TAL Education Group (TAL) Earnings Call zum 2. Quartal des Geschäftsjahres 2027: Marge weitet sich aus, während sich das Gerätewachstum verlangsamt

Wichtigste Erkenntnisse

• Die TAL Education Group verzeichnete im zweiten Quartal des Geschäftsjahres 2027 einen Nettoumsatz von 995 Millionen US-Dollar, was einem Anstieg von 15 % gegenüber dem Vorjahr auf US-Dollar-Basis und 9 % auf RMB-Basis entspricht.
• Das operative Ergebnis auf Non-GAAP-Basis stieg von 108 Millionen US-Dollar auf 249 Millionen US-Dollar, während sich die operative Non-GAAP-Marge von 12,5 % auf 24,9 % ausweitete. Treiber hierfür waren operative Skaleneffekte, Effizienzsteigerungen und eine disziplinierte Ressourcenallokation.
• Die Offline-Programme von Peiyou erzielten ein zweistelliges Umsatzwachstum, das in erster Linie durch den Anstieg der Teilnehmerzahlen getrieben wurde. Die Wiederbelegungsquote in den Peiyou-Förderkursen lag bei über 80 %.
• Lerngeräte belasteten das unternehmensweite Umsatzwachstum, da der Gesamtmarkt im zweistelligen Prozentbereich schrumpfte, der Wettbewerb intensiv blieb und die Chipkosten stiegen.
• Das Management rechnet mit einer Verlangsamung des Gesamtumsatzwachstums. Es geht zudem davon aus, dass sich die operative Marge im Geschäftsjahr 2027 gegenüber dem Geschäftsjahr 2026 verbessern wird, und erwartet keine wesentlichen Ganzjahresverluste aus dem Geschäft mit Lerngeräten.
• TAL beschloss eine Sonderbardividende von 0,30 US-Dollar pro Stammaktie (entspricht 0,10 US-Dollar pro ADS) mit einer Gesamtausschüttung von rund 55,2 Millionen US-Dollar.

Wichtige Finanzdaten

Zum 31. August 2026 verfügte TAL über flüssige Mittel von rund 2,0 Milliarden US-Dollar, kurzfristige Finanzanlagen von 796 Millionen US-Dollar sowie kurz- und langfristige liquide Mittel mit Verfügungsbeschränkung von 254 Millionen US-Dollar.

Geschäfts- und operative Entwicklung

Peiyou-Offline-Programme

Die Umsätze aus den Offline-Aktivitäten von Peiyou stiegen im zweistelligen Prozentbereich, wobei höhere Teilnehmerzahlen den größten Beitrag zum Wachstum leisteten. Dem Management zufolge blieb die Nachfrage nach Präsenzunterricht stabil und die Gesamtkundenbindung gesund. Die Wiederbelegungsquote in den Peiyou-Förderkursen lag bei über 80 %.

Das Unternehmen konzentrierte sich weiterhin auf Unterrichtsqualität, Lehrerfortbildung und eine einheitliche Servicequalität in seinem gesamten Lernzentren-Netzwerk.

Online-Förderunterricht

TAL entwickelte weiterhin Kurse, die Online-Unterricht mit praktischen Aktivitäten kombinierten, insbesondere in naturwissenschaftlichen Fächern. Laut Management verlangsamte sich das Wachstum im Bereich des Online-Förderunterrichts im Laufe des Quartals.

Lerngeräte

Lerngeräte bremsten das Gesamtwachstum von TAL. Das Management verwies auf einen zweistelligen Rückgang im gesamten Markt, intensiven Wettbewerb, ein verändertes Konsumklima sowie höhere Chipkosten.

Das Nutzerengagement blieb dennoch stabil. Die durchschnittliche wöchentliche Aktivitätsrate der Lerngeräte-Nutzer von TAL lag bei rund 80 %, wobei aktive Geräte im Schnitt eine Stunde pro Tag genutzt wurden.

Das Unternehmen plant, weiterhin in Inhalte, Technologie und Produkterlebnis zu investieren und gleichzeitig eine strengere Disziplin bei Kosten und Ressourcenallokation walten zu lassen.

