17 Education & Technology Group (YQ) AI Stock Analysis

• Market Cap: $36.08M
• Dividend Yield: N/A
• Average Volume (3M): 47.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -48.17%
• EPS Growth: 35.62%
• Country: US
• Employees: 340
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.61
• Shares Outstanding: 6,513,583
• 10 Day Avg. Volume: 57,423
• 30 Day Avg. Volume: 47,475
• PEG Ratio: 0.02
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -0.63
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $3.50 ▼(-13.79% Downside)

The overall stock score is primarily impacted by the company's poor financial performance and unattractive valuation. Technical analysis indicates a bearish trend, further weighing down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

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.

Operational Efficiency

Improving operational efficiency can lead to better cost management and profitability, crucial for long-term sustainability, especially in a challenging financial environment.

Cash Reserves

Strong cash reserves provide financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic uncertainties.

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.

Negative Cash Flow

Persistent negative cash flow suggests operational inefficiencies and a need for external financing, which could limit strategic initiatives and increase financial risk.

Declining Profit Margins

Decreasing profit margins reflect rising costs or pricing pressures, which can erode profitability and reduce the company's ability to reinvest in growth.

17 Education & Technology Group Business Overview & Revenue Model

Company Description

17 Education & Technology Group (YQ) is a leading online education platform based in China, primarily focused on providing educational resources and services for students from kindergarten through high school. The company operates in the education technology sector and offers a range of products, including live online classes, recorded courses, and educational content designed to enhance learning outcomes. YQ aims to leverage technology to deliver personalized learning experiences, making quality education more accessible to students across China.

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 different levels of educational content and services. In addition to direct tuition income, YQ may also earn revenue through partnerships with educational institutions and technology providers, as well as through the sale of supplementary educational materials and resources. Advertising and brand partnerships can also contribute to earnings by promoting educational products and services to their user base. The company focuses on scaling its offerings and expanding its market reach, leveraging technology to improve the efficacy and appeal of its educational solutions.

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. 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	103.68M	189.21M	170.96M	531.06M	2.18B	1.29B
Gross Profit	44.98M	69.21M	80.70M	324.86M	1.31B	798.70M
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 Assets	482.51M	549.52M	684.53M	980.52M	1.58B	3.39B
Cash, Cash Equivalents and Short-Term Investments	341.86M	359.25M	476.69M	733.44M	1.19B	2.83B
Total Debt	9.09M	11.06M	17.31M	26.25M	147.21M	187.52M
Total Liabilities	148.36M	155.88M	190.26M	221.66M	783.38M	1.33B
Stockholders Equity	334.15M	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

• Technical Analysis Sentiment: Positive
• Last Price: 4.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4.06 is below the 20-day moving average (MA) of 4.43, below the 50-day MA of 4.94, and above the 200-day MA of 2.95, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 61.78 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AMBO	52 Neutral	$10.00M	―	―	―	―	―
WAFU	43 Neutral	$6.84M	-14.98	-4.26%	―	-14.35%	-744.00%
YQ	41 Neutral	$36.08M	-1.63	-44.00%	―	-48.17%	35.62%
EEIQ	38 Underperform	$6.19M	-1.09	-48.49%	―	44.99%	61.58%

17 Education & Technology Group Corporate Events

17 Education & Technology Group Reports Q3 2025 Financial Results Amid AI Transformation

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 the financial downturn, the company has made strides in its AI transformation, launching new products like ‘Yiqi Aixue,’ which have received positive market responses. The company has also narrowed its losses by focusing on operational efficiency and maintaining a healthy cash flow, with cash reserves of RMB341.9 million.