Core Viewpoint - The company reported strong financial performance for FY26Q2, with significant year-over-year growth in revenue and net profit, indicating robust demand and effective business strategies [4][7]. Group 1: Financial Performance - FY26Q2 revenue reached $861 million, representing a year-over-year increase of 39.1% [4]. - The company achieved a net profit of $124 million, up 116.1% year-over-year, and a Non-GAAP net profit of $136 million, reflecting an 82.7% increase [4]. - The Non-GAAP net profit margin improved to 15.8%, a rise of 3.8 percentage points year-over-year [7]. Group 2: Learning Services and Other - The learning services segment saw revenue growth, with offline small class courses and online value-added courses both experiencing year-over-year increases [5]. - Deferred revenue at the end of FY26Q2 was $823 million, up 58.9% from approximately $518 million in the same period last year, indicating strong demand resilience [5]. - The company plans to continue expanding the number of learning centers to drive revenue growth, although revenue growth rates are expected to gradually slow due to increasing base figures [5]. Group 3: Content Solutions - FY26Q2 revenue from learning devices continued to grow year-over-year and quarter-over-quarter, driven by new product launches and channel expansion [6]. - The average selling price of learning devices decreased, primarily due to changes in product mix, with the average price falling below 4,000 yuan [6]. - The overall user engagement for learning devices was strong, with an average weekly active rate of about 80% and daily usage exceeding one hour per device [6]. Group 4: Profitability Metrics - The gross margin for FY26Q2 was 57.0%, an increase of 0.7 percentage points year-over-year [7]. - The sales expense ratio was 31.0%, up 1.7 percentage points, attributed to increased online marketing investments [7]. - The management expense ratio decreased to 15.0%, down 4.3 percentage points, due to a significant reduction in stock-based compensation expenses [7]. Group 5: Future Outlook - Looking ahead to FY26Q3, business demand is expected to be relatively subdued due to seasonal factors, but the company will continue to focus on product and service upgrades to support long-term growth [8].