Core Viewpoint - New Oriental has experienced a challenging fiscal year 2025 and is expected to face an even more difficult fiscal year 2026, with revenue growth slowing significantly compared to previous years [1][14]. Financial Performance - In Q4 of fiscal year 2025, New Oriental reported revenue of $1.24 billion, a year-on-year increase of 9.4%. For the entire fiscal year, revenue reached $4.9 billion, up 13.6% year-on-year [1][3]. - The net profit attributable to shareholders was $7.1 million, a dramatic decline of 73.7% year-on-year [3][5]. - Operating costs and expenses for the quarter were $1.25 billion, an increase of 11.2%, outpacing revenue growth [5]. Profitability Issues - The significant drop in net profit was primarily due to increased costs and expenses, including a goodwill impairment of $60.3 million, which was a major factor in the profit decline [5][8]. - Excluding the goodwill impairment, the profit would have shown a substantial year-on-year increase of approximately 150% [8]. Revenue Growth Trends - Revenue growth for New Oriental's educational services has been slowing down, with quarterly growth rates decreasing from 49.8% to 32.5% over the fiscal year [10]. - The K9 business remains a strong performer despite increased competition, maintaining high growth due to its large market size and New Oriental's brand strength [10][11]. Business Segment Performance - The non-academic tutoring business saw approximately 918,000 registrations in Q4, reflecting a significant increase from previous quarters [11]. - The overseas examination preparation and consulting businesses have stabilized, with revenue growth of 14.6% and 8.2% respectively in Q4 [12]. Future Outlook - For Q1 of fiscal year 2026, New Oriental expects revenue to be between $1.46 billion and $1.51 billion, representing a year-on-year growth of 2% to 5% [14]. - The company anticipates a more stable and sustainable growth phase, with full-year revenue projections for fiscal year 2026 set between $5.15 billion and $5.39 billion, indicating a growth of 5% to 10% [15].