#China #Beijing #AI Solutions #Education #Gaotu Techedu

Gaotu Techedu's Financial Highlights in Q3 2025

On November 26, 2025, Gaotu Techedu Inc. (NYSE: GOTU), a prominent player in technology-driven education in China, unveiled its unaudited financial results for the third quarter of 2025. This period marked significant growth for the company, underscoring its commitment to providing advanced AI-powered educational solutions that cater to lifelong learning.

Key Financial Results

The company's net revenues experienced a remarkable increase of 30.7%, reaching RMB 1,579 million as compared to RMB 1,208 million in the same quarter from the previous year. Additionally, gross billings rose by 11.2%, totaling RMB 1,188.9 million.

A notable highlight was the substantial decrease in losses. Gaotu reported a loss from operations of RMB 178 million, which is a staggering improvement from the loss of RMB 490 million reported in Q3 2024. Similarly, the net loss narrowed significantly to RMB 147.1 million from RMB 471.3 million in the previous year.

The non-GAAP metrics also showed positive movement, with non-GAAP net loss reducing further to RMB 137.7 million, down from RMB 457.2 million a year ago.

Operational Efficiency and Growth Strategies

Larry Xiangdong Chen, the founder and CEO, emphasized the company's relentless focus on the evolving needs of users, enabling Gaotu to effectively enhance its offerings. The integration of AI across various services and operational frameworks has allowed for a fully personalized educational experience, resulting in improved customer satisfaction and retention.

In the latest quarter, Gaotu not only maintained a strong revenue base but also managed to reduce operating expenses. This was achieved through rigorous efficiency management, which led to a 3.7% reduction in total operating expenses compared to Q3 2024. The operating expenses as a portion of net revenues decreased by 27.6 percentage points, indicating significant improvements in operational efficiency.

Future Outlook and Strategic Initiatives

Looking forward, Gaotu's management expressed a commitment to sustainable growth through the enhancement of teacher quality and operational execution. The company also noted plans to expand its share repurchase program, having recently completed an US$80 million buyback, with intentions to initiate a new US$100 million program in the near future.

Shannon Shen, the CFO, acknowledged the positive upward trend in deferred revenue, which grew by 23.2% year-over-year to nearly RMB 1.8 billion, contributing to better revenue visibility in future quarters.

As part of this ongoing strategy, Gaotu is eyeing targeted improvements in unit economics and brand-building efforts aimed at further enhancing operational quality. The firm anticipates that net revenues for Q4 2025 will fall between RMB 1,628 million and RMB 1,648 million, reflecting a 17.2% to 18.7% year-over-year increase.

Conclusion

In conclusion, Gaotu Techedu Inc.'s Q3 2025 financial results highlight its robust recovery and growth trajectory, driven by effective integration of advanced technology and strategic focus on user needs. The company showcases resilience in a challenging market, promising benefits for its stakeholders while establishing a strong foothold in the education sector. As Gaotu continues to adapt and refine its offerings, it remains committed to fostering an enriched learning environment for its users.

For more information, investors are invited to participate in the upcoming earnings conference call scheduled for 8:00 AM U.S. Eastern Time on November 26, 2025. Details regarding the call can be found on Gaotu's official investor relations website.