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Gaotu Techedu Inc.

Gaotu Techedu Inc.

NYSE•GOTU
CEO: Mr. Xiangdong Chen Ph.D.
Sector: Consumer Defensive
Industry: Education & Training Services
Listing Date: 2019-06-06
Gaotu Techedu Inc., a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams. It also offers admission courses for admission tests and interviews, including national-post graduate entrance examination, civil service examinations, and others; foreign language courses; overseas study related services; and courses to prepare and pass certain language exams for study abroad, such as IELTS and TOEFL. In addition, the company designs and develops course outlines, interactive courseware, practice exercises, and lesson notes; publishes reference books comprising Chinese dictionary, dictionary of idioms, and past exam questions for the college entrance examination; and develops, expands, and upgrades education-centric digital products and solutions, as well as learning apps. Further, it offers books and digitalized auxiliary learning tools, such as smart devices and translation pens; and online tutoring services. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, China.
Contact Information
Gientech Building, 5th Floor 17 East Zone, 10 Xibeiwang East Road Haidian District, Beijing, 100193, China
86-10-8282-6826
ir.gaotu.cn
Market Cap
$862.25M
P/E (TTM)
-16.1
23.9
Dividend Yield
--
52W High
$4.56
52W Low
$1.87
52W Range
18%
Rank35Top 21.9%
5.0
F-Score
Modified Piotroski Analysis
Based on 8-year fundamentals
Average • 5 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2017-2024

Financial Dashboard

Q3 2025 Data

Revenue

$219.50M+30.00%
4-Quarter Trend

EPS

-$0.06-78.38%
4-Quarter Trend

FCF

$0.00+0.00%
4-Quarter Trend

2024 Annual Earnings Highlights

Key Highlights

Revenue Growth Post-Shift Net revenues reached 623.835M USD in 2024, showing 53.8% increase driven by strong market demand.
Gross Profit Increased 42.8% Gross profit reached 424.512M USD in 2024, though gross margin slightly decreased to 68.0%.
Operating Costs Increased Sharply Total operating expenses increased 84.5% to 586.422M USD in 2024 due to workforce expansion.
Significant Net Loss Recorded Reported net loss of 143.706M USD in 2024, compared to RMB 7.3M loss in 2023.

Risk Factors

PRC Regulatory Environment Risks Continued regulatory uncertainty regarding private education laws materially affects operations and financial condition.
VIE Structure Enforceability Risk Reliance on contractual arrangements for control creates uncertainty; PRC government could invalidate agreements.
Increased Operating Expense Burden Total operating expenses increased 84.5% to 586.422M USD in 2024, pressuring margins despite revenue growth.
ADS Delisting Potential Threat Failure to maintain NYSE listing compliance due to PCAOB inspection issues could severely impact ADS liquidity.

Outlook

Focus on New Business Verticals Strategy centers on expanding traditional learning, non-academic tutoring, and college student services offerings.
Continued AI Technology Investment Investing resources to upgrade technology infrastructure and proprietary AI models for operational efficiency gains.
Retain Funds for Future Growth Currently intend to retain most available funds and future earnings to support business expansion plans.
Shareholder Return via Appreciation Expect returns to rely entirely on future price appreciation as no cash dividends are planned presently.

Peer Comparison

Revenue (TTM)

Dole plcDOLE
$8.97B
+7.1%
Spectrum Brands Holdings, Inc.SPB
$2.81B
-5.2%
KinderCare Learning Companies, Inc.KLC
$2.69B
+2.2%

Gross Margin (Latest Quarter)

Gaotu Techedu Inc.GOTU
66.1%
+1.7pp
Udemy, Inc.UDMY
65.9%
+2.9pp
Afya LimitedAFYA
63.4%
+1.9pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
DOLE$1.45B60.21.8%31.0%
SPB$1.45B20.43.7%21.5%
AFYA$1.32B10.016.2%32.4%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
4.4%
Moderate Growth
4Q Net Income CAGR
N/M
Profitability Shift
Cash Flow Stability
0%
Cash Flow Needs Attention

Research & Insights

Next earnings:Feb 25, 2026
|
EPS:-$0.08
|
Revenue:$232.47M
Reports
All Years
  • Form 20-F - FY 2024

    Period End: Dec 31, 2024|Filed: Apr 22, 2025|
    Revenue: $641.82M+53.8%
    |
    EPS: $-0.38-14473.5%
    Miss
  • Form 20-F - FY 2023

    Period End: Dec 31, 2023|Filed: Apr 25, 2024|
    Revenue: $418.12M+18.5%
    |
    EPS: $-0.00-152.6%
    Beat
  • Form 20-F - FY 2022

    Period End: Dec 31, 2022|Filed: Apr 18, 2023|
    Revenue: $371.12M-61.9%
    |
    EPS: $0.01+100.4%
    Miss
  • Form 20-F - FY 2021

    Period End: Dec 31, 2021|Filed: Apr 26, 2022|
    Revenue: $1.02B-7.9%
    |
    EPS: $-1.89-108.4%
    Miss
  • Form 20-F - FY 2020

    Period End: Dec 31, 2020|Filed: Apr 26, 2021|
    Revenue: $1.03B+236.9%
    |
    EPS: $-0.85-637.4%
    Miss