BeijingJune 2, 2026 /PRNewswire/ — Gaotu Education Technology Company (NYSE: GOTU) (“Gaotu” or the “Company”), a leading technology-driven education company focused on empowering lifelong learning through AI-powered solutions, today announced its unaudited financial results for the first quarter ended March 31, 2026.
2026 First Quarter Highlights[1]
- Revenue was RMB 1,689.5 million, compared to RMB 1,493.0 million in the same period last year, representing a year-over-year increase of 13.2%.
- Cash Receipts[2] were RMB 996.3 million, compared to RMB 888.7 million in the same period last year, representing a year-over-year increase of 12.1%.
- Operating Income was RMB 6.87 million, compared to RMB 34.77 million in the same period last year.
- Net Income was RMB 34.51 million, compared to RMB 124.0 million in the same period last year.
- Non-GAAP Net Income was RMB 41.42 million, compared to RMB 137.3 million in the same period last year.
- Net Cash Used in Operating Activities was RMB 828.4 million, compared to RMB 477.2 million in the same period last year.
Key Financial and Operational Data for the First Quarter of 2026
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[1] Non-GAAP operating income (loss) and net income (loss) exclude the impact of share-based compensation expenses. |
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[2] Cash receipts is a non-GAAP measure, representing the total cash received from course sales during the period minus the total refunds for the period. |
Mr. Xiangdong Chen, Founder, Chairman, and Chief Executive Officer of the Company, commented: “In this quarter, Gaotu continued to advance on its path of profitable growth, further solidifying operational quality and long-term capabilities. Revenue increased by 13.2% year-over-year to RMB 1.69 billion, achieving adjusted operating income and net income of approximately RMB 13.78 million and RMB 41.42 million, respectively. As AI capabilities become more deeply integrated into our teaching, research, learning services, and operational systems, we are accelerating the accumulation of ‘Scale with AI’ capabilities. This enables high-quality teaching services and products to achieve stronger scalability, enhancing user experience while unlocking organizational efficiency. At the same time, we remain committed to shareholder returns. As of June 1, 2026, the Company has repurchased over RMB 700 million in shares cumulatively.
The long-term value of education stems from the user trust accumulated through sustained companionship and high-quality delivery, which gradually crystallizes into retention, word-of-mouth, and brand compounding effects. Looking ahead, Gaotu will continue to balance technological innovation with our educational mission, providing learners with better growth companionship and creating more sustainable long-term value for our shareholders.”
Mr. Bin Luo, Chief Operating Officer of the Company, said: “This quarter, we advanced refined operations centered on user needs, product value, and service experience improvements, achieving profitability in the first quarter for the second consecutive year. R&D expenses and general and administrative expenses as a percentage of revenue decreased by 0.7 percentage points year-over-year, reflecting continuous improvements in management efficiency and organizational synergy driven by AI empowerment. Meanwhile, deferred revenue reached RMB 1.79 billion, up 24.1% year-over-year, laying a foundation for revenue recognition in subsequent quarters and the progression of the full-year business rhythm. Moving forward, we will focus on product fit, delivery quality, and resource allocation to drive healthier growth for different businesses at their respective stages.”
2026 First Quarter Results
Revenue
Revenue was RMB 1,689.5 million, an increase of 13.2% from RMB 1,493.0 million in the same period last year, primarily due to efficient and sufficient fulfillment of robust market demand, with cash receipts continuing to grow year-over-year. Additionally, high-quality teaching products and services led to enhanced product recognition.
Cost of Revenue
Cost of revenue was RMB 514.8 million, an increase of 13.8% from RMB 452.5 million in the same period last year, primarily due to increased labor costs from the growth in the number of lead instructors and teaching assistants, increased costs for teaching materials, and higher rental costs as well as depreciation and amortization expenses.
Gross Profit and Gross Margin
Gross profit was RMB 1,174.7 million, an increase of 12.9% from RMB 1,040.6 million in the same period last year. Gross margin decreased to 69.5% from 69.7% in the same period last year.
Non-GAAP gross profit was RMB 1,175.1 million, an increase of 12.7% from RMB 1,042.7 million in the same period last year. Non-GAAP gross margin decreased to 69.6% from 69.8% in the same period last year.
