Gaotu Techedu Revenue Jumps 38 Percent
Gaotu Techedu(NYSE:GOTU) reported second quarter 2025 earnings on August 26, 2025, posting 37.6% year-over-year revenue growth to nearly RMB 1.4 billion and narrowing its non-GAAP net loss by 50.5% year over year. Gross billings rose 36.2% year over year to RMB 2.3 billion, and management raised full-year revenue guidance after a strong first half and continued momentum in both core and new initiatives. The following highlights focus on the company's AI-driven operating leverage, offline learning expansion, and core academic business performance.
R&D expenses as a percentage of revenue dropped to 10.7% in the quarter, and operating expenses as a share of revenue decreased by 31.6 percentage points year over year, reflecting the impact of artificial intelligence (AI) integration across teaching, tutoring, and curriculum development. The company also achieved a net operating cash inflow of RMB 588.8 million, up RMB 202.6 million from the prior year period.
Gaotu Techedu's rapid AI adoption is directly reducing costs, increasing scalability, and positioning the company for sustainable long-term growth in a competitive education market.
Source Fool.com
