Gaotu Techedu Announces Second Quarter 2025 Unaudited Financial Results

Core Viewpoint - Gaotu Techedu Inc. reported strong financial results for the second quarter of 2025, demonstrating significant growth in revenues and a reduction in losses, driven by effective operational execution and AI-powered educational solutions [1][10][11]. Financial Performance - Net revenues for Q2 2025 reached RMB 1,389.4 million, a 37.6% increase from RMB 1,009.8 million in Q2 2024 [7][11]. - Gross billings for Q2 2025 were RMB 2,252.4 million, up 36.2% from RMB 1,653.7 million in the same period last year [7][11]. - Loss from operations decreased to RMB 241.9 million in Q2 2025, compared to a loss of RMB 464.8 million in Q2 2024, marking a 48.0% improvement [7][15]. - Net loss for Q2 2025 was RMB 216.0 million, down from RMB 429.6 million in Q2 2024, reflecting a 49.7% reduction [7][18]. - Non-GAAP net loss for Q2 2025 was RMB 206.8 million, compared to RMB 418.0 million in Q2 2024, a 50.5% decrease [7][18]. - Net operating cash inflow for Q2 2025 was RMB 588.8 million, an increase of 52.5% from RMB 386.2 million in Q2 2024 [7][19]. Operational Highlights - The company maintained a strong growth momentum in its core business, leveraging AI to enhance service models and product innovation [10][11]. - Customer acquisition efficiency reached its highest level in four years, contributing to improved operational quality [10][11]. - General and administrative expenses decreased as a percentage of net revenues for the second consecutive quarter, indicating growing operating leverage [10][11]. Business Outlook - For Q3 2025, Gaotu expects total net revenues to be between RMB 1,558 million and RMB 1,578 million, representing a year-over-year increase of 28.9% to 30.6% [25]. Cash Position - As of June 30, 2025, the company had cash, cash equivalents, restricted cash, and short-term and long-term investments totaling RMB 3.8 billion, a decrease from RMB 4.1 billion at the end of 2024 [22]. Share Repurchase Program - The board of directors authorized a share repurchase program allowing the company to repurchase up to US$80 million of its shares, with approximately 24.8 million ADSs repurchased for about US$76.9 million as of August 25, 2025 [23][24].