Gaotu Techedu Inc. (GOTU) saw its shares plummet 7.28% 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. Non-GAAP net loss stood at RMB -137.7 million, also better than the previous year but still signaling persistent profitability issues. Operating cash outflow was RMB -660.2 million, though this was narrower than the RMB -714.4 million outflow in Q3 2024.
Management highlighted efforts to improve operational efficiency and cost management, with CEO Larry Xiangdong Chen emphasizing "sustained growth momentum and enhanced profitability." However, the continued losses and cash burn appear to have overshadowed these positive developments, leading to the sharp sell-off.
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