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An announcement from Youdao ( (DAO) ) is now available.
Youdao, Inc. reported its unaudited financial results for the third quarter of 2025, showing a 3.6% increase in total net revenues compared to the same period in 2024, reaching RMB1,628.5 million. Despite a decline in revenues from learning services and smart devices, the company saw a significant 51.1% increase in online marketing services revenues, driven by strong demand from the NetEase group and overseas markets. The company’s gross margin decreased to 42.2% from 50.2% in 2024, and income from operations fell by 73.7%. CEO Dr. Feng Zhou highlighted the strategic investments in AI technology and the expansion of Youdao Lingshi, which contributed to over 40% growth in AI-driven subscription services. Looking forward, Youdao aims to continue executing its AI-Native Strategy to drive customer value and achieve financial targets.
The most recent analyst rating on (DAO) stock is a Hold with a $9.50 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.
Youdao’s overall stock score reflects a mixed financial performance with promising revenue growth but significant risks in leverage and cash flow. The recent profitable quarter and strategic focus on AI are positive, but technical indicators suggest caution.
To see Spark’s full report on DAO stock, click here.
More about Youdao
Youdao, Inc. is an AI-powered solutions provider based in Hangzhou, China, specializing in artificial intelligence applications for learning and advertising verticals. The company focuses on leveraging AI technology to enhance its offerings in these sectors.
Average Trading Volume: 102,322
Technical Sentiment Signal: Buy
Current Market Cap: $1.17B
Find detailed analytics on DAO stock on TipRanks’ Stock Analysis page.