Gaotu posts Q2 revenue of RMB 1.67B, up 20.2%, as AI and offline push compound

On August 27, 2026, Gaotu (NYSE: GOTU) released its unaudited financial results for the second quarter of fiscal 2026. For the quarter ended June 30, the company posted revenue of RMB 1.67 billion, up 20.2% year on year. Adjusted operating profit was RMB 143 million, an improvement of 38.5%; adjusted net profit was RMB 129 million, up 37.6%; and net operating cash inflow reached RMB 861 million, up 46.3%. Operating expenses as a share of revenue fell 7.9 percentage points, signaling continued operating leverage.

The results show capabilities Gaotu has built over recent years — in curriculum and teaching research, faculty and service delivery, user operations and organizational coordination — extending from internal efficiency gains into more businesses and scenarios. Under its "Scale with AI" strategy, the company uses AI to scale proven operational capabilities from single-point use to end-to-end workflows, lifting the supply of high-quality products and services. It is also extending online experience into offline scenarios.

"Our investments in teaching products, learning services and organizational capability are gradually converting into a healthier unit economy and a more efficient operating system," said founder, chairman and CEO Chen Xiangdong. "Revenue grew 20.2% to RMB 1.67 billion this quarter, with adjusted operating profit narrowing 38.5%. AI is deeply woven into teaching, service and operations, turning learning behavior and interaction feedback into user insight." As of August 26, 2026, cumulative share repurchases had exceeded RMB 740 million.

COO Luo Bin noted that deeper use of AI and digital tools improved the full customer-acquisition chain and back-office operations, lowering the operating-expense ratio by 7.9 points, while net operating cash inflow rose 46.3% to RMB 860 million. Excluding buybacks, cash, restricted funds and short- and long-term investments together increased by more than RMB 350 million year on year as of June 30.

Offline momentum is building: Gaotu's two "Dream Centers" in Zhengzhou and Wuhan are operating at full capacity, showing strong replicability. The company expects Q3 revenue between RMB 1.838 billion and RMB 1.858 billion, up 16.4%–17.7% year on year.