BEIJING, Aug. 27, 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 second quarter ended June 30, 2026.
Second Quarter 2026 Highlights[1]
Net revenues were RMB1,670.1 million, increased by 20.2% from RMB1,389.4 million in the same period of 2025.Gross billings[2] were RMB2,689.1 million, increased by 19.4% from RMB2,252.4 million in the same period of 2025.Loss from operations was RMB149.8 million, compared with loss from operations of RMB241.9 million in the same period of 2025.Net loss was RMB135.8 million, compared with net loss of RMB216.0 million in the same period of 2025.Non-GAAP net loss was RMB129.1 million, compared with non-GAAP net loss of RMB206.8 million in the same period of 2025.Net operating cash inflow was RMB861.2 million, increased by 46.3% from RMB588.8 million in the same period of 2025.
Second Quarter 2026 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the three months ended June 30,
2025
2026
Pct. Change
Net revenues
1,389,388
1,670,074
20.2
%
Gross billings
2,252,387
2,689,052
19.4
%
Loss from operations
(241,865)
(149,798)
(38.1)
%
Net loss
(215,994)
(135,846)
(37.1)
%
Non-GAAP net loss
(206,849)
(129,056)
(37.6)
%
Net operating cash inflow
588,797
861,156
46.3
%
[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.
Six Months Ended June 30, 2026 Highlights
Net revenues were RMB3,359.5 million, increased by 16.6% from RMB2,882.4 million in the same period of 2025.Gross billings[2] were RMB3,685.3 million, increased by 17.3% from RMB3,141.1 million in the same period of 2025.Loss from operations was RMB142.9 million, compared with loss from operations of RMB207.1 million in the same period of 2025.Net loss was RMB101.3 million, compared with net loss of RMB92.0 million in the same period of 2025.Non-GAAP net loss was RMB87.6 million, compared with non-GAAP net loss of RMB69.5 million in the same period of 2025.Net operating cash inflow was RMB32.8 million, compared with net operating cash inflow of RMB111.6 million in the same period of 2025.
First Six Months 2026 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the six months ended June 30,
2025
2026
Pct. Change
Net revenues
2,882,431
3,359,549
16.6
%
Gross billings
3,141,112
3,685,314
17.3
%
Loss from operations
(207,092)
(142,925)
(31.0)
%
Net loss
(92,003)
(101,335)
10.1
%
Non-GAAP net loss
(69,510)
(87,640)
26.1
%
Net operating cash inflow
111,560
32,798
(70.6)
%
Larry Xiangdong Chen, the Company’s founder, Chairman and CEO, commented, “Our sustained, user-focused investments in educational products, learning services, and organizational capabilities are steadily translating into healthier unit economics and a more efficient operating system. In the second quarter, net revenues increased by 20.2% year over year to nearly RMB1.7 billion, and non-GAAP loss from operations narrowed significantly by 38.5%. We are embedding AI more deeply across our teaching, services, and operational processes to gain actionable insights from users’ learning patterns, interactions and feedback, continually enhancing our product experience, service efficiency, and organizational productivity. Additionally, the brand equity and user trust we have cultivated online are driving our offline expansion, while the high-touch service experience delivered offline, in turn, is deepening our brand awareness and user engagement. Together, these dynamics create a growth flywheel in which data, experience, and brand continuously fuel one another.
We also remain committed to returning value to shareholders: as of August 26, 2026, we had repurchased RMB741.8 million under our aggregated share repurchase programs. We will continue to prioritize users’ long-term growth, harness advanced technology to elevate our service capabilities, and navigate the evolving market dynamics with operational discipline, enhancing long-term shareholder value.”
