensation expenses(1) in cost of revenues
2,110
434
63Non-GAAP gross profit
1,042,692
1,175,094
170,352
Income from operations
34,773
6,873
996Share-based compensation expenses(1)
13,348
6,905
1,001Non-GAAP income from operations
48,121
13,778
1,997
Net income
123,991
34,511
5,004Share-based compensation expenses(1)
13,348
6,905
1,001Non-GAAP net income
137,339
41,416
6,005
Note (1): The tax effects of share-based compensation expenses adjustments were nil. View original content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-first-quarter-2026-unaudited-financial-results-302788046.htmlSOURCE Gaotu Techedu Inc. Original: Gaotu Techedu Announces First Quarter 2026 Unaudited Financial Results
US Market News
4月前
Gaotu Techedu Announces Fourth Quarter and Fiscal Year 2025 Unaudited Financial ResultsMarch 5, 2026 1:13 AM
PR Newswire (US)
BEIJING, March 5, 2026 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) ("Gaotu" or the "Company"), a leading technology-driven education company in China focused on enabling lifelong learning through AI-powered solutions, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025.Fourth Quarter 2025 Highlights[1]Net revenues were RMB1,685.3 million, increased by 21.4% from RMB1,388.6 million in the same period of 2024.Gross billings[2] were RMB2,573.7 million, increased by 19.1% from RMB2,160.2 million in the same period of 2024.Loss from operations was RMB118.0 million, compared with loss from operations of RMB149.3 million in the same period of 2024.Net loss was RMB84.2 million, compared with net loss of RMB135.8 million in the same period of 2024.Non-GAAP net loss was RMB76.8 million, compared with non-GAAP net loss of RMB123.5 million in the same period of 2024.Net operating cash inflow was RMB964.8 million, increased by 23.1% from RMB783.6 million in the same period of 2024.Fourth Quarter 2025 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the three months ended December 31,
2024
2025
Pct. ChangeNet revenues
1,388,621
1,685,315
21.4 %Gross billings
2,160,179
2,573,685
19.1 %Loss from operations
(149,274)
(118,049)
(20.9) %Net loss
(135,834)
(84,183)
(38.0) %Non-GAAP net loss
(123,541)
(76,834)
(37.8) %Net operating cash inflow
783,643
964,763
23.1 % [1] For a reconciliation of non-GAAP numbers, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" at the end of this press release. Non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses.[2] Gross billings is a non-GAAP financial measure, which is defined as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. See "About Non-GAAP Financial Measures" and "Reconciliations of non-GAAP measures to the most comparable GAAP measures" elsewhere in this press release.Fiscal Year 2025 HighlightsNet revenues were RMB6,146.8 million, increased by 35.0% from RMB4,553.6 million in the same period of 2024.Gross billings were RMB6,903.7 million, increased by 23.0% from RMB5,612.4 million in the same period of 2024.Loss from operations was RMB503.2 million, compared with loss from operations of RMB1,181.8 million in the same period of 2024.Net loss was RMB323.3 million, compared with net loss of RMB1,049.0 million in the same period of 2024.Non-GAAP net loss was RMB284.1 million, compared with non-GAAP net loss of RMB995.7 million in the same period of 2024.Net operating cash inflow was RMB416.1 million, increased by 61.3% from RMB258.0 million in the same period of 2024.Fiscal Year 2025 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the year ended December 31,
2024
2025
Pct. ChangeNet revenues
4,553,556
6,146,772
35.0 %Gross billings
5,612,390
6,903,706
23.0 %Loss from operations
(1,181,833)
(503,166)
(57.4) %Net loss
(1,048,954)
(323,307)
(69.2) %Non-GAAP net loss
(995,737)
(284,089)
(71.5) %Net operating cash inflow
258,007
416,094
