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GOTU

Gaotu Techedu Inc.

GOTU

Gaotu Techedu Inc. • NYSE
$2.36 ▼ -1.67% (-0.04)
Market Cap $862.25 M
52w High $4.56
52w Low $1.87
Dividend Yield 0%
P/E -11.24
Volume 896.20K
Outstanding Shares 365.36M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $1.389B ▼ $1.158B ▲ $-215.994M ▼ -15.546% ▼ $-0.59 ▼ $-241.865M ▼
Q1-2025 $1.493B ▲ $1.006B ▼ $123.991M ▲ 8.305% ▲ $0.33 ▲ $34.773M ▲
Q4-2024 $1.389B ▲ $1.098B ▼ $-135.834M ▲ -9.782% ▲ $-0.54 ▲ $-135.714M ▲
Q3-2024 $1.208B ▲ $1.269B ▲ $-471.273M ▼ -39.004% ▲ $-1.85 ▼ $-490.107M ▼
Q2-2024 $1.01B $1.161B $-429.55M -42.538% $-1.66 $-451.19M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $3.41B ▲ $5.868B ▲ $4.265B ▲ $1.604B ▼
Q1-2025 $2.435B ▼ $5.187B ▼ $3.252B ▼ $1.935B ▲
Q4-2024 $3.166B ▲ $5.828B ▲ $3.895B ▲ $1.933B ▼
Q3-2024 $2.339B ▼ $5.208B ▼ $3.142B ▼ $2.066B ▼
Q2-2024 $3.195B $5.846B $3.174B $2.672B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-215.994M ▼ $0 $0 $0 $0 $0
Q1-2025 $123.991M ▲ $0 $0 $0 $0 $0
Q4-2024 $-135.834M ▲ $0 $0 $0 $0 $0
Q3-2024 $-471.273M ▼ $0 $0 $0 $0 $0
Q2-2024 $-429.55M $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement Revenue has rebounded meaningfully after the regulatory shock in 2021, showing that the company is rebuilding its business in new segments rather than shrinking away. Gross profit has recovered alongside, which means the core teaching and content model is still capable of generating healthy markups on what it sells. At the same time, the company remains loss‑making at the operating and net income level. Losses had almost disappeared around 2022–2023, then widened again most recently, suggesting a renewed investment phase in new products, technology, and growth areas. The business is clearly moving in the right direction compared with the worst years, but profitability is not yet stable or secure, and earnings still swing around as the model evolves.

Balance Sheet

Balance Sheet The balance sheet looks much leaner than it did several years ago, reflecting the reset after the regulatory changes. Total assets and shareholder equity have both come down significantly from earlier highs, which is typical for a company that has had to shrink and reorganize. On the positive side, cash on hand has improved versus the low point, and financial debt has steadily decreased to a relatively modest level. This combination points to a cleaner, less leveraged balance sheet. The main caveat is that ongoing losses continue to erode equity, so the current strength of the balance sheet depends on eventually turning consistent profits or at least avoiding a return to large, sustained losses.

Cash Flow

Cash Flow The cash flow picture is more encouraging than the income statement alone. After a very difficult year with heavy cash burn, operating cash flow has turned positive and stayed there for several years in a row. This means the business, as it stands today, is generating cash from its day‑to‑day operations despite still reporting accounting losses. Free cash flow is also positive, helped by relatively low spending on physical assets and infrastructure. In simple terms, the company is no longer burning large amounts of cash to keep the doors open, which reduces immediate financial stress. However, the cushion is not huge, so maintaining or improving cash generation remains important if losses continue at the earnings level.

Competitive Edge

Competitive Edge Gaotu’s competitive position is built on three main pillars: technology, teaching model, and brand. It has been an established online education name in China for years, which gives it recognition with students and parents even after the regulatory reset. Its dual‑teacher system — one main lecturer supported by multiple tutors — helps combine scale with personalized support, a structure that competitors cannot easily copy without significant investment. The company has also pivoted away from now‑restricted K‑12 tutoring toward adult, vocational, and exam‑oriented training. This shift moves it into markets with different regulatory dynamics and potentially steadier demand from professionals and university students. The flip side is that these segments are competitive, with many education and test‑prep providers chasing the same learners. Regulatory risk in China, evolving rules around education, and intensifying competition from other online platforms and AI‑native players all remain important constraints on its competitive strength.

Innovation and R&D

Innovation and R&D Innovation is a clear focus. Gaotu is embedding artificial intelligence deeply into its products and operations, not just as a marketing label. The use of large language models for content creation, test scoring, and adaptive learning allows it to personalize lessons, automate routine tasks, and potentially lower teaching and support costs over time. Its internal systems, like the AI‑enhanced BOSS platform, aim to boost instructor productivity and improve course quality using data and feedback loops. Planned AI features for test analysis, problem‑solving support, and learning planning show a pipeline of new tools that could make the offering stickier and more differentiated. The main risk is execution: turning this technology edge into sustained user growth and higher margins in a fast‑moving AI and edtech landscape where many rivals are pursuing similar ideas.

Summary

Gaotu has gone through a dramatic reset, shrinking from its pre‑regulation peak but showing clear signs of rebuilding around a new core: adult, vocational, and compliant high‑school education powered by AI. Revenue and gross profit have recovered from the lows, and cash flows have improved enough that the business no longer appears to be in financial distress, even though it still posts accounting losses. The balance sheet is simpler and carries relatively little debt, which provides some resilience as the company experiments with its new model. Its competitive position rests on AI integration, a scalable dual‑teacher approach, and an established brand, all within a still‑uncertain Chinese regulatory and competitive environment. Overall, Gaotu looks like a company in mid‑transition: past the worst of its restructuring, leaning hard into technology and lifelong learning, but still needing to prove that its strategy can deliver stable, durable profitability over time.

NEWS

November 26, 2025 · 1:11 AM UTC

Gaotu Techedu Announces Third Quarter 2025 Unaudited Financial Results

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November 19, 2025 · 4:00 AM UTC

Gaotu Techedu to Report Third Quarter 2025 Financial Results on November 26, 2025

Read more