Gaotu Techedu Inc. (GOTU) saw its shares plummet 5.75% during intraday trading on Wednesday, following the release of its third-quarter 2025 financial results. The significant drop reflects investor concerns over the company's ongoing financial challenges despite some year-over-year improvements.
The company reported a net loss of RMB 147.1 million for Q3 2025, an improvement from the RMB 471.3 million loss in the same period last year. However, the continued losses and cash burn overshadowed revenue growth of 30.7%, leading to a sharp sell-off. Operating cash outflow was RMB 660.2 million, though narrower than the previous year, it still signaled persistent profitability issues.
Management highlighted efforts to improve operational efficiency and cost management, but the market reaction suggests investors remain wary of the company's ability to achieve sustainable profitability in the near term.
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