TAL Education Group Announces Unaudited Financial Results for the Third Fiscal Quarter Ended November 30, 2025

Core Viewpoint - TAL Education Group reported significant financial growth in the third quarter of fiscal year 2026, with substantial increases in net revenues, income from operations, and net income compared to the same period in the previous year [1][2][3]. Financial Highlights for the Third Quarter of Fiscal Year 2026 - Net revenues reached US$770.2 million, a 27.0% increase from US$606.4 million in the same period of the prior year [2][11]. - Income from operations was US$93.1 million, compared to a loss of US$17.4 million in the same period of the prior year [2][18]. - Non-GAAP income from operations, excluding share-based compensation expenses, was US$104.0 million, compared to a non-GAAP loss of US$1.9 million in the same period of the prior year [3][18]. - Net income attributable to TAL was US$130.6 million, up from US$23.1 million in the same period of the prior year [3][21]. - Non-GAAP net income attributable to TAL, excluding share-based compensation expenses, was US$141.4 million, compared to US$38.6 million in the same period of the prior year [4][21]. - Basic and diluted net income per American Depositary Share (ADS) were US$0.24 and US$0.23, respectively, with non-GAAP figures at US$0.25 for both [4][22]. Financial Highlights for the Nine Months Ended November 30, 2025 - Net revenues totaled US$2,206.5 million, a 34.5% increase from US$1,640.0 million in the same period of the prior year [6][27]. - Income from operations was US$203.6 million, compared to US$12.9 million in the same period of the prior year [6][34]. - Non-GAAP income from operations was US$236.9 million, compared to US$63.5 million in the same period of the prior year [7][34]. - Net income attributable to TAL was US$286.0 million, compared to US$91.9 million in the same period of the prior year [7][38]. - Non-GAAP net income attributable to TAL was US$319.3 million, compared to US$142.5 million in the same period of the prior year [8][39]. - Basic and diluted net income per ADS were US$0.50 and US$0.49, respectively, with non-GAAP figures at US$0.55 for both [8][40]. Operating Costs and Expenses - Operating costs and expenses for the third quarter were US$677.0 million, an 8.5% increase from US$623.9 million in the same period of the prior year [12]. - Non-GAAP operating costs and expenses, excluding share-based compensation expenses, were US$666.2 million, a 9.5% increase from US$608.4 million in the same period of the prior year [12]. - Cost of revenues increased by 18.0% to US$338.4 million from US$286.7 million in the third quarter of fiscal year 2025 [13]. - Selling and marketing expenses decreased by 2.8% to US$220.1 million from US$226.4 million in the third quarter of fiscal year 2025 [14]. - General and administrative expenses increased by 7.1% to US$118.6 million from US$110.7 million in the third quarter of fiscal year 2025 [15]. Cash and Investments - Cash, cash equivalents, and short-term investments totaled US$3,617.4 million as of November 30, 2025, compared to US$3,618.4 million as of February 28, 2025 [5][24]. - The deferred revenue balance was US$1,162.8 million as of November 30, 2025, compared to US$671.2 million as of February 28, 2025 [25]. Share Repurchase Program - The board of directors authorized a new share repurchase program allowing the company to repurchase up to US$600 million of common shares over the next 12 months [42].