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NEW ORIENTAL(EDU) - 2026 Q1 - Quarterly Report
2025-10-28 13:26
Exhibit 99.1 New Oriental Announces Results for the First Fiscal Quarter Ended August 31, 2025 BEIJING, Oct. 28, 2025 /PRNewswire/ – New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the first fiscal quarter ended August 31, 2025, which is the first quarter of New Oriental's fiscal year 2026. Financial Highlights for the First Fiscal Quarter Ended Au ...
NEW ORIENTAL(EDU) - 2026 Q1 - Earnings Call Transcript
2025-10-28 13:02
Financial Data and Key Metrics Changes - Total net revenue increased by 6.1% year over year, reaching $1,412.6 million [4] - Non-GAAP operating margin improved to 22%, a year-over-year increase of 100 basis points [4] - Operating income rose by 6% year over year to $310.8 million [11] - Net income attributable to New Oriental decreased by 1.9% year over year to $240.7 million [12] - Non-GAAP net income decreased by 1.6% year over year to $258.3 million [12] - Deferred revenue increased by 10% year over year to $1,906.7 million [14] Business Line Data and Key Metrics Changes - Overseas test prep business revenue increased by about 1% year over year [5] - Overseas study consulting business revenue increased by about 2% year over year [5] - Adults and university students business revenue increased by 14% year over year [5] - New educational business initiatives recorded a revenue increase of about 15% year over year [7] Market Data and Key Metrics Changes - Non-academic tutoring business expanded to around 60 cities, with top 10 cities contributing over 60% of revenue [6] - Intelligent learning system and device business tested in around 60 cities, with top 10 cities contributing over 50% of revenue [7] - Integrated tourism-related business connected across 55 cities, with top 10 cities contributing over 50% of revenue [7] Company Strategy and Development Direction - The company is focused on enhancing operational resilience and sustainable profitability [4] - Plans to increase presence in cities with stronger performance while managing resources carefully [15] - Continued investments in AI and OMO (online merging offline) systems to improve educational services [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving margins and operational efficiency while maintaining cost control [15] - Guidance for total net revenue in Q2 2026 is projected to be between $1,132.1 million and $1,263.3 million, representing a year-over-year increase of 9% to 12% [16] - Full fiscal year 2026 revenue guidance remains between $5,145.3 million and $5,390.3 million, indicating a year-over-year increase of 5% to 10% [16] Other Important Information - The company announced a cash dividend of $0.12 per common share and a share repurchase program of up to $300 million [17][18] - The effective tax rate for Q1 was higher due to special circumstances, expected to normalize in future quarters [54] Q&A Session Summary Question: Competition landscape in K-12 business - Management noted increased competition during summer but highlighted improved student retention and enrollment in autumn classes [22][23] Question: Share-based compensation increase - The increase in share-based compensation was attributed to grants issued in the previous fiscal year, expected to remain at similar levels in upcoming quarters [28][29] Question: Overseas business growth breakdown - Management indicated that younger age groups in overseas test prep grew over 25% year over year, while consulting business saw strong growth in non-U.S. and U.K. markets [34][35] Question: Operating margin outlook - Management expects continued margin expansion driven by cost control and operational efficiency, with optimism for Q2 [49][50] Question: Tax rate expectations - The effective tax rate was higher in Q1 due to special circumstances, with expectations for it to normalize in future quarters [54]
NEW ORIENTAL(EDU) - 2026 Q1 - Earnings Call Transcript
2025-10-28 13:02
Financial Data and Key Metrics Changes - Total net revenue increased by 6.1% year-over-year, reaching $1,412.6 million [4] - Non-GAAP operating margin improved to 22%, a year-over-year increase of 100 basis points [4] - Operating income rose by 6% year-over-year to $310.8 million [11] - Net income attributable to New Oriental decreased by 1.9% year-over-year to $240.7 million [12] - Net cash flow from operations was approximately $192.3 million [13] Business Line Data and Key Metrics Changes - Overseas test prep business revenue increased by about 1% year-over-year [5] - Overseas study consulting business revenue increased by about 2% year-over-year [5] - Adults and university students business revenue increased by 14% year-over-year [5] - New educational business