Core Viewpoint - New Oriental's financial report for the fourth quarter and full year of fiscal year 2025 shows a revenue increase but a significant decline in net profit due to goodwill impairment, indicating challenges in certain business segments and a strategic shift towards AI investments and new educational solutions [1][3][6]. Financial Performance - For the fourth quarter of fiscal year 2025, revenue reached $1.243 billion, a year-on-year increase of 9.4%, while net profit was $7.1 million, down 73.7% due to a $60.3 million goodwill impairment [1][2]. - Excluding the Oriental Selection business, the fourth quarter revenue was $1.089 billion, reflecting an 18.7% year-on-year growth [1]. - For the entire fiscal year 2025, total revenue was $4.9 billion, up 13.6%, and net profit was $371.7 million, a 20.1% increase [2]. Business Segment Performance - The overseas study preparation and consulting businesses saw revenue growth of approximately 14.6% and 8.2%, respectively, although growth rates have slowed compared to previous quarters [3]. - The new education business experienced a 32.5% revenue increase, with significant engagement in non-subject tutoring across 60 cities [3][4]. - The cultural tourism business reported a 71% revenue growth, driven by domestic and international study tours [4][5]. Cost and Impairment Issues - The significant drop in net profit was primarily attributed to a $60.3 million goodwill impairment related to past acquisitions of kindergartens, reflecting changes in policy and market conditions [6]. - Operating costs and expenses for the fourth quarter were $1.252 billion, up 11.2%, with stock-based compensation expenses increasing by 11% to $28.6 million [6]. Future Guidance - The company anticipates a revenue growth rate of 2%-5% for the first quarter of fiscal year 2026 and 5%-10% for the entire fiscal year, indicating a more stable and sustainable growth phase [6][7]. - The guidance now includes the Oriental Selection business, reflecting its operational stabilization after restructuring [7].

Core Insights - New Oriental achieved net revenue of $1.243 billion in FY25Q4, a year-on-year increase of 9.4%, while net profit attributable to shareholders was $7.1 million, down 73.7% year-on-year [1] - The core education business remained stable, but revenue growth guidance for FY26Q1 has decreased [1][2] - The company expects FY26Q1 net revenue to be between $1.464 billion and $1.507 billion, representing a year-on-year growth of 2%-5% [2] Revenue Breakdown - Excluding revenue from self-operated products and live e-commerce, FY25Q4 net revenue was $1.0885 billion, up 18.7% year-on-year, surpassing previous guidance [1] - Revenue from overseas exam preparation increased by 14.6%, while overseas consulting revenue rose by 8.2% in FY25Q4 [1] - Domestic exam preparation for adults and college students saw a year-on-year revenue increase of 17.0% in FY25Q4 [1] New Business Developments - Revenue from new educational services grew by 32.5% year-on-year in FY25Q4, with approximately 918,000 registrations and 255,000 active paying users for smart learning systems [2] - The number of operational outlets exceeded 1,300 by the end of FY25Q4, with expansion plans on track [2] Profitability and Margin Analysis - FY25Q4 operating profit margin was -0.7%, down from 0.9% in the same period last year, primarily due to a one-time goodwill impairment of $60.3 million in the kindergarten business [3] - Non-GAAP operating profit margin for FY25Q4 was 6.6%, an increase of 3.3 percentage points year-on-year [3] - The company anticipates that despite challenges in FY26Q1, profitability may still see year-on-year growth due to the turnaround of the live e-commerce segment and ongoing cost reduction efforts [3] Future Outlook - The company has announced a three-year shareholder return plan, intending to return 50% of the previous fiscal year's net profit to shareholders through dividends or buybacks [2] - Profit forecasts for FY26 and FY27 have been adjusted downwards to $481 million and $559 million, respectively, reflecting a conservative outlook due to macroeconomic pressures [3]

