Ed tech firm Gaotu’s Q3 revenue rises on strong demand, launches new $100 million buyback program

Gaotu Techedu

26/11/2025 08:36

Overview

Gaotu Q3 2025 revenue grows 30.7% yr/yr, driven by strong market demand

Net loss for Q3 2025 narrows significantly compared to same period last year

Company completes $80 mln share repurchase program, initiates new $100 mln program

Outlook

Company expects Q4 2025 net revenues between RMB1,628 mln and RMB1,648 mln

Gaotu to focus on sustainable growth by enhancing teacher pipeline and data-driven operations

Company aims to optimize unit economics and improve operational quality through product refinement

Result Drivers

STRONG MARKET DEMAND - Revenue growth attributed to strong market demand and effective response strategies

COST MANAGEMENT - Operating expenses decreased due to precise efficiency management and cost reduction measures

AI INTEGRATION - AI integration across teaching and operations enhanced service differentiation and efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
RMB 1.58 bln
Q3 Adjusted Net Income
-RMB 137.70 mln
Q3 Net Income
-RMB 147.10 mln
Q3 Adjusted Gross Margin
66.10%
Q3 Adjusted Gross Profit
RMB 1.04 bln
Q3 Adjusted Income from Operations
-RMB 168.60 mln
Q3 Operating Expenses
RMB 1.22 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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 $4.75, about 45.1% above its November 25 closing price of $2.61

Press Release: ID:nPn936WnDa

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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.)