On November 26, Gaotu Techedu Inc. (NYSE: GOTU) released its financial results for the third quarter of fiscal year 2025.
The report shows that as of September 30, 2025, Gaotu achieved revenue of RMB1.58 billion in Q3, representing a 30.7% year-over-year increase. Cash receipts totaled RMB1.19 billion, up 11.2% YoY.
For the first nine months of 2025, the company generated RMB4.46 billion in revenue, a 41% YoY growth, with cash receipts reaching RMB4.33 billion, up 25.4% YoY.
Gaotu announced the early completion of its original $80 million share repurchase program and has initiated a new $100 million buyback plan. As of November 25, 2025, the company has repurchased approximately 27.52 million ADSs under these programs, totaling nearly RMB620 million.
Based on current projections, Gaotu expects Q4 2025 revenue to range between RMB1.628 billion and RMB1.648 billion, representing 17.2% to 18.7% YoY growth.
Larry Chen, Founder, Chairman, and CEO of Gaotu, stated: "We remain user-centric, building products and services covering the full lifecycle while deepening online-offline integration. Our accelerated AI adoption across teaching, services, and operations creates differentiated value combining scale efficiency with personalized experiences. This quarter's 30.7% revenue growth to RMB1.58 billion comes with 64.6% and 69.9% YoY reductions in adjusted operating loss and net loss respectively, demonstrating improving growth quality and profitability. Our cash position remains strong, showing year-over-year growth even after share repurchases. Regarding shareholder returns, we've completed the $80 million buyback program approved in 2022 and increased in 2023, while launching the new $100 million program approved this May. Through building competitive teacher supply chains, strengthening execution, and data-driven operations, we're enhancing growth certainty to deliver sustainable long-term value."
CFO Shen Nan added: "While achieving steady revenue growth, we've further improved operational quality. Operating expense ratio decreased significantly by 27.6 percentage points, with customer acquisition efficiency improving 12.8%. Operating cash outflow narrowed by RMB54.16 million YoY, reflecting structural efficiency gains. Deferred revenue reached RMB1.77 billion, up 23.2% YoY, providing visibility for future quarters. We remain committed to growth driven by improving unit economics while enhancing operational quality through teaching product refinement, faculty system development, and brand strengthening."
Key Financial Highlights:
1. Sustained Healthy Growth: RMB1.58 billion revenue, up 30.7% YoY, driven by effective response to strong market demand and improved product recognition through quality teaching services.
2. Significant Loss Reduction: Adjusted operating loss and net loss narrowed 64.6% and 69.9% YoY respectively, with adjusted net loss margin improving 29.1 percentage points, demonstrating enhanced profitability.
3. Operational Efficiency Gains: Operating expense ratio decreased 27.6 percentage points, with summer customer acquisition efficiency improving 12.8% YoY. Operating cash outflow narrowed by RMB54.16 million YoY, reflecting refined operations and service delivery.
4. Strong Cash Position: As of September 30, 2025, total cash, restricted cash, and short/long-term investments exceeded RMB3.04 billion, providing financial flexibility for talent acquisition, R&D, and business expansion.
5. Growing Deferred Revenue: RMB1.77 billion deferred revenue, up 23.2% YoY, indicating sustained demand and future revenue visibility.
6. New Buyback Program: In May 2025, the board approved a new $100 million repurchase plan, under which the company has repurchased approximately 27.52 million ADSs totaling nearly RMB620 million as of November 25, 2025.
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