Gaotu Techedu Inc. (GOTU)
NYSE:GOTU
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Gaotu Techedu
(NYSE:GOTU)
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Rating:41Neutral
Price Target:
$2.50
▲(4.17% Upside)
Action:ReiteratedDate:11/26/25
GOTU's overall stock score of 41 reflects significant challenges in financial performance and valuation as the most impactful factors. Persistent net losses, negative profitability margins, and a concerning P/E ratio of -6.79 weigh heavily on the score. Technical indicators also suggest bearish momentum with the stock trading below key moving averages. While revenue growth is a strength, it is not enough to offset the broader financial and valuation risks.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective service expansion, supporting long-term business sustainability.
Negative Factors
Operating Losses
Persistent operating losses indicate challenges in achieving profitability, which could hinder financial stability and growth potential.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective service expansion, supporting long-term business sustainability.
Read all positive factors
Gaotu Techedu (GOTU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$479.84M
Dividend YieldN/A
Average Volume (3M)400.43K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth48.81%
EPS Growth61.64%
CountryUS
Employees14,381
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.05
Shares Outstanding139,867,050
10 Day Avg. Volume439,727
30 Day Avg. Volume400,427
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.19
Price to Sales (P/S)1.33
P/FCF Ratio77.26
Enterprise Value/Market Cap9.91
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit1.21
Enterprise Value/Ebitda-12.60
Forecast
1Y Price Target
$2.50Price Target Upside4.17% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)$7.04B
Gaotu Techedu Business Overview & Revenue Model
Company Description
Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. Its K-12 after-school tutoring courses cover various K-12 academic subjects, including mathematics, E...
How the Company Makes Money
Gaotu Techedu generates revenue primarily through its online education services, which include subscription fees for courses and tutoring sessions. The company offers various pricing models, including pay-per-class and monthly subscription plans, ...
Gaotu Techedu Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, healthy gross margins, improved operating leverage and meaningful progress on strategic initiatives (AI integration, offline expansion, improved user acquisition efficiency and retention). The company also highlighted a robust cash and investment base and active share repurchases. Offsetting these positives are continued GAAP and non-GAAP losses, elevated selling expenses (52.5% of revenues), a still-elevated operating expense base, and short-term seasonality leading to single-digit Q1 guidance. Management expects further margin and profitability improvement and anticipates offline profitability next year, suggesting a positive trajectory.Positive Updates
Strong Top-Line Growth
Revenue increased 21.4% year-over-year in Q4 to RMB 1.7 billion; full-year 2025 revenue grew 35.0% year-over-year to RMB 6.1 billion, exceeding initial expectations.
Negative Updates
Continued Operating and Net Losses
Loss from operations was RMB 118.0 million (operating loss margin 7.0%). Net loss was RMB 84.2 million (net loss margin 5.0%). Non-GAAP net loss was RMB 76.8 million (non-GAAP net loss margin 4.6%).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Revenue increased 21.4% year-over-year in Q4 to RMB 1.7 billion; full-year 2025 revenue grew 35.0% year-over-year to RMB 6.1 billion, exceeding initial expectations.
Read all positive updates
Company Guidance
Management guided first-quarter 2026 net revenue of RMB 1,578–1,598 million, a year‑over‑year increase of 5.7%–7.0% (seasonally muted) with growth expected to return to double digits in Q2 2026; they reiterated a focus on profitability and efficiency after five consecutive quarters of operating leverage and framed this outlook against FY2025 revenue of RMB 6.1 billion (+35.0% YoY) and Q4 revenue of RMB 1.7 billion (+21.4% YoY), deferred revenue of ~RMB 2.6 billion (+23.0% YoY) providing visibility, total liquid resources of ~RMB 4.0 billion (RMB 712 million cash and equivalents, RMB 2.7 billion short‑term investments, RMB 551.6 million long‑term investments), net operating cash inflow of RMB 964.8 million (up 23.1% YoY), and ongoing share repurchases of ~RMB 670 million (≈30.6 million ADS, ~12.8% of outstanding shares, including RMB 343 million repurchased in 2025).Gaotu Techedu Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
45
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.85B | 4.62B | 2.96B | 2.54B | 6.48B | 6.74B |
| Gross Profit | 3.95B | 3.14B | 2.17B | 1.83B | 4.11B | 5.07B |
| EBITDA | -377.51M | -989.99M | 65.95M | 68.60M | -2.91B | -1.30B |
| Net Income | -374.43M | -1.06B | -7.30M | 13.40M | -3.06B | -1.32B |
Balance Sheet | ||||||
| Total Assets | 5.11B | 5.83B | 5.41B | 4.88B | 5.02B | 10.69B |
| Cash, Cash Equivalents and Short-Term Investments | 2.41B | 3.17B | 2.89B | 3.74B | 3.50B | 7.69B |
| Total Debt | 532.04M | 492.24M | 188.15M | 82.52M | 356.05M | 796.76M |
| Total Liabilities | 3.70B | 3.89B | 2.31B | 1.78B | 2.14B | 4.96B |
| Stockholders Equity | 1.41B | 1.93B | 3.11B | 3.10B | 2.88B | 5.73B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 79.79M | 312.90M | 243.88M | -4.46B | 319.20M |
| Operating Cash Flow | 0.00 | 258.01M | 353.70M | 373.74M | -4.19B | 603.27M |
| Investing Cash Flow | 0.00 | 620.82M | -423.98M | -1.09B | 4.81B | -5.60B |
| Financing Cash Flow | 0.00 | -205.30M | -90.48M | 0.00 | -100.61M | 5.27B |
Gaotu Techedu Technical Analysis
Negative
2.40
Price Trends
2.09
Negative
2.27
Negative
2.87
Negative
Market Momentum
-0.05
Negative
43.67
Neutral
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOTU, the sentiment is Negative. The current price of 2.4 is above the 20-day moving average (MA) of 1.99, above the 50-day MA of 2.09, and below the 200-day MA of 2.87, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOTU.
Gaotu Techedu Risk Analysis
Gaotu Techedu disclosed 77 risk factors in its most recent earnings report. Gaotu Techedu reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gaotu Techedu Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.94B | 3.93 | 7.83% | ― | 44.37% | 146.96% | |
68 Neutral | $47.81M | 1.57 | 51.85% | ― | -0.84% | -11.01% | |
64 Neutral | $936.30M | -23.64 | -8.12% | ― | 8.10% | 43.35% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $650.38M | 227.74 | 1.74% | ― | 2.53% | 95.79% | |
55 Neutral | $1.17B | 77.54 | -5.25% | ― | -1.51% | 155.73% | |
41 Neutral | $479.84M | -18.93 | -20.60% | ― | 48.81% | 61.64% |
* Consumer Defensive Sector Average
GOTU
Gaotu Techedu
1.97
-0.65
-24.81%
TAL
TAL Education Group
11.46
1.81
18.76%
STG
Sunlands Online Education Group
3.57
-1.03
-22.39%
DAO
Youdao
9.77
2.93
42.84%
COUR
Coursera
5.53
-1.44
-20.66%
UDMY
Udemy Inc
4.46
-2.34
-34.41%
Gaotu Techedu Corporate Events
Gaotu Techedu Reports Improved Q3 2025 Financial Results
Nov 26, 2025
Gaotu Techedu announced its unaudited financial results for the third quarter of 2025, showing a significant improvement in financial performance compared to the same period in 2024. The company reported a 30.7% increase in net revenues to RMB1,57...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.