SHANGHAI, Dec. 2, 2025 /PRNewswire/ -- Four Seasons Education (Cayman) Inc. ("Four Seasons Education" or the "Company") (NYSE: FEDU), a tourism and education-related service provider in China, today announced its unaudited financial results for the first half of fiscal year 2026, ended August 31, 2025.
Financial and Operational Highlights for the First Half of Fiscal Year 2026
-- Revenue increased by 7.9% to RMB145.3 million (US$20.4 million), compared
with RMB134.7 million in the same period of last year.
-- Gross profit increased by 30.9% to RMB38.8 million (US$5.4 million) from
RMB29.7 million in the same period of last year.
-- Operating income was RMB9.2 million (US$1.3 million), compared with an
operating loss of RMB5.7 million in the same period of last year.
-- Adjusted operating income(1) (non-GAAP) was RMB9.8 million (US$1.4
million), compared with an adjusted operating loss of RMB1.6 million in
the same period of last year.
-- Net income was RMB12.4 million (US$1.7 million), compared with RMB3.0
million in the same period of last year.
-- Adjusted net income(2) (non-GAAP) was RMB13.7 million (US$1.9 million),
compared with RMB2.1 million in the same period of last year.
-- Basic and diluted net income per American Depositary Share ("ADS") were
RMB4.53 (US$0.63) and RMB4.48 (US$0.63), respectively, compared with both
RMB0.98 in the same period of last year. Each ADS represents ten ordinary
shares.
-- Adjusted basic and diluted net income per ADS(3) (non-GAAP) were RMB5.11
(US$0.71) and RMB5.05 (US$0.71), respectively, compared with both RMB0.54
in the same period of last year.
(1) Adjusted operating income is defined as operating income/loss excluding
share-based compensation expenses.
(2) Adjusted net income is defined as net income excluding share-based
compensation expenses and unrealized holding gain (loss) in investments.
(3) Adjusted basic/diluted net income per ADS is defined as basic/diluted net
income per ADS excluding share-based compensation expenses per ADS and
unrealized holding gain (loss) in investments per ADS.
For more information on these adjusted financial measures, please see the
section captioned under "About Non-GAAP Financial Measures" and the tables
captioned "Reconciliation of GAAP and non-GAAP Results" set forth at the end
of this release.
Ms. Yi (Joanne) Zuo, Chief Executive Officer and Director of Four Seasons Education, said, "We sustained our solid growth momentum for the six months ended August 31, 2025, with total revenue reaching RMB145.3 million, up 7.9% year-over-year. Owing to a healthy product mix and ongoing efficiency gains, we also maintained our strong upward profitability trajectory, including a significant improvement in gross profit margin from 22.0% in the first half of fiscal year 2025 to 26.7% in the first half of fiscal year 2026 and a significant improve in gross profit from RMB29.7 million in the first half of fiscal year 2025 to RMB38.8 million in the first half of fiscal year 2026. This contributed to our net income climbing to RMB12.4 million, a 313.9% increase year-over-year."
"Our enrichment learning programs continued to progress steadily as we prioritized high-quality learning experiences for learners of all ages, recording significant revenue growth for the six months ended August 31, 2025. Moving forward, we will prudently expand the enrichment learning business, strategically scaling our capacity in lockstep with market demand to ensure sustainable growth. Meanwhile, we are tilting our tourism product portfolio towards higher-margin, value-added offerings, to establish a more resilient and sustainable business model for this segment. "
"Our relentless focus on operational efficiency, strategic execution, and diverse service and product portfolios positions us well to drive profitable growth. We are confident our profitable premium services and disciplined expansion into new, compliant markets will boost our long-term competitiveness and create lasting value for all stakeholders."
First Half Fiscal Year 2026 Financial Results
Revenue increased by 7.9% to RMB145.3 million (US$20.4 million) in the first half of fiscal year 2026, from RMB134.7 million in the same period of last year, mainly driven by the growth in the Company's enrichment learning business due to the business expansion effort.
Cost of revenue was RMB106.5 million (US$14.9 million) in the first half of fiscal year 2026, compared with RMB105.0 million in the same period of last year, mainly due to the increase in staff cost of the Company's enrichment learning business.
