Education
About Us
Working with TipRanks
Follow Us
Youdao (DAO)
NYSE:DAO
Earnings Data
Report Date
May 26, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.05Last Year’s EPS
0.09Same Quarter Last Year
Moderate Buy
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed clear positive momentum: strong Q4 revenue growth (+16.8%), record improvements in AI-driven subscription and online marketing businesses (many lines growing ~30–50% YoY), and the important milestone of the company's first full-year positive operating cash flow. Management emphasized an AI-native strategy, product innovation, global expansion of marketing services, and an expectation of continued growth in 2026 (including double-digit growth guidance for Learning Services). Headwinds include a notable decline in Smart Devices revenues (-26.6% Q4, -18.2% FY), margin pressure in online marketing (gross margin down YoY), and lower Q4 net income and operating income margin versus prior year. Overall, the positives — diversified revenue growth, improving cash generation, strong AI subscription and advertising performance, and clear strategic direction — outweigh the challenges, indicating constructive momentum going into 2026.Company Guidance
Quarterly Revenue Growth
Total net revenues for Q4 2025 reached RMB 1.6 billion, a 16.8% year-over-year increase, driven by the return-to-growth in Learning Services and strong Online Marketing performance.
Full-Year Revenue and Profit Momentum
Total net revenues for 2025 were RMB 5.9 billion, up 5.0% year-over-year; operating profit grew to RMB 221.3 million, up 48.7% year-over-year.
First Full-Year Positive Operating Cash Flow
Youdao achieved its first full-year net cash inflow from operating activities in 2025 of RMB 55.2 million versus a net cash outflow of RMB 67.9 million in 2024; Q4 operating cash flow was RMB 184.2 million, up 16.4% year-over-year.
Learning Services Return to Growth
Learning Services Q4 net revenues were RMB 727.2 million, up 17.7% year-over-year; digital content services RMB 436.1 million (+12.2% YoY); Youdao Lingshi revenue surged >40% YoY with retention rates >75% (≈ +5 percentage points).
Rapid Expansion of AI-Driven Subscriptions
AI-driven subscription sales exceeded RMB 100 million in Q4 (>80% YoY increase) and totaled ~RMB 400 million for full-year 2025 (annual growth >50%), supported by products like Scholar AI and AI simultaneous interpretation.
Strong Online Marketing Growth
Online marketing Q4 net revenues were RMB 660.9 million, up 37.2% YoY; full-year online marketing revenues up 28.5% to RMB 2.5 billion. Gaming and AI-app marketing each grew ~50% YoY in the quarter; overseas KOL revenues also rose >50% YoY.
Operational Profitability Streak
Q4 operating profit was RMB 60.2 million, marking the sixth consecutive quarter of operating profitability; operating profit increased materially year-over-year for the full year.
Recognition and Product Innovation
Youdao received industry awards (e.g., CNR Industry Benchmark Education Group; QubitAI Outstanding AI Product), launched new AI products (English AI essay grading, Youdao Lobster AI agent) and formed a partnership with Turnitin to accelerate uptake of Scholar AI.
DAO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DAO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 11, 2026 | $9.83 | $9.48 | -3.56% |
Nov 20, 2025 | $9.75 | $8.96 | -8.10% |
Aug 14, 2025 | $8.88 | $9.76 | +9.91% |
May 15, 2025 | $8.68 | $9.45 | +8.87% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Youdao (DAO) report earnings?
Youdao (DAO) is schdueled to report earning on May 26, 2026, After Close (Confirmed).
What is Youdao (DAO) earnings time?
Youdao (DAO) earnings time is at May 26, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DAO EPS forecast?
DAO EPS forecast for the fiscal quarter 2026 (Q1) is 0.05.