Gaotu Techedu 2026 Q2 revenue rises 20.2%, narrows losses

Gaotu Techedu (NYSE: GOTU ) released second-quarter financial results and hosted an earnings call on Thursday.

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View the webcast at Summary Gaotu Techedu Inc. reported a 20.2% year-over-year increase in net revenues to nearly 1.7 billion RMB, with gross billings rising 19.4% to approximately 2.7 billion RMB.

Significant improvement in operational efficiency was noted, with adjusted operating loss and net loss narrowing by 38.5% and 37.6%, respectively, and operating expenses as a percentage of net revenues declining by 7%.

AI capabilities are enhancing product experience, service efficiency, and organizational productivity, with AI-driven improvements noted in curriculum development and tutoring services.

The company is focusing on profitable growth, concentrating resources on high-value businesses with strong user value propositions, and optimizing resource allocation for businesses with high return potential.

Net operating cash inflow increased by 46.3% year over year to 861.2 million RMB, and cash reserves, including investments, totaled nearly 4.0 billion RMB as of June 30, 2026.

Offline business continues to show growth, with high double-digit year-over-year revenue increases, supported by stronger local brand recognition and operational improvements such as better classroom utilization.

Gaotu is committed to share repurchase programs, having repurchased nearly 36.5 million ADSs for 741.8 million RMB as of August 2026.

Future revenue guidance for Q3 2026 is set between 1,838 million and 1,858 million RMB, representing a year-over-year increase of 16.4% to 17.7%.

Full Transcript OPERATOR Thank you for standing by, and welcome to the Gaotu Techedu Inc.

Second Quarter 2026 Earnings Conference Call.

At this time all participants are in listen-only mode.

After management's remarks, there will be a question-and-answer session.

Today's conference call is being recorded.

I would now like to turn the conference over to your first speaker today, Ms.

Catherine Chen, Head of Investor Relations.

Please go ahead, Catherine.

Catherine Chen, Head of Investor Relations Thank you, and good evening, everyone.

Thank you for joining Gaotu's second quarter 2026 earnings conference call.

My name is Catherine, and I'll help host the earnings call today.

Gaotu's earnings release for the quarter was distributed and is available on the company's IR website as well as through PR Newswire services.

Joining the call with me tonight from Gaotu senior management are Mr.

Larry Chen, Gaotu's Founder, Chairman and Chief Executive Officer; Mr.

Robin Luo, Gaotu's Chief Operating Officer; Mr.

Mike Xu, Gaotu's Head of Strategy; and Ms.

Willa Yao, Gaotu's Senior Finance Director.

Larry will cover business highlights and strategy, followed by Robin's overview of our operational performance, and we will finish with a detailed discussion of our financial performance by Willa.

Following their prepared remarks, we'll open the floor to questions from analysts.

Robin and Mike will address analyst questions during the Q&A session.

Before we begin, I'd like to remind you that this conference call will contain forward-looking statements made under the U.S.

Private Securities Litigation Reform Act of 1995.

These forward-looking statements are based upon our expectations as well as the current market and operating conditions.

They involve known and unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, and may cause the company's actual results, performance, or achievements to differ materially.