Core Viewpoint - Four Seasons Education reported solid growth in the first half of fiscal year 2026, with total revenue reaching RMB145.3 million, a 7.9% increase year-over-year, and a significant rise in net income by 313.9% to RMB12.4 million, driven by a healthy product mix and efficiency gains [5][7][15]. Financial and Operational Highlights - Total revenue increased by 7.9% to RMB145.3 million (US$20.4 million) from RMB134.7 million in the same period last year [7][8]. - Gross profit rose by 30.9% to RMB38.8 million (US$5.4 million) compared to RMB29.7 million in the same period last year, attributed to the growth in the enrichment learning business [10][15]. - Operating income was RMB9.2 million (US$1.3 million), a turnaround from an operating loss of RMB5.7 million in the same period last year [12]. - Adjusted operating income (non-GAAP) was RMB9.8 million (US$1.4 million), compared to an adjusted operating loss of RMB1.6 million in the same period last year [12][15]. - Net income reached RMB12.4 million (US$1.7 million), up from RMB3.0 million in the same period last year [15]. - Adjusted net income (non-GAAP) was RMB13.7 million (US$1.9 million), compared to RMB2.1 million in the same period last year [15]. - Basic and diluted net income per American Depositary Share (ADS) were RMB4.53 (US$0.63) and RMB4.48 (US$0.63), respectively, compared to both RMB0.98 in the same period last year [16]. Cost and Expense Management - Cost of revenue was RMB106.5 million (US$14.9 million), slightly up from RMB105.0 million in the same period last year, primarily due to increased staff costs in the enrichment learning business [9]. - General and administrative expenses decreased by 10.7% to RMB24.3 million (US$3.4 million) from RMB27.2 million in the same period last year, mainly due to reduced share-based compensation expenses [11]. - Sales and marketing expenses decreased by 34.3% to RMB5.3 million (US$0.7 million) from RMB8.1 million in the same period last year, attributed to lower advertising activities [12]. Strategic Outlook - The company plans to prudently expand its enrichment learning business while strategically scaling capacity in line with market demand to ensure sustainable growth [5]. - There is a focus on shifting the tourism product portfolio towards higher-margin, value-added offerings to create a more resilient business model [5]. - The management emphasizes operational efficiency, strategic execution, and a diverse service and product portfolio to drive profitable growth and enhance long-term competitiveness [5].

Core Viewpoint - TAL Education Group reported significant financial growth in the second quarter of fiscal year 2026, with net revenues increasing by 39.1% year-over-year, driven by strong performance in enrichment learning programs and learning devices [4][8][21]. Financial Results for the Second Quarter of Fiscal Year 2026 - Net revenues reached US$861.4 million, up from US$619.4 million in the same quarter of the previous year, marking a 39.1% increase [4][8]. - Income from operations was US$96.1 million, compared to US$47.6 million in the prior year, reflecting a 101.8% increase [8][12]. - Non-GAAP income from operations was US$107.8 million, up from US$64.5 million, a 67.2% increase [8][12]. - Net income attributable to TAL was US$124.1 million, a 116.1% increase from US$57.4 million in the same period last year [8][16]. - Non-GAAP net income attributable to TAL was US$135.8 million, compared to US$74.3 million, an 82.7% increase [8][16]. - Basic net income per ADS was US$0.22, and diluted net income per ADS was US$0.21, both showing significant increases from the previous year [8][17]. Financial Results for the First Six Months of Fiscal Year 2026 - For the first six months, net revenues totaled US$1,436.4 million, a 39.0% increase from US$1,033.5 million in the same period last year [21]. - Income from operations was US$110.4 million, compared to US$30.3 million in the prior year, reflecting a 264.6% increase [29][33]. - Non-GAAP income from operations was US$133.0 million, up from US$65.4 million, a 103.3% increase [29][33]. - Net income attributable to TAL was US$155.4 million, compared to US$68.8 million, a 125.7% increase [33]. - Non-GAAP net income attributable to TAL was US$177.9 million, compared to US$103.9 million, a 71.1% increase [33]. - Basic and diluted net income per ADS were both US$0.26, with non-GAAP figures also at US$0.30 [34]. Operating Costs and Expenses - Operating costs and expenses for the second quarter were US$766.7 million, a 34.0% increase from US$572.0 million in the same quarter of the previous year [5][22]. - Non-GAAP operating costs and expenses were US$755.0 million, a 36.0% increase from US$555.1 million [5][22]. - Selling and marketing expenses increased by 46.9% to US$267.3 million from US$181.9 million [7][24]. - General and administrative expenses rose by 8.0% to US$129.1 million from US$119.5 million [9][25]. Cash and Investments - As of August 31, 2025, cash, cash equivalents, and short-term investments totaled US$3,248.8 million, down from US$3,618.4 million as of February 28, 2025 [19]. - The deferred revenue balance was US$822.7 million, compared to US$671.2 million as of February 28, 2025 [20]. Share Repurchase Program - The board of directors authorized a new share repurchase program allowing the company to repurchase up to US$600 million of its common shares over the next 12 months [36].