Core Insights - The company has entered a stable growth trajectory, with total net revenue increasing by 6.1% year over year in the first quarter of 2026, driven by strong operational capabilities and sustainable profitability [4][10][18] Business Performance - New educational business initiatives recorded a revenue increase of approximately 15% year over year for Q1 2026, with the top 10 cities contributing over 50% of this revenue [1][2] - The non-academic tutoring business has expanded to around 60 cities, with market penetration particularly strong in high-tier cities, where the top 10 cities contribute over 60% of this segment [2] - The overseas test prep business saw a revenue increase of about 1% year over year, while the overseas study consulting business recorded a 2% increase [3][10] Financial Highlights - Non-GAAP operating margin reached 22%, reflecting a year-over-year improvement of 100 basis points [3] - Operating income for the quarter was $310.8 million, a 6% increase year over year, while non-GAAP operating income was $335.5 million, representing an 11.3% increase [10] - Net cash flow generated from operations was approximately $192.3 million, with capital expenditure at $55.4 million [11] Future Guidance - The company expects total net revenue for Q2 2026 to be in the range of $1,132.1 million to $1,263.3 million, indicating a year-over-year increase of 9% to 12% [14] - For the full fiscal year 2026, total net revenue is projected to be between $5,145.3 million and $5,390.3 million, representing a year-over-year increase of 5% to 10% [15] Shareholder Returns - The company announced an ordinary cash dividend of $0.12 per common share, totaling approximately $190 million, to be paid in two installments [16][17] - A new share repurchase program allows for the repurchase of up to $300 million of its ADS or common shares over the next 12 months [17] Operational Efficiency - The company has focused on cost management and operational efficiency, which contributed to margin expansion despite challenges in the overseas-related business [39][40] - The effective utilization of resources and cost control measures are expected to continue supporting margin improvements throughout the fiscal year [39]