Robin Bin Luo, COO of the Company, added, “In the second quarter, we continued to upgrade our educational products and services and strengthen our teacher development system, expanding our user base and delivering long-term user value. Notably, we have deepened the integration of AI and digital tools in our business, driving ongoing efficiency gains across the entire user acquisition funnel and our middle and back-office operations, unlocking greater operating leverage and reducing operating expenses as a percentage of net revenues by 7.9 percentage points year over year. Our net operating cash inflow increased by 46.3% year over year to RMB861.2 million during the quarter, reflecting the broad-based improvements in our organizational capabilities and operating efficiency. As of June 30, 2026, excluding the impact of share repurchases, our cash and cash equivalents, restricted cash, and short-term and long-term investments increased by RMB354.6 million year over year. Going forward, profitable growth remains our top priority. As such, while maintaining a premium user experience and high-quality services, we will allocate resources with greater discipline to drive healthier and more sustainable growth across all business segments.”
Financial Results for the Second Quarter of 2026
Net Revenues
Net revenues increased by 20.2% to RMB1,670.1 million from RMB1,389.4 million in the second quarter of 2025, which was mainly due to 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 Revenues
Cost of revenues increased by 18.3% to RMB559.2 million from RMB472.8 million in the second quarter of 2025. The increase was mainly due to the expansion of instructors and tutors workforce, increased server and bandwidth cost, higher rental cost, and increased depreciation and amortization cost.
Gross Profit and Gross Margin
Gross profit increased by 21.2% to RMB1,110.8 million from RMB916.5 million in the second quarter of 2025. Gross profit margin increased to 66.5% from 66.0% in the same period of 2025.
Non-GAAP gross profit increased by 21.1% to RMB1,111.5 million from RMB917.9 million in the second quarter of 2025. Non-GAAP gross profit margin increased to 66.6% from 66.1% in the same period of 2025.
Operating Expenses
Operating expenses increased by 8.8% to RMB1,260.6 million from RMB1,158.4 million in the second quarter of 2025. The increase was primarily due to higher expenditures on marketing and branding activities, as well as the expansion of employees workforce.
Selling expenses increased to RMB913.2 million from RMB820.9 million in the second quarter of 2025.Research and development expenses increased to RMB154.8 million from RMB148.2 million in the second quarter of 2025.General and administrative expenses increased to RMB192.6 million from RMB189.3 million in the second quarter of 2025.
Loss from Operations
Loss from operations was RMB149.8 million, compared with loss from operations of RMB241.9 million in the second quarter of 2025.
Non-GAAP loss from operations was RMB143.0 million, compared with non-GAAP loss from operations of RMB232.7 million in the second quarter of 2025.
Interest Income, Net and Realized Gains from Investments
Interest income, net and realized gains from investments, in the aggregate, were RMB8.1 million, compared with a total of RMB19.1 million in the second quarter of 2025.
Other Income, Net
Other income, net was RMB4.8 million, compared with other income, net of RMB5.6 million in the second quarter of 2025.
Net Loss
Net loss was RMB135.8 million, compared with net loss of RMB216.0 million in the second quarter of 2025.
Non-GAAP net loss was RMB129.1 million, compared with non-GAAP net loss of RMB206.8 million in the second quarter of 2025.
Cash Flow
Net operating cash inflow in the second quarter of 2026 was RMB861.2 million.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both RMB0.57 in the second quarter of 2026.
Non-GAAP basic and diluted net loss per ADS were both RMB0.54 in the second quarter of 2026.
Shares Outstanding
As of June 30, 2026, the Company had 156,703,879 ordinary shares outstanding.
Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments
As of June 30, 2026, the Company had cash and cash equivalents, restricted cash, short-term and long-term investments of RMB3,992.9 million in aggregate, compared with a total of RMB3,972.5 million as of December 31, 2025.
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 August 26, 2026, the Company had cumulatively repurchased approximately 36.5 million ADSs for approximately US$103.5 million under the aforesaid two share repurchase programs.