61.3 %Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented, "2025 was a year of high-quality growth for Gaotu, with sharpened teaching quality, elevated operating efficiency and strengthened organizational capabilities enabling us to exceed our growth targets. For the full year 2025, revenue grew by 35.0% to RMB6.1 billion, exceeding our initial expectations at the beginning of 2025. Our operating net cash flow reached RMB416 million, a net increase of RMB158 million year over year. After excluding the impact of share repurchases, our cash position increased by RMB221 million year over year. For the fourth quarter, we maintained steady top-line expansion while realizing meaningful operating leverage, with revenue increasing by 21.4% year over year and bottom line improved by 38.0%, driven by continued efficiency gains. We remain firmly committed to enhancing long-term shareholder value. Under our aggregated share repurchase authorization, we have repurchased shares totaling about RMB670 million, representing 12.8% of our total outstanding shares, including RMB343 million in buybacks in 2025.As we enter 2026, we are prioritizing profitable growth, with the advancement of AI capabilities at the core of our operations — All with AI, always AI. Guided by a strong focus on business health, operational efficiency, and long-term viability, we remain committed to becoming an ed-tech company that accompanies learners across their full learning journey while creating sustainable value for shareholders and society."Shannon Shen, CFO of the Company, added, "Driven by both revenue scale expansion and operating efficiency gains, we have realized operating leverage for five consecutive quarters, resulting in continuous bottom line improvement. Throughout 2025, we also advanced our "AI + Education" integration strategy, significantly enhancing our educational products and end-to-end operational efficiency through the systematic optimization of our product portfolio and channel mix, underpinned by vertical AI as our foundation, learning solutions as our core value, and AI-powered organizational digitalization as our operational support. By prioritizing user experience and harnessing AI as a tool and medium to boost our organizational capacity and productivity, we are progressing from scale-oriented growth toward a more efficiency-led model, forging new engines for our profitable growth."Financial Results for the Fourth Quarter of 2025Net RevenuesNet revenues increased by 21.4% to RMB1,685.3 million from RMB1,388.6 million in the fourth quarter of 2024, which was mainly due to the continued year-over-year growth in gross billings as a result of our sufficient and effective response to the strong market demand. Furthermore, our high-quality educational products and learning services resulted in improved recognition of our product and service offerings.Cost of RevenuesCost of revenues increased by 22.8% to RMB540.9 million from RMB440.3 million in the fourth quarter of 2024. The increase was mainly due to expansion of instructors and tutors workforce, higher rental cost, and increased depreciation and amortization cost.Gross Profit and Gross MarginGross profit increased by 20.7% to RMB1,144.5 million from RMB948.3 million in the fourth quarter of 2024. Gross profit margin decreased to 67.9% from 68.3% in the same period of 2024.Non-GAAP gross profit increased by 20.5% to RMB1,145.6 million from RMB950.8 million in the fourth quarter of 2024. Non-GAAP gross profit margin decreased to 68.0% from 68.5% in the same period of 2024.Operating ExpensesOperating expenses increased by 15.0% to RMB1,262.5 million from RMB1,097.6 million in the fourth quarter of 2024. The increase was primarily due to a higher expenditure on marketing and branding activities, as well as the expansion of employees workforce.Selling expenses increased to RMB885.3 million from RMB736.2 million in the fourth quarter of 2024.Research and development expenses increased to RMB165.4 million from RMB145.1 million in the fourth quarter of 2024.General and administrative expenses decreased to RMB211.8 million from RMB216.4 million in the fourth quarter of 2024.Loss from OperationsLoss from operations was RMB118.0 million, compared with loss from operations of RMB149.3 million in the fourth quarter of 2024.Non-GAAP loss from operations was RMB110.7 million, compared with non-GAAP loss from operations of RMB137.0 million in the fourth quarter of 2024.Interest Income and Realized Gains from InvestmentsInterest income and realized gains from investments, on