17 Education & Technology Group (YQ)
NASDAQ:YQ
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17 Education & Technology Group
(NASDAQ:YQ)
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Rating:57Neutral
Price Target:
$2.50
▼(-28.16% Downside)
Action:Reiterated
Date:06/17/26
The score is driven by mixed fundamentals: persistent losses and recent revenue shrinkage weigh on financial performance and valuation, partially offset by low leverage and a 2025 cash-flow rebound. The earnings call is a clear positive with strong Q1 growth, major gross-margin expansion, and improving loss metrics, while technical indicators remain broadly neutral and do not add strong support.
Positive Factors
AI product traction
A large, product-led revenue surge driven by Yiqi Aixue reflects a structural shift to AI-powered offerings. Durable product traction across consumer and institutional segments can create recurring subscription revenue, network effects and a scalable sales motion if retention holds.
Negative Factors
Persistent negative profitability
Despite recent improvements, the company has generated large cumulative losses and deeply negative ROE, signaling ongoing erosion of shareholder capital. Structural profitability must be sustained across quarters to reverse equity erosion and validate long-term value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
AI product traction
A large, product-led revenue surge driven by Yiqi Aixue reflects a structural shift to AI-powered offerings. Durable product traction across consumer and institutional segments can create recurring subscription revenue, network effects and a scalable sales motion if retention holds.
Read all positive factors
17 Education & Technology Group (YQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.92M
Dividend YieldN/A
Average Volume (3M)47.48K
Price to Earnings (P/E)―
Beta (1Y)1.06
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-3.16
Enterprise Value/Revenue-0.78
Enterprise Value/Gross Profit-1.63
Enterprise Value/Ebitda0.55
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. is an education technology firm based in the People's Republic of China. The company delivers a variety of educational and tech-driven services. Its offerings encompass educational content available through mem...
How the Company Makes Money
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17 Education & Technology Group Earnings Call Summary
Earnings Call Date:Jun 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Positive
The call presents a notably positive operational inflection: exceptionally strong top-line growth (359% YoY) and steep gross margin expansion (to 61.9%) driven by the Yiqi Aixue AI product, along with narrower GAAP and adjusted losses. However, the company is still operating at a loss, with nearly doubled operating expenses, sharply higher sales and marketing spend (+232% YoY), and a modest decline in cash. While there are clear near-term cost and concentration risks as the business scales, the magnitude of revenue growth, margin improvement, and shrinking losses indicate the positives significantly outweigh the negatives.Positive Updates
Revenue Surge
Net revenues for Q1 2026 were CNY 99.5 million (USD 14.4M), up 359.0% year-over-year (from CNY 21.7M) and up 155% sequentially, driven primarily by expansion of the Yiqi Aixue consumer AI membership product and contributions from district- and school-level subscriptions.
Negative Updates
Rising Cost of Revenues with Scale
Cost of revenues increased to CNY 37.9 million (USD 5.5M), up 173.7% year-over-year, driven by scaling AI-powered service delivery to support Yiqi Aixue growth, increasing pressure on gross cost base even as margins improved overall.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Surge
Net revenues for Q1 2026 were CNY 99.5 million (USD 14.4M), up 359.0% year-over-year (from CNY 21.7M) and up 155% sequentially, driven primarily by expansion of the Yiqi Aixue consumer AI membership product and contributions from district- and school-level subscriptions.
Read all positive updates
Company Guidance
Management guided to "strong year‑over‑year revenue growth and continued improvement in operating performance throughout 2026," while noting quarterly variability and a focus on disciplined execution, prudent capital allocation, and continued investment in product and AI capabilities; that outlook is anchored by Q1 2026 results of CNY99.5 million revenue (USD 14.4M), +359.0% YoY and +155% sequentially, cost of revenues CNY37.9M, gross profit CNY61.6M (gross margin 61.9%, +25.7 percentage points YoY), operating expenses CNY82.9M (including CNY4.2M share‑based comp), sales & marketing CNY43.2M, R&D CNY16.2M, G&A CNY23.5M, loss from operations CNY21.3M (‑21.4% of revenue vs ‑156.3% a year earlier), net loss CNY19.4M (‑19.5% of revenue, down 37.4% YoY), adjusted non‑GAAP net loss CNY15.1M (‑15.2%), and CNY352.4M cash and equivalents as of March 31, 2026.17 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 | -149.37M | -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
Neutral
3.48
Price Trends
2.29
Positive
2.64
Negative
3.44
Negative
Market Momentum
-0.02
Positive
50.46
Neutral
42.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YQ, the sentiment is Neutral. The current price of 3.48 is above the 20-day moving average (MA) of 2.44, above the 50-day MA of 2.29, and above the 200-day MA of 3.44, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $25.92M | -1.20 | -45.82% | ― | -43.76% | 36.62% | |
54 Neutral | $7.74M | 2.41 | ― | ― | ― | ― | |
45 Neutral | $7.37M | -85.27 | -4.26% | ― | 1.12% | 89.63% | |
44 Neutral | $5.07M | -1.22 | -48.49% | ― | 9.65% | 66.91% |
* Consumer Defensive Sector Average
YQ
17 Education & Technology Group
2.40
0.26
12.15%
AMBO
Ambow Education Holding
2.68
0.18
7.20%
WAFU
Wah Fu Education Group
1.66
0.27
19.42%
EDTK
Skillful Craftsman Education Technology
0.97
<0.01
0.63%
EEIQ
Elite Education Group International
3.00
-5.04
-62.69%
GSUN
Golden Sun Education Group Limited Class A
0.49
-2.38
-83.07%
17 Education & Technology Group Corporate Events
17 Education & Technology Group Posts Surging Q1 2026 Revenue on AI Learning App Growth
Jun 17, 2026
On June 17, 2026, 17 Education Technology Group Inc. reported unaudited results for the first quarter ended March 31, 2026, showing net revenues of RMB99.5 million, a 359% year-on-year surge driven mainly by the rapid expansion of its Yiqi Aixue ...
17 Education & Technology Group Replaces Deloitte With Marcum Asia as Auditor
May 28, 2026
On May 27, 2026, 17 Education Technology Group’s board and audit committee dismissed Deloitte Touche Tohmatsu as its independent registered public accounting firm and appointed Marcum Asia CPAs as auditor for the financial year ending Decem...
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.