Sunlands Technology Group (STG) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 2026 were RMB406.4 million, down 24.6% year-over-year, with net income at RMB83.5 million, marking the 21st consecutive profitable quarter.

• Gross billings (non-GAAP) fell to RMB286.2 million, and new student enrollments dropped to 95,280, reflecting market and operational headwinds.

• Management emphasized ongoing improvements in course offerings, operating efficiency, and a new share repurchase program initiated in May 2026.

Financial highlights

• Q2 2026 net revenues: RMB406.4 million (US$59.9 million), down from RMB539.0 million in Q2 2025.

• Gross profit: RMB349.2 million, down 25.6% year-over-year.

• Net income: RMB83.5 million (US$12.3 million), down from RMB126.6 million in Q2 2025.

• Basic and diluted EPS: RMB12.58 (US$1.85), down from RMB18.75.

• Deferred revenue as of June 30, 2026: RMB433.5 million, down from RMB585.3 million at year-end 2025.

Outlook and guidance

• Q3 2026 net revenues expected between RMB330 million and RMB350 million, representing a 33.1% to 36.9% year-over-year decline.

• Guidance reflects current market and operating conditions, with substantial uncertainty noted.