Gaotu Techedu (NYSE:GOTU) Issues Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Posted by Brian Himes on Aug 28th, 2026

Gaotu Techedu (NYSE:GOTU – Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.08), Zacks reports. Gaotu Techedu had a negative net margin of 6.42% and a negative return on equity of 29.69%. The company had revenue of $245.82 million for the quarter, compared to analysts’ expectations of $238.45 million.

Here are the key takeaways from Gaotu Techedu’s conference call:

Positive Sentiment: Net revenue rose 20.2% year over year to nearly RMB 1.7 billion, while gross billings increased 19.4% to approximately RMB 2.7 billion. Adjusted operating and net losses narrowed by 38.5% and 37.6%, respectively, reflecting improved operating leverage.
Positive Sentiment: Online non-academic tutoring revenue grew more than 30%, and spring enrollment retention increased by over 5 percentage points year over year. New-enrollment gross billings in online one-on-one tutoring rose more than 55%, suggesting stronger demand and service capacity.
Positive Sentiment: AI adoption is improving efficiency across curriculum development, tutoring, grading, user insights, and operations; management cited five- to eightfold productivity gains in some content-development scenarios. Net operating cash inflow increased 46.3% to RMB 861.2 million, with nearly RMB 4.0 billion in cash and investments at quarter-end.
Neutral Sentiment: Offline operations continued to deliver high double-digit first-half revenue growth, and Dream Centers in Zhengzhou and Wuhan reached full capacity. However, management emphasized selective, profitability-led expansion rather than rapid footprint growth, with underperforming sites potentially optimized or closed.
Negative Sentiment: Gaotu remains loss-making, reporting a RMB 149.8 million operating loss and an RMB 135.8 million net loss for the quarter. Third-quarter revenue guidance of RMB 1.838 billion to RMB 1.858 billion implies slower year-over-year growth of 16.4% to 17.7%.

Gaotu Techedu Price Performance

Shares of GOTU opened at $1.81 on Friday. The stock has a market cap of $435.33 million, a PE ratio of -7.56 and a beta of 0.70. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.89 and a current ratio of 0.91. Gaotu Techedu has a fifty-two week low of $1.40 and a fifty-two week high of $4.12. The firm’s 50-day simple moving average is $1.74 and its two-hundred day simple moving average is $1.86.

Analysts Set New Price Targets

Separately, Weiss Ratings cut shares of Gaotu Techedu from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock currently has an average rating of “Sell”.

View Our Latest Stock Analysis on Gaotu Techedu

Insider Activity

In other Gaotu Techedu news, CEO Xiangdong Chen bought 200,000 shares of the stock in a transaction dated Thursday, June 11th. The stock was purchased at an average cost of $2.23 per share, for a total transaction of $446,000.00. Following the completion of the acquisition, the chief executive officer owned 7,714,529 shares of the company’s stock, valued at approximately $17,203,399.67. This trade represents a 2.66% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders have purchased 500,000 shares of company stock worth $1,175,032 in the last ninety days. 44.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Walleye Trading LLC raised its stake in Gaotu Techedu by 110.1% during the second quarter. Walleye Trading LLC now owns 21,722 shares of the company’s stock valued at $78,000 after buying an additional 11,383 shares during the last quarter. HRT Financial LP increased its holdings in shares of Gaotu Techedu by 86.6% during the fourth quarter. HRT Financial LP now owns 22,020 shares of the company’s stock valued at $51,000 after acquiring an additional 10,221 shares in the last quarter. Quadrature Capital Ltd bought a new position in shares of Gaotu Techedu during the fourth quarter valued at $92,000. Centiva Capital LP purchased a new position in shares of Gaotu Techedu in the 3rd quarter worth about $133,000