Gaotu Techedu (GOTU) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 2026 rose 20.2% year-over-year to RMB1,670.1 million, with gross billing up 19.4% to RMB2,689.1 million, driven by strong market demand and improved product recognition.

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

• AI integration enhanced product experience, service efficiency, and organizational productivity across business lines.

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

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

Financial highlights

• Gross profit increased 21.2% year-over-year to RMB1,110.8 million, with a gross margin of 66.5%.

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

• Operating expenses rose 8.8% to RMB1,260.6 million, mainly due to higher marketing and workforce costs.

• Cash, cash equivalents, and investments totaled RMB3,992.9 million as of June 30, 2026.

• Deferred revenue reached RMB2.6 billion, up 18.9% year-over-year.

Outlook and guidance

• Q3 2026 net revenues expected between RMB1,838 million and RMB1,858 million, representing 16.4%-17.7% year-over-year growth.

• Focus remains on profitable growth, disciplined resource allocation, and sustainable expansion.