The earnings call highlighted strong revenue growth, robust profitability, and successful integration of AI in educational services. However, the negative operating cash flow and decreased revenue from specific segments were concerning. Overall, the positive aspects of growth and strategic advancements outweigh the negatives.

Company Guidance -

Q2 2025

During Gaotu Techedu's first quarter 2025 earnings call, the company reported significant financial achievements and strategic advancements. Revenue surged by approximately 58% year-over-year, reaching nearly 1.5 billion RMB, while operating profit stood at 34.8 million RMB with a net income of 124.0 million RMB. On a non-GAAP basis, net income was 137.3 million RMB, reflecting a net margin of 9.2%. The company repurchased shares worth approximately 136 million RMB, representing 9.0% of total outstanding shares, and held cash, cash equivalents, and investments totaling about 3.5 billion RMB. Gaotu's strategic initiatives, including integrating AI into educational products, have driven revenue growth, operational efficiency, and profitability, with the company achieving a 90% retention rate in its programming courses. Furthermore, Gaotu continues to focus on enhancing shareholder value with a newly approved share repurchase program of up to $100 million over the next three years.

Strong Revenue Growth

Revenue increased by approximately 58% year-over-year to nearly 1.5 billion RMB, surpassing market expectations.

Robust Profitability

Operating profit reached 34.8 million RMB with a net income of 124.0 million RMB. On a non-GAAP basis, net income was 137.3 million RMB with a net margin of 9.2%.

Successful Share Repurchase Program

136 million RMB was allocated to the share repurchase program, with the accumulated total amount reaching 460 million RMB, representing 9.0% of total outstanding shares.

AI Integration and Product Innovation

AI was deeply integrated into educational products and services, leading to improvements in user experience and learning outcomes.

Expansion in Learning Services

Learning services contributed over 95% of net revenues, with non-academic children services emerging as a significant growth engine.

Gaotu Techedu (GOTU) Earnings, Revenues Date & History

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GOTU Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 04, 2025	2025 (Q2)	-0.12 / -	-0.23	―	―	―
May 15, 2025	2025 (Q1)	0.04 / 0.07	-0.007	1080.00% (+0.08)	―
Feb 26, 2025	2024 (Q4)	-0.08 / -0.07	-0.064	-15.22% (>-0.01)	―
Dec 04, 2024	2024 (Q3)	-0.24 / -0.25	-0.046	-454.55% (-0.21)
Aug 27, 2024	2024 (Q2)	-0.21 / -0.23	0.029	-885.71% (-0.26)	―
May 21, 2024	2024 (Q1)	>-0.01 / >-0.01	0.059	-111.90% (-0.07)	―
Feb 27, 2024	2023 (Q4)	-0.07 / -0.06	0.005	-1310.53% (-0.07)	―
Nov 22, 2023	2023 (Q3)	- / -0.05	-0.05	8.33% (<+0.01)	―
Aug 30, 2023	2023 (Q2)	- / 0.03	-0.026	210.53% (+0.06)
May 30, 2023	2023 (Q1)	- / 0.06	0.029	100.00% (+0.03)

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

GOTU Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 15, 2025	$3.80	$3.91	+2.89%
Feb 26, 2025	$2.53	$3.32	+31.23%
Dec 04, 2024	$2.98	$2.65	-11.07%
Aug 27, 2024	$4.08	$3.31	-18.87%

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.