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Gaotu Techedu Announces Third Quarter 2025 Unaudited Financial Results

By PR Newswire | November 26, 2025, 1:11 AM

BEIJING, Nov. 26, 2025 /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 third quarter ended September 30, 2025.

Third Quarter 2025 Highlights[1]

  • Net revenues were RMB1,579.0 million, increased by 30.7% from RMB1,208.3 million in the same period of 2024.
  • Gross billings[2] were RMB1,188.9 million, increased by 11.2% from RMB1,069.2 million in the same period of 2024.
  • Loss from operations was RMB178.0 million, compared with loss from operations of RMB490.1 million in the same period of 2024.
  • Net loss was RMB147.1 million, compared with net loss of RMB471.3 million in the same period of 2024.
  • Non-GAAP net loss was RMB137.7 million, compared with non-GAAP net loss of RMB457.2 million in the same period of 2024.
  • Net operating cash outflow was RMB660.2 million, compared with net operating cash outflow of RMB714.4 million in the same period of 2024.

Third Quarter 2025 Key Financial and Operating Data

(In thousands of RMB, except for percentages)



For the three months ended September 30,





2024







2025





Pct. Change

Net revenues



1,208,253







1,579,026





30.7 %

Gross billings



1,069,159







1,188,909





11.2 %

Loss from operations



(490,107)







(178,025)





(63.7) %

Net loss



(471,273)







(147,121)





(68.8) %

Non-GAAP net loss



(457,195)







(137,745)





(69.9) %

Net operating cash outflow



(714,385)







(660,230)





(7.6) %



[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.

Nine Months Ended September 30, 2025 Highlights

  • Net revenues were RMB4,461.5 million, increased by 41.0% from RMB3,164.9 million in the same period of 2024.
  • Gross billings were RMB4,330.0 million, increased by 25.4% from RMB3,452.2 million in the same period of 2024.
  • Loss from operations was RMB385.1 million, compared with loss from operations of RMB1,032.6 million in the same period of 2024.
  • Net loss was RMB239.1 million, compared with net loss of RMB913.1 million in the same period of 2024.
  • Non-GAAP net loss was RMB207.3 million, compared with non-GAAP net loss of RMB872.2 million in the same period of 2024.
  • Net operating cash outflow was RMB548.7 million, compared with net operating outflow of RMB525.6 million in the same period of 2024.

First Nine Months 2025 Key Financial and Operating Data

(In thousands of RMB, except for percentages)



For the nine months ended September 30,





2024







2025





Pct. Change

Net revenues



3,164,935







4,461,457





41.0 %

Gross billings



3,452,211







4,330,021





25.4 %

Loss from operations



(1,032,559)







(385,117)





(62.7) %

Net loss



(913,120)







(239,124)





(73.8) %

Non-GAAP net loss



(872,196)







(207,255)





(76.2) %

Net operating cash outflow



(525,636)







(548,670)





4.4 %

Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented, "With a profound focus on user needs, Gaotu continues to provide end-to-end educational products and solutions across the full learning lifecycle. We have deeply integrated online and offline formats and accelerated full-stack AI integration across our teaching, services, and operations to provide users with increasingly differentiated and personalized services. In the third quarter, we achieved sustained growth momentum and enhanced profitability. Our revenue grew by 30.7% year over year to nearly RMB1.6 billion, while on a non-GAAP basis, both loss from operations and net loss narrowed significantly by 64.6% and 69.9%, respectively. Excluding the impact of share repurchases, our cash position improved year over year, strengthening our balance sheet and demonstrating our disciplined financial management. We also remained committed to delivering shareholder returns, completing our US$80 million share repurchase program initially launched in November 2022 this quarter and initiating the new US$100 million program approved in May. "

"Going forward, Gaotu will continue to pursue sustainable growth by strengthening our pipeline of high-quality teachers, enhancing execution and leveraging data-driven operations, delivering enduring, long-term value to all our stakeholders."

Shannon Shen, CFO of the Company, added, "In the third quarter, we sustained solid revenue growth while elevating our overall operational quality and efficiency. Operating expenses as a percentage of net revenues decreased significantly, improving by 27.6 percentage points year-over-year. Additionally, our user acquisition efficiency improved 12.8% year over year, and net operating cash outflow narrowed by approximately RMB54.2 million year over year, reflecting the early benefits of structured efficiency gains across our operations. Deferred revenue grew robustly to nearly RMB1.8 billion, up 23.2% year-over-year, providing greater visibility of revenue for the upcoming quarters. We will remain focused on driving high-quality, sustainable growth by optimizing unit economics, while enhancing our operational quality and resilience through continued product refinement, systematic teacher development and brand building."