initiatives recorded a revenue increase of about 15% year-over-year [7] Market Data and Key Metrics Changes - Non-academic tutoring business expanded to around 60 cities, with top 10 cities contributing over 60% of revenue [6] - Intelligent learning system and device business tested in around 60 cities, with top 10 cities contributing over 50% of revenue [7] - Integrated tourism-related business connected across 55 cities, with top 10 cities contributing over 50% of revenue [7] Company Strategy and Development Direction - The company is focused on enhancing operational resilience and sustainable profitability [4] - Continued investments in new education business initiatives, particularly in AI and OMO systems [8] - Strategic approach to capacity expansion and hiring to ensure quality offerings [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving margins and operational efficiency [15] - Guidance for total net revenue in Q2 2026 is projected to be between $1,132.1 million and $1,263.3 million, representing a year-over-year increase of 9%-12% [16] - Full fiscal year 2026 revenue guidance remains between $5,145.3 million and $5,390.3 million, indicating a year-over-year increase of 5%-10% [16] Other Important Information - Shareholder return plan includes a cash dividend of $0.12 per common share and a share repurchase program of up to $300 million [17][18] - Deferred revenue increased by 10% year-over-year to $1,906.7 million [14] Q&A Session Summary Question: Competition landscape in K-12 business - Management noted increased competition during summer but highlighted improved student retention and enrollment in autumn classes [22][23] Question: Share-based compensation increase - The increase in share-based compensation was attributed to grants issued to management and staff, with expectations of similar levels in upcoming quarters [28][29] Question: Overseas business growth breakdown - Overseas test prep for younger age groups grew over 25% year-over-year, while consulting business saw strong growth in non-U.S. and U.K. markets [34][35] Question: Operating margin outlook - Margin expansion was driven by better utilization and cost control, with expectations for continued improvement throughout the year [48][49] Question: Tax rate expectations - The effective tax rate was higher due to special circumstances, with expectations for it to remain elevated in the near term [53] Question: Shareholder return policy - The company plans to maintain a high payout ratio and continue share buybacks as part of its capital allocation strategy [40][41]
NEW ORIENTAL(EDU) - 2026 Q1 - Earnings Call Transcript
2025-10-28 13:00
Financial Data and Key Metrics Changes - Total net revenue increased by 6.1% year over year, reaching $1,412.2 million [4][11] - Non-GAAP operating margin improved to 22%, a year-over-year increase of 100 basis points [4] - Operating income rose by 6% year over year to $310.8 million [11] - Net income attributable to New Oriental decreased by 1.9% year over year to $240.7 million [12] - Deferred revenue increased by 10% year over year to $1,906.7 million [13] Business Line Data and Key Metrics Changes - Overseas test prep business revenue increased by about 1% year over year [5] - Overseas study consulting business revenue increased by about 2% year over year [5] - Adults and university students business revenue increased by 14% year over year [5] - New educational business initiatives recorded a revenue increase of about 15% year over year [6] Market Data and Key Metrics Changes - The top 10 cities contributed over 60% of the non-academic tutoring business revenue [5] - The top 10 cities contributed over 50% of the intelligent learning system and device business revenue [6] - Integrated tourism-related business connected across 55 cities, with the top 10 cities contributing over 50% of revenue [6] Company Strategy and Development Direction - The company is focused on enhancing operational resilience and sustainable profitability [4] - Continued investments in new education business initiatives aim to facilitate students' all-around development [5] - The company is leveraging AI to streamline internal operations and improve teaching efficiency [8][9] - A strategic approach to capacity expansion and hiring is being implemented to ensure quality offerings [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving margins and operational efficiency while maintaining cost control [15] - Guidance for total net revenue in Q2 FY 2026 is projected to be between $1,132.1 million and $1,263.3 million, representing a year-over-year increase of 9% to 12% [16] - For the full fiscal year 2026, total net revenue is expected to be between $5,145.3 million and $5,390.3 million, indicating a year-over-year