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17 Education & Technology Group, Inc. (YQ)
:YQ
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17 Education & Technology Group
(NASDAQ:YQ)
Rating:46Neutral
Price Target:
$2.00
▲(2.56% Upside)
17 Education & Technology Group (YQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.33M
Dividend YieldN/A
Average Volume (3M)33.21K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-1.83%
EPS Growth37.23%
CountryUS
Employees340
SectorConsumer Defensive
Sector Strength59
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.46
Shares Outstanding6,513,583
10 Day Avg. Volume10,517
30 Day Avg. Volume33,211
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-1.53
Enterprise Value/Revenue-0.14
Enterprise Value/Gross Profit-0.38
Enterprise Value/Ebitda0.12
Forecast
1Y Price Target
$2.00Price Target Upside2.56% Upside
Rating ConsensusHold
Number of Analyst Covering1
17 Education & Technology Group Business Overview & Revenue Model
Company Description17 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 content subscriptions to à la carte workbooks, study plans, and associated services. It also offers teaching and learning SaaS solutions, such as education informatization services for education-related government entities, schools, and service providers. 17 Education & Technology Group Inc. was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes Money17 Education & Technology Group generates revenue primarily through its online education services, which include subscription-based access to its digital learning platforms and content. The company partners with schools and educational institutions to provide customized learning solutions, often involving licensing fees. Additionally, the company monetizes its educational software and applications through direct sales to consumers and educational organizations. Key revenue streams also include advertising from third-party education-related products and services promoted on their platforms. Strategic partnerships with technology companies and educational content providers further enhance the company's offerings and revenue potential.
17 Education & Technology Group Earnings Call Summary
Earnings Call Date:Jun 11, 2025
(Q1-2025)
| % Change Since: -4.88%|
Next Earnings Date:Sep 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strides in AI-powered product innovation and operational efficiency, alongside a substantial reduction in net loss. However, these positive developments were tempered by declines in revenue and gross margin, as well as reduced cash reserves. The overall sentiment is balanced, as the company navigates its strategic shift towards SaaS models and AI integration.Q1-2025 Updates
Positive Updates
AI-Powered Product Innovation
Successful trial and implementation of AI-powered product upgrades, facilitating teaching and learning efficiency, and providing personalized learning experiences.
Strong SaaS Subscription Growth
Increase in new contract acquisitions and expansion of existing customer base. Over 90% of renewal customers opted to continue their subscriptions.
Significant Reduction in Net Loss
Net loss on a GAAP basis decreased by 44.8% year-on-year, and adjusted net loss (non-GAAP) decreased by 47.5% year-on-year.
Operational Efficiency Improvements
Operating expenses reduced by 42.6% compared to the same quarter last year.
Strategic Partnerships and Market Presence
Enhanced distribution networks and strategic market penetration efforts solidified presence in high-growth markets.
Negative Updates
Revenue Decline
Net revenues decreased by 15% year-on-year, attributed to the reduction in district-level project revenues and longer revenue recognition periods for SaaS models.
Gross Margin Decline
Gross margin for the first quarter of 2025 was 36.2% compared with 38.4% in the first quarter of 2024.
Decrease in Cash Reserves
Cash reserves decreased from RMB 359.3 million as of December 31, 2024, to RMB 333.3 million as of March 31, 2025.