Financial Results for the Third Quarter of 2025

Net Revenues

Net revenues increased by 30.7% to RMB1,579.0 million from RMB1,208.3 million in the third 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 strong market demand. Furthermore, our high-quality educational products and learning services resulted in improved recognition of our product and service offerings.

Cost of Revenues

Cost of revenues increased by 24.6% to RMB535.5 million from RMB429.8 million in the third 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 Margin

Gross profit increased by 34.0% to RMB1,043.5 million from RMB778.5 million in the third quarter of 2024. Gross profit margin increased to 66.1% from 64.4% in the same period of 2024.

Non-GAAP gross profit increased by 33.8% to RMB1,044.5 million from RMB780.7 million in the third quarter of 2024. Non-GAAP gross profit margin increased to 66.1% from 64.6% in the same period of 2024.

Operating Expenses

Operating expenses decreased by 3.7% to RMB1,221.5 million from RMB1,268.6 million in the third quarter of 2024. The decrease was primarily due to our precise efficiency management and implementation of cost reduction, which resulted in year-over-year decreases in personnel expenses of selling, general and administrative, as well as research and development function.

  • Selling expenses decreased to RMB873.4 million from RMB885.8 million in the third quarter of 2024.
  • Research and development expenses decreased to RMB162.9 million from RMB189.3 million in the third quarter of 2024.
  • General and administrative expenses decreased to RMB185.2 million from RMB193.5 million in the third quarter of 2024.

Loss from Operations

Loss from operations was RMB178.0 million, compared with loss from operations of RMB490.1 million in the third quarter of 2024.

Non-GAAP loss from operations was RMB168.6 million, compared with non-GAAP loss from operations of RMB476.0 million in the third quarter of 2024.

Interest Income and Realized Gains from Investments

Interest income and realized gains from investments, on aggregate, were RMB14.9 million, compared with a total of RMB21.7 million in the third quarter of 2024.

Other Income, net

Other income, net was RMB14.6 million, compared with other income, net of RMB4.0 million in the third quarter of 2024.

Net Loss

Net loss was RMB147.1 million, compared with net loss of RMB471.3 million in the third quarter of 2024.

Non-GAAP net loss was RMB137.7 million, compared with non-GAAP net loss of RMB457.2 million in the third quarter of 2024.

Cash Flow

Net operating cash outflow in the third quarter of 2025 was RMB660.2 million.

Basic and Diluted Net Loss per ADS

Basic and diluted net loss per ADS were both RMB0.61 in the third quarter of 2025.

Non-GAAP basic and diluted net loss per ADS were both RMB0.57 in the third quarter of 2025.

Share Outstanding

As of September 30, 2025, the Company had 161,367,979 ordinary shares outstanding.

Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments

As of September 30, 2025, the Company had cash and cash equivalents, restricted cash, short-term and long-term investments of RMB3,040.4 million in aggregate, compared with a total of RMB4,094.3 million as of December 31, 2024.

Acquisition of Property

In November 2025, the Company entered into an agreement to acquire 100% of equity interest of Zhengzhou You'ai Culture Technology Co., Ltd. ("Zhengzhou You'ai") for a consideration of RMB206.6 million. The underlying assets of Zhengzhou You'ai are four buildings currently under construction, which have been topped out in November 2025. The Company intends to utilize the buildings as a campus premise upon completion. The transaction is a related party transaction and has been approved by both the Company's board of directors and the audit committee of the board.

Share Repurchase

In 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 November 25, 2025, the Company had cumulatively repurchased approximately 27.5 million ADSs for approximately US$85.6 million under aforesaid two share repurchase programs.

Business Outlook

Based on the Company's current estimates, total net revenues for the fourth quarter of 2025 are expected to be between RMB1,628 million and RMB1,648 million, representing an increase of 17.2% to 18.7% on a year-over-year basis. These estimates reflect the Company's current expectations, which are subject to change.

