#China #Shanghai #revenue growth #Education #Four Seasons

Four Seasons Education Reports Strong Financial Performance

On December 2, 2025, Four Seasons Education (Cayman) Inc. released its unaudited financial results for the first half of fiscal year 2026, indicating a solid growth trajectory in both revenue and profitability.

Financial Highlights

The company saw a 7.9% increase in revenue, reaching RMB 145.3 million (approximately US$20.4 million) compared to RMB 134.7 million during the prior year. This growth is primarily attributed to the strong performance of its enrichment learning business, which has successfully expanded its market presence. Notably, the gross profit surged by 30.9%, amounting to RMB 38.8 million (around US$5.4 million), up from RMB 29.7 million in the corresponding period last year.

Operating income was reported at RMB 9.2 million (about US$1.3 million), a remarkable turnaround from an operating loss of RMB 5.7 million in the same period last year. Similarly, the adjusted operating income, which excludes share-based compensation expenses, was RMB 9.8 million (approximately US$1.4 million), marking a substantial improvement over an adjusted loss of RMB 1.6 million from the previous year.

The net income also demonstrated significant growth, standing at RMB 12.4 million (US$1.7 million), a striking increase of 313.9% year-over-year from RMB 3.0 million last year. Adjusted net income, calculated by excluding certain compensation expenses, reached RMB 13.7 million (US$1.9 million), compared to RMB 2.1 million previously.

Operational Details

The CEO of Four Seasons Education, Ms. Yi (Joanne) Zuo, expressed satisfaction with the financial results, attributing the revenue growth to an optimal product mix and improved operational efficiencies. The gross profit margin demonstrated substantial enhancement, increasing from 22.0% in the first half of fiscal year 2025 to 26.7% in the first half of fiscal year 2026.

The company emphasized its focus on enrichment learning programs as a critical factor for growth. They have prioritized offering high-quality learning experiences for students of varying ages, leading to a significant rise in revenue in the enrichment learning segment over this period. Moving forward, the company plans to cautiously expand its learning programs while aligning its capacity strategically with market demand to promote sustainable growth.

Additionally, Four Seasons Education is adjusting its tourism service portfolio to lean towards higher-margin, value-added offerings, aiming for a more resilient business model within that area.

Cost Analysis

The cost of revenue increased to RMB 106.5 million (US$14.9 million) in the first half of fiscal year 2026, compared to RMB 105.0 million in the prior year, largely due to rising staff costs in the enrichment business. However, general and administrative expenses decreased by 10.7%, totaling RMB 24.3 million (US$3.4 million), attributed to reduced share-based compensation due to prior year repricing of share options.

Sales and marketing expenses also saw a significant decrease of 34.3%, amounting to RMB 5.3 million (US$0.7 million), reflecting a reduction in advertising activities. This has favorably impacted the company's bottom line, resulting in an operating income of RMB 9.2 million (US$1.3 million).

Future Outlook

With their robust cash position, Four Seasons Education had cash and cash equivalents amounting to RMB 213.1 million (US$29.9 million) as of August 31, 2025. The company continues to advocate for operational efficiency and diverse product offerings, which they believe positions them well for sustained profitability and competitive advantage in both education and tourism services.

In conclusion, Four Seasons Education's first-half results for fiscal year 2026 reveal considerable momentum in revenue growth and profitability enhancements, setting a positive course for the remainder of the fiscal year while emphasizing their commitment to providing high-quality educational experiences and strategic expansion of their service offerings.