Gaotu Techedu Inc. (GOTU) saw its stock plummet 7.28% intraday following the release of its third-quarter 2025 financial results. The significant drop reflects investor concerns over the company's continued financial struggles.
The company reported a net loss of RMB 147.1 million for Q3 2025, though this was an improvement from the RMB 471.3 million loss in the same period last year. Revenue grew 30.7% year-over-year to RMB 1,579.0 million, but operating expenses remained high at RMB 1,221.5 million. The net operating cash outflow of RMB 660.2 million further weighed on investor sentiment.
Despite the losses, Gaotu Techedu provided an optimistic outlook for Q4, forecasting revenue growth of 17.2-18.7%. The company also highlighted progress in cost management and AI integration, but these factors were overshadowed by the disappointing bottom-line results.
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