Conference Call

The Company will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, November 26, 2025 (9:00 PM Beijing/Hong Kong Time on Wednesday, November 26, 2025). 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: 5199067

A telephone replay will be available two hours after the conclusion of the conference call through December 3, 2025. The dial-in details are:

International: 1-412-317-0088

United States: 1-855-669-9658

Passcode: 2149536

Additionally, a live and archived webcast of this conference call will be available at https://ir.gaotu.cn/home.

Safe Harbor Statement

This 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 Measures

The 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 Rate

The 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 RMB7.1190 to USD1.0000, the effective noon buying rate for September 30, 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 September 30, 2025, or at any other rate.

For further information, please contact:

Gaotu Techedu Inc.

Investor Relations

E-mail: [email protected]

Piacente Financial Communications

Brandi Piacente

Tel: +1 212 481-2050

Jenny Cai

Tel: +86 10 6508-0677

E-mail: [email protected]

 

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 September 30,





2024





2025





2025





RMB





RMB





USD



ASSETS

















Current assets

















    Cash and cash equivalents



1,321,118







318,731







44,772



    Restricted cash



5,222







125,272







17,597



    Short-term investments



1,845,242







2,095,986







294,421



    Inventory, net



36,401







53,401







7,501



    Prepaid expenses and other current assets, net



431,829







526,989







74,026



Total current assets



3,639,812







3,120,379







438,317





















Non-current assets

















    Operating lease right-of-use assets



503,601







506,882







71,201



    Property, equipment and software, net



670,237







834,745







117,256



    Land use rights, net



25,762







45,424







6,381



    Long-term investments



922,740







500,401







70,291



    Rental deposit



45,834







49,271







6,921



    Other non-current assets



20,091







57,636







8,096



TOTAL ASSETS



5,828,077







5,114,738







718,463





















LIABILITIES



































Current liabilities

















    Short-term borrowings of the consolidated VIE

      without recourse to the Group



-







48,544







6,819



    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 RMB944,484 as of December 31, 2024

      and September 30, 2025, respectively)



1,245,207







1,320,853







185,539



    Deferred revenue, current portion (including

      current portion of deferred revenue of the

      consolidated VIE without recourse to the Group

      of RMB1,867,096 and RMB1,534,148

      as of December 31, 2024 and

      September 30, 2025, respectively)



1,867,096







1,534,246







215,515



   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

      RMB132,281 as of December 31, 2024 and

      September 30, 2025, respectively)



147,635







140,337







19,713



   Income tax payable (including income tax

      payable of the consolidated VIE without

      recourse to the Group of RMB606 and

      RMB39 as of December 31, 2024 and

      September 30, 2025, respectively)



665







88







12



Total current liabilities



3,260,603







3,044,068







427,598



 

 

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 September 30,





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







238,924







33,561



    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

      RMB332,307 as of December 31, 2024

      and September 30, 2025, respectively)



344,609







343,158







48,203



   Deferred tax liabilities (including deferred

      tax liabilities of the consolidated VIE

      without recourse to the Group of

      RMB70,316 and RMB76,056 as of

      December 31, 2024 and September 30, 

      2025, respectively)



70,604







76,073







10,686



TOTAL LIABILITIES



3,894,613







3,702,223







520,048





















SHAREHOLDERS' EQUITY

















    Ordinary shares



116







116







16



    Treasury stock, at cost



(242,866)







(461,340)







(64,804)



    Additional paid-in capital



7,991,421







7,950,976







1,116,867



    Accumulated other comprehensive loss



(2,832)







(25,738)







(3,615)



    Statutory reserve



66,042







66,042







9,277



    Accumulated deficit



(5,878,417)







(6,117,541)







(859,326)



TOTAL SHAREHOLDERS' EQUITY



1,933,464







1,412,515







198,415





















TOTAL LIABILITIES AND TOTAL

  SHAREHOLDERS' EQUITY



5,828,077







5,114,738







718,463



 

 

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 September 30,





For the nine months ended September 30,





2024





2025





2025





2024





2025





2025





RMB





RMB





USD





RMB





RMB





USD



Net revenues



1,208,253







1,579,026







221,804







3,164,935







4,461,457







626,697



Cost of revenues



(429,791)







(535,528)







(75,225)







(1,014,638)







(1,460,829)







(205,201)



Gross profit



778,462







1,043,498







146,579







2,150,297







3,000,628







421,496



Operating expenses:



































Selling expenses



(885,769)