Business Outlook
Based on the Company’s current estimates, total net revenues for the third quarter of 2026 are expected to be between RMB1,838 million and RMB1,858 million, representing an increase of 16.4% to 17.7% 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 Thursday, August 27, 2026 (8:00 PM Beijing/Hong Kong Time on Thursday, August 27, 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: 852-58081995
Mainland China: 400-120-6115
Passcode: 8246246
A telephone replay will be available two hours after the conclusion of the conference call through September 3, 2026. The dial-in details are:
International: 1-412-317-0088
United States: 1-855-669-9658
Passcode: 4110808
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 RMB6.7851 to USD1.0000, the effective noon buying rate for June 30, 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 June 30, 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 June 30,
2025
2026
2026
RMB
RMB
USD
ASSETS
Current assets
Cash and cash equivalents
596,195
872,542
128,597
Restricted cash
115,828
57,069
8,411
Short-term investments
2,708,788
2,420,350
356,715
Inventory, net
54,950
49,383
7,278
Amounts due from related party
–
7,500
1,105
Prepaid expenses and other current assets, net
504,779
459,159
67,672
Total current assets
3,980,540
3,866,003
569,778
Non-current assets
Operating lease right-of-use assets
476,705
459,425
67,711
Property, equipment and software, net
1,009,132
1,165,675
171,799
Land use rights, net
78,105
77,158
11,372
Long-term investments
551,641
642,908
94,753
Rental deposit
49,199
46,331
6,828
Other non-current assets
54,364
49,967
7,364
TOTAL ASSETS
6,199,686
6,307,467
929,605
LIABILITIES
Current liabilities
Short-term borrowings of the consolidated VIEs without recourse
to the Group
100,000
380,098
56,020
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
RMB1,010,653 as of December 31, 2025 and June 30,
2026, respectively)
1,537,477
1,451,609
213,941
Amounts due to related party of the consolidated VIEs without
recourse to the Group
181,757
151,864
22,382
Deferred revenue, current portion (including current portion of
deferred revenue of the consolidated VIEs without recourse to the
Group of RMB2,288,255 and RMB2,365,154 as of December
31, 2025 and June 30, 2026, respectively)
2,289,322
2,367,027
348,857
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 RMB140,449
as of December 31, 2025 and June 30, 2026, respectively)
136,709
149,181
21,987
Income tax payable (including income tax payable of the
consolidated VIEs without recourse to the Group of RMB171
and RMB250 as of December 31, 2025 and June 30, 2026,
respectively)
222
288
42
Total current liabilities
4,245,487
4,500,067
663,229
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 June 30,
2025
2026
2026
RMB
RMB
USD
Non-current liabilities
Deferred revenue, non-current portion of the consolidated VIEs
without recourse to the Group
276,620
244,224
35,994
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 RMB280,444 as of December 31, 2025 and June 30,
2026, respectively)
316,703
287,881
42,428
Deferred tax liabilities (including deferred tax liabilities of the
consolidated VIEs without recourse to the Group of RMB75,248
and RMB73,666 as of December 31, 2025 and June 30,
2026, respectively)
75,248
73,669
10,857
Long-term borrowings of the consolidated VIEs without recourse
to the Group
31,883
155,171
22,869
TOTAL LIABILITIES
4,945,941
5,261,012
775,377
SHAREHOLDERS’ EQUITY
Ordinary shares
116
116
17
Treasury stock, at cost
(496,132)
(550,663)
(81,158)
Additional paid-in capital
7,933,515
7,916,467
1,166,743
Accumulated other comprehensive loss
(48,072)
(82,448)
(12,151)
Statutory reserve
66,042
66,042
9,733
Accumulated deficit
(6,201,724)
(6,303,059)
(928,956)
TOTAL SHAREHOLDERS’ EQUITY