Operating Expenses
Operating expenses were RMB 1,167.8 million, an increase of 16.1% from RMB 1,005.8 million in the same period last year, primarily due to increased spending on marketing activities and higher labor costs from an increase in headcount. Specifically:
- Selling expenses increased to RMB 844.1 million from RMB 709.4 million in the same period last year.
- Research and development expenses increased to RMB 159.0 million from RMB 150.5 million in the same period last year.
- General and administrative expenses increased to RMB 164.7 million from RMB 145.9 million in the same period last year.
Operating Income
Operating income was RMB 6.87 million, compared to RMB 34.77 million in the same period last year.
Non-GAAP operating income was RMB 13.78 million, compared to RMB 48.12 million in the same period last year.
Interest Income and Realized Investment Gains
Interest income and realized investment gains totaled RMB 17.93 million, compared to a total of RMB 17.08 million in the same period last year.
Other Income
Other income was RMB 8.64 million, compared to other income of RMB 71.58 million in the same period last year.
Net Income
Net income was RMB 34.51 million, compared to RMB 124.0 million in the same period last year.
Non-GAAP net income was RMB 41.42 million, compared to RMB 137.3 million in the same period last year.
Cash Flow
Net cash used in operating activities for the first quarter of 2026 was RMB 828.4 million.
Basic and Diluted Earnings per American Depositary Share (ADS)
For the first quarter of 2026, both basic and diluted earnings per ADS were RMB 0.14.
For the first quarter of 2026, both non-GAAP basic and diluted earnings per ADS were RMB 0.17.
Shares Outstanding
As of March 31, 2026, the Company had 158,697,626 ordinary shares outstanding.
Cash and Cash Equivalents, Restricted Cash, Short-term Investments, and Long-term Investments
As of March 31, 2026, the Company held total cash and cash equivalents, restricted cash, short-term investments, and long-term investments of RMB 3,264.8 million. As of December 31, 2025, the Company held total cash and cash equivalents, restricted cash, short-term investments, and long-term investments of RMB 3,972.5 million.
Share Repurchase
In November 2022, the Company’s board of directors approved a share repurchase program (the “2022 Repurchase Program”), under which the Company could repurchase up to US$30 million worth of its shares over a three-year period ending November 22, 2025. In November 2023, the board of directors approved an increase in the total repurchase amount under this program from US$30 million to US$80 million, effective until November 22, 2025.
As of September 22, 2025, the Company had cumulatively repurchased US$80 million worth of shares, completing the 2022 Repurchase Program.
In May 2025, the Company’s board of directors approved a new share repurchase program (the “2025 Repurchase Program”), under which the Company may repurchase up to US$100 million worth of its shares over a three-year period commencing from the end of the 2022 Repurchase Program.
As of June 1, 2026, the Company had cumulatively repurchased approximately 33.14 million ADSs under the two share repurchase programs mentioned above, for a total amount of approximately US$97.88 million.
Business Outlook
Based on the Company’s current projections, revenue for the second quarter of 2026 is expected to be between RMB 1,578 million and RMB 1,598 million, representing a year-over-year increase of between 13.6% and 15.0%. These projections reflect the Company’s current expectations, which may be subject to change.
Conference Call
The Company will hold a conference call to discuss the results on Tuesday, June 2, 2026, at 8:00 AM Eastern Time (8:00 PM Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:
A telephone replay of the call will be available starting two hours after the conclusion of the conference call until June 9, 2026. Dial-in details are as follows:
Additionally, a live and archived webcast of the conference call will be available at http://ir.gaotu.cn/.
About Gaotu
Gaotu is a leading technology-driven education company focused on empowering lifelong learning through AI-powered solutions, inspiring learning interest, and supporting learners’ continuous growth. Leveraging its AI technology advantages, the Company creates product-oriented learning solutions serving learners across all age groups, from preschool to adults. By deeply integrating high-quality educational resources with AI-empowered tools and content, Gaotu builds immersive learning experiences that are both engaging and effective through diversified online and offline channels. Gaotu deeply integrates artificial intelligence and big data technologies into all operational aspects, precisely matching learners’ individual needs, dynamically optimizing teaching content and methods, significantly enhancing learning efficiency while continuously driving the advancement of learning outcomes.
For more information about the Company, please contact: