Gaotu Techedu Announces Second Quarter 2026 Unaudited Financial Results

Gaotu Techedu Inc. (NYSE: GOTU ) ("Gaotu" or the "Company"), a leading technology-driven education company in China focused on enabling lifelong learning through AI-powered solutions, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights [1] Net revenues were RMB1,670.1 million, increased by 20.2% from RMB1,389.4 million in the same period of 2025. Gross billings [2] were RMB2,689.1 million, increased by 19.4% from RMB2,252.4 million in the same period of 2025. Loss from operations was RMB149.8 million, compared with loss from operations of RMB241.9 million in the same period of 2025. Net loss was RMB135.8 million, compared with net loss of RMB216.0 million in the same period of 2025. Non-GAAP net loss was RMB129.1 million, compared with non-GAAP net loss of RMB206.8 million in the same period of 2025. Net operating cash inflow was RMB861.2 million, increased by 46.3% from RMB588.8 million in the same period of 2025.

Second Quarter 2026 Key Financial and Operating Data (In thousands of RMB, except for percentages)

For the three months ended June 30, 2025 2026 Pct. Change Net revenues 1,389,388 1,670,074 20.2 % Gross billings 2,252,387 2,689,052 19.4 % Loss from operations (241,865) (149,798) (38.1) % Net loss (215,994) (135,846) (37.1) % Non-GAAP net loss (206,849) (129,056) (37.6) % Net operating cash inflow 588,797 861,156 46.3 %

[1] For a reconciliation of non-GAAP numbers, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" at the end of this press release. Non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses.

[2] Gross billings is a non-GAAP financial measure, which is defined as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. See "About Non-GAAP Financial Measures" and "Reconciliations of non-GAAP measures to the most comparable GAAP measures" elsewhere in this press release.

Six Months Ended June 30, 2026 Highlights Net revenues were RMB3,359.5 million, increased by 16.6% from RMB2,882.4 million in the same period of 2025. Gross billings [2] were RMB3,685.3 million, increased by 17.3% from RMB3,141.1 million in the same period of 2025. Loss from operations was RMB142.9 million, compared with loss from operations of RMB207.1 million in the same period of 2025. Net loss was RMB101.3 million, compared with net loss of RMB92.0 million in the same period of 2025. Non-GAAP net loss was RMB87.6 million, compared with non-GAAP net loss of RMB69.5 million in the same period of 2025. Net operating cash inflow was RMB32.8 million, compared with net operating cash inflow of RMB111.6 million in the same period of 2025.

First Six Months 2026 Key Financial and Operating Data (In thousands of RMB, except for percentages)

For the six months ended June 30, 2025 2026 Pct. Change Net revenues 2,882,431 3,359,549 16.6 % Gross billings 3,141,112 3,685,314 17.3 % Loss from operations (207,092) (142,925) (31.0) % Net loss (92,003) (101,335) 10.1 % Non-GAAP net loss (69,510) (87,640) 26.1 % Net operating cash inflow 111,560 32,798 (70.6) %

Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented , "Our sustained, user-focused investments in educational products, learning services, and organizational capabilities are steadily translating into healthier unit economics and a more efficient operating system. In the second quarter, net revenues increased by 20.2% year over year to nearly RMB1.7 billion, and non-GAAP loss from operations narrowed significantly by 38.5%. We are embedding AI more deeply across our teaching, services, and operational processes to gain actionable insights from users' learning patterns, interactions and feedback, continually enhancing our product experience, service efficiency, and organizational produc...