aggregate, were RMB22.9 million, compared with a total of RMB19.8 million in the fourth quarter of 2024.Other Income/(Expenses), netOther income, net was RMB9.9 million, compared with other expenses, net of RMB6.4 million in the fourth quarter of 2024.Net LossNet loss was RMB84.2 million, compared with net loss of RMB135.8 million in the fourth quarter of 2024.Non-GAAP net loss was RMB76.8 million, compared with non-GAAP net loss of RMB123.5 million in the fourth quarter of 2024.Cash FlowNet operating cash inflow in the fourth quarter of 2025 was RMB964.8 million.Basic and Diluted Net Loss per ADSBasic and diluted net loss per ADS were both RMB0.35 in the fourth quarter of 2025.Non-GAAP basic and diluted net loss per ADS were both RMB0.32 in the fourth quarter of 2025.Share OutstandingAs of December 31, 2025, the Company had 159,979,164 ordinary shares outstanding.Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term InvestmentsAs of December 31, 2025, the Company had cash and cash equivalents, restricted cash, short-term and long-term investments of RMB3,972.5 million in aggregate, compared with a total of RMB4,094.3 million as of December 31, 2024.Financial Results for the Fiscal Year of 2025Net RevenuesNet revenues increased by 35.0% to RMB6,146.8 million from RMB4,553.6 million in 2024. The increase was mainly due to the growth of gross billings in 2025.Cost of RevenuesCost of revenues increased by 37.6% to RMB2,001.7 million from RMB1,454.9 million in 2024. The increase was mainly due to expansion of instructors and tutors workforce, higher rental cost, and increased depreciation and amortization cost.Gross Profit and Gross MarginGross profit increased by 33.8% to RMB4,145.1 million from RMB3,098.6 million in 2024. Gross profit margin decreased to 67.4% from 68.0% in 2024.Non-GAAP gross profit increased by 33.7% to RMB4,150.7 million from RMB3,105.6 million in 2024. Non-GAAP gross profit margin decreased to 67.5% from 68.2% in 2024.Operating ExpensesOperating expenses increased by 8.6% to RMB4,648.2 million from RMB4,280.5 million in 2024. The increase was primarily due to the expansion of employees workforce and a higher expenditure on marketing and branding activities.Selling expenses increased to RMB3,289.1 million from RMB2,963.7 million in 2024.Research and development expenses decreased to RMB626.9 million from RMB648.1 million in 2024.General and administrative expenses increased to RMB732.2 million from RMB668.7 million in 2024.Loss from OperationsLoss from operations was RMB503.2 million, compared with loss from operations of RMB1,181.8 million in 2024.Non-GAAP loss from operations was RMB463.9 million, compared with non-GAAP loss from operations of RMB1,128.6 million in 2024.Interest Income and Realized Gains from InvestmentsInterest income and realized gains from investments, on aggregate, were RMB74.0 million, compared with a total of RMB95.7 million in 2024.Other Income, netOther income, net was RMB101.8 million, compared with other income, net of RMB45.8 million in 2024.Net LossNet loss was RMB323.3 million, compared with net loss of RMB1,049.0 million in 2024.Non-GAAP net loss was RMB284.1 million, compared with non-GAAP net loss of RMB995.7 million in 2024.Cash FlowNet operating cash inflow in 2025 was RMB416.1 million.Basic and Diluted Net Loss per ADSBasic and diluted net loss per ADS were both RMB1.32 in 2025.Non-GAAP basic and diluted net loss per ADS were both RMB1.16 in 2025.Share RepurchaseIn November 2022, the Company's board of directors authorized a share repurchase program ("2022 Share Repurchase Program"), under which the Company may repurchase up to US$30 million of its shares, effective until November 22, 2025. In November 2023, the Company's board of directors authorized modifications to the share repurchase program, increasing the aggregate value of shares that may be repurchased from US$30 million to US$80 million, effective until November 22, 2025.As of September 22, 2025, the Company's repurchase amount had reached US$80 million and the 2022 Share Repurchase Program was completed.In May 2025, the Company's board of directors authorized a new share repurchase program ("2025 