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STG

Sunlands Technology Group

STG

Sunlands Technology Group • NYSE
$5.80 ▲ 3.57% (+0.20)
Market Cap $78.31 M
52w High $15.00
52w Low $4.28
Dividend Yield 0%
P/E 1.44
Volume 1.23K
Outstanding Shares 13.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $523.049M ▼ $324.352M ▼ $125.436M ▼ 23.982% ▲ $9.32 ▼ $145.75M ▲
Q2-2025 $539.015M ▲ $342.623M ▲ $126.645M ▲ 23.496% ▲ $9.38 ▲ $140.725M ▲
Q1-2025 $487.625M ▲ $341.145M ▼ $75.176M ▲ 15.417% ▲ $5.56 ▲ $93.535M ▲
Q4-2024 $483.477M ▼ $351.295M ▲ $57.806M ▼ 11.956% ▼ $4.28 ▼ $57.862M ▼
Q3-2024 $491.264M $343.368M $89.289M 18.175% $6.52 $73.465M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $776.413M ▲ $2.125B ▼ $1.21B ▼ $916.776M ▲
Q2-2025 $752.97M ▼ $2.151B ▲ $1.362B ▼ $790.864M ▲
Q1-2025 $796.899M ▲ $2.12B ▼ $1.459B ▼ $661.576M ▲
Q4-2024 $783.258M ▼ $2.121B ▼ $1.521B ▼ $601.345M ▲
Q3-2024 $793.826M $2.154B $1.609B $546.002M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $125.436M ▼ $0 $0 $0 $0 $0
Q2-2025 $126.645M ▲ $0 $0 $0 $0 $0
Q1-2025 $75.176M ▲ $0 $0 $0 $0 $0
Q4-2024 $57.806M ▼ $0 $0 $0 $0 $0
Q3-2024 $89.289M $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement Sunlands has transformed its income statement from loss-making to consistently profitable over the last few years. Even though sales have edged down slightly from their peak, the company has managed to squeeze more profit out of every unit of revenue by tightening costs and moving toward higher-margin courses. Gross profitability remains strong, and operating and net income have stayed in positive territory after earlier losses. This points to a business that has stabilized its core operations and is now more focused on efficiency and margin quality than chasing rapid top-line growth at any cost. The very high reported earnings per share mainly reflect capital structure and share count effects, so the direction of profits and margins is more informative than the raw EPS figure.

Balance Sheet

Balance Sheet The balance sheet has improved meaningfully from a once-stressed position. A few years ago the company carried negative equity, effectively meaning liabilities exceeded its accounting asset base. Profits in recent years have rebuilt that equity back into positive territory, a notable repair in financial health. Total assets have gradually come down, suggesting a leaner, more focused operation rather than one aggressively expanding its asset base. Cash levels are moderate and comfortably exceed the remaining debt, which has been reduced versus earlier years. Overall, leverage is now more manageable and the balance sheet looks cleaner, though the smaller asset base also hints at limited room for capital-heavy expansion without new funding.

Cash Flow

Cash Flow Cash flow has shifted from a period of outflows to a pattern of steady, positive inflows. Operating cash flow, which tracks how much cash the core business generates, was negative earlier in the period but has turned positive and grown each year more recently. Free cash flow follows the same path, helped by minimal spending on physical assets, underscoring an asset-light, mostly digital model. This means most of the profit reported on the income statement is now backed by real cash, which is an important sign of earnings quality. The flip side is that low investment can sometimes limit future capacity or diversification, so the company’s growth must come primarily from better utilization of its existing platform and intellectual property rather than heavy new build-out.

Competitive Edge

Competitive Edge Sunlands operates in the crowded and fast-changing Chinese online education market but has carved out a clear niche in adult and professional learning rather than school-age tutoring. Its long operating history and early move to a fully online model give it brand familiarity and operational experience that newer entrants may lack. The company’s AI-driven teaching platform, scalable live-streaming model, and data-rich content structure create some real friction for would-be imitators, particularly given the time and expertise required to replicate its learning maps and support systems. However, the broader sector still faces intense competition, pricing pressure, and ongoing regulatory uncertainty in China. Sunlands’ focus on adults and interest-based or career-oriented courses is a strategic buffer against K–12 regulation, but it does not fully remove macroeconomic or policy risk, nor does it eliminate the threat from large tech and education platforms targeting the same learners.

Innovation and R&D

Innovation and R&D Innovation is a central part of Sunlands’ story. The company leans heavily on artificial intelligence to personalize learning paths, automate grading, and analyze student performance through its proprietary “learning outcome trees” framework. This approach helps scale high-quality instruction to many learners at once, while keeping engagement relatively high through interactive features, mentoring, and community tools. Recent increases in product development spending show a deliberate choice to invest in the platform, AI capabilities, and new course categories, including offerings aimed at older learners and professional upskilling. The opportunity is to deepen its moat and open new revenue streams; the risk is that higher development costs must keep translating into compelling products and sustained demand in a competitive and cyclical market.

Summary

Overall, Sunlands looks like a business that has moved from survival to stabilization. It has repaired a previously weak balance sheet, turned losses into consistent profits, and now generates positive free cash flow in an asset-light model. Strategically, it is positioned in adult online education with a technology-heavy platform that differentiates it from more generic course providers, supported by a long operating history and a clear focus on personalized, AI-powered learning. At the same time, recent years show only modest or slightly declining revenue, meaning profitability gains have come more from efficiency and mix than from strong top-line expansion. Key uncertainties include the intensity of competition in Chinese online education, regulatory and economic conditions, and the company’s ability to convert rising R&D and innovation efforts into durable growth. The story is one of improved financial resilience and a credible technological edge, balanced against a challenging market environment that still demands careful execution.

NEWS

November 20, 2025 · 3:30 AM UTC

Sunlands Technology Group Announces Unaudited Third Quarter 2025 Financial Results

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November 19, 2025 · 3:38 AM UTC

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November 13, 2025 · 10:35 PM UTC

Sunlands Technology Group to Hold Annual General Meeting on December 19, 2025

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November 11, 2025 · 11:31 AM UTC

STG A/S - Interim consolidated financial statements of Scandinavian Tobacco Group A/S

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November 5, 2025 · 4:00 AM UTC

Sunlands Technology Group to Report Third Quarter 2025 Financial Results on Thursday, November 20, 2025

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