China's Gaotu Techedu Q2 revenue rises 20% on growth in gross billings

Gaotu Techedu

27/08/2026 07:25

Overview
China education technology firm's Q2 revenue rose 20.2% yr/yr to RMB1.67 bln
Q2 net loss narrowed to RMB135.8 mln from RMB216 mln a year earlier
Company repurchased about US$103.5 mln in ADSs under buyback programs as of Aug. 26

Outlook
Gaotu Techedu expects Q3 2026 net revenues between RMB1,838 mln and RMB1,858 mln
Company says profitable growth remains its top priority for future quarters

Result Drivers
GROSS BILLINGS GROWTH - Co said Q2 revenue increase was mainly due to continued growth in gross billings from strong market demand
AI INTEGRATION - Co said deeper integration of AI and digital tools improved efficiency and reduced operating expenses as a percentage of revenue
PRODUCT RECOGNITION - Co said high-quality educational products and learning services led to improved recognition of offerings

Company press release: ID:nPnRjWcDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 1.67 bln
 
Q2 Adjusted Net Loss
 
RMB 129.10 mln
 
Q2 Net Loss
 
RMB 135.80 mln
 
Q2 Adjusted Gross Margin
 
66.60%
 
Q2 Adjusted Gross Profit
 
RMB 1.11 bln
 
Q2 Adjusted Income from Operations
 
-RMB 143 mln
 
Q2 Operating Expenses
 
RMB 1.26 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"
Wall Street's median 12-month price target for Gaotu Techedu Inc. is $3.98, about 130.1% above its August 26 closing price of $1.73
The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads
Aug 26 - South China Vocational Education's H1 revenue rises on higher enrollment and fees
Aug 25 - China's Minsheng Education H1 revenue dips 1.3%
Aug 26 - China's MiniMax sees revenue nearly quadruple in first half as AI demand surges

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)