Prognose des Managements

Das Management rechnet mit einer Verlangsamung des Gesamtumsatzwachstums von TAL, da das Unternehmen an Größe gewinnt und das Geschäft mit Lerngeräten weiterhin unter branchenweitem Gegenwind leidet.

Bezüglich der Profitabilität erwartet das Management für das Geschäftsjahr 2027 eine Verbesserung der operativen Marge im Vergleich zum Geschäftsjahr 2026. Es gab jedoch zu bedenken, dass die Quartalsprofitabilität aufgrund von Saisonalität, Marktbedingungen und dem Zeitpunkt von Investitionen schwanken kann.

Das Management erklärte zudem, dass es für das gesamte Geschäftsjahr keine nennenswerten Verluste im Bereich der Lerngeräte erwartet.

Risiken und wichtige Beobachtungspunkte

• Ein anhaltender Rückgang und ein intensiver Wettbewerb auf dem Markt für Lerngeräte könnten das konsolidierte Umsatzwachstum weiterhin belasten.
• Steigende Chip- und Bauteilkosten setzen die Gerätepreise und die wirtschaftlichen Rahmenbedingungen der Branche unter Druck.
• Schwankungen des beizulegenden Zeitwerts im Anlageportfolio von TAL können dazu führen, dass die sonstigen Erträge oder Aufwendungen von Quartal zu Quartal erheblich variieren.
• Der Ertragsteueraufwand stieg hauptsächlich aufgrund von Veränderungen bei den passiven latenten Steuern im Zusammenhang mit der Quellensteuer.
• Die operative Marge kann aufgrund von Saisonalität, Marktbedingungen und dem zeitlichen Ablauf von Investitionen von Quartal zu Quartal schwanken.

Höhepunkte der Fragerunde mit Analysten

Umsatzausblick: Das Management führte das verlangsamte Wachstum auf die größere Umsatzbasis von TAL und die unterschiedliche Entwicklung in den einzelnen Geschäftsbereichen zurück. Die Offline-Programme von Peiyou entwickelten sich weiterhin solide, während Lerngeräte das konsolidierte Wachstum belasteten und sich das Wachstum im Bereich Online-Förderunterricht verlangsamte.

Strategie bei Lerngeräten: TAL betrachtet Lerngeräte weiterhin als strategisch wichtig für das selbstständige Lernen zu Hause. Kurzfristige Prioritäten sind Produkt- und Inhaltsverbesserungen, disziplinierte Ausgaben sowie die Vermeidung erheblicher Ganzjahresverluste.

Margenausweitung: Das Management begründete die Verbesserung der operativen Marge mit zunehmenden Skaleneffekten, Kosteneffizienz und einer disziplinierteren Ressourcenallokation. Die Steigerung der Profitabilität bleibt neben fortlaufenden Produktinvestitionen eine hohe Priorität.

Volatilität bei Kapitalanlagen und Aktionärsrenditen: Der sonstige Aufwand von 190 Millionen US-Dollar war in erster Linie auf Wertminderungen des beizulegenden Zeitwerts bestimmter Kapitalanlagen zurückzuführen. TAL gab bekannt, dass Dividenden und Aktienrückkäufe ein systematischerer Bestandteil der Kapitalallokation werden sollen, abhängig von der Finanzlage, dem Geschäftsbedarf, den Investitionsmöglichkeiten und den Marktbedingungen. Zwischen dem 29. Juli und dem 23. Oktober 2026 kaufte TAL 64.226 Stammaktien für rund 2 Millionen US-Dollar zurück.

Vollständiges Transkript der Telefonkonferenz zu den Quartalszahlen

Vollständiges Transkript der Telefonkonferenz

Ausführungen des Managements

Operator

Ladies and gentlemen, good day, and thank you for standing by. Welcome to TAL Education Group's Fiscal 2027 Second Quarter Earnings Conference Call. [Operator Instructions]

Please be informed today's conference is being recorded. I would now like to hand the conference over to Ms. Fang Liu, Investor Relations Director. Please go ahead.

Fang Liu

Thank you all for joining us today for TAL Education Group's Second Quarter Fiscal Year 2027 Earnings Conference Call. The earnings release was distributed earlier today, and you may find a copy on the company's IR website or through the Newswire.