Core Viewpoint - New Oriental's FY25Q4 net revenue reached $1.243 billion, a year-on-year increase of 9.4%, while the net profit attributable to shareholders was $7.1 million, a decrease of 73.7% [4] Group 1: Financial Performance - FY25Q4 core education business maintained stability with net revenue (excluding self-operated products and live e-commerce) at $1.0885 billion, up 18.7% year-on-year, exceeding previous guidance [5] - The company expects FY26Q1 overall net revenue to be between $1.464 billion and $1.507 billion, representing a year-on-year growth of 2%-5% [6] - FY25Q4 operating profit margin was -0.7%, down from 0.9% in the same period last year, primarily due to a one-time goodwill impairment of $60.3 million in the kindergarten business [7] Group 2: Business Segments - In FY25Q4, the overseas examination preparation business revenue grew by 14.6%, and the overseas consulting business revenue increased by 8.2% [5] - The new education business saw a revenue increase of 32.5% year-on-year, with approximately 918,000 registrations and 255,000 active paying users for smart learning systems [5] - The company announced a three-year shareholder return plan, intending to return 50% of the previous fiscal year's net profit to shareholders through dividends or buybacks [6] Group 3: Future Outlook - Despite a significant slowdown in revenue growth for the overseas business and increased competition, the profitability from the Oriental Selection is expected to positively contribute to overall earnings [8] - The company aims to improve overall profit margins in FY26Q1 through cost reduction and efficiency enhancement measures [8]

Investment Rating - The report downgrades the investment rating of the company to "Accumulate" [1] Core Views - The company's FY25Q4 net revenue reached USD 1.243 billion, a year-on-year increase of 9.4%, while the net profit attributable to shareholders was USD 7.1 million, a decrease of 73.7% [3][4] - The core education business showed steady growth, but the overseas and cultural tourism businesses negatively impacted profits [4][6] - The company expects FY26Q1 net revenue to be between USD 1.464 billion and USD 1.507 billion, representing a year-on-year growth of 2%-5%, indicating a significant slowdown compared to previous guidance [5][7] Summary by Sections Revenue Performance - FY25Q4 net revenue (excluding self-operated products and live e-commerce) was USD 1.0885 billion, up 18.7% year-on-year, exceeding previous guidance [4] - The overseas examination preparation business revenue grew by 14.6%, and the overseas consulting business revenue increased by 8.2% [4] - Domestic examination preparation for adults and university students saw a revenue increase of 17.0% [4] Profitability - FY25Q4 operating profit margin was -0.7%, down from 0.9% in the same period last year, primarily due to a one-time goodwill impairment of USD 60.3 million in the kindergarten business [6] - Non-GAAP operating profit margin for FY25Q4 was 6.6%, an increase of 3.3 percentage points year-on-year [6] Financial Forecasts - The company has revised down its net profit forecasts for FY26 and FY27 to USD 481 million and USD 559 million, respectively, reflecting a 10% and 18% reduction [7][8] - The projected EPS for FY26, FY27, and FY28 are USD 0.29, USD 0.34, and USD 0.38, respectively, with corresponding P/E ratios of 15x, 13x, and 12x [7][8]

记者丨王峰 编辑丨周上祺 新东方（NYSE：EDU；HK：09901）刚刚经历了一个不容易的2025财年，即将迎来一个更不容易的 2026财年。 近日，新东方公布截至2025年5月31日的2025财年第四季度及全年未经审核业绩。2025财年第四季度， 新东方营收12.4亿美元，同比增长9.4%。2025财年，新东方营收为49亿美元，同比增长13.6%。 这是一份稳定增长的业绩，但令人担忧的是，增长正在放缓。新东方2024财年的营收增长高达43.9%， 本财年却出现断崖式失速。更令人担忧的是，新东方预计2026财年第一季度营收仅增长2%—5%，为了 安抚资本市场，新东方罕见地在财报会上给出了2026财年全年的业绩预期，虽比一季度预期更好，但也 只增长5%—10%。 董宇辉出走对东方甄选的业绩影响，复杂国际形势对出国留学业务的影响，K12领域激烈的市场竞争， 都是新东方增长放缓的重要原因。 净利润为何剧减 2025财年第四季度，新东方营收12.4亿美元，同比增长9.4%；不包括东方甄选自营产品及直播电商业务 实现的营收为10.9亿美元，同比增长18.7%；新东方股东应占净利润为710万美元，同比下降73.7%。 ...