Gross profit was RMB38.8 million (US$5.4 million) in the first half of fiscal year 2026, compared with RMB29.7 million in the same period of last year. The increase of gross profit is mainly driven by the growth in the Company's enrichment learning business which has higher gross profit ratio.
General and administrative expenses decreased by 10.7% to RMB24.3 million (US$3.4 million) in the first half of fiscal year 2026 from RMB27.2 million in the same period of last year, mainly attributable to the decrease in share-based compensation expenses primarily caused by the repricing of share options in prior year.
Sales and marketing expenses decreased by 34.3% to RMB5.3 million (US$0.7 million) in the first half of fiscal year 2026 from RMB8.1 million in the same period of last year, mainly due to the decrease in advertising activities.
Operating income was RMB9.2 million (US$1.3 million) in the first half of fiscal year 2026, compared with an operating loss of RMB5.7 million in the same period of last year.
Adjusted operating income(1) (non-GAAP), which is calculated as operating income/loss excluding share-based compensation expenses, was RMB9.8 million (US$1.4 million) in the first half of fiscal year 2026, compared with an adjusted operating loss of RMB1.6 million in the same period of last year.
Interest income, net was RMB3.1 million (US$0.4 million) in the first half of fiscal year 2026, compared with RMB7.5 million in the same period of last year, mainly due to interest expenses are no longer capitalized but expensed since the construction in progress of study camps in Wuyuan, Jiangxi are completed in the fiscal year 2025.
Income tax expense was RMB1.0 million (US$0.1 million) in the first half of fiscal year 2026, compared with RMB3.5 million in the same period of last year, primarily attributable to an increase in the income which is not subject to taxation, resulting in a decrease in income tax compared to the same period last year.
Net income was RMB12.4 million (US$1.7 million) in the first half of fiscal year 2026, compared with RMB3.0 million in the same period of last year. Adjusted net income(2) (non-GAAP), which is calculated as net income excluding share-based compensation expenses and unrealized holding gain (loss) in investments, was RMB13.7 million (US$1.9 million), compared with RMB2.1 million in the same period of last year.
Basic and diluted net income per ADS in the first half of fiscal year 2026 were RMB4.53 (US$0.63) and RMB4.48 (US$0.63), respectively, compared with both RMB0.98 in the same period of last year. Adjusted basic and diluted net income per ADS(3) (non-GAAP) in the first half of fiscal year 2026 were RMB5.11 (US$0.71) and RMB5.05 (US$0.71), respectively, compared with both RMB0.54 in the same period of last year.
Cash and cash equivalents, short-term investments, and short-term investments under fair value. As of August 31, 2025, the Company had cash and cash equivalents, short-term investments, and short-term investments under fair value of RMB213.1 million (US$29.9 million), compared with RMB262.6 million as of February 28, 2025.
Long-term investment under fair value (including current portion). As of August 31, 2025, the Company had long-term investment under fair value (including current portion) of RMB157.9 million (US$22.1 million), compared with RMB103.2 million as of February 28, 2025.
Conference Call
The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on December 2, 2025 (9:00 PM Beijing/Hong Kong time on December 2, 2025)
Dial-in details for the earnings conference call are as follows:
United States (toll free): 1-888-346-8982 International: 1-412-902-4272 Hong Kong, China (toll free): 800-905-945 Hong Kong, China: 852-3018-4992 Mainland China (toll free): 400-120-1203
Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "Four Seasons Education."
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.sijiedu.com.
A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until December 9, 2025, by dialing the following telephone numbers:
United States (toll free): 1-855-669-9658 International: 1-412-317-0088 Replay Access Code: 9942703
About Four Seasons Education (Cayman) Inc.
Four Seasons Education (Cayman) Inc. is a service provider of both tourism and education-related services in China. The Company's program, service and product offerings mainly consist of enrichment learning programs, school-based tutoring product solutions and training programs for teachers, study camps and learning trips for students, and travel agency services for all age groups. For more information, please visit https://ir.sijiedu.com.
About Non-GAAP Financial Measures
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