During this call, you will hear from Mr. Alex Peng, President and Chief Financial Officer; and Mr. Jackson Ding, Deputy Chief Financial Officer. Following the prepared remarks, Mr. Peng and Mr. Ding will be available to answer your questions.

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. For more information about these risks and uncertainties, please refer to our filings with the SEC.

Also, our earnings release and this call include discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures.

I would like to turn the call over to Mr. Alex Peng. Alex, please go ahead.

Zhuangzhuang Peng

Thank you, Fang, and thanks to everybody for joining today's conference call. For more than 20 years, TAL has been committed to helping students learn and grow.

Today, we do this through our learning services, content solutions and other products. Across all of these offerings, we remain committed to delivering meaningful learning experiences and building lasting relationships with the students and families we serve.

Let me start with an overview of our second quarter performance. Our overall revenue continued to grow, although at a slower pace than in previous quarters.

As our business has grown in scale, we expect our overall growth rate to moderate. The picture across our businesses, however, is different. Our Peiyou offline programs continue to grow at a healthy pace. Demand for face-to-face learning remains solid and student retention remains healthy.

We believe that interaction between teachers and students continues to play an important role in learning.

Our learning device business, on the other hand, is facing a challenging industry environment, respectable competition, shifting consumer sentiment and rising component costs have put pressure on the market. These conditions have affected our business and have become a drag on our overall revenue growth.

Despite these near-term challenges, we continue to see a strategic role for learning devices in helping students to learn independently at home. We're focused on improving our content and product experience while managing the business with discipline.

Turning briefly to our financial results. Second quarter net revenues were USD 995 million or RMB 6.7 billion, representing a year-over-year increase of 15% and 9% in U.S. dollar and RMB terms, respectively.

Our non-GAAP income from operations was USD 248 million, representing a year-over-year increase of more than 100%. Our non-GAAP operating margin increased to 24.9% from 12.5% for the same period last year. The continued improvement in our operating margin reflects operating leverage, efficiency gains, and disciplined resource allocation.

With that, I will turn the call over to Jackson, who will cover operational progress across our core business lines and review our financial performance for the second fiscal quarter. Jackson, over to you.

Jackson Ding

Thank you, Alex. I will start with the operational progress across our core business lines and then review our financial results.

Starting with our Peiyou offline programs. Revenue grew by double digits year-over-year in the second quarter. Enrollment growth was the largest growth contributor of revenue growth in this business line.

Our overall retention rate remains healthy. Take Peiyou enrichment learning classes as an example, the retention rate was over 80%, reflecting the continued trust from students and families.

We continue to see steady demand for face-to-face learning. Beyond helping students to knowledge, the classroom gives them a place to interact with teachers and peers, ask questions and develop confidence. These interactions are an important part of the learning experience, and they remain at the heart of our Peiyou programs.

During the summer, our learning center network was well positioned to serve our students and families. We continue to focus on teaching quality, teacher development and the consistency of our services across learning centers. As the business grows, our priority is to remain a high-quality experience for students while managing our network in a disciplined manner.

For our online enrichment learning business, we continued to develop learning experiences that respond to students' interests and needs. In our science-related courses, for example, we combined online learning with hands-on activities to help students explore science and technology beyond the classroom.

During the quarter, we launched our first National Youth [ Makrosoft ]. The event encouraged students to draw inspiration from everyday life, develop their own ideas and turn those ideas into practical projects. We believe these experiences can help students build curiosity and learn through practice.

Turning to our learning device business. The industry is going through a challenging period. The overall market has contracted by double digits year-over-year and competition remains intense.

At the same time, rising chip costs are putting pressure on device pricing and adding to the challenges facing the industry. These conditions are affecting our business as well. While our learning device business has grown in recent years, the current market environment is weighing on its performance, especially on the top line.

In this quarter, learning device was a drag on our company level growth rate. We expect this business to continue to face pressure as the industry works through these challenges.

Against this backdrop, we remain focused on serving our users and improving the learning experience through our learning devices. As a result, user engagement remained stable during the quarter.

The average weekly active rate across our learning device user base was around 80% and the active devices were used for an average of 1 hour per day. We believe this reflects the value our products continue to provide to students even as the market faces pressure.

