Gaotu Techedu Q3 2025 Earnings Results & Report

Gaotu Techedu EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.89
• Beat/Miss: Beat by +$0.80
• One Year Ago EPS: N/A
• EPS Beat Rate: 5 of last 6 quarters

Gaotu Techedu Revenue Results

• Actual Revenue: $31.24 million
• Expected Revenue: $1.57 billion
• Beat/Miss: Missed by -$1.54 billion
• YoY Revenue Growth: N/A

Gaotu Techedu (NYSE:GOTU) (NYSE: GOTU) is a China-based education technology company that provides online and technology-enabled learning services. Its offerings have included courses and educational content for children and students, as well as programs focused on adult education, professional development and foreign-language learning.

The company also develops digital learning products and services designed to support students, teachers and families, including online instruction, educational applications and related learning tools. Gaotu delivers much of its education content through internet-based platforms, allowing it to serve learners across China.

Founded in 2014 as GSX Techedu, the company later adopted the name Gaotu Techedu. Its business has evolved in response to changes in China’s education regulations, including a shift away from certain K-12 academic tutoring activities toward broader education and learning services. Gaotu’s founder, Chen Xiangdong, serves as chairman and chief executive officer.

Gaotu Techedu Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Company reported strong historical growth with revenue up 53.8% YoY in 2024 and says revenue more than doubled over the past two years, guiding to roughly 35% YoY top-line growth in 2025.
• Neutral Sentiment: For 2026 the company expects growth to moderate to about 15% YoY as it shifts strategy to prioritize profitability and balance growth with loss reduction.
• Positive Sentiment: Management attributes growth to a larger base of students and parents, a strengthened product portfolio, deeper online–offline integration, and the use of AI to enhance course experience.
• Positive Sentiment: Leadership says expanding scale is delivering sustained operating leverage and expects continued improvement in operating cash flow with a path toward sustainable net profitability in 2026.

Presentation

[Operator]

The first question today comes from Crystal Li with CMS (China Merchants Securities). Please go ahead.

[Crystal Li, Analyst at China Merchants Securities]

Thanks, for taking my questions. Congratulations on strong results. Could you give us some color on your 2026 upline growth and your expectations on each business line? In terms of the bottom line, how's your plan? Maybe could you share more about your plan to balance your growth and loss reduction? Thank you.

[Shannon Shen, CFO at Gaotu Techedu Inc]

Thanks, Crystal, for your question. Looking back at 2024 and 2025, our revenue grew 53.8% year-over-year in 2024. Based on our latest guidance, we expect close to 35% year-over-year growth of our top line in 2025. Over the past two years, our revenue actually more than doubled. We achieved relatively strong top line expansion in the past two years. Behind this growth is the steady increase in the number of students and parents we serve, the continued strengthening of our product portfolio, and also the growing influence of our brand. As of today, our offerings cover the key needs of users with strong learning demand and learning motivation. Also from a product perspective, the integration of our online and offline solutions, along with the use of AI to enhance the user experience in our courses, is progressing steadily and continuously improving.

[Shannon Shen, CFO at Gaotu Techedu Inc]

As our scale expands, we are seeing sustained operating leverage, which adds a solid foundation for achieving full profitability at our target scale. In 2026, we expect our growth trajectory to become more balanced, with profitability as the major focus guiding the execution of our overall strategy, which means in 2026, profitability will play the most important role. Based on our expected gross billings in 2025 in Q4, together with our operating plans and upcoming initiatives, we anticipate approximately 15% year-over-year revenue growth in 2026. We also expect to see further improvements in our operating cash flows with ongoing efforts aimed at moving the company towards sustainable net profitability in 2026. Hope that addressed your question. Thanks.

[Operator]

Thanks, Shannon. This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks.

[Catherine Chen, Head of Investor Relations at Gaotu Techedu Inc]

Thank you, Operator, and thank you, everyone, for joining the call today. If you have any further questions, please don't hesitate to contact our Investor Relations Department or our management via email at ir@gaotu.cn directly. You are also welcome to subscribe to our news alert on the company's IR website. Thank you very much again for your time. Have a great night.

[Operator]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Shannon Shen, CFO
• Catherine Chen, Head of Investor Relations

Analysts

• Crystal Li, Analyst at China Merchants Securities