Gaotu Techedu Inc. ( (GOTU) ) has released its Q3 earnings. Here is a breakdown of the information Gaotu Techedu Inc. presented to its investors.
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Gaotu Techedu Inc., a technology-driven education company in China, specializes in AI-powered solutions for lifelong learning, offering educational products and services across various stages of learning. In its third-quarter 2025 earnings report, Gaotu Techedu Inc. reported a significant increase in net revenues, reaching RMB1,579.0 million, a 30.7% rise from the same period in 2024. The company also saw a notable reduction in its net loss, which decreased to RMB147.1 million from RMB471.3 million in the previous year. This improvement was attributed to enhanced operational efficiency and cost management.
Key financial highlights for the quarter included a 11.2% increase in gross billings to RMB1,188.9 million and a decrease in operating expenses by 3.7%. The company’s gross profit margin improved to 66.1%, reflecting better cost management and increased revenue from high-quality educational offerings. Gaotu’s strategic focus on integrating AI across its operations and enhancing user acquisition efficiency contributed to these positive results.
Additionally, Gaotu completed an $80 million share repurchase program and initiated a new $100 million program, demonstrating its commitment to shareholder returns. The company also announced the acquisition of Zhengzhou You’ai Culture Technology Co., Ltd., intending to use its buildings as a campus premise, which aligns with its growth strategy.
Looking ahead, Gaotu Techedu Inc. expects continued revenue growth, projecting net revenues between RMB1,628 million and RMB1,648 million for the fourth quarter of 2025. The company’s focus remains on sustainable growth, optimizing unit economics, and enhancing operational quality to deliver long-term value to stakeholders.