Next, I will walk you through our key financial results for the second fiscal quarter. Please note that all financial data for the quarter are unaudited. Our net revenues were USD 995 million or RMB 6.7 billion, representing a year-over-year increase of 15% and 9% in U.S. dollar and RMB terms, respectively.

Cost of revenues increased by 8% year-over-year to USD 400 million. On a non-GAAP basis, excluding share-based compensation expenses, cost of revenues also increased by 8% year-over-year to USD 399 million. Gross profit increased by 21% year-over-year to USD 595 million. Gross margin for the second quarter of fiscal year 2027 was 59.8% compared to 57.0% in the same period of the prior year.

Turning to operating expenses. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 16% to USD 223 million from USD 264 million in the second quarter of fiscal 2026. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 4% to USD 124 million from USD 119 million in the second quarter of fiscal year 2026.

Non-GAAP income from operations, which excluded share-based compensation expenses, was USD 249 million compared to non-GAAP income from operations of USD 108 million in the same period of the prior year.

Other expense was USD 190 million for the second quarter of fiscal year 2026 -- excuse me, other expense was USD 190 million for the second quarter of fiscal year 2027 compared to other income of USD 67 million in the second quarter of fiscal year 2026. The change was mainly driven by fluctuations in the fair value of certain investments.

Income tax expense was USD 136 million in the second quarter of fiscal 2027 compared to USD 51 million of income tax expense in the second quarter of fiscal year 2026. The increase in income tax expense was mainly due to changes in deferred tax liabilities relating to withholding tax.

Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was USD 36 million compared to non-GAAP net income attributable to TAL of USD 136 million in the second quarter of fiscal year 2026.

Moving on to our balance sheet. As of August 31, 2026, the company had approximately USD 2.0 billion of cash and cash equivalents, USD 796 million of short-term investments and USD 254 million in current and noncurrent restricted cash. Our deferred revenue balance was approximately USD 930 million as of the end of the second fiscal quarter. Net cash used in operating activities for the second quarter of fiscal year 2027 was USD 179 million.

Finally, a brief update on shareholder returns, including our cash dividend. Between July 29, 2026, and October 23, 2026, the company repurchased approximately 64,226 common shares at an aggregate consideration of approximately USD 2 million. The company's Board of Directors has approved the declaration and payment of a special cash dividend to our shareholders out of the company's cash balance in an amount of USD 0.30 per common share equivalent to USD 0.10 per ADS, representing an aggregate dividend payment of approximately USD 55.2 million to all shareholders of the company.

That concludes my review. I will now hand the call back to Alex for his comments on the strategy and outlook. Alex, please go ahead.

Zhuangzhuang Peng

Thanks, Jackson. Let me close with a few thoughts on our strategy and outlook. Our businesses serve students in different ways. In our learning services, teachers help students develop knowledge, confidence and curiosity through direct interaction.

In our content and technology products, we help students build ability to learn more independently. We believe both are important parts of a student's learning journey. We'll continue to bring together our experience in education and our capabilities in technology to improve the learning experience.

Looking ahead, we expect our overall revenue growth to moderate as our business grows in scale and our learning device business continues to face industry headwinds. As the educator Jiang Xueqin wrote in his reconstruction and philosophy, a person is always in process of growth.

At TAL, we are grateful for the opportunity to support our students in that process, and we remain committed to learning and growing alongside them.

So that concludes my prepared remarks. Operator, we are ready to open the call for questions.

Operator

[Operator Instructions] And our first question comes from Eddy Wang from Morgan Stanley.

Fragen und Antworten

Eddy Wang

My question is regarding the revenue growth. We saw the year-over-year revenue growth moderate in the second quarter. Can you walk us through the top line performance across the major business lines? And how should we think about the growth outlook going forward?

Zhuangzhuang Peng

Yes, Eddy, this is Alex. Let me take that one on. So as we just mentioned, our overall revenue growth moderated in the second quarter, and we expect growth to become more moderate going forward.

This really reflects both the increasing scale of our business and the different conditions we're seeing across our business lines. So our Peiyou offline programs continue to perform well. The business delivered double-digit revenue growth in the quarter, supported primarily by enrollment growth.

Student retention remained healthy, and we continue to see steady demand for face-to-face learning experience. Our learning device business, as both myself and Jackson just mentioned, the business is facing a more difficult market.

