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Youdao Posts Higher 2025 Revenue and First Full Year of Positive Operating Cash Flow

Story Highlights
  • Youdao’s Q4 2025 revenue rose 16.8% on strong AI-powered learning and marketing services.
  • For 2025, Youdao grew revenue 5% and boosted operating income 48.7%, achieving positive cash flow.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Youdao Posts Higher 2025 Revenue and First Full Year of Positive Operating Cash Flow

Meet Samuel – Your Personal Investing Prophet

Youdao ( (DAO) ) just unveiled an announcement.

Youdao reported unaudited fourth-quarter and full-year 2025 results on February 11, 2026, highlighting a 16.8% year-on-year rise in Q4 total net revenues to RMB1.6 billion, driven by robust growth in learning services and online marketing, despite a sharp decline in smart device revenues and lower gross margins. For 2025, total net revenues increased 5.0% to RMB5.9 billion, income from operations rose 48.7% to RMB221.3 million, and the company achieved its first full year of positive operating cash flow, underscoring stronger business resilience as it doubles down on its AI-native strategy in learning and advertising while accepting near-term margin pressure from client expansion and higher operating expenses.

The most recent analyst rating on (DAO) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Youdao stock, see the DAO Stock Forecast page.

Spark’s Take on DAO Stock

According to Spark, TipRanks’ AI Analyst, DAO is a Neutral.

The score is held back primarily by financial quality concerns (negative equity and weak cash flow) and a high valuation (P/E 76.52). Technicals are supportive with a strong uptrend, but momentum appears overextended (RSI ~72, Stoch ~91). The latest earnings call was mixed, with strong online marketing growth and improved cash outflow offset by a sharp operating profit decline and weakness in Learning Services and Smart Devices.

To see Spark’s full report on DAO stock, click here.

More about Youdao

Youdao, Inc. is a China-based AI-powered solutions provider focused on artificial intelligence applications for the learning and advertising verticals. Listed on the NYSE under the ticker DAO, the company generates revenues from learning services, smart devices and online marketing services, with growing emphasis on AI-driven subscription products and advertising solutions.

Average Trading Volume: 119,254

Technical Sentiment Signal: Buy

Current Market Cap: $1.18B

For a thorough assessment of DAO stock, go to TipRanks’ Stock Analysis page.

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