Gaotu Techedu (GOTU) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 2026 rose 20.2% year-over-year to nearly CNY 1.7 billion (RMB1,670.1 million), driven by strong market demand, improved product recognition, and a tech-driven, learner-focused strategy.

• Gross billings increased 19.4% year-over-year to approximately CNY 2.7 billion (RMB2,689.1 million), reflecting robust sales of course offerings.

• Focus on profitable growth, user value, and AI-driven operational efficiency led to improved unit economics, higher retention rates, and enhanced user experience.

• Maintained a solid cash position and continued share repurchases, reflecting confidence in long-term prospects.

• Net loss narrowed to RMB135.8 million from RMB216.0 million in Q2 2025, with non-GAAP net loss at RMB129.1 million.

Financial highlights

• Gross profit for Q2 2026 was over CNY 1.1 billion (RMB1,110.8 million), up 21.2% year-over-year, with a gross margin of 66.5%.

• Adjusted operating loss and net loss narrowed by 38.5% and 37.6% year-over-year, respectively.

• Net operating cash inflow surged 46.3% year-over-year to CNY 861.2 million (RMB861.2 million).

• Cash, cash equivalents, and investments totaled nearly CNY 4.0 billion (RMB3,992.9 million) as of June 30, 2026.

• Non-GAAP net income for Q2 2026 was RMB41.4 million, a significant improvement from a loss in the prior year.

Outlook and guidance

• Q3 2026 net revenues are projected between CNY 1,838 million and CNY 1,858 million (RMB1,838–1,858 million), up 16.4% to 17.7% year-over-year.

• Focus remains on profitable growth, disciplined resource allocation, and sustainable expansion, leveraging AI and big data analytics.