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17 Education & Technology Group (YQ)
NASDAQ:YQ
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17 Education & Technology Group
(NASDAQ:YQ)
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Rating:51Neutral
Price Target:
$4.00
▼(-34.96% Downside)
The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and negative cash flows. Technical analysis provides some positive signals with bullish momentum, but the valuation remains unattractive due to negative earnings. The absence of earnings call data and corporate events limits additional insights.
17 Education & Technology Group (YQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.78M
Dividend YieldN/A
Average Volume (3M)47.48K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-22.39%
EPS Growth53.68%
CountryUS
Employees340
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.39
Shares Outstanding6,513,583
10 Day Avg. Volume57,423
30 Day Avg. Volume47,475
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.24
Price to Sales (P/S)0.49
P/FCF Ratio-0.63
Enterprise Value/Market Cap-0.52
Enterprise Value/Revenue-0.19
Enterprise Value/Gross Profit-0.38
Enterprise Value/Ebitda0.18
Forecast
1Y Price Target
$4.00Price Target Upside-34.96% Downside
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:Sep 04, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Dec 03, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant advancements in AI-powered product innovations and strong customer retention, supported by strategic leadership changes. However, there were notable challenges with a decrease in net revenues and profitability margins. Despite the strong operational improvements and strategic initiatives, the financial metrics indicate a mixed performance.Q1-2025 Updates
Positive Updates
AI-Powered Product Innovations
Successful trial and implementation of AI-powered product upgrades, enhancing teaching and learning efficiency, and providing personalized learning experiences for students.
Strong Customer Retention and Expansion
Over 90% of renewal customers continued their subscriptions, with many expanding new service coverage, indicating high customer engagement and loyalty.
Operational Efficiency Improvements
Operating expenses reduced by 42.6% compared to the same quarter last year, resulting in a 44.8% reduction in net loss on a GAAP basis.
Successful Launch in Shanghai Minhang District
Supported the launch of a specialized generative intelligent agent cluster in Minhang District, showcasing potential for expansion to other regions.
Strategic Leadership Appointments
Appointment of Mr. Gui Jia as an independent Director and Ms. Sishi Zhou as Acting Chief Financial Officer to strengthen strategic direction and operations.
Negative Updates
Decrease in Net Revenues
Net revenues decreased by 15% year-over-year, primarily due to reduced revenues from district-level projects as focus shifted to school-based projects.
Decline in Gross Margin
Gross margin decreased to 36.2% from 38.4% in the previous year, reflecting a reduction in profitability.
Cash Reserves Decline
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 reported net revenues of RMB 21.7 million, marking a 15% year-over-year decrease from RMB 25.5 million in the same period of 2024. This decline was mainly attributed to a strategic shift towards school-based projects and SaaS subscription models, which have longer revenue recognition periods. Despite the revenue drop, the company achieved a significant reduction in operating expenses by 42.6% compared to the previous year, contributing to a notable decrease in net loss by 44.8% on a GAAP basis, from RMB 56.1 million in Q1 2024 to RMB 30.9 million in Q1 2025. The adjusted net loss (non-GAAP) for the quarter was RMB 22.4 million, down from RMB 42.7 million in the prior year, reflecting a decrease of 47.5% year-over-year. Gross margin slightly declined to 36.2% from 38.4% in Q1 2024. As of March 31, 2025, the company's cash reserves stood at RMB 333.3 million, down from RMB 359.3 million at the end of 2024. The company attributed its improved financial efficiency to enhanced operational strategies and a commitment to AI-driven educational innovation.17 Education & Technology Group Financial Statement Overview
Summary
The company is facing significant financial challenges with declining revenue and profitability, high operational losses, and negative cash flows. Despite a low leverage providing some balance sheet resilience, the overall financial health is concerning.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 143.30M | 189.21M | 170.96M | 531.06M | 2.18B | 1.29B |
| Gross Profit | 71.07M | 69.21M | 80.70M | 324.86M | 1.31B | 798.70M |
| EBITDA | -153.04M | -201.53M | -326.58M | -186.42M | -1.29B | -1.29B |
| Net Income | -138.04M | -192.93M | -311.78M | -177.71M | -1.44B | -1.34B |
Balance Sheet | ||||||
| Total Assets | 493.90M | 549.52M | 684.53M | 980.52M | 1.58B | 3.39B |
| Cash, Cash Equivalents and Short-Term Investments | 350.89M | 359.25M | 476.69M | 733.44M | 1.19B | 2.83B |
| Total Debt | 10.59M | 11.06M | 17.31M | 26.25M | 147.21M | 187.52M |
| Total Liabilities | 148.66M | 155.88M | 190.26M | 221.66M | 783.38M | 1.33B |
| Stockholders Equity | 345.24M | 393.64M | 494.27M | 758.86M | 797.04M | 2.06B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -148.59M | -238.66M | -466.69M | -1.64B | -612.49M |
| Operating Cash Flow | 0.00 | -139.22M | -212.07M | -463.93M | -1.51B | -522.99M |
| Investing Cash Flow | 0.00 | 35.59M | -161.14M | -8.93M | -117.60M | -89.50M |
| Financing Cash Flow | 0.00 | 21.33M | -51.36M | -33.86M | 952.00K | 2.80B |
17 Education & Technology Group Technical Analysis
Positive
6.15
Price Trends
3.43
Positive
2.77
Positive
2.32
Positive
Market Momentum
0.69
Negative
69.76
Neutral
81.33
Negative
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 6.15 is above the 20-day moving average (MA) of 4.83, above the 50-day MA of 3.43, and above the 200-day MA of 2.32, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 69.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.33 is Negative, 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% | |
52 Neutral | $12.87M | ― | ― | ― | ― | ― | |
51 Neutral | $52.78M | ― | -36.22% | ― | -22.39% | 53.68% | |
43 Neutral | $8.42M | ― | -4.26% | ― | -14.35% | -744.00% | |
37 Underperform | $9.78M | ― | -48.49% | ― | 44.99% | 61.58% |
* Consumer Defensive Sector Average
YQ
17 Education & Technology Group
6.15
3.93
177.03%
AMBO
Ambow Education Holding
4.13
2.04
97.61%
WAFU
Wah Fu Education Group
1.80
-0.04
-2.17%
EDTK
Skillful Craftsman Education Technology
1.04
0.02
1.96%
EEIQ
Elite Education Group International
0.43
-0.32
-42.67%
GSUN
Golden Sun Education Group Limited Class A
2.63
-0.79
-23.10%
17 Education & Technology Group Corporate Events
17EdTech Reports Q2 2025 Financial Results Amid Strategic Shift
Sep 4, 2025
On September 4, 2025, 17 Education & Technology Group Inc. announced its unaudited financial results for the second quarter of 2025, revealing a significant decrease in net revenues to RMB25.4 million, down 62.4% from the previous year. Despite the revenue drop, the company improved its gross margin to 57.5% and reduced its net loss by 53.4% year-over-year, reflecting strategic shifts towards school-based projects and operational efficiency. The company continues to focus on AI innovations and product diversification to drive sustainable growth.
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.