Share Repurchase Program"), under which the Company may repurchase up to an aggregate value of US$100 million of its shares during the three-year period beginning upon the completion of the Company's 2022 Share Repurchase Program.As of March 4, 2026, the Company had cumulatively repurchased approximately 30.6 million ADSs for approximately US$93.0 million under aforesaid two share repurchase programs.Business OutlookBased on the Company's current estimates, total net revenues for the first quarter of 2026 are expected to be between RMB1,578 million and RMB1,598 million, representing an increase of 5.7% to 7.0% on a year-over-year basis. These estimates reflect the Company's current expectations, which are subject to change.Conference CallThe Company will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday, March 5, 2026 (9:00 PM Beijing/Hong Kong Time on Thursday, March 5, 2026). Dial-in details for the earnings conference call are as follows:International: 1-412-317-6061
United States: 1-888-317-6003
Hong Kong: 800-963-976
Mainland China: 400-120-6115
Passcode: 6408607A telephone replay will be available two hours after the conclusion of the conference call through March 12, 2026. The dial-in details are:International: 1-412-317-0088
United States: 1-855-669-9658
Passcode: 4998130Additionally, a live and archived webcast of this conference call will be available at https://ir.gaotu.cn/home.Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to attract students to enroll in its courses; the Company's ability to continue to recruit, train and retain qualified teachers; the Company's ability to improve the content of its existing course offerings and to develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.About Gaotu Techedu Inc.Gaotu is a leading technology-driven education company in China focused on enabling lifelong learning through AI-powered solutions that cultivate interest and drive continuous growth. The Company provides AI-powered, product-led learning solutions for learners from pre-school to adulthood. By combining rare, high-caliber teaching resources with AI-enhanced tools and content, Gaotu creates engaging and effective learning experiences delivered through both online and offline channels. AI and data analytics permeate throughout the Company's operations to adapt content and teaching methods to individual learner needs, enhance efficiency and drive sustained learning progress.About Non-GAAP Financial MeasuresThe Company uses gross billings, non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss), each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.The Company defines gross billings for a specific period as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. The Company's management uses gross billings as a performance measurement because the Company generally bills its students for the entire course fee at the time of sale of its course offerings and recognizes revenue proportionally as the classes are delivered. For some courses, the Company continues to provide students with 12 months to 36 months access to the pre-recorded audio-video courses after the online live courses are delivered. The Company believes that gross billings provides valuable insight into the sales of its course packages and the performance of its business. As gross billings have material limitations as an analytical metrics and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.Non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business.The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.Exchange RateThe Company's business is primarily conducted in China and a significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("USD") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to USD are made at a rate of RMB6.9931 to USD1.0000, the effective noon buying rate for December 31, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2025, or at any other rate.For further information, please contact:Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn Piacente Financial Communications
Brandi Piacente
Tel: +1 212 481-2050
Jenny Cai
Tel: +86 10 6508-0677
E-mail: Gaotu@tpg-ir.com Gaotu Techedu Inc.
