TAL Education Group (TAL) investor relations material

Executive summary

• Net revenues rose 38.8% year-over-year to $575 million, driven by growth in learning services and AI-powered devices.

• Achieved strong year-over-year revenue growth in both learning services and content solutions, with disciplined expansion and focus on product quality and user experience.

• Expanded Peiyou learning center network in established cities and launched three new AI-powered learning device models (P4, S4, T4) to broaden user reach.

• Continued investment in AI and technology to enhance personalized learning and operational efficiency.

• Income from operations reached $14.3 million, reversing a $17.3 million loss from the prior year.

Financial highlights

• Gross profit increased 47.3% to $315.4 million, and gross margin rose to 54.9% from 51.7% year-over-year.

• Non-GAAP income from operations was $25.1 million, with net income attributable to shareholders at $42 million.

• Net income attributable to shareholders increased to $31.3 million from $11.4 million year-over-year.

• Net cash from operating activities was $347.8 million; cash, equivalents, and short-term investments totaled $3,472.8 million as of May 31, 2025.

• Operating costs and expenses rose 29.9% to $561.5 million; selling and marketing expenses increased 47.7% to $180.8 million.

Outlook and guidance

• Q2 expected to benefit from seasonal demand and ecommerce festivals, with anticipated improvement in non-GAAP operating profit.

• Focus remains on product and service quality, innovation, and adapting to advances in AI and technology.