increase of 5% to 10% [16] Other Important Information - A shareholder return plan has been initiated, including a cash dividend of $0.12 per common share and a share repurchase program of up to $300 million [17][18] - The effective tax rate for Q1 was higher due to special circumstances, expected to normalize in future quarters [46] Q&A Session Summary Question: Competition in K-12 Business - Management noted that K-12 business revenue growth is expected to accelerate, with K-9 new business projected to grow around 20% year-over-year in Q2 [21][24] Question: Share-Based Compensation Increase - The increase in share-based compensation was attributed to grants issued in the previous fiscal year, with expectations for similar levels in upcoming quarters [26][27] Question: Overseas Business Performance - Overseas test prep for younger age groups grew over 25% year over year, while consulting business in Asia showed strong growth [29][32] Question: Shareholder Return Policy - The shareholder return policy is based on net profit and cash flow expectations, with a commitment to maintain a high payout ratio [35][37] Question: Operating Margin Outlook - Management expects margin expansion to continue, driven by cost control and operational efficiency [41][44] Question: Tax Rate Expectations - The effective tax rate in Q1 was higher due to special circumstances, with expectations for it to normalize in future quarters [46]
New Growth Awaits: New Oriental’s Fiscal Quarter Results
China Money Network· 2025-10-28 12:50
Core Insights - New Oriental Education & Technology Group Inc. has released its unaudited financial report for the initial quarter, highlighting significant developments in its operations and financial performance [1] Financial Performance - The company reported a revenue of approximately $X million for the quarter, reflecting a Y% increase compared to the same period last year [1] - Net income for the quarter was reported at $X million, showing a Z% growth year-over-year [1] Operational Highlights - New Oriental has expanded its online education offerings, which contributed to the revenue growth [1] - The company has seen an increase in student enrollment numbers, indicating a positive trend in demand for its educational services [1] Market Position - As a key player in China's private education sector, New Oriental continues to adapt to regulatory changes and market dynamics [1] - The company remains focused on enhancing its technological capabilities to improve educational delivery and student engagement [1]
新东方2026财年一季度股东应占净利润2.41亿美元
Bei Jing Shang Bao· 2025-10-28 12:49
Core Insights - New Oriental reported a net revenue of $1.523 billion for Q1 of fiscal year 2026, representing a year-on-year increase of 6.1% [1] - The net profit attributable to shareholders was $241 million, showing a slight decline of 1.9% compared to the previous year [1] Revenue Breakdown - Revenue from overseas exam preparation and consulting services grew by approximately 1% and 2% year-on-year, respectively [1] - Domestic exam preparation services targeting adults and university students saw a significant increase of about 14.4% year-on-year [1] - New education business revenue experienced a robust growth of 15.3% year-on-year [1]
汇丰中国与新东方达成合作协议
Xin Lang Cai Jing· 2025-10-28 12:49
Group 1 - HSBC Bank (China) Limited has entered into a cooperation agreement with New Oriental Group's New Oriental Future Overseas Consulting Co., Ltd. and New Oriental Future Education Consulting Co., Ltd. [1] - The collaboration focuses on providing financial and study abroad solutions for families considering overseas education, particularly for those looking to study in Hong Kong [1]
NEW ORIENTAL(EDU) - 2026 Q1 - Quarterly Results
2025-10-28 12:39
Financial Performance - Total net revenues for the first fiscal quarter of 2026 increased by 6.1% year over year to US$1,523.0 million[4] - Operating income rose by 6.0% year over year to US$310.8 million, with a non-GAAP operating income increase of 11.3% to US$335.5 million[11] - Net income attributable to New Oriental decreased by 1.9% year over year to US$240.7 million, with basic and diluted net income per ADS at US$1.52 and US$1.50, respectively[15] - Net revenues for the three months ended August 31, 2025, were $1,522,980, an increase of 6.1% compared to $1,435,416 in the same period of 2024[35] - Operating income for the same period was $310,827, representing a 6.3% increase from $293,150 year-over-year[35] - Net income attributable to New Oriental's shareholders was $240,723, slightly down from $245,430 in the previous year, reflecting a decrease of 1.1%[35] - Non-GAAP net income attributable to New Oriental was $258,255, compared to $262,411 in the prior year, indicating a decrease of 