E-learning provider QuantaSing's Q4 revenue drops 38.2%

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17/09/2025 10:11

Overview

QuantaSing fiscal Q4 revenue falls 38.2% yr/yr, driven by strategic shift

Net income for fiscal Q4 declines, reflecting reduced online learning revenue

Pop toy business contributes 10.6% of total revenue post-Letsvan acquisition

Outlook

QuantaSing expects Q1 FY 2026 pop toy revenue of RMB100-110 mln

Company expects FY 2026 pop toy revenue of RMB750-800 mln

Company to expand pop toy business internationally

QuantaSing in talks for potential restructuring of established businesses

Result Drivers

POP TOY BUSINESS - QuantaSing's acquisition of Shenzhen Yiqi Culture Co., Ltd. led to RMB65.8 mln in revenue from the pop toy business in Q4 FY 2025

STRATEGIC TRANSFORMATION - Co's shift from traffic-driven to product-driven growth resulted in a decline in online learning services revenue, partially offset by new pop toy business

COST MANAGEMENT - Sales and marketing expenses decreased by 49.3% to RMB294.1 mln, reflecting a strategic transformation towards a product-driven model, according to CFO Dong Xie

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
RMB 617.84 mln
Q4 Adjusted Net Income
RMB 111.20 mln
Q4 Net Income
RMB 107.98 mln
Q4 Gross Profit
RMB 467.62 mln
Q4 Operating Expenses
-RMB 344.23 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "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 QuantaSing Group Ltd is $15.00, about 32.3% above its September 16 closing price of $10.15

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX3Wgtdx

(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.)