Ed tech firm Gaotu’s Q3 revenue rises on strong demand, launches new $100 million buyback program
Overview
Gaotu Q3 2025 revenue grows 30.7% yr/yr, driven by strong market demand
Net loss for Q3 2025 narrows significantly compared to same period last year
Company completes $80 mln share repurchase program, initiates new $100 mln program
Outlook
Company expects Q4 2025 net revenues between RMB1,628 mln and RMB1,648 mln
Gaotu to focus on sustainable growth by enhancing teacher pipeline and data-driven operations
Company aims to optimize unit economics and improve operational quality through product refinement
Result Drivers
STRONG MARKET DEMAND - Revenue growth attributed to strong market demand and effective response strategies
COST MANAGEMENT - Operating expenses decreased due to precise efficiency management and cost reduction measures
AI INTEGRATION - AI integration across teaching and operations enhanced service differentiation and efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| RMB 1.58 bln |
|
Q3 Adjusted Net Income |
| -RMB 137.70 mln |
|
Q3 Net Income |
| -RMB 147.10 mln |
|
Q3 Adjusted Gross Margin |
| 66.10% |
|
Q3 Adjusted Gross Profit |
| RMB 1.04 bln |
|
Q3 Adjusted Income from Operations |
| -RMB 168.60 mln |
|
Q3 Operating Expenses |
| RMB 1.22 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"
Wall Street's median 12-month price target for Gaotu Techedu Inc is $4.75, about 45.1% above its November 25 closing price of $2.61
Press Release: ID:nPn936WnDa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
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