TAL Education Group Announces Unaudited Financial Results for the Second Fiscal Quarter Ended August 31, 2025 and Issues Notice of Annual General Meeting

Core Viewpoint - TAL Education Group reported significant financial growth in the second quarter of fiscal year 2026, with net revenues increasing by 39.1% year-over-year, driven by strong performance in enrichment learning programs and learning devices [4][8][21]. Financial Results for the Second Quarter of Fiscal Year 2026 - Net revenues reached US$861.4 million, up from US$619.4 million in the same quarter of the previous year, marking a 39.1% increase [4][8]. - Income from operations was US$96.1 million, compared to US$47.6 million in the prior year, reflecting a 101.8% increase [8][12]. - Non-GAAP income from operations was US$107.8 million, up from US$64.5 million, a 67.2% increase [8][12]. - Net income attributable to TAL was US$124.1 million, a 116.1% increase from US$57.4 million in the same period last year [8][16]. - Non-GAAP net income attributable to TAL was US$135.8 million, compared to US$74.3 million, an 82.7% increase [8][16]. - Basic net income per ADS was US$0.22, and diluted net income per ADS was US$0.21, both showing significant increases from the previous year [8][17]. Financial Results for the First Six Months of Fiscal Year 2026 - For the first six months, net revenues totaled US$1,436.4 million, a 39.0% increase from US$1,033.5 million in the same period last year [21]. - Income from operations was US$110.4 million, compared to US$30.3 million in the prior year, reflecting a 264.6% increase [29][33]. - Non-GAAP income from operations was US$133.0 million, up from US$65.4 million, a 103.3% increase [29][33]. - Net income attributable to TAL was US$155.4 million, compared to US$68.8 million, a 125.7% increase [33]. - Non-GAAP net income attributable to TAL was US$177.9 million, compared to US$103.9 million, a 71.1% increase [33]. - Basic and diluted net income per ADS were both US$0.26, with non-GAAP figures also at US$0.30 [34]. Operating Costs and Expenses - Operating costs and expenses for the second quarter were US$766.7 million, a 34.0% increase from US$572.0 million in the same quarter of the previous year [5][22]. - Non-GAAP operating costs and expenses were US$755.0 million, a 36.0% increase from US$555.1 million [5][22]. - Selling and marketing expenses increased by 46.9% to US$267.3 million from US$181.9 million [7][24]. - General and administrative expenses rose by 8.0% to US$129.1 million from US$119.5 million [9][25]. Cash and Investments - As of August 31, 2025, cash, cash equivalents, and short-term investments totaled US$3,248.8 million, down from US$3,618.4 million as of February 28, 2025 [19]. - The deferred revenue balance was US$822.7 million, compared to US$671.2 million as of February 28, 2025 [20]. Share Repurchase Program - The board of directors authorized a new share repurchase program allowing the company to repurchase up to US$600 million of its common shares over the next 12 months [36].