Gaotu Techedu (GOTU) Q2 2025 earnings summary

Executive summary

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

• Net loss narrowed by about 50.5% year-over-year on a non-GAAP basis; net operating cash inflow reached RMB 588.8 million, up 52.5% year-over-year.

• Continued focus on AI-driven innovation, product upgrades, and user-centric service enhancements to drive sustainable growth and competitive advantage.

• Strategic resource allocation and operational efficiency improvements increased per capita productivity and profitability.

• For the first half of 2025, net revenues grew 47.3% year-over-year to RMB 2,882.4 million, and net loss dropped 79.2% to RMB 92.0 million.

Financial highlights

• Net revenues reached nearly RMB 1.4 billion, exceeding guidance by 5.4%.

• Gross profit for Q2 2025 was RMB 916.5 million, up 31.6% year-over-year; gross margin was 66.0%.

• Deferred revenue rose 38.9% year-over-year to about RMB 2.2 billion.

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

• Loss from operations was RMB 221.9 million (margin 17.3%); net loss was RMB 217.1 million (margin 15.5%).

Outlook and guidance

• Q3 2025 net revenues expected between RMB 1,558 million and RMB 1,578 million, representing 28.9% to 30.6% year-over-year growth.

• Full-year revenue growth for the first nine months projected to exceed 40%, surpassing initial 30% target.

• Raised expectations for three-year revenue outlook based on strong performance.