China's Sunlands Technology Q4 revenue falls 2.7%

Overview

• China adult online education provider's Q4 revenue fell 2.7% yr/yr

• Q4 net income declined from prior year as new enrollments dropped

• Company expects Q1 2026 revenue to decline 9.8% to 13.9% yr/yr

Outlook

• Sunlands sees Q1 2026 net revenues between RMB420 mln and RMB440 mln

• Company says Q1 outlook reflects current market conditions and customer demand uncertainty

Result Drivers

• LOWER ENROLLMENTS - New student enrollments fell to 114,058 from 172,200 a year ago, contributing to lower revenue and gross billings

• COST REDUCTIONS - Cost of revenues and sales and marketing expenses declined, mainly due to lower compensation and reduced spending on learning materials and marketing

• SHIFT TO QUALITY - Co said it became more selective in customer acquisition and focused on operational efficiency, per CEO Tongbo Liu

Company press release: ID:nGNX91mKTH

Key Details

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