Gaotu Techedu Inc. reported net revenues of RMB 1,685.3 million for the fourth quarter of 2025, a 21.4% increase from RMB 1,388.6 million in the same period a year earlier. Full‑year revenue rose to RMB 6,146.8 million, up 35.0% from RMB 4,553.6 million in 2024, reflecting sustained demand across its core educational services.
Operating results improved markedly. The company’s loss from operations narrowed to RMB 118.0 million in Q4 2025 from RMB 149.3 million a year earlier, and the net loss fell to RMB 84.2 million from RMB 135.8 million. Non‑GAAP losses also declined to RMB 76.8 million from RMB 123.5 million. Gross profit margin slipped slightly to 67.9% from 68.3% in Q4 2024, and to 67.4% from 68.0% for the full year, largely due to a 22.8% rise in cost of revenues in the quarter and a 37.6% rise for the year, driven by expansion of the instructor and tutor workforce, higher rental costs, and increased depreciation and amortization.
Cash generation remained strong. Operating cash inflow for Q4 2025 reached RMB 964.8 million, a 23.1% increase, while the full‑year figure rose to RMB 416.1 million, a 61.3% jump. The company also completed an $80 million share repurchase program and launched a new $100 million program, underscoring confidence in its cash generation and long‑term growth prospects.
Management highlighted continued efficiency gains and a shift toward higher‑margin non‑academic services. Founder, Chairman and CEO Larry Xiangdong Chen said, “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.” He added that the revenue increase was mainly due to continued year‑over‑year growth in gross billings in response to strong market demand.
Investors responded positively to the results, reflecting confidence in Gaotu’s revenue growth, narrowing losses, and robust cash flow, as well as its strategic focus on AI‑powered solutions and higher‑margin services.
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