17 Education & Technology(US:YQ) Globenewswireยท2025-09-03 21:00Core Insights - 17 Education & Technology Group Inc. reported its unaudited financial results for the second quarter of 2025, highlighting a significant decrease in net revenues year-over-year, while also showing improvements in gross margin and reduced net loss compared to the previous year [1][6][7]. Financial Performance - Net revenues for Q2 2025 were RMB 25.4 million (US$ 3.5 million), a decrease of 62.4% from RMB 67.5 million in Q2 2024 [6][8]. - Gross margin improved to 57.5% in Q2 2025, compared to 16.0% in Q2 2024, attributed to a higher proportion of lower margin mixed deliveries in the previous year [6][10]. - The net loss for Q2 2025 was RMB 26.0 million (US$ 3.6 million), down from RMB 55.7 million in Q2 2024, indicating a 53.4% reduction in net loss on a GAAP basis [6][17]. Operational Highlights - The company launched the "Yiqi Tongxue" intelligent agent and upgraded AI solutions in Shanghai Minhang District, focusing on enhancing customer satisfaction and user engagement [5]. - The subscription model business showed strong performance, contributing to a quarter-on-quarter revenue growth of 17.3% [7]. Cost Management - Total operating expenses for Q2 2025 were RMB 43.1 million (US$ 6.0 million), a decrease of 39.3% from RMB 70.9 million in Q2 2024 [11]. - Research and development expenses decreased by 48.2% year-over-year, reflecting staff optimization and reduced share-based compensations [14]. Cash Position - As of June 30, 2025, the company had cash and cash equivalents, restricted cash, and term deposits totaling RMB 350.9 million (US$ 49.0 million), slightly down from RMB 359.3 million at the end of 2024 [20]. Share Repurchase Program - The board of directors approved a share repurchase program allowing the company to repurchase up to US$ 10 million worth of its ordinary shares over a 12-month period starting from September 4, 2025 [21][22].