Unaudited condensed consolidated balance sheets
(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31,
As of December 31,
2024
2025
2025
RMB
RMB
USD
ASSETS
Current assets
Cash and cash equivalents
1,321,118
596,195
85,255
Restricted cash
5,222
115,828
16,563
Short-term investments
1,845,242
2,708,788
387,352
Inventory, net
36,401
54,950
7,858
Prepaid expenses and other current assets, net
431,829
504,779
72,182
Total current assets
3,639,812
3,980,540
569,210
Non-current assets
Operating lease right-of-use assets
503,601
476,705
68,168
Property, equipment and software, net
670,237
1,009,132
144,304
Land use rights, net
25,762
78,105
11,169
Long-term investments
922,740
551,641
78,884
Rental deposit
45,834
49,199
7,035
Other non-current assets
20,091
54,364
7,774
TOTAL ASSETS
5,828,077
6,199,686
886,544
LIABILITIES
Current liabilities
Short-term borrowings of the consolidated VIE without recourse
to the Group
-
100,000
14,300
Accrued expenses and other current liabilities (including accrued
expenses and other current liabilities of the consolidated VIE
without recourse to the Group of RMB811,879 and RMB1,313,538
as of December 31, 2024 and December 31, 2025, respectively)
1,245,207
1,719,234
245,847
Deferred revenue, current portion (including current portion of
deferred revenue of the consolidated VIE without recourse to the
Group of RMB1,867,096 and RMB2,288,255 as of December
31, 2024 and December 31, 2025, respectively)
1,867,096
2,289,322
327,369
Operating lease liabilities, current portion (including current
portion of operating lease liabilities of the consolidated VIE
without recourse to the Group of RMB114,471 and RMB129,258
as of December 31, 2024 and December 31, 2025, respectively)
147,635
136,709
19,549
Income tax payable (including income tax payable of the
consolidated VIE without recourse to the Group of RMB606
and RMB171 as of December 31, 2024 and December 31, 2025,
respectively)
665
222
32
Total current liabilities
3,260,603
4,245,487
607,097
Gaotu Techedu Inc.
Unaudited condensed consolidated balance sheets
(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31,
As of December 31,
2024
2025
2025
RMB
RMB
USD
Non-current liabilities
Deferred revenue, non-current portion of the consolidated VIE
without recourse to the Group
218,797
276,620
39,556
Operating lease liabilities, non-current portion (including
non-current portion of operating lease liabilities of the
consolidated VIE without recourse to the Group of RMB337,258
and RMB309,940 as of December 31, 2024 and December 31,
2025, respectively)
344,609
316,703
45,288
Deferred tax liabilities (including deferred tax liabilities of the
consolidated VIE without recourse to the Group of RMB70,316
and RMB75,248 as of December 31, 2024 and December 31,
2025, respectively)
70,604
75,248
10,760
Long-term borrowings of the consolidated VIE without recourse
to the Group
-
31,883
4,559
TOTAL LIABILITIES
3,894,613
4,945,941
707,260
SHAREHOLDERS' EQUITY
Ordinary shares
116
116
17
Treasury stock, at cost
(242,866)
(496,132)
(70,946)
Additional paid-in capital
7,991,421
7,933,515
1,134,478
Accumulated other comprehensive loss
(2,832)
(48,072)
(6,874)
Statutory reserve
66,042
66,042
9,444
Accumulated deficit
(5,878,417)
(6,201,724)
(886,835)
TOTAL SHAREHOLDERS' EQUITY
1,933,464
1,253,745
179,284
TOTAL LIABILITIES AND TOTAL
SHAREHOLDERS' EQUITY
5,828,077
6,199,686
886,544
Gaotu Techedu Inc.
Unaudited condensed consolidated statements of operations
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended December 31,
For the year ended December 31,
2024
2025
2025
2024
2025
2025
RMB
RMB
USD
RMB
RMB
USD
Net revenues
1,388,621
1,685,315
240,997
4,553,556
6,146,772
878,977
Cost of revenues
(440,279)
(540,864)
(77,343)
(1,454,917)
(2,001,693)
(286,238)
Gross profit
