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Jun 30, 2025
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Gaotu Q2 2025 Earnings Report
Gaotu significantly reduced its net loss while delivering double-digit revenue growth in Q2 2025.
Key Takeaways
Gaotu reported strong top-line growth with net revenues rising nearly 38%, while narrowing both GAAP and non-GAAP net losses. Operational efficiency gains and improved customer acquisition costs contributed to positive cash flow and a better margin profile.
Forward Guidance
Gaotu expects Q3 2025 net revenues to be between RMB1.558 billion and RMB1.578 billion, representing YoY growth of up to 30.6%.
Positive Outlook
- Revenue expected to grow up to 30.6% YoY in Q3
- Operational efficiency improvements continue
- Customer acquisition cost at 4-year best
- Strong cash position at RMB3.8B
- Consistent reduction in G&A and R&D as % of revenue
Challenges Ahead
- Company remains in net loss territory
- Gross margin declined YoY
- Share-based compensation remains a cost driver
- Cash flow remains negative on a GAAP basis
- Long-term profitability still unproven
Historical Earnings Impact
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Avg. Return Before/After Earnings
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