Gaotu Techedu Announces Third Quarter 2025 Unaudited Financial Results

Core Viewpoint - Gaotu Techedu Inc. reported significant financial improvements in Q3 2025, with net revenues increasing by 30.7% year-over-year, reflecting strong market demand and effective operational strategies [3][6][9]. Financial Performance - Net Revenues: Increased to RMB 1,579.0 million in Q3 2025 from RMB 1,208.3 million in Q3 2024, marking a 30.7% growth [3][6][9]. - Gross Billings: Rose to RMB 1,188.9 million, an 11.2% increase from RMB 1,069.2 million in the same period of 2024 [3][6]. - Loss from Operations: Narrowed significantly to RMB 178.0 million from RMB 490.1 million year-over-year, a 63.7% improvement [3][14]. - Net Loss: Decreased to RMB 147.1 million compared to RMB 471.3 million in Q3 2024, reflecting a 68.8% reduction [3][17]. - Non-GAAP Net Loss: Improved to RMB 137.7 million from RMB 457.2 million in the same quarter of the previous year, a 69.9% decrease [3][17]. - Operating Cash Outflow: Reduced to RMB 660.2 million from RMB 714.4 million year-over-year, a 7.6% improvement [3][6]. Operational Efficiency - Gross Profit: Increased by 34.0% to RMB 1,043.5 million, with gross profit margin rising to 66.1% from 64.4% in Q3 2024 [11][12]. - Operating Expenses: Decreased by 3.7% to RMB 1,221.5 million, attributed to effective cost management [13]. - User Acquisition Efficiency: Improved by 12.8% year-over-year, indicating enhanced operational quality [6]. Deferred Revenue and Cash Position - Deferred Revenue: Grew to nearly RMB 1.8 billion, up 23.2% year-over-year, providing better revenue visibility for upcoming quarters [6]. - Cash Position: As of September 30, 2025, the company had cash and cash equivalents totaling RMB 3,040.4 million, down from RMB 4,094.3 million at the end of 2024 [21]. Shareholder Returns and Future Outlook - Share Repurchase Program: Completed an US$80 million share repurchase program and initiated a new US$100 million program [24][25][26]. - Revenue Guidance: For Q4 2025, total net revenues are expected to be between RMB 1,628 million and RMB 1,648 million, representing a year-over-year increase of 17.2% to 18.7% [27].