The industry as a whole for learning devices has contracted, as noted by several independent third-party market reports. And these conditions have affected our performance. So as a result, learning devices have become a drag on our overall revenue growth. We also saw growth in our online enrichment business moderate during the quarter.

So overall, we see our learning services business continuing to develop on a healthy foundation, while the learning device business works through a more challenging period in the broader industry environment. So Eddy, I hope that answered your question.

Operator

And the next question comes from Jenny Yuan from UBS.

Yicheng Yuan

And my question is on our learning device business. So given the current challenges in the market, how are you navigating the business? And how should we think about the trade-off between revenue growth and profitability? And are you prioritizing one over the other?

Zhuangzhuang Peng

Thanks, Jenny. This is Alex. Let me take this question on as well. So let me start by saying that we continue to believe learning devices have a strategic role to play in supporting students learning at home.

Over the past few years, we've built a sizable user base, and we remain committed to providing these students and families with quality content and a great learning experience.

That said, the industry is going through a challenging period as we just talked about. The market has contracted. Competition remains intense and rising component costs have added pressure across the industry. Our business has not been really -- it has not been immune to these conditions. We expect learning devices to continue to weigh on the company's overall revenue growth rate.

So in this environment, what's our focus? Our focus is on managing the business in a disciplined way. We'll continue to invest in content, technology, and the product experience, but we'll also be thoughtful about how we allocate resources and manage costs. We do not anticipate significant losses from the learning device business for the full fiscal year.

Looking ahead, what do we see? We believe there is still a strategic opportunity to use technology to support students' independent learning. We want to continue developing this business with a long-term perspective while making sure that our near-term decisions reflect the market conditions we're facing today. So Jenny, I hope that answered your question.

Operator

And the next question comes from Timothy Zhao from Goldman Sachs.

Yucen Liu

This is Eunice Liu from Goldman Sachs. I'm asking question on behalf of our analyst, Timothy Zhao. In this quarter, company's operating margin improved significantly. We want to ask what drove the improvement? And how should we think about the profitability going forward?

Jackson Ding

Eunice, thank you for the question. This is Jackson. Let me take this one. The improvement this quarter in operating margin reflects progress across several areas. As our business has grown in scale, we have been able to serve more students and users while also managing our costs more efficiently. We've also become more disciplined in how we allocate our resources across the organization.

Looking ahead, improving profitability remains a priority for us. We'll continue to invest in products and services while also driving greater operating efficiency.

And as you've seen in the last couple of quarters, we expect our operating margin for fiscal 2027 to improve compared with fiscal 2026. At the same time, as always, profitability may vary from quarter-to-quarter due to seasonality, market conditions and the timing of our investments. We believe it is more useful to look at our progress over a longer period of time. Eunice, I hope that answers your question.

Operator

[Operator Instructions] And our next question comes from Elsie Sheng from CLSA.

Yiran Sheng

I'm Elsie. And my question is about other income and shareholder return. So I noticed that other income declined significantly this quarter, and the company also declared a cash dividend for the first time. So could you explain what is the driver behind the change in other income and also share how you think about the shareholder return?

Jackson Ding

Elsie, thank you for the question. This is Jackson again. Let me take this. And that's like a 2-part question, the first part about other income and the second part about shareholder return. So maybe let me tackle them piece by piece.

So first, other income, as part of our capital allocation strategy, look, we maintain an investment portfolio that includes a variety of investment products, ranging from wealth management products to minority equity investments and others.

During the quarter, the fair value of certain investments declined, which was a primary driver of the sequential decrease in other income. The value of these investments can change with market conditions. So our other income line may fluctuate from quarter-to-quarter.

The second part of the question was about shareholder returns. Returning value to shareholders is and has always been an important part of our capital allocation strategy.

The dividend declared this quarter complements our ongoing share repurchase program. Looking ahead, we intend to make shareholder returns a more systematic part of our capital allocation approach using both dividends and share repurchases.

Our decisions on the form and the scale of returns will take into account our financial position, the needs of our business, investment opportunity and market conditions. Elsie, I hope that answers your question.

Operator

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Zhuangzhuang Peng

So again, thanks to everybody for joining us today, and we'll see you next quarter. Bye-bye.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.