17 Education & Technology Group (YQ)
NASDAQ:YQ
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17 Education & Technology Group
(NASDAQ:YQ)
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Rating:54Neutral
Price Target:
$2.50
▼(-28.16% Downside)
Action:Reiterated
Date:05/13/26
The score is held back primarily by weak financial performance (material revenue decline and persistent large losses), partially offset by low leverage and a notable shift to positive operating/free cash flow. Technicals are modestly improved in the short term but still below longer-term trend levels, while valuation is unattractive/unclear due to negative earnings and no dividend support. Earnings-call commentary adds some upside from improving margins, cash position, and AI product traction, but the company remains substantially unprofitable.
Positive Factors
Low leverage
Very low debt (debt-to-equity ~5.1%) reduces refinancing and solvency risk, giving management flexibility to fund product development and marketing during the multi-quarter transition to subscription and AI offerings without immediate liquidity pressure.
Negative Factors
Steep revenue decline
A dramatic ~52.5% top-line drop signals structural demand or execution problems. Shrinking revenue undermines operating leverage, makes breakeven harder to achieve, and requires rapid, sustained recovery to justify ongoing SG&A and R&D investments over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage
Very low debt (debt-to-equity ~5.1%) reduces refinancing and solvency risk, giving management flexibility to fund product development and marketing during the multi-quarter transition to subscription and AI offerings without immediate liquidity pressure.
Read all positive factors
17 Education & Technology Group (YQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.30M
Dividend YieldN/A
Average Volume (3M)47.48K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-43.76%
EPS Growth36.62%
CountryUS
Employees340
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-15.11
Shares Outstanding6,855,688
10 Day Avg. Volume57,423
30 Day Avg. Volume47,475
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.88
Price to Sales (P/S)2.43
P/FCF Ratio8.47
Enterprise Value/Market Cap-2.03
Enterprise Value/Revenue-0.55
Enterprise Value/Gross Profit-1.14
Enterprise Value/Ebitda0.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
17 Education & Technology Group Business Overview & Revenue Model
Company Description
17 Education & Technology Group Inc., an education technology company, provides education and education technology services in the People's Republic of China. The company also provides educational services comprising membership-based educational c...
How the Company Makes Money
null...
17 Education & Technology Group Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Neutral
The call conveyed a mix of encouraging operational improvements and remaining financial challenges. Positive developments include strong quarter-over-quarter revenue growth (94.6% QoQ), a meaningful gross margin recovery (up 12.5 percentage points YoY to 46.1%), a larger cash balance (RMB 407.0 million) and robust presales for the new AI consumer product. Management also reported reduced total operating expenses and narrower GAAP net losses. Offsetting these positives are continued sizable absolute losses, an increased adjusted non-GAAP loss, significant sales and marketing investment to support the new consumer launch, and modest absolute revenue scale relative to expenses. Overall, improvements in margins, cash flow and product-market traction are promising, but the company remains unprofitable and dependent on successful scaling of subscription and consumer offerings.Positive Updates
Top-line Growth (QoQ and YoY)
Net revenues for Q4 2025 were RMB 38.9 million, up 94.6% quarter-on-quarter and up 6.4% year-on-year, driven by expanding school-based subscription revenues and initial traction from the new AI consumer product.
Negative Updates
Continued Significant Net Losses
Despite narrowing, Q4 net loss remained large at RMB 53.0 million and net loss as a percentage of net revenues was negative 136.1% in Q4 2025, indicating the company remains substantially unprofitable on an absolute and relative basis.
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line Growth (QoQ and YoY)
Net revenues for Q4 2025 were RMB 38.9 million, up 94.6% quarter-on-quarter and up 6.4% year-on-year, driven by expanding school-based subscription revenues and initial traction from the new AI consumer product.
