At Gaotu Techedu Inc.'s FY2025 Q3 earnings conference call held on the evening of November 26 Beijing time, the company clearly positioned "profitability" as the strategic core for the next fiscal year. Founder & CEO Chen Xiangdong and CFO Shen Nan jointly presented the quarterly performance highlights and future growth roadmap.
Prior to the call, Gaotu released its Q3 financial report, showing revenue of RMB 1.58 billion for the quarter ended September 30, 2025, up 30.7% year-over-year (YoY), with cash receipts of RMB 1.19 billion, growing 11.2% YoY. For the first nine months of 2025, the company generated RMB 4.46 billion in revenue, a 41% YoY increase, with cash receipts reaching RMB 4.33 billion, up 25.4% YoY.
**Strong Revenue Growth with Structural Optimization** Gaotu's Q3 revenue reached RMB 1.579 billion, driven primarily by learning services (including non-academic training, traditional learning programs, and adult education), which contributed over 95% (RMB 1.5 billion+). Notably, offline learning service revenue exceeded 10% of total income for the first time, surpassing RMB 158 million, reflecting deeper integration of OMO (Online-Merge-Offline) strategies.
**Dual Growth Engines: Non-Academic and Traditional Businesses Achieve Online Profitability** Non-academic youth enrichment courses and traditional high school learning programs collectively contributed over RMB 1.263 billion (80%+ of total revenue), growing 55%+ YoY. The non-academic segment alone saw ~60% YoY growth, with its online division turning profitable for the first time this quarter, aiming for "meaningful margins" annually. Meanwhile, traditional learning services grew 15% YoY, benefiting from localized curricula, AI-enhanced teaching, and operational efficiency gains, reducing student attrition by double digits and improving per-capita productivity by 20%.
**Adult Education Returns to High Growth** Adult and college student education services rebounded strongly, with Q3 revenue exceeding RMB 237 million (15%+ of total), achieving double-digit YoY growth in both revenue and cash receipts, alongside quarterly profitability. College-focused programs grew nearly 50% YoY, with net profit rising by high double digits. "After strategic adjustments, this segment has returned to positive growth," CFO Shen Nan noted.
**FY2026: Profitability Takes Center Stage** For Q4 FY2025, Gaotu guided revenue of RMB 1.628–1.648 billion, projecting 17.2%–18.7% YoY growth. More significantly, management prioritized "profitability" as FY2026's strategic focus. "We’ve built a results-driven culture with profitable growth as our core objective," emphasized CEO Chen Xiangdong.
Shen Nan added that after doubling revenue in two years (FY2024: +53.8%; FY2025E: ~35%), Gaotu will shift to a "more balanced growth trajectory" in FY2026, targeting ~15% revenue growth while pursuing sustainable net profitability and operating cash flow improvements.
"Growth strategies now prioritize healthy unit economics—scaling mature businesses for margin expansion while refining products, faculty systems, and user experience in early-stage ventures. Speed gives way to efficiency and quality," she explained.
Transitioning from rapid growth to profitable quality, Gaotu is undergoing a pivotal strategic shift. With all three pillars—non-academic, traditional, and adult education—now profitable, bolstered by AI and localization capabilities, the once K12-focused edtech firm is building a diversified, resilient ecosystem. In FY2026, profitability isn’t just a target—it’s the ultimate metric for transformation success.
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