17 Education & Technology Group (YQ) investor relations material

Executive summary

• Achieved strong top-line growth in Q4 2025, with significant expansion in the school-based subscription model and successful launch of a new AI-powered consumer product, Yiqi Aixue.

• Robust presale demand for the new AI membership product led to a notable increase in free cash flow and positive market feedback.

• Maintained a healthy cash balance of RMB 407 million at quarter end, reflecting positive expectations for future cash flow.

Financial highlights

• Net revenues for Q4 2025 reached RMB 38.9 million, up 94.6% quarter-over-quarter and 6.4% year-over-year.

• Gross margin improved to 46.1% in Q4 2025, a 12.5 percentage point increase year-over-year.

• Net loss narrowed by 16.8% year-over-year; adjusted net loss (non-GAAP) for Q4 2025 was RMB 44.1 million, compared to RMB 40.1 million in Q4 2024.

• Total operating expenses decreased by 10.9% year-over-year in Q4 2025, despite a 99% increase in sales and marketing expenses due to the new product launch.

• Cash and cash equivalents stood at RMB 407 million as of December 31, 2025, up from RMB 359.3 million a year earlier.

Outlook and guidance

• Plans to continue leveraging AI advancements to drive sustainable growth and enhance cross-business synergies.

• Focus on innovation in AI+ education and ongoing product upgrades to strengthen brand influence and user value.