Core Viewpoint - New Oriental has experienced a challenging fiscal year 2025 and is expected to face an even tougher fiscal year 2026, with significant concerns regarding slowing revenue growth and declining net profit [1][2]. Revenue 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][2]. - The revenue growth rate has significantly slowed compared to fiscal year 2024, which saw a growth rate of 43.9% [1]. - The company forecasts Q1 of fiscal year 2026 revenue growth to be only 2% to 5%, with an annual growth expectation of 5% to 10% [1][10]. Net Profit Analysis - New Oriental's net profit for Q4 of fiscal year 2025 was $7.1 million, a dramatic decline of 73.7% year-on-year [2][4]. - The sharp decline in net profit is primarily attributed to increased costs and expenses, which rose by 11.2% to $1.25 billion, outpacing revenue growth [4]. - A significant factor in the profit drop was a goodwill impairment of $60.3 million, related to previous acquisitions of kindergartens, which was a one-time charge [4][5]. Business Segment Performance - The growth of New Oriental's educational new business, primarily K9, has been slowing, with revenue growth rates of 49.8%, 42.6%, 34.5%, and 32.5% over the past four quarters [7]. - Traditional overseas exam preparation and consulting services have stabilized, with revenue growth of 14.6% and 8.2% respectively in Q4 [8][9]. - Domestic exam preparation services have also shown a decline in growth, influenced by reduced enrollment and participation [9]. Future Outlook - The company anticipates a revenue range of $1.46 billion to $1.51 billion for Q1 of fiscal year 2026, indicating continued slow growth [10]. - For the entire fiscal year 2026, revenue is projected to be between $5.15 billion and $5.39 billion, with specific growth expectations of approximately 20% for K9 business and 10% for domestic exam preparation [10].

Core Insights - New Oriental's net revenue for Q4 of fiscal year 2025 reached $1.243 billion, representing a year-over-year increase of 9.4% [1] - The company's operating loss for Q4 was $8.7 million, a decline from an operating profit of $10.5 million in the same quarter last year [1] - Net profit attributable to New Oriental shareholders fell by 73.7% to $7.1 million in Q4 [1] Revenue Growth - The increase in net revenue was primarily driven by new educational business initiatives [2] - Revenue from overseas exam preparation and consulting services grew by approximately 14.6% and 8.2% year-over-year, respectively [2] - Domestic exam preparation services for adults and college students saw a year-over-year growth of about 17.0% [2] - New educational businesses maintained strong growth, with revenue increasing by 32.5% year-over-year [2] Cost and Expenses - Total operating costs and expenses for the quarter amounted to $1.25 billion, up 11.2% year-over-year [2] - Various costs, including revenue costs, sales and marketing expenses, and general and administrative expenses, all experienced increases [2] - Share-based compensation expenses rose by 11.0% to $28.6 million [2] Annual Performance - For the fiscal year ending May 31, 2025, New Oriental's net revenue was $4.9 billion, a year-over-year increase of 13.6% [2] - Operating profit for the fiscal year was $428 million, reflecting a 22.2% increase year-over-year [2] - Non-GAAP operating profit for the fiscal year was $554 million, up 15.8% year-over-year [2] Profitability Metrics - The operating profit margin for fiscal year 2025 was 8.7%, compared to 8.1% in the previous year [3] - The Non-GAAP operating profit margin was 11.3%, slightly up from 11.1% year-over-year [3] - Net profit attributable to New Oriental shareholders for the fiscal year was $370 million, a 20.1% increase year-over-year [3] - Basic and diluted net profit per ADS for the fiscal year were $2.29 and $2.28, respectively [3]

