NYSE$GOTU

Gaotu Techedu Inc. · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Gaotu Q2 revenue grows 38% to RMB1.39B as operating loss narrows 48% on efficiency gains

Gaotu Techedu reported second-quarter 2025 net revenues of RMB1.39 billion, up 37.6% year over year, with gross billings rising 36.2% to RMB2.25 billion on sustained demand for its AI-powered learning services. The company narrowed its operating loss to RMB242 million from RMB465 million a year ago and reduced non-GAAP net loss to RMB207 million from RMB418 million. Gross margin was 66.0% versus 69.0% in Q2 2024. Net operating cash inflow was RMB589 million, up 52.5% year over year. Cash, restricted cash and investments totaled RMB3.82 billion at June 30, 2025. Management guided third-quarter 2025 net revenues to RMB1.56–1.58 billion, representing 28.9%–30.6% year-over-year growth.

  • Net revenues RMB1.39B (+37.6% YoY); gross billings RMB2.25B (+36.2%)
  • Operating loss narrowed to RMB242M from RMB465M; non-GAAP net loss RMB207M (-50.5% YoY)
  • Net operating cash inflow RMB589M (+52.5%); cash and investments RMB3.82B
  • G&A and R&D expenses declined as a percentage of revenue for the second consecutive quarter
  • Q3 2025 revenue guidance RMB1.56B–1.58B (+29%–31% YoY)

Headline financials

Total Revenue

¥1.39B

Previous: ¥139M+896.5%
EPS (adj)

-¥0.84

Previous: -¥0.22-281.8%
Gross billings

¥2.25B

No prior period
Gross margin

66.0%

No prior period
Net operating cash inflow

¥589M

No prior period
Net Income

-¥216M

Previous: -¥59.3M-264.2%
Operating Income

-¥242M

Previous: -¥64.2M-276.9%
Cash & Equivalents

¥814M

No prior period

Revenue & EPS history

Gaotu · Revenue · Quarterly

¥1.39B

Q2 2025+896.5%vs Q2 2024
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Forward guidance

For Q3 2025, Gaotu expects net revenues of RMB1.56 billion to RMB1.58 billion, up 28.9% to 30.6% year over year.

Tailwinds

  • Revenue beat the high end of prior guidance by 5.4%
  • Customer acquisition efficiency at best level in four years

Headwinds

  • Still operating at a net loss despite narrowing losses
  • Gross margin compressed to 66.0% from 69.0% a year ago

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-1.9%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+7.8%

Avg return

30 days after

29%

8 / 28 earnings

Positive

+34.7%

Q4 2021

Best reaction

-33.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.0%-4.1%
Q3 2025-8.1%-7.3%-10.3%
Q2 2025-0.3%+3.2%-13.2%
Q1 2025+0.3%+0.3%+2.1%
Q3 2024-14.4%-11.7%-28.2%
Q2 2024-33.8%-22.1%-9.1%
Q1 2024-19.9%-23.8%-40.7%
Q4 2023+28.6%+36.2%+10.3%
Q3 2023-7.4%-10.3%+23.9%
Q2 2023-17.9%-16.2%-21.4%
Q1 2023-5.2%+12.0%+16.9%
Q4 2022-0.9%+47.0%+25.1%
Q3 2022+0.0%-0.9%+270.8%
Q2 2022+0.0%-6.1%-27.6%
Q1 2022+21.2%+35.6%+40.9%
Q4 2021+34.7%+6.9%+20.8%
Q3 2021-12.4%-16.5%+0.0%
Q2 2021+25.6%+28.0%+36.2%
Q1 2021-3.9%-7.1%-26.9%
Q4 2020+2.4%-3.5%-61.7%
Q3 2020-10.4%-12.7%-16.0%
Q2 2020-16.8%-15.5%-1.7%
Q1 2020+3.0%-0.1%+2.1%
Q4 2018-13.7%-21.8%-4.5%
Q4 2017-13.7%-21.8%-4.5%
Q4 2019+30.4%+23.8%+19.4%
Q3 2019-6.0%-5.6%+17.4%
Q2 2019-15.2%-20.1%-8.8%
Q1 2019
Q3 2018
Q2 2018
Q1 2018

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