(873,399)







(122,686)







(2,227,547)







(2,403,766)







(337,655)



Research and development expenses



(189,305)







(162,912)







(22,884)







(503,013)







(461,562)







(64,835)



General and administrative expenses



(193,495)







(185,212)







(26,017)







(452,296)







(520,417)







(73,103)



Total operating expenses



(1,268,569)







(1,221,523)







(171,587)







(3,182,856)







(3,385,745)







(475,593)



Loss from operations



(490,107)







(178,025)







(25,008)







(1,032,559)







(385,117)







(54,097)



Interest income



15,661







8,577







1,205







55,608







31,553







4,432



Realized gains from investments



6,001







6,346







891







20,285







19,566







2,748



Other income, net



3,964







14,621







2,054







52,220







91,822







12,898



Loss before provision for income

tax and share of results of equity

investees



(464,481)







(148,481)







(20,858)







(904,446)







(242,176)







(34,019)



Income tax (expenses)/benefits



(6,792)







1,360







191







(8,674)







3,052







429



Net loss



(471,273)







(147,121)







(20,667)







(913,120)







(239,124)







(33,590)



Net loss attributable to Gaotu

Techedu Inc.'s ordinary

shareholders



(471,273)







(147,121)







(20,667)







(913,120)







(239,124)







(33,590)



Net loss per ordinary share



































Basic



(2.75)







(0.91)







(0.13)







(5.30)







(1.46)







(0.20)



Diluted



(2.75)







(0.91)







(0.13)







(5.30)







(1.46)







(0.20)



Net loss per ADS



































Basic



(1.83)







(0.61)







(0.09)







(3.54)







(0.97)







(0.14)



Diluted



(1.83)







(0.61)







(0.09)







(3.54)







(0.97)







(0.14)



Weighted average shares used in

net loss per share



































Basic



171,135,287







161,927,833







161,927,833







172,165,794







163,986,613







163,986,613



Diluted



171,135,287







161,927,833







161,927,833







172,165,794







163,986,613







163,986,613





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 September 30,





For the nine months ended September 30,





2024





2025





2025





2024





2025





2025





RMB





RMB





USD





RMB





RMB





USD



Net revenues



1,208,253







1,579,026







221,804







3,164,935







4,461,457







626,697



Less: other revenues(1)



60,581







41,708







5,859







117,081







78,624







11,044



Add: VAT and surcharges



72,056







98,101







13,780







192,049







277,259







38,946



Add: ending deferred revenue



1,439,217







1,773,170







249,076







1,439,217







1,773,170







249,076



Add: ending refund liability



77,869







110,621







15,539







77,869







110,621







15,539



Less: beginning deferred revenue



1,582,135







2,196,993







308,610







1,237,621







2,085,893







293,004



Less: beginning refund liability



85,520







133,308







18,726







67,157







127,969







17,976



Gross billings



1,069,159







1,188,909







167,004







3,452,211







4,330,021







608,234





Note (1): Include miscellaneous revenues generated from services other than courses.







For the three months ended September 30,





For the nine months ended September 30,





2024





2025





2025





2024





2025





2025





RMB





RMB





USD





RMB





RMB





USD



Gross profit



778,462







1,043,498







146,579







2,150,297







3,000,628







421,496



Share-based compensation expenses(1) in

cost of revenues



2,265







1,017







143







4,543







4,480







629



Non-GAAP gross profit



780,727







1,044,515







146,722







2,154,840







3,005,108







422,125







































Loss from operations



(490,107)







(178,025)







(25,008)







(1,032,559)







(385,117)







(54,097)



Share-based compensation expenses(1)



14,078







9,376







1,317







40,924







31,869







4,477



Non-GAAP loss from operations



(476,029)







(168,649)







(23,691)







(991,635)







(353,248)







(49,620)







































Net loss



(471,273)







(147,121)







(20,667)







(913,120)







(239,124)







(33,590)



Share-based compensation expenses(1)



14,078







9,376







1,317







40,924







31,869







4,477



Non-GAAP net loss



(457,195)







(137,745)







(19,350)







(872,196)







(207,255)







(29,113)





Note (1): The tax effects of share-based compensation expenses adjustments were nil.

 

Cision
View original content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-third-quarter-2025-unaudited-financial-results-302626466.html

SOURCE Gaotu Techedu Inc.

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