948,342
1,144,451
163,654
3,098,639
4,145,079
592,739
Operating expenses:
Selling expenses
(736,189)
(885,298)
(126,596)
(2,963,736)
(3,289,064)
(470,330)
Research and development expenses
(145,050)
(165,385)
(23,650)
(648,063)
(626,947)
(89,652)
General and administrative expenses
(216,377)
(211,817)
(30,289)
(668,673)
(732,234)
(104,708)
Total operating expenses
(1,097,616)
(1,262,500)
(180,535)
(4,280,472)
(4,648,245)
(664,690)
Loss from operations
(149,274)
(118,049)
(16,881)
(1,181,833)
(503,166)
(71,951)
Interest income
14,776
8,366
1,196
70,384
39,919
5,708
Realized gains from investments
5,017
14,499
2,073
25,302
34,065
4,871
Other (expenses)/income, net
(6,395)
9,942
1,422
45,825
101,764
14,552
Loss before provision for income
tax and share of results of equity
investees
(135,876)
(85,242)
(12,190)
(1,040,322)
(327,418)
(46,820)
Income tax benefits/(expenses)
42
1,059
151
(8,632)
4,111
588
Net loss
(135,834)
(84,183)
(12,039)
(1,048,954)
(323,307)
(46,232)
Net loss attributable to Gaotu
Techedu Inc.'s ordinary
shareholders
(135,834)
(84,183)
(12,039)
(1,048,954)
(323,307)
(46,232)
Net loss per ordinary share
Basic
(0.80)
(0.52)
(0.07)
(6.12)
(1.98)
(0.28)
Diluted
(0.80)
(0.52)
(0.07)
(6.12)
(1.98)
(0.28)
Net loss per ADS
Basic
(0.53)
(0.35)
(0.05)
(4.08)
(1.32)
(0.19)
Diluted
(0.53)
(0.35)
(0.05)
(4.08)
(1.32)
(0.19)
Weighted average shares used in
net loss per share
Basic
169,167,503
160,543,202
160,543,202
171,412,125
163,118,684
163,118,684
Diluted
169,167,503
160,543,202
160,543,202
171,412,125
163,118,684
163,118,684
Note: Three ADSs represent two ordinary shares.
Gaotu Techedu Inc.
Reconciliations of non-GAAP measures to the most comparable GAAP measures
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended December 31,
For the year ended December 31,
2024
2025
2025
2024
2025
2025
RMB
RMB
USD
RMB
RMB
USD
Net revenues
1,388,621
1,685,315
240,997
4,553,556
6,146,772
878,977
Less: other revenues(1)
16,510
29,114
4,163
133,591
107,738
15,406
Add: VAT and surcharges
91,292
109,520
15,661
283,341
386,779
55,309
Add: ending deferred revenue
2,085,893
2,565,942
366,925
2,085,893
2,565,942
366,925
Add: ending refund liability
127,969
125,813
17,991
127,969
125,813
17,991
Less: beginning deferred
revenue
1,439,217
1,773,170
253,560
1,237,621
2,085,893
298,279
Less: beginning refund liability
77,869
110,621
15,819
67,157
127,969
18,299
Gross billings
2,160,179
2,573,685
368,032
5,612,390
6,903,706
987,218
Note (1): Include miscellaneous revenues generated from services other than courses.
For the three months ended December 31,
For the year ended December 31,
2024
2025
2025
2024
2025
2025
RMB
RMB
USD
RMB
RMB
USD
Gross profit
948,342
1,144,451
163,654
3,098,639
4,145,079
592,739
Share-based compensation expenses(1) in cost
of revenues
2,460
1,161
166
7,003
5,641
807
Non-GAAP gross profit
950,802
1,145,612
163,820
3,105,642
4,150,720
593,546
Loss from operations
(149,274)
(118,049)
(16,881)
(1,181,833)
(503,166)
(71,951)
Share-based compensation expenses(1)
12,293
7,349
1,051
53,217
39,218
5,608
Non-GAAP loss from operations
(136,981)
(110,700)
(15,830)
(1,128,616)
(463,948)
(66,343)
Net loss
(135,834)
(84,183)
(12,039)
(1,048,954)
(323,307)
(46,232)
Share-based compensation expenses(1)
12,293
7,349
1,051
53,217
39,218
5,608
Non-GAAP net loss
(123,541)
(76,834)
(10,988)
(995,737)
(284,089)
(40,624)
Note (1): The tax effects of share-based compensation expenses adjustments were nil.
View original content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-fourth-quarter-and-fiscal-year-2025-unaudited-financial-results-302704957.htmlSOURCE Gaotu Techedu Inc.
Original: Gaotu Techedu Announces Fourth Quarter and Fiscal Year 2025 Unaudited Financial Results
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