Strong Revenue and Net Income Growth
Net revenue increased to $523 million, with a 6.5% year-over-year growth. Net income surged 40.5% year over year to $125.4 million, demonstrating the resilience and stability of Sunlands Technology Group's operations.
Significant Profitability Improvement
Gross profit rose 13.1% to $462.7 million, outpacing revenue growth. The net margin expanded significantly to 24% due to an optimized revenue mix and disciplined cost management.
Interest-Based Courses Boost Performance
Interest-based courses collectively accounted for approximately 73% of total revenue in the third quarter, driving a substantial growth in profitability.
AI-Driven Platform Enhancements
AI-assisted automated grading now covers over 17% of assignments, increasing review efficiency by more than eight times and achieving an accuracy rate above 95%.
Robust Financial Position
The company had $601 million of cash, cash equivalents, and restricted cash, and $176.5 million of short-term investments as of September 30, 2025.