Read all positive updates
Company Guidance
Management’s forward guidance emphasized AI-driven product expansion, cross‑business synergies and continued efficiency to support long‑term, consumer‑centric growth, with the company pointing to recent metrics that underlie that outlook: Q4 net revenues of RMB 38.9 million (+94.6% QoQ; +6.4% YoY), gross profit RMB 17.9 million and gross margin 46.1% (up 12.5 percentage points YoY), cost of revenues RMB 21.0 million (‑13.6% YoY), total operating expenses RMB 72.5 million (‑10.9% YoY) including sales & marketing RMB 40.2 million, R&D RMB 16.3 million and G&A RMB 16.0 million, loss from operations RMB 54.9 million (‑140.2% of revenues) and net loss RMB 53.0 million (‑136.1% of revenues) with adjusted non‑GAAP net loss RMB 44.1 million, a healthy cash position of RMB 407.0 million (USD 58.2 million, up from RMB 359.3 million a year earlier), and positive operating cash inflow plus stronger free cash flow driven by robust preorders for the new AI membership (ETIC) as the primary near‑term growth engine.17 Education & Technology Group Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 103.14M | 189.21M | 170.96M | 531.06M | 2.18B |
| Gross Profit | 49.25M | 69.21M | 80.70M | 324.86M | 1.31B |
| EBITDA | -159.09M | -201.53M | -326.58M | -186.42M | -1.29B |
| Net Income | -150.21M | -192.93M | -311.78M | -177.71M | -1.44B |
Balance Sheet | |||||
| Total Assets | 590.90M | 549.52M | 684.53M | 980.52M | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 407.23M | 359.25M | 476.69M | 733.44M | 1.19B |
| Total Debt | 14.69M | 11.06M | 17.31M | 26.25M | 147.21M |
| Total Liabilities | 304.09M | 155.88M | 190.26M | 221.66M | 783.38M |
| Stockholders Equity | 286.81M | 393.64M | 494.27M | 758.86M | 797.04M |
Cash Flow | |||||
| Free Cash Flow | 29.63M | -148.59M | -238.66M | -466.69M | -1.64B |
| Operating Cash Flow | 36.31M | -139.22M | -212.07M | -463.93M | -1.51B |
| Investing Cash Flow | -40.47M | 35.59M | -161.14M | -8.93M | -117.60M |
| Financing Cash Flow | 24.77M | 21.33M | -51.36M | -33.86M | 952.00K |
17 Education & Technology Group Technical Analysis
Positive
3.48
Price Trends
2.28
Positive
2.84
Negative
3.40
Negative
Market Momentum
0.08
Negative
56.11
Neutral
51.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YQ, the sentiment is Positive. The current price of 3.48 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.28, and above the 200-day MA of 3.40, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YQ.
17 Education & Technology Group Risk Analysis
17 Education & Technology Group disclosed 94 risk factors in its most recent earnings report. 17 Education & Technology Group 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
17 Education & Technology Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $7.37M | 4.01 | ― | ― | ― | ― | |
54 Neutral | $28.30M | -1.67 | -45.82% | ― | -43.76% | 36.62% | |
45 Neutral | $7.50M | -11.97 | -4.26% | ― | 1.12% | 89.63% | |
44 Neutral | $4.11M | -0.80 | -48.49% | ― | 9.65% | 66.91% |
* Consumer Defensive Sector Average
YQ
17 Education & Technology Group
2.55
0.55
27.50%
AMBO
Ambow Education Holding
2.85
0.04
1.42%
WAFU
Wah Fu Education Group
1.69
0.18
11.92%
EDTK
Skillful Craftsman Education Technology
1.00
0.06
6.38%
EEIQ
Elite Education Group International
2.83
-7.20
-71.76%
GSUN
Golden Sun Education Group Limited Class A
0.42
-2.81
-87.09%
17 Education & Technology Group Corporate Events
17 Education & Technology Group Posts 2025 Loss Amid Shift to AI-Powered Subscription Model
Mar 25, 2026
17 Education Technology Group Inc., a leading Chinese edtech provider of school-based SaaS and consumer AI learning tools, is pivoting toward higher-margin, subscription-led and AI-powered products such as its newly launched ‘Yiqi AixueR...
17 Education & Technology Group Names Sishi Zhou Chief Financial Officer
Mar 24, 2026
On March 24, 2026, 17 Education Technology Group Inc., a leading China-based edtech company listed on Nasdaq, formally appointed Ms. Sishi Zhou as its Chief Financial Officer, effective immediately, after she had served as Acting CFO since June 2...
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.