Revenue growth remains positive at 21.4% in 2025Q4, though high SG&A expenses exceeding $1 billion continue to suppress operating margins to -7.0%.
| Sales/Revenue | 6.15B | 4.55B | 2.96B | 2.5B | 6.56B | 7.12B | 2.11B | 397.31M | 97.58M |
| Revenue Growth % | 34.99% | 53.79% | 18.52% | -61.93% | -7.9% | 236.89% | 432.3% | 307.16% | - |
| Cost of Goods Sold | 2B | 1.45B | 790.21M | 701.05M | 2.4B | 1.76B | 535.91M | 142.75M | 25.02M |
| COGS % of Revenue | 32.56% | 31.95% | 26.69% | 28.06% | 36.54% | 24.74% | 25.34% | 35.93% | 25.64% |
| Gross Profit | 4.15B | 3.1B | 2.17B | 1.8B | 4.16B | 5.36B | 1.58B | 254.55M | 72.56M |
| Gross Margin % | 67.44% | 68.05% | 73.31% | 71.94% | 63.46% | 75.26% | 74.66% | 64.07% | 74.36% |
| Gross Profit Growth % | 33.77% | 42.75% | 20.78% | -56.84% | -22.34% | 239.61% | 520.28% | 250.83% | - |
| Operating Expenses | 4.65B | 4.28B | 2.32B | 1.92B | 7.34B | 7.12B | 1.36B | 235.4M | 164.98M |
| OpEx % of Revenue | 75.62% | 94% | 78.34% | 76.66% | 111.93% | 99.89% | 64.46% | 59.25% | 169.08% |
| Selling, General & Admin | 4.02B | 3.63B | 1.86B | 1.47B | 5.85B | 6.38B | 1.15B | 161.35M | 112.53M |
| SG&A % of Revenue | 65.42% | 79.77% | 62.74% | 58.85% | 89.15% | 89.59% | 54.43% | 40.61% | 115.32% |
| Research & Development | 626.95M | 648.06M | 462.04M | 445.12M | 1.25B | 734.45M | 212.2M | 74.05M | 52.45M |
| R&D % of Revenue | 10.2% | 14.23% | 15.61% | 17.82% | 19.09% | 10.31% | 10.03% | 18.64% | 53.75% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 242.09M | 0 | 0 | 0 | 0 |
| Operating Income | -503.17M | -1.18B | -149.01M | -118.05M | -3.18B | -1.76B | 215.73M | 19.15M | -92.43M |
| Operating Margin % | -8.19% | -25.95% | -5.03% | -4.73% | -48.47% | -24.63% | 10.2% | 4.82% | -94.72% |
| Operating Income Growth % | 57.42% | -693.14% | -26.22% | 96.29% | -81.21% | -913.52% | 1026.31% | 120.72% | - |
| EBITDA | -390.32M | -1.12B | -94.76M | -47.3M | -3.07B | -1.7B | 227.79M | 23.37M | -87.5M |
| EBITDA Margin % | -6.35% | -24.53% | -3.2% | -1.89% | -46.75% | -23.83% | 10.77% | 5.88% | -89.67% |
| EBITDA Growth % | 65.05% | -1078.57% | -100.37% | 98.46% | -80.69% | -845.34% | 874.71% | 126.71% | - |
| D&A (Non-Cash Add-back) | 112.85M | 64.97M | 54.24M | 70.76M | 112.56M | 57.21M | 12.06M | 4.22M | 4.93M |
| EBIT | -327.42M | -1.04B | 3.36M | -2.53M | -2.94B | -1.76B | 215.73M | 19.15M | -92.43M |
| Net Interest Income | 38.83M | 70.38M | 75.83M | 21.37M | 31.46M | 3.37M | 8.86M | 2.19M | 189K |
| Interest Income | 38.83M | 70.38M | 75.83M | 21.37M | 31.46M | 3.37M | 8.86M | 2.19M | 189K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 175.75M | 141.51M | 152.37M | 115.52M | 117.83M | 327.48M | 27.85M | 3.11M | 852K |
| Pretax Income | -327.42M | -1.04B | 3.36M | -2.53M | -3.06B | -1.43B | 243.59M | 22.27M | -91.58M |
| Pretax Margin % | -5.33% | -22.85% | 0.11% | -0.1% | -46.67% | -20.04% | 11.52% | 5.6% | -93.85% |
| Income Tax | -4.11M | 8.63M | 10.66M | -15.71M | 40.95M | -34.62M | 16.96M | 2.62M | -4.62M |
| Effective Tax Rate % | 1.26% | -0.83% | 317.27% | 620.02% | -1.34% | 2.43% | 6.96% | 11.75% | 5.05% |
| Net Income | -323.31M | -1.05B | -7.3M | 13.17M | -3.1B | -1.39B | 226.63M | 19.65M | -86.95M |
| Net Margin % | -5.26% | -23.04% | -0.25% | 0.53% | -47.3% | -19.55% | 10.72% | 4.95% | -89.11% |
| Net Income Growth % | 69.18% | -14273.17% | -155.41% | 100.42% | -122.8% | -714.63% | 1053.33% | 122.6% | - |
| Net Income (Continuing) | -323.31M | -1.05B | -7.3M | 13.17M | -3.1B | -1.39B | 226.63M | 19.65M | -86.95M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.84 | -2.76 | -0.02 | 0.03 | -7.97 | -3.67 | 0.60 | -0.06 | -0.34 |
| EPS Growth % | 69.57% | -14503.17% | -155.92% | 100.42% | -117.17% | -711.67% | 1173.35% | 83.56% | - |
| EPS (Basic) | -0.84 | -2.76 | -0.02 | 0.03 | -7.97 | -3.67 | 0.63 | -0.06 | -0.34 |
| Diluted Shares Outstanding | 367.02M | 385.68M | 386.83M | 395.98M | 384.28M | 359.38M | 313.82M | 356.92M | 356.92M |
| Basic Shares Outstanding | 367.02M | 385.68M | 386.83M | 387.57M | 384.28M | 359.38M | 297.9M | 356.92M | 356.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Regulatory and Traffic Costs