1,253,745
1,046,455
154,228
TOTAL LIABILITIES AND TOTAL
SHAREHOLDERS’ EQUITY
6,199,686
6,307,467
929,605
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 June 30,
For the six months ended June 30,
2025
2026
2026
2025
2026
2026
RMB
RMB
USD
RMB
RMB
USD
Net revenues
1,389,388
1,670,074
246,138
2,882,431
3,359,549
495,136
Cost of revenues
(472,840)
(559,227)
(82,420)
(925,301)
(1,074,042)
(158,294)
Gross profit
916,548
1,110,847
163,718
1,957,130
2,285,507
336,842
Operating expenses:
Selling expenses
(820,946)
(913,228)
(134,593)
(1,530,367)
(1,757,339)
(259,000)
Research and development expenses
(148,195)
(154,790)
(22,813)
(298,650)
(313,746)
(46,240)
General and administrative expenses
(189,272)
(192,627)
(28,390)
(335,205)
(357,347)
(52,666)
Total operating expenses
(1,158,413)
(1,260,645)
(185,796)
(2,164,222)
(2,428,432)
(357,906)
Loss from operations
(241,865)
(149,798)
(22,078)
(207,092)
(142,925)
(21,064)
Interest income, net
9,935
3,713
547
22,976
12,740
1,878
Realized gains from investments
9,182
4,398
648
13,220
13,301
1,960
Other income, net
5,621
4,837
713
77,201
13,472
1,986
Loss before provision for income
tax and share of results of equity
investees
(217,127)
(136,850)
(20,170)
(93,695)
(103,412)
(15,240)
Income tax benefits
1,133
1,004
148
1,692
2,077
306
Net loss
(215,994)
(135,846)
(20,022)
(92,003)
(101,335)
(14,934)
Net loss attributable to Gaotu
Techedu Inc.’s ordinary
shareholders
(215,994)
(135,846)
(20,022)
(92,003)
(101,335)
(14,934)
Net loss per ordinary share
Basic
(1.32)
(0.86)
(0.13)
(0.56)
(0.64)
(0.09)
Diluted
(1.32)
(0.86)
(0.13)
(0.56)
(0.64)
(0.09)
Net loss per ADS
Basic
(0.88)
(0.57)
(0.09)
(0.37)
(0.43)
(0.06)
Diluted
(0.88)
(0.57)
(0.09)
(0.37)
(0.43)
(0.06)
Weighted average shares used in
net loss per share
Basic
163,339,258
158,009,576
158,009,576
165,033,053
158,581,885
158,581,885
Diluted
163,339,258
158,009,576
158,009,576
165,033,053
158,581,885
158,581,885
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 June 30,
For the six months ended June 30,
2025
2026
2026
2025
2026
2026
RMB
RMB
USD
RMB
RMB
USD
Net revenues
1,389,388
1,670,074
246,138
2,882,431
3,359,549
495,136
Less: other revenues(1)
22,092
24,354
3,589
36,916
48,200
7,104
Add: VAT and surcharges
85,782
189,473
27,925
179,158
324,034
47,757
Add: ending deferred revenue
2,196,993
2,611,251
384,851
2,196,993
2,611,251
384,851
Add: ending refund liability
133,308
130,435
19,224
133,308
130,435
19,224
Less: beginning deferred revenue
1,444,967
1,792,693
264,210
2,085,893
2,565,942
378,173
Less: beginning refund liability
86,025
95,134
14,021
127,969
125,813
18,543
Gross billings
2,252,387
2,689,052
396,318
3,141,112
3,685,314
543,148
Note (1): Include miscellaneous revenues generated from services other than courses.
For the three months ended June 30,
For the six months ended June 30,
2025
2026
2026
2025
2026
2026
RMB
RMB
USD
RMB
RMB
USD
Gross profit
916,548
1,110,847
163,718
1,957,130
2,285,507
336,842
Share-based compensation expenses(1) in cost of revenues
1,353
689
102
3,463
1,123
166
Non-GAAP gross profit
917,901
1,111,536
163,820
1,960,593
2,286,630
337,008
Loss from operations
(241,865)
(149,798)
(22,078)
(207,092)
(142,925)
(21,064)
Share-based compensation expenses(1)
9,145
6,790
1,001
22,493
13,695
2,018
Non-GAAP loss from operations
(232,720)
(143,008)
(21,077)
(184,599)
(129,230)
(19,046)
Net loss
(215,994)
(135,846)
(20,022)
(92,003)
(101,335)
(14,934)
Share-based compensation expenses(1)
9,145
6,790
1,001
22,493
13,695
2,018
Non-GAAP net loss
(206,849)
(129,056)
(19,021)
(69,510)
(87,640)
(12,916)
Note (1): The tax effects of share-based compensation expenses adjustments were nil.
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SOURCE Gaotu Techedu Inc.
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