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Dec 31, 2025
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Gaotu Q4 2025 Earnings Report
Gaotu Techedu Inc. reported a 21.4% increase in revenue for Q4 2025 and narrowed its net loss compared to the prior year.
Key Takeaways
Gaotu achieved high-quality growth in Q4 2025, with net revenues reaching RMB1,685.3 million. The company successfully narrowed its operating and net losses through improved efficiency and operating leverage, while maintaining a strong net operating cash inflow of RMB964.8 million.
Net revenues grew 21.4% year-over-year to RMB1,685.3 million, driven by strong market demand and improved product recognition.
Net loss narrowed significantly to RMB84.2 million from RMB135.8 million in the same period of 2024.
The company realized operating leverage for five consecutive quarters, with operating loss improving by 20.9% year-over-year.
Net operating cash inflow remained robust at RMB964.8 million, representing a 23.1% increase from the prior year period.
Revenue by Geographic Location
Forward Guidance
For Q1 2026, Gaotu expects continued revenue growth, though at a decelerated rate compared to FY 2025.
Positive Outlook
- Expected Q1 2026 revenue between RMB1,578 million and RMB1,598 million.
- Year-over-year revenue growth forecast of 5.7% to 7.0%.
- Strategic focus on 'All with AI, always AI' to drive future efficiency.
- Commitment to profitable growth and business health.
- Ongoing share repurchase program to enhance shareholder value.
Challenges Ahead
- Projected growth rate (5.7%-7.0%) is lower than the 21.4% achieved in Q4 2025.
- Continued expansion of instructor workforce may pressure margins.
- Higher expenditure on marketing and branding activities expected.
- Increased rental and depreciation costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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