1.9%[36] - The diluted net income per ADS attributable to New Oriental was $1.52 for the three months ended August 31, 2025, compared to $1.49 in the same period of 2024, reflecting an increase of 2.0%[36] Revenue Guidance - New Oriental expects total net revenues for the second quarter of fiscal year 2026 to be in the range of US$1,132.1 million to US$1,163.3 million, representing a year-over-year increase of 9% to 12%[20] - The full-year revenue guidance for fiscal year 2026 is projected to be between US$5,145.3 million and US$5,390.3 million, indicating a year-over-year increase of 5% to 10%[21] Deferred Revenue - The company reported a 10.0% increase in deferred revenue, reaching US$1,906.7 million compared to US$1,733.1 million at the end of the first quarter of fiscal year 2025[19] Cash and Investments - Cash and cash equivalents as of August 31, 2025, totaled US$1,282.3 million, with additional term deposits of US$1,570.2 million and short-term investments of US$2,178.1 million[18] - Cash and cash equivalents decreased to $1,282,311 as of August 31, 2025, down from $1,612,379 as of May 31, 2025[34] - Total assets increased to $8,012,925 as of August 31, 2025, compared to $7,805,499 as of May 31, 2025, reflecting a growth of 2.7%[34] - Total liabilities decreased to $3,754,521 as of August 31, 2025, down from $3,851,767 as of May 31, 2025, a reduction of 2.5%[34] - Net cash provided by operating activities was $192,318 for the three months ended August 31, 2025, compared to $183,210 in the same period of 2024, an increase of 5.8%[39] - The company reported a net cash used in investing activities of $(451,712) for the three months ended August 31, 2025, compared to $(295,156) in the same period of 2024, indicating increased investment activity[39] Shareholder Returns - The board approved a three-year shareholder return plan, committing to return at least 50% of net income to shareholders, starting with fiscal year 2026[7] - A new share repurchase program allows for the repurchase of up to US$300 million of ADSs or common shares over the next 12 months[12] Operating Margin - The company maintained a non-GAAP operating margin of 22.0%, up 100 basis points from the previous year[6]
新东方:第一财季股东应占净利润同比下跌1.9%
Di Yi Cai Jing· 2025-10-28 11:54
Core Insights - New Oriental reported a net revenue of $1.523 billion for the first quarter ending August 31, 2025, representing a year-on-year increase of 6.1% [1] - The operating profit for the same period was $311 million, also reflecting a year-on-year growth of 6.0% [1] - However, the net profit attributable to shareholders decreased by 1.9% to $241 million compared to the previous year [1]
新东方-S发布第一季度业绩 股东应占净利润同比下跌1.9%至2.41亿美元
Zhi Tong Cai Jing· 2025-10-28 10:41
Core Insights - New Oriental Education & Technology Group reported a 6.1% year-on-year increase in net revenue for Q1 of FY2026, reaching $1.523 billion [1] - Operating profit for the same period rose by 6.0% year-on-year to $311 million [1] - Shareholder net profit for Q1 of FY2026 decreased by 1.9% year-on-year to $241 million [1] Revenue Growth - The revenue from overseas exam preparation and consulting services grew by approximately 1.0% and 2.0% year-on-year, respectively [2] - Domestic exam preparation services for adults and university students saw a significant increase of about 14.4% year-on-year [2] - New educational business recorded a revenue growth of 15.3% year-on-year [2] Student Engagement - Non-subject tutoring services were launched in around 60 cities, attracting approximately 530,000 students [2] - The smart learning system and devices were implemented in about 60 cities, with active paying users reaching approximately 452,000 [2] Strategic Focus - The company aims to maintain its strategic direction and long-term development plans, focusing on continuous optimization of core educational services [2] - There is an emphasis on enhancing product capabilities and quality, systematic construction of educational resources, and improving operational efficiency [2] Technology Integration - The company is advancing its OMO (Online-Merge-Offline) teaching system and increasing investments in integrating artificial intelligence into its educational ecosystem [2] - AI-driven smart learning devices and solutions have been successfully launched, enhancing the learning experience and supporting students [2] Financial Performance - Despite challenges from a slowdown in overseas business, the company achieved a year-on-year increase in Non-GAAP operating profit margin, which reached 22.0%, up 100 basis points from the previous year [2] - The company plans to expand cost control and efficiency improvement measures across all businesses to establish a foundation for sustainable and profitable growth [2]