Core Insights - New Oriental Education Technology Group reported its unaudited financial results for the fourth quarter and fiscal year ending May 31, 2025, showing a net revenue of $4.9 billion, a year-on-year increase of 13.6%, and a net profit of $372 million, up 20.1% [1] Financial Performance - For the fourth quarter of fiscal year 2025, New Oriental's net revenue reached $1.243 billion, reflecting a year-on-year growth of 9.4%, while the net profit attributable to the company was $7.1 million, a significant decrease of 73.7% [1] - Excluding revenue from self-operated products and live e-commerce business, the net revenue for the fourth quarter increased by 18.7% year-on-year [1] Business Segments - Revenue from overseas exam preparation and consulting services grew approximately 14.6% and 8.2% year-on-year, respectively [1] - Domestic exam preparation services targeting adults and university students saw a year-on-year growth of about 17% [1] - New Oriental's new educational businesses maintained strong growth momentum, recording a year-on-year revenue increase of 32.5% in the quarter [1] - Non-subject tutoring services were launched in nearly 60 cities, with approximately 918,000 registrations in the quarter [1] - The smart learning system and devices were adopted in around 60 cities, with about 255,000 active paying users in the quarter [1] Strategic Outlook - Over the past year, New Oriental has gradually consolidated its long-term development strategy [1]

Core Insights - New Oriental's net revenue for Q4 of FY2025 increased by 9.4% year-on-year to $1.2432 billion, while net revenue excluding self-operated products and live e-commerce business rose by 18.7% to $1.0885 billion [1][2] - The operating loss for Q4 of FY2025 was $8.7 million, compared to an operating profit of $10.5 million in the same period last year [1] - The net profit attributable to New Oriental's shareholders for Q4 of FY2025 decreased by 73.7% year-on-year to $7.1 million [1] Financial Performance - For the fiscal year ending May 31, 2025, New Oriental's net revenue reached $4.9003 billion, reflecting a year-on-year increase of 13.6% [2] - Operating profit for FY2025 was $428.3 million, up 22.2% year-on-year [2] - The net profit attributable to shareholders for FY2025 was $371.7 million, representing a 20.1% increase year-on-year [2] Business Segments - Revenue from overseas exam preparation and consulting services grew by approximately 14.6% and 8.2% year-on-year, respectively [3] - Domestic exam preparation services for adults and college students recorded a year-on-year growth of about 17.0% [3] - New educational businesses maintained strong growth, with a revenue increase of 32.5% year-on-year, and non-subject tutoring services were launched in nearly 60 cities [3] Future Outlook - New Oriental expects Q1 of FY2026 (June 1 to August 31, 2025) net revenue to be between $1.4641 billion and $1.5072 billion, with a year-on-year growth rate of 2% to 5% [2] - The company plans to enhance management of core educational businesses, improve product capabilities and quality, systematically develop educational resources, and increase operational efficiency in the new fiscal year [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Views - The company reported FY25Q3 revenue of $1.2 billion, a decrease of 2% year-over-year, with Non-GAAP operating profit at $140 million, down 0.2%, and Non-GAAP net profit attributable to shareholders at $110 million, down 14% [1] - Excluding self-operated products and live e-commerce, revenue grew by 21.2% this quarter, with overseas exam preparation and consulting revenues increasing by approximately 7.1% and 21.4%, respectively [2] - The company is focusing on sustainable long-term growth by enhancing product quality and operational efficiency, while also integrating innovative technologies into its educational offerings [2][3] Financial Performance Summary - The Non-GAAP operating profit margin for the quarter was 13.3%, down from 15.1% in the same period last year, impacted by slower growth in overseas business and investments in newly integrated cultural tourism operations [3] - The company has adjusted its revenue forecasts for FY25-27 to $4.9 billion, $5.8 billion, and $6.8 billion, respectively, with Non-GAAP net profits projected at $460 million, $570 million, and $690 million [4]