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17 Education & Technology Group (YQ)
NASDAQ:YQ
US Market

17 Education & Technology Group (YQ) AI Stock Analysis

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YQ

17 Education & Technology Group

(NASDAQ:YQ)

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Rating:43Neutral
Price Target:
$3.00
▼(-13.79% Downside)
Action:ReiteratedDate:12/13/25
The overall score of 43 for YQ reflects significant financial challenges as the primary drag, with sharp revenue declines and persistent losses outweighing balance sheet stability. Technical analysis indicates bearish momentum, further pressuring the score, while valuation remains neutral due to negative earnings. Financial performance, with the highest weight (0.5), drives the low overall rating.
Positive Factors
AI Product Launch
The launch of AI-driven products like 'Yiqi Aixue' indicates a strategic shift towards innovation, potentially enhancing competitive advantage and market position in the education technology sector.
Negative Factors
Revenue Decline
A sharp decline in revenue indicates challenges in market demand or competitive pressures, which could impact long-term growth and market share if not addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
AI Product Launch
The launch of AI-driven products like 'Yiqi Aixue' indicates a strategic shift towards innovation, potentially enhancing competitive advantage and market position in the education technology sector.
Read all positive factors

17 Education & Technology Group (YQ) vs. SPDR S&P 500 ETF (SPY)

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
17 Education & Technology Group generates revenue through multiple streams, primarily from tuition fees charged for its online courses and classes. The company offers various subscription models, allowing students and parents to pay for access to ...

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
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
Financial performance is weak due to severe revenue decline (-64.4% YoY) and persistent losses (net profit margin -102.0%). While the balance sheet shows stability with low debt (debt-to-equity 0.03) and strong equity (71.6%), negative cash flows (-148.59M free cash flow) highlight sustainability risks. The score reflects these significant challenges despite some balance sheet resilience.
Income Statement
25
Negative
Balance Sheet
65
Positive
Cash Flow
30
Negative
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue103.68M189.21M170.96M531.06M2.18B1.29B
Gross Profit44.98M69.21M80.70M324.86M1.31B798.70M
EBITDA-174.98M-201.53M-326.58M-186.42M-1.29B-1.29B
Net Income-165.16M-192.93M-311.78M-177.71M-1.44B-1.34B
Balance Sheet
Total Assets482.51M549.52M684.53M980.52M1.58B3.39B
Cash, Cash Equivalents and Short-Term Investments341.86M359.25M476.69M733.44M1.19B2.83B
Total Debt9.09M11.06M17.31M26.25M147.21M187.52M
Total Liabilities148.36M155.88M190.26M221.66M783.38M1.33B
Stockholders Equity334.15M393.64M494.27M758.86M797.04M2.06B
Cash Flow
Free Cash Flow0.00-148.59M-238.66M-466.69M-1.64B-612.49M
Operating Cash Flow0.00-139.22M-212.07M-463.93M-1.51B-522.99M
Investing Cash Flow0.0035.59M-161.14M-8.93M-117.60M-89.50M
Financing Cash Flow0.0021.33M-51.36M-33.86M952.00K2.80B

17 Education & Technology Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.48
Price Trends
50DMA
3.15
Negative
100DMA
3.73
Negative
200DMA
3.40
Negative
Market Momentum
MACD
-0.25
Positive
RSI
28.65
Positive
STOCH
9.95
Positive
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 3.48 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 3.15, and above the 200-day MA of 3.40, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 28.65 is Positive, neither overbought nor oversold. The STOCH value of 9.95 is Positive, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
49
Neutral
$5.71M5.80
46
Neutral
$10.33M-2.84-48.49%44.99%61.58%
45
Neutral
$6.92M-15.17-4.26%-14.35%-744.00%
43
Neutral
$20.53M-1.67-45.82%-48.17%35.62%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YQ
17 Education & Technology Group
2.31
0.39
20.31%
AMBO
Ambow Education Holding
2.00
-0.50
-20.00%
WAFU
Wah Fu Education Group
1.57
-0.03
-1.88%
EDTK
Skillful Craftsman Education Technology
1.01
-0.01
-0.98%
EEIQ
Elite Education Group International
6.98
-4.70
-40.24%
GSUN
Golden Sun Education Group Limited Class A
0.52
-2.28
-81.61%

17 Education & Technology Group Corporate Events

17 Education & Technology Group Reports Q3 2025 Financial Results Amid AI Transformation
Dec 10, 2025
On December 10, 2025, 17 Education Technology Group Inc. announced its unaudited financial results for the third quarter of 2025, revealing a significant decrease in net revenues to RMB20.0 million, a 66.4% drop from the previous year. Despite th...
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.Date of analysis: Dec 13, 2025