TAL Education Group Announces Unaudited Financial Results for the Third Fiscal Quarter Ended November 30, 2024

Core Viewpoint - TAL Education Group reported significant financial improvements in the third quarter of fiscal year 2025, with a notable increase in net revenues and a shift from loss to profit compared to the same period in the previous year [1][5][19]. Financial Highlights for the Third Quarter of Fiscal Year 2025 - Net revenues reached US$606.4 million, a 62.4$373.5 million in the same quarter of the previous year [5][7]. - Loss from operations decreased to US$17.4 million from US$32.2 million year-over-year, indicating improved operational efficiency [5][15]. - Non-GAAP loss from operations significantly improved to US$1.9 million from US$10.2 million in the prior year [5][15]. - Net income attributable to TAL was US$23.1 million, a turnaround from a net loss of US$23.9 million in the same quarter last year [5][19]. - Non-GAAP net income attributable to TAL surged to US$38.6 million from a loss of US$1.9 million in the previous year [5][19]. - Basic and diluted net income per ADS were both US$0.04, compared to a loss of US$0.04 in the same quarter last year [5][20]. Financial Highlights for the First Nine Months of Fiscal Year 2025 - Total net revenues for the first nine months were US$1,640.0 million, a 54.6$1,060.9 million in the same period of the previous year [6][24]. - Income from operations was US$12.9 million, a significant recovery from a loss of US$58.2 million in the prior year [6][31]. - Non-GAAP income from operations rose to US$63.5 million from US$10.2 million year-over-year [6][31]. - Net income attributable to TAL was US$91.9 million, compared to a net loss of US$31.1 million in the same period last year [6][35]. - Non-GAAP net income attributable to TAL increased to US$142.5 million from US$37.3 million in the previous year [6][35]. - Basic and diluted net income per ADS were both US$0.15, compared to a loss of US$0.05 in the same period last year [6][37]. Operating Costs and Expenses - Operating costs and expenses for the third quarter were US$624.7 million, a 53.9$405.8 million in the same quarter of the previous year [8][25]. - Non-GAAP operating costs and expenses were US$609.2 million, reflecting a 58.7$383.8 million year-over-year [8][25]. - Cost of revenues increased by 65.5% to US$286.7 million from US$173.2 million in the same quarter last year [9][26]. - Selling and marketing expenses rose by 85.6% to US$226.4 million from US$122.0 million in the prior year [10][27]. - General and administrative expenses increased slightly by 0.8% to US$111.5 million from US$110.7 million year-over-year [11][28]. Cash and Investments - As of November 30, 2024, cash, cash equivalents, and short-term investments totaled US$3,835.8 million, up from US$3,303.3 million as of February 29, 2024 [5][22]. - The deferred revenue balance increased to US$825.6 million from US$428.3 million as of February 29, 2024 [5][23].