Gaotu Techedu (GOTU) investor relations material

Executive summary

• Net revenues for Q2 2025 rose 37.6% year over year to nearly CNY 1.4 billion, with gross billings up 36.2% to approximately CNY 2.3 billion.

• Net loss narrowed by about 50% year over year on a non-GAAP basis, with net operating cash inflow reaching CNY 588.8 million, up over 50% from last year.

• Continued investment in AI, product innovation, and expansion of both online and offline learning services.

• Share repurchases totaled nearly CNY 557 million for about 25 million ADS as of August 25, 2025; new buyback program of up to US$100 million authorized.

• For the first half of 2025, net revenues grew 47.3% year over year and net loss dropped 79.2%.

Financial highlights

• Gross profit for Q2 2025 was about CNY 916 million, up 31.6% year over year, with a gross margin of 66%.

• Net revenues exceeded guidance by 5.4%.

• Deferred revenue increased 38.9% year over year to about CNY 2.2 billion.

• Cash, cash equivalents, restricted cash, and investments totaled over CNY 3.8 billion as of June 30, 2025.

• Interest income and realized gains from investments totaled RMB19.1 million in Q2 2025.

Outlook and guidance

• Q3 2025 net revenues expected between CNY 1.5 billion and CNY 1.578 billion, representing a 28.9% to 30.6% year-over-year increase.

• Full-year revenue growth guidance raised, with first nine months’ revenue growth expected to exceed 40%.