17 Education & Technology Group (YQ) Q2 2025 earnings summary

Executive summary

• Achieved quarter-on-quarter top-line growth of 17.3% and restored gross margin to 57.5% in Q2 2025.

• Net revenues for Q2 2025 were RMB 25.4 million, down 62.4% year-over-year, mainly due to reduced district-level project revenues as focus shifted to school-based projects requiring longer revenue recognition periods.

• Net loss for Q2 2025 was RMB 26.0 million, a 53.4% reduction from RMB 55.7 million in Q2 2024, reflecting effective cost control and operational efficiency.

• Adjusted net loss (Non-GAAP) for Q2 2025 was RMB 18.9 million, down 55.6% year-over-year, excluding share-based compensation.

• Focused on school-based subscription model and AI-driven product innovation, including the launch of Yiqi Tongxue intelligent agent.

Financial highlights

• Net revenues for Q2 2025 were RMB 25.4 million (US$3.5 million), down from RMB 67.5 million in Q2 2024.

• Gross margin improved to 57.5% from 16% year-over-year.

• Gross profit for Q2 2025 was RMB 14.6 million (US$2.0 million), up from RMB 10.8 million in Q2 2024.

• Net loss (GAAP) was RMB 26 million (US$3.6 million), a 53.4% reduction year-over-year.

• Adjusted net loss (Non-GAAP) was RMB 18.9 million (US$2.6 million), improved from RMB 42.6 million in Q2 2024.

• Cash reserves stood at RMB 350.9 million (US$49.0 million) as of June 30, 2025.

• First half 2025 net revenues: RMB 47.1 million (US$6.6 million), down from RMB 93.0 million in first half 2024.

• First half 2025 net loss: RMB 56.9 million (US$7.9 million), improved from RMB 111.8 million in first half 2024.

Outlook and guidance

• Committed to continuous product innovation and AI-driven solutions to drive sustainable growth.

• Strategy aims to deepen customer loyalty, expand market reach, and deliver lasting value to users and shareholders.

• Focus remains on leveraging AI technology and optimizing business models to capture emerging market opportunities.