NEW ORIENTAL-New Oriental Announces Results for the Third Fiscal Quarter Ended February 28, 2025

Core Viewpoint - New Oriental Education & Technology Group Inc. reported its financial results for the third fiscal quarter of 2025, highlighting a decrease in total net revenues but significant growth in specific educational segments and ongoing strategic initiatives aimed at long-term development and operational efficiency [1][4][9]. Financial Highlights - Total net revenues for the third fiscal quarter were US $1,183.1 million, a decrease of 2.0% year over year. Excluding revenues from East Buy private label products and livestreaming business, revenues increased by 21.2% to US$ 1,038.3 million [6][9]. - Operating income rose by 9.8% year over year to US $124.5 million. Excluding losses from East Buy, operating income increased by 5.0% to US$ 125.5 million [6][12]. - Net income attributable to New Oriental was US $87.3 million, reflecting a slight increase of 0.1% year over year [6][14]. Operating Performance - The company experienced a 21.2% year-over-year increase in revenues from its core educational services, with overseas test preparation and study consulting businesses growing by approximately 7.1% and 21.4%, respectively [4][9]. - New educational initiatives saw a revenue growth of 34.5% year over year, with non-academic tutoring courses attracting around 408,000 student enrollments [4][9]. - The operating margin for the quarter was 10.5%, compared to 9.4% in the same period of the prior fiscal year, while the non-GAAP operating margin was 12.0%, up from 11.8% [12][13]. Cash Flow and Balance Sheet - As of February 28, 2025, the company had cash and cash equivalents of US$ 1,418.8 million, along with US $1,411.7 million in term deposits and US$ 1,853.6 million in short-term investments [17]. - Net operating cash inflow for the quarter was approximately US $1.0 million, with capital expenditures amounting to US$ 52.4 million [16]. Share Repurchase Program - The board approved an extension of the Share Repurchase Program, increasing the total authorized repurchase amount from US $400 million to US$ 700 million, with approximately 14.4 million ADSs repurchased for about US $695.5 million as of April 22, 2025 [8]. Outlook - For the fourth quarter of fiscal year 2025, New Oriental expects total net revenues, excluding East Buy and livestreaming business, to be in the range of US$ 1,009.1 million to US$1,036.6 million, representing a year-over-year increase of 10% to 13% [25].