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Sep 30, 2025
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Gaotu Q3 2025 Earnings Report
Gaotu reported improved revenue and narrowed losses in Q3 2025.
Key Takeaways
Gaotu delivered strong revenue growth and significantly reduced its net loss in Q3 2025, driven by increased operational efficiency and disciplined cost control.
Revenue rose to RMB 1,579,026,000 from RMB 1,208,253,000 in Q3 2024.
Net loss narrowed to RMB 147,121,000 from RMB 471,273,000 year-over-year.
Gross billings increased to RMB 1,188,909,000 amid strong market demand.
Operating loss was cut by nearly two-thirds due to cost optimization.
Forward Guidance
Gaotu expects Q4 2025 revenue between RMB 1,628,000,000 and RMB 1,648,000,000, indicating continued year-over-year growth.
Positive Outlook
- Q4 revenue projected to grow 17.2%–18.7% YoY
- Deferred revenue rose to RMB 1.77 billion
- Efficiency gains reduced cash outflow YoY
- Share repurchase program renewed at RMB-equivalent of $100M
- Improved visibility on future revenue
Challenges Ahead
- Net loss remains despite improvement
- Cash outflow from operations continues
- Interest income declined from prior year
- Higher cost of revenues due to staffing and rent
- Ongoing macroeconomic and sector risks
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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