Company Guidance
In the first quarter of 2025, 17EdTech's net revenues were RMB 21.7 million, marking a 15% decline from the previous year due to a strategic shift from district-level projects to school-based projects which have a longer revenue recognition period. Despite this, the company reported a significant 44.8% reduction in net loss on a GAAP basis, amounting to RMB 30.9 million, while the adjusted net loss (non-GAAP) decreased by 47.5% to RMB 22.4 million. Operating expenses fell by 42.6%, and the gross margin was 36.2%, slightly down from 38.4% a year earlier. The company's cash reserves stood at RMB 333.3 million as of March 31, 2025. The quarter saw strong retention rates with over 90% of renewal customers continuing their subscriptions, reflecting increased adoption of AI-powered solutions and strategic market penetration efforts.17 Education & Technology Group Financial Statement Overview
Summary
17 Education & Technology Group is facing significant financial challenges with declining revenue and profitability, high operational losses, and negative cash flows. The balance sheet shows some resilience due to low leverage, but the overall financial health is concerning, requiring strategic improvements.Income Statement
The company has shown a declining revenue trend with significant losses over the years. Gross profit margins have been positive but decreasing as revenue declines. Both EBIT and EBITDA margins are negative, indicating operational inefficiencies and high expenses relative to revenue.35
Negative
Balance Sheet
The company has a high equity base relative to its total assets, which provides some financial stability. However, the negative net income impacts the return on equity, and the debt-to-equity ratio is low, suggesting limited leverage. The declining total assets and equity could be a concern if the trend continues.50
Neutral
Cash Flow
The company has consistently negative operating and free cash flows, indicating cash burn and a need for external financing. The operating cash flow to net income ratio is poor, suggesting challenges in converting earnings into cash. Despite these issues, the company has managed to maintain some level of cash and short-term investments.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 189.21M | 170.96M | 531.06M | 2.18B | 1.29B |
| Gross Profit | 69.21M | 80.70M | 324.86M | 1.31B | 798.70M |
| EBITDA | -201.53M | -326.58M | -186.42M | -1.29B | -1.29B |
| Net Income | -192.93M | -311.78M | -177.71M | -1.38B | -1.31B |
Balance Sheet | |||||
| Total Assets | 549.52M | 684.53M | 980.52M | 1.58B | 3.39B |
| Cash, Cash Equivalents and Short-Term Investments | 359.25M | 480.59M | 727.43M | 1.18B | 2.83B |
| Total Debt | 11.06M | 17.31M | 26.25M | 147.21M | 187.52M |
| Total Liabilities | 155.88M | 190.26M | 221.66M | 783.38M | 1.33B |
| Stockholders Equity | 393.64M | 494.27M | 758.86M | 797.04M | 2.06B |
Cash Flow | |||||
| Free Cash Flow | -148.59M | -238.66M | -466.69M | -1.64B | -612.49M |
| Operating Cash Flow | -139.22M | -212.07M | -463.93M | -1.51B | -522.99M |
| Investing Cash Flow | 35.59M | -161.14M | -8.93M | -117.60M | -89.50M |
| Financing Cash Flow | 21.33M | -51.36M | -33.86M | 952.00K | 2.80B |
17 Education & Technology Group Technical Analysis
Negative
1.95
Price Trends
2.10
Negative
1.98
Negative
1.92
Positive
Market Momentum
-0.05
Negative
44.70
Neutral
86.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YQ, the sentiment is Negative. The current price of 1.95 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.10, and above the 200-day MA of 1.92, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | S$3.25B | 15.61 | 14.90% | 4.55% | 9.39% | -21.61% | |
52 Neutral | $10.54M | ― | -49.39% | ― | ― | ― | |
46 Neutral | $17.33M | ― | -40.68% | ― | -1.83% | 37.23% | |
43 Neutral | $6.22M | ― | -4.26% | ― | -14.35% | -744.00% | |
| ― | $16.41M | ― | -16.90% | ― | ― | ― | |
37 Underperform | $7.34M | ― | -83.71% | ― | 42.73% | 18.30% | |
| ― | $4.60M | ― | -144.05% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
YQ
17 Education & Technology Group
1.96
-0.15
-7.11%
AMBO
Ambow Education Holding
3.03
1.96
183.18%
WAFU
Wah Fu Education Group
1.41
-0.39
-21.67%
EDTK
Skillful Craftsman Education Technology
1.08
-0.06
-5.26%
EEIQ
Elite Education Group International
0.56
-0.19
-25.33%
GSUN
Golden Sun Education Group Limited Class A
2.92
-2.64
-47.48%
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.