TAL Education Group Announces Unaudited Financial Results for the First Fiscal Quarter Ended May 31, 2025

Core Insights - TAL Education Group reported a significant year-over-year revenue growth of 38.8%, reaching net revenues of US$575.0 million for the first quarter of fiscal year 2026, compared to US$414.2 million in the same period of the previous year [4][5] - The company achieved a net income attributable to TAL of US$31.3 million, a 174.4% increase from US$11.4 million in the prior year [15][5] - TAL's President and CFO highlighted the successful launch of new learning device models, which contributed to the revenue growth and the company's commitment to innovation in the K-12 learning sector [3][4] Financial Performance - Net Revenues: US$575.0 million for Q1 FY2026, up from US$414.2 million in Q1 FY2025, marking a 38.8% increase [4][5] - Income from Operations: Reported income of US$14.3 million, a turnaround from a loss of US$17.3 million in the same quarter last year [12][5] - Non-GAAP Income from Operations: Increased to US$25.1 million from US$0.9 million year-over-year, reflecting a growth of 2766.3% [12][5] - Net Income: Attributable net income rose to US$31.3 million from US$11.4 million, a 174.4% increase [15][5] - Non-GAAP Net Income: Increased to US$42.0 million from US$29.6 million, a 42.0% rise [15][5] Operating Costs and Expenses - Total Operating Costs and Expenses: Increased by 29.9% to US$561.5 million from US$432.1 million in Q1 FY2025 [6] - Cost of Revenues: Rose by 29.8% to US$259.6 million from US$200.0 million [7] - Selling and Marketing Expenses: Increased by 47.7% to US$180.8 million from US$122.4 million [8] - General and Administrative Expenses: Grew by 10.4% to US$121.1 million from US$109.7 million [9] Gross Profit and Margin - Gross Profit: Increased by 47.3% to US$315.4 million from US$214.2 million [11] - Gross Margin: Improved to 54.9% from 51.7% in the same period last year [11] Cash and Investments - Cash and Cash Equivalents: Totaled US$1,267.2 million as of May 31, 2025, down from US$1,771.3 million as of February 28, 2025 [19][18] - Short-Term Investments: Increased to US$2,205.6 million from US$1,847.1 million [19][18] Share Repurchase Program - The board of directors authorized an extension of the share repurchase program, allowing for the repurchase of up to approximately US$490.7 million of common shares through April 30, 2026 [21] - A new share repurchase plan was also authorized, permitting the repurchase of up to US$600 million of common shares over the next 12 months [22]