According to recent financial disclosures, GOTU achieved a 21.4% year-over-year revenue increase in 2025Q4, signaling that the company's transition toward non-academic and vocational education is gaining traction, though the pace of top-line expansion has moderated from the aggressive 82.5% growth observed in late 2024.
The sustained revenue growth suggests that the company has successfully identified new demand pockets following the regulatory overhaul of the Chinese education sector. However, investors should monitor whether this growth is driven by sustainable organic student acquisition or if it remains overly reliant on high-frequency marketing spend.
As reported in quarterly filings, GOTU maintains a robust gross margin of 67.9% as of 2025Q4, which reflects the inherent scalability of its digital-first delivery model compared to the more capital-intensive physical learning center footprints utilized by traditional industry peers like TAL Education Group.
This high gross margin profile indicates that the direct costs of content delivery remain well-contained, providing a solid foundation for potential profitability. Nevertheless, the stability of these margins warrants further investigation, as any increase in content production costs or platform maintenance could erode this structural advantage.
Based on the provided income statement data, GOTU's operating margin remains negative at -7.0% in 2025Q4, illustrating that despite significant gross profit generation, the company continues to struggle with high customer acquisition costs that prevent the scaling of operating income relative to top-line revenue growth.
The persistent gap between gross profit and operating income suggests that the company's business model is currently optimized for market share capture rather than immediate bottom-line efficiency. Investors should monitor whether management can achieve operating leverage by reducing marketing intensity as their brand presence in new verticals matures.
Analysis of the company's expense profile reveals that SG&A remains the primary cost driver, consistently exceeding $1 billion in recent quarters, which underscores the heavy reliance on aggressive digital marketing to maintain student enrollment in a highly competitive and fragmented Chinese online education landscape.
The high level of SG&A relative to revenue suggests that the company's profitability is highly sensitive to fluctuations in digital advertising rates. Management's ability to optimize these expenditures will be critical, as current spending levels appear to be the primary barrier to achieving consistent positive net income.
While revenue growth remains positive, the company's history of volatile net income, including a -39.0% net margin in 2024Q3, suggests that the current business model may be vulnerable to sudden shifts in regulatory sentiment or increased competition for digital traffic within the Chinese market.
Short-term profitability improvements may be masking underlying structural challenges, particularly regarding the long-term retention of students in non-academic segments. Investors should remain cautious, as the reliance on high-cost customer acquisition may prove unsustainable if the lifetime value of students does not significantly exceed current marketing expenditures.
Quick answers to the most common questions about buying GOTU stock.
For fiscal year 2025, Gaotu Techedu Inc. (GOTU) reported total revenue of $6.15B. This represents a 6199.2% increase compared to $97.6M in 2017.
Gaotu Techedu Inc. (GOTU) reported a net loss of $323.3M for the fiscal year ending 2025.
Gaotu Techedu Inc. (GOTU) reported an operating income of $-503.2M, resulting in an operating profit margin of -8.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Gaotu Techedu Inc. (GOTU) generated $4.15B in gross profit for the year, representing a gross profit margin of 67.4%. This demonstrates the company's core pricing power and production efficiency.