Revenue volatility remains high, with gross margins compressing significantly from 52.6% in 2023Q3 to 15.0% by 2025Q4, indicating a loss of pricing power.
Four Seasons Education (Cayman) Inc. (FEDU) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 |
|---|
| Sales/Revenue | 251.08M | 254.44M | 251.08M | 125.44M | 34.22M | 250.22M | 280.28M | 389.05M | 335.64M | 300.53M | 203.19M | 93.8M |
| Revenue Growth % | 100.15% | 1.34% | 100.15% | 266.63% | -86.33% | -10.72% | -27.96% | 15.91% | 11.68% | 47.91% | 116.62% | - |
| Cost of Goods Sold | 203.94M | 188.79M | 203.94M | 79.95M | 19.92M | 149.62M | 168.83M | 200.93M | 171.82M | 109.44M | 85.35M | 54.99M |
| COGS % of Revenue | - | 74.2% | 81.23% | 63.73% | 58.22% | 59.79% | 60.24% | 51.65% | 51.19% | 36.42% | 42% | 58.62% |
| Gross Profit | 47.13M | 65.65M | 47.13M | 45.49M | 14.29M | 100.61M | 111.45M | 188.12M | 163.82M | 191.09M | 117.84M | 38.81M |
| Gross Margin % | 18.77% | 25.8% | 18.77% | 36.27% | 41.78% | 40.21% | 39.76% | 48.35% | 48.81% | 63.58% | 58% | 41.38% |
| Gross Profit Growth % | - | 39.29% | 3.61% | 218.27% | -85.79% | -9.73% | -40.75% | 14.83% | -14.27% | 62.16% | 203.59% | - |
| Operating Expenses | 62.87M | 58.73M | 62.87M | 54.76M | 49.96M | 166.82M | 147.93M | 298.73M | 161.93M | 128.37M | 83.73M | 66.16M |
| OpEx % of Revenue | - | 23.08% | 25.04% | 43.66% | 146.01% | 66.67% | 52.78% | 76.78% | 48.24% | 42.71% | 41.21% | 70.53% |
| Selling, General & Admin | 62.87M | 58.92M | 62.87M | 51.09M | 49.96M | 107.34M | 147.93M | 172.97M | 160.09M | 129.5M | 54.63M | 32.55M |
| SG&A % of Revenue | - | 23.15% | 25.04% | 40.73% | 146.01% | 42.9% | 52.78% | 44.46% | 47.7% | 43.09% | 26.89% | 34.7% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -191K | -1.41M | 3.67M | -1.41M | 59.48M | 0 | 125.75M | 1.84M | -1.13M | 29.1M | 33.6M |
| Operating Income | -15.74M | 6.93M | -15.74M | -9.27M | -35.66M | -66.21M | -36.48M | 15.14M | 3.73M | 61.59M | 63.2M | 6.26M |
| Operating Margin % | -6.27% | 2.72% | -6.27% | -7.39% | -104.23% | -26.46% | -13.01% | 3.89% | 1.11% | 20.49% | 31.11% | 6.68% |
| Operating Income Growth % | - | 144.02% | -69.78% | 74.01% | 46.14% | -81.53% | -340.87% | 306.31% | -93.95% | -2.55% | 909.18% | - |
| EBITDA | -11.46M | 24.75M | -3.74M | -4.92M | -32.07M | -56.04M | -20.77M | 34.9M | 21.69M | 68.13M | 64.96M | 6.79M |
| EBITDA Margin % | -4.57% | 9.73% | -1.49% | -3.92% | -93.74% | -22.39% | -7.41% | 8.97% | 6.46% | 22.67% | 31.97% | 7.24% |
| EBITDA Growth % | -108.87% | 761.82% | 23.94% | 84.67% | 42.76% | -169.77% | -159.53% | 60.88% | -68.16% | 4.88% | 856.28% | - |
| D&A (Non-Cash Add-back) | 4.28M | 17.82M | 12M | 4.35M | 3.59M | 10.18M | 15.7M | 19.75M | 17.96M | 6.54M | 1.75M | 530K |
| EBIT | -15.74M | 6.93M | -14.33M | -4.87M | -34.25M | -4.44M | -36.48M | 24.71M | 5.84M | 64.02M | 63.2M | 6.56M |
| Net Interest Income | 16.2M | 6.01M | 16.2M | 7.24M | 2.28M | 3.23M | 3.4M | 5.23M | 6.76M | 5.55M | 3.04M | 1.09M |
| Interest Income | 16.2M | 6.01M | 16.2M | 7.24M | 2.28M | 3.23M | 3.4M | 5.23M | 6.76M | 5.55M | 3.04M | 1.09M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 15.83M | 22.8M | 15.83M | 13.15M | 3.17M | -30.68M | 13.35M | 0 | 7.51M | 6.68M | -26.06M | -32.51M |
| Pretax Income | 95K | 29.73M | 95K | 3.88M | -32.49M | -96.89M | -23.13M | -105.38M | 8.65M | 68.27M | 37.14M | -26.25M |
| Pretax Margin % | 0.04% | 11.68% | 0.04% | 3.09% | -94.97% | -38.72% | -8.25% | -27.09% | 2.58% | 22.72% | 18.28% | -27.98% |
| Income Tax | 6.18M | 635K | 722K | 1.1M | 993K | 21.84M | 4.76M | 4.19M | 10.12M | 26.42M | 19.8M | 4.84M |
| Effective Tax Rate % | 6505.26% | 2.14% | 760% | 28.41% | -3.06% | -22.54% | -20.58% | -3.98% | 117% | 38.71% | 53.32% | -18.44% |
| Net Income | 801K | 30.79M | 801K | 4.96M | -29.67M | -113.46M | -28.2M | -109.49M | -601K | 36.6M | 13.61M | -30.98M |
| Net Margin % | 0.32% | 12.1% | 0.32% | 3.95% | -86.7% | -45.34% | -10.06% | -28.14% | -0.18% | 12.18% | 6.7% | -33.02% |
| Net Income Growth % | -83.85% | 3743.57% | -83.85% | 116.72% | 73.85% | -302.4% | 74.25% | -18118.47% | -101.64% | 169% | 143.93% | - |
| Net Income (Continuing) | -6.08M | 29.09M | -627K | 2.77M | -33.49M | -118.73M | -27.89M | -109.57M | -1.47M | 41.84M | 17.34M | -31.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 50.54M | 41.15M | 50.54M | 51.14M | 54.16M | 56.55M | 57.7M | 44.2M | 44.24M | 6.41M | 5.78M | 488K |
| EPS (Diluted) | 3.57 | 137.30 | 3.80 | 21.00 | -140.00 | -504.50 | -122.00 | -463.00 | -2.50 | 198.00 | 94.00 | -219.90 |
| EPS Growth % | -82.04% | 3513.16% | -81.9% | 115% | 72.25% | -313.52% | 73.65% | -18420% | -101.26% | 110.64% | 142.75% | - |
| EPS (Basic) | - | 137.30 | 3.80 | 21.00 | -139.70 | -504.50 | -121.90 | -462.60 | -2.50 | 214.60 | 97.20 | -220.50 |
| Diluted Shares Outstanding | 224.25K | 224.25K | 212.35K | 236.15K | 224.91K | 224.91K | 231.31K | 236.69K | 240.53K | 256.67K | 238.22K | 140.87K |
| Basic Shares Outstanding | 224.25K | 224.25K | 211.89K | 236.24K | 224.91K | 224.91K | 231.31K | 236.69K | 240.53K | 184.87K | 192.22K | 140.5K |
| Dividend Payout Ratio | - | - | 4355.43% | - | - | - | - | - | - | 333.54% | - | - |
Quick answers to the most common questions about buying FEDU stock.
For fiscal year 2026, Four Seasons Education (Cayman) Inc. (FEDU) reported total revenue of $254.4M. This represents a 171.3% increase compared to $93.8M in 2016.
Four Seasons Education (Cayman) Inc. (FEDU) is profitable, generating $30.8M in net income for the fiscal year ending 2026 with a net profit margin of 12.1%.
Four Seasons Education (Cayman) Inc. (FEDU) reported an operating income of $6.9M, resulting in an operating profit margin of 2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Four Seasons Education (Cayman) Inc. (FEDU) generated $65.7M in gross profit for the year, representing a gross profit margin of 25.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory and operational pivot
Revenue Volatility Masks Structural Transition
According to recent financial filings, FEDU reported revenue of $58.2 million in 2025Q4, reflecting a significant year-over-year expansion, yet this growth appears highly inconsistent across historical periods, suggesting that the company is struggling to establish a stable, recurring revenue base following its pivot away from legacy tutoring.
The sharp fluctuations in top-line figures indicate that the company's new enrichment and consulting segments have not yet achieved predictable scale. Investors should monitor whether these revenue spikes are sustainable or merely reflective of one-time service recognition, as the lack of consistent organic growth remains a primary concern.
Gross Margin Compression Signals Weakness
As reported in financial statements, FEDU's gross margin has contracted significantly from 52.6% in 2023Q3 to 15.0% by 2025Q4, indicating that the company's current service offerings possess substantially less pricing power than its historical math-centric curriculum, which previously commanded much higher margins in the Shanghai market.
This margin erosion suggests that the cost of delivering services is rising relative to the prices the company can charge in a more competitive, non-academic environment. The inability to maintain historical gross profitability implies that the company's competitive moat has been severely compromised by recent regulatory and market shifts.
Operating Leverage Remains Elusive
Based on the reported figures, FEDU's operating income has remained consistently negative or near-zero, with SG&A expenses frequently exceeding gross profit, which suggests that the company has failed to achieve the necessary operating leverage to cover its fixed cost base in the current regulatory environment.
The persistent inability to scale operating income despite revenue fluctuations highlights a rigid cost structure that is poorly aligned with current demand levels. Without a significant reduction in overhead or a major increase in enrollment density, the company appears unlikely to achieve sustainable operating profitability in the near term.
Net Income Decoupled From Operations
Analysis of the income statement reveals that FEDU's net income is frequently supported by non-operating items rather than core teaching activities, as evidenced by the stark divergence between operating losses and net income results observed in periods like 2025Q2, where net income reached $1.0 million.
This discrepancy suggests that the company's bottom line is heavily reliant on interest income from its cash reserves rather than the underlying education business. Investors should be cautious, as this reliance on non-operating income masks the ongoing deterioration of the core business model and its inability to generate self-sustaining profits.
Cash-Box Valuation Risks Misinterpretation
While some market participants view FEDU as a cash-rich investment vehicle, the persistent operating losses and declining gross margins suggest that the company's cash pile may be slowly depleted by ongoing operational inefficiencies, potentially undermining the 'cash-box' valuation floor that many investors currently rely upon.
The argument that the company is a safe harbor due to its cash reserves ignores the reality that the core business is currently a value-destroying entity. If management cannot pivot to a profitable model, the cash reserves may eventually be eroded by the need to fund ongoing operating deficits and potential restructuring costs.