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YQ

17 Education & Technology Group Inc.

YQ

17 Education & Technology Group Inc. • NASDAQ
$5.12 ▲ 3.75% (+0.18)
Market Cap $47.17 M
52w High $6.45
52w Low $1.26
Dividend Yield 0%
P/E -2.34
Volume 25.07K
Outstanding Shares 9.22M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $25.41M ▲ $43.063M ▲ $-25.952M ▲ -102.133% ▲ $-2.81 ▲ $-28.451M ▲
Q1-2025 $21.668M ▼ $41.706M ▼ $-30.944M ▲ -142.81% ▲ $-3.35 ▲ $-33.873M ▲
Q4-2024 $36.593M ▼ $81.358M ▲ $-63.748M ▼ -174.208% ▼ $-7.5 ▼ $-69.074M ▼
Q3-2024 $59.627M ▼ $57.983M ▼ $-17.401M ▲ -29.183% ▲ $-2.24 ▲ $-21.645M ▲
Q2-2024 $67.491M $70.966M $-55.701M -82.531% $-7 $-56.139M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $350.889M ▲ $493.899M ▼ $148.66M ▼ $345.239M ▼
Q1-2025 $333.26M ▼ $518.184M ▼ $149.468M ▼ $368.716M ▼
Q4-2024 $359.252M ▲ $549.517M ▼ $155.878M ▲ $393.639M ▼
Q3-2024 $339.677M ▼ $555.711M ▼ $153.868M ▼ $401.843M ▼
Q2-2024 $410.679M $588.594M $170.993M $417.601M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-25.952M ▲ $0 $0 $0 $0 $0
Q1-2025 $-30.944M ▲ $0 $0 $0 $0 $0
Q4-2024 $-63.748M ▼ $0 $0 $0 $0 $0
Q3-2024 $-17.401M ▲ $0 $0 $0 $0 $0
Q2-2024 $-55.701M $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement The business has shrunk dramatically from its early years as a listed company, with revenue now a fraction of what it once was. On the positive side, the company still generates a healthy gross margin on the smaller revenue base, suggesting the core service can be profitable in theory. However, operating expenses remain much larger than gross profit, so the company continues to post meaningful losses each year, even though those losses have been slowly narrowing. Overall, this is still a turnaround story, not a mature, profit-generating business.

Balance Sheet

Balance Sheet The balance sheet has steadily contracted, reflecting years of restructuring and cash burn. Cash has come down a lot from earlier levels but is still comfortably above the company’s very small amount of debt, so financial leverage is low. Shareholders’ equity remains positive but has been eroded by repeated losses. In simple terms, the company still has a cushion, but that cushion is much thinner than it used to be, and continued losses would keep wearing it down.

Cash Flow

Cash Flow The company has not been able to fund itself from its own operations. Operating cash flow has been negative every year, although the outflow has eased from the worst period. Capital spending is modest, so most of the cash drain comes from covering day‑to‑day operating costs rather than heavy investment. Free cash flow remains negative, which means the business continues to consume cash and depends on its remaining cash balance and any future external funding or further cost cuts.

Competitive Edge

Competitive Edge 17EdTech operates in a very tough segment of China’s education market that has been reshaped by regulation and fierce competition. Its main edge comes from deep integration inside schools through its smart classroom and SaaS tools, which can create stickiness with teachers, students, and parents. The data it gathers from in‑school use helps it tailor after‑school and personalized learning content, making its ecosystem harder to copy. Still, the company is much smaller than major rivals and must contend with well‑funded competitors as well as government‑backed solutions, so its long‑term competitive position depends on how well it can scale its school relationships and subscription model.

Innovation and R&D

Innovation and R&D The company’s strategy leans heavily on technology, especially AI and data analytics. Its smart in‑school solutions and tools like the “Yiqi Tongxue” intelligent agent are designed to personalize learning and make teachers more effective, which is a clear differentiator if adoption is strong. Management is pushing a shift toward school‑based SaaS subscriptions, which, if successful, could turn innovation into more predictable, recurring revenue. The key question is whether 17EdTech has enough resources and time to keep investing in product development and AI while still moving the business toward sustainable profitability.

Summary

17 Education & Technology Group is in the middle of a major transformation from a larger, heavily regulated tutoring business to a smaller, technology‑driven in‑school and after‑school platform. Revenues have fallen sharply from peak levels, but margins on the remaining business have improved and losses have narrowed, though the company is still clearly loss‑making and cash‑burning. Its balance sheet remains in net cash with low debt, but the financial buffer is much thinner than at IPO, leaving less room for prolonged missteps. The strategic bet is that its AI‑powered, in‑school+after‑school model and school‑based subscriptions can create a defensible niche and eventually scale, yet regulatory risk, intense competition, and the need to reach self‑funding status keep overall uncertainty high.

NEWS

September 3, 2025 · 5:00 PM UTC

17 Education & Technology Group Inc. Announces Second Quarter 2025 Unaudited Financial Results

Read more