Gaotu Techedu Inc. Continues to Post Substantial Losses While Revenue Grows
Gaotu Techedu Inc. (NYSE: GOTU), a Beijing‑based technology‑driven education firm, has once again reported a widening loss for the third quarter of 2025, despite a notable rise in revenues. The company’s unaudited figures for the quarter ended September 30, 2025 show a 30.7 % increase in net revenues to RMB 1,579.0 million (≈ USD 168 million) compared with RMB 1,208.3 million in the same period last year. However, the loss from operations climbed to RMB 178.0 million, and the net loss swelled to RMB 147.1 million, up from RMB 471.3 million a year earlier.
Financial Highlights
| Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Net revenues | RMB 1,579.0 M | RMB 1,208.3 M | +30.7 % |
| Gross billings | RMB 1,188.9 M | RMB 1,069.2 M | +11.2 % |
| Loss from operations | RMB 178.0 M | RMB 490.1 M | –63.0 % |
| Net loss | RMB 147.1 M | RMB 471.3 M | –68.2 % |
The company’s earnings per share (EPS) are projected to remain negative, with analysts estimating an EPS of -0.700 CNY for the quarter and a full‑year loss of -1.257 CNY. In contrast, the previous year’s EPS loss stood at -0.260 USD.
Market Reaction
Gaotu’s shares have traded near a 52‑week low of USD 1.87, with the most recent close at USD 2.61 on 24 Nov 2025. The stock’s price‑earnings ratio is currently -9.36, a clear indicator of ongoing investor skepticism. The market cap sits at USD 645 million, reflecting the company’s struggle to translate revenue growth into profitability.
What This Means
Gaotu’s ability to boost revenue by nearly a third in a single quarter is commendable, yet the simultaneous expansion of operating and net losses underscores persistent cost pressures. The company’s business model—providing AI‑powered after‑school tutoring and foreign‑language courses—remains vulnerable to competitive forces and regulatory scrutiny in China’s education sector.
Investors watching Gaotu must ask whether the current trajectory of revenue expansion can eventually offset the escalating losses. If the company fails to curb its operating deficit, the negative earnings trend may continue, further denting shareholder confidence and pushing the stock deeper into its 52‑week low territory.
