Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6] Core Insights - The company reported FY2026Q2 revenue of $861.4 million, a year-on-year increase of 39.1%, and Non-GAAP operating profit of $107.85 million, up 67.2% year-on-year, with a Non-GAAP operating profit margin of 12.52%, an increase of 2.1 percentage points year-on-year [6] - Non-GAAP net profit reached $135.8 million, reflecting an 82.7% year-on-year growth, with a net profit margin of 15.77%, up 3.77 percentage points year-on-year [6] - Deferred revenue as of August 31, 2025, was $822.7 million, a 58.9% increase year-on-year [6] - The company has adjusted its FY2026-2027 profit forecasts downwards but introduced new profit estimates for FY2028, expecting Non-GAAP net profits of $240 million, $333 million, and $430 million for FY2026, FY2027, and FY2028 respectively, with corresponding EPS of $0.40, $0.55, and $0.71 [6] Revenue and Profit Summary - FY2024A revenue was $1.49 billion, with a year-on-year growth of 46.2%, and FY2025A revenue was $2.25 billion, growing by 51.0% [9] - The projected revenues for FY2026E, FY2027E, and FY2028E are $2.975 billion, $3.571 billion, and $4.122 billion respectively, with year-on-year growth rates of 32.2%, 20.0%, and 15.4% [9] - Non-GAAP net profit for FY2024A was $85 million, with a significant year-on-year decline of 415.5%, while FY2025A net profit was $150 million, reflecting a 75.2% increase [9] Business Segments - The company's learning services, both online and offline, have shown year-on-year growth, with offline teaching points increasing to 526 across 40 cities by February 28, 2025 [7] - The AI classroom initiative has introduced new courses tailored to different user groups, enhancing engagement and user satisfaction [7] - The integration of AI with smart hardware has become a core growth driver, with significant sales growth in learning devices and content solutions [8] Market Position - The company holds a 22% market share in the online learning device sector, ranking second among leading brands [8] - The online sales revenue for the company from June to August 2025 reached $1.861 billion, marking a 46.8% year-on-year increase [8]