Gaotu Techedu Inc. Reports Strong Q2 2025 Financial Results

Gaotu Techedu Inc. (NYSE: GOTU), a Chinese educational software development company specializing in online resources for K-12 after-school tutoring, has announced its financial results for the second quarter of 2025. The company, which operates primarily in Beijing and is listed on the New York Stock Exchange, reported a significant increase in net revenues and a narrowing of its net loss.

Financial Highlights

  • Revenue Growth: Net revenues for Q2 2025 increased by 37.6% year-over-year, reaching RMB1,389.4 million. Gross billings also saw a substantial rise of 36.2%, amounting to RMB2,252.4 million.
  • Net Loss Reduction: The company’s net loss narrowed by 49.7% to RMB216.0 million compared to the same period in 2024.
  • Operational Efficiency: Gaotu Techedu demonstrated improved operational efficiency, with a 52.5% increase in net operating cash inflow, totaling RMB588.8 million.
  • Financial Position: As of June 30, 2025, the company maintained a strong financial position with cash and investments totaling RMB3,824.1 million.

Earnings and Outlook

  • Earnings Per Share (EPS): The company reported a GAAP EPS of -$0.12, with revenue of $193.95 million, surpassing expectations by $10.56 million.
  • Q3 Outlook: Gaotu Techedu has initiated its Q3 2025 outlook, projecting revenues between RMB1,558-1,578 million, representing a 28.9-30.6% year-over-year growth.

Share Repurchases

  • The company has actively pursued share repurchases, having bought back approximately 24.8 million shares.

Market Performance

  • As of August 24, 2025, Gaotu Techedu’s close price was $3.78, with a market capitalization of $6.65 billion. The stock’s 52-week high was $4.59 on September 29, 2024, and its 52-week low was $1.87 on January 21, 2025.
  • The price-to-earnings ratio stands at -7.775, reflecting the company’s current financial performance.

Analyst Expectations

  • Analysts had anticipated a loss of -0.900 CNY per share for the quarter ending June 30, 2025, compared to a loss of -0.230 USD per share in the same quarter of the previous year.
  • The average revenue forecast for the quarter was 1.33 billion CNY, up from 139.4 million USD in the prior year.
  • For the current fiscal year, analysts estimate an average loss of -1.079 CNY per share, with total revenue projections of 5.95 billion CNY, compared to 632.7 million USD in the previous fiscal year.

Gaotu Techedu’s strong Q2 performance and positive outlook for Q3 reflect its ongoing efforts to enhance operational efficiency and financial stability. The company’s focus on expanding its educational offerings and improving financial metrics positions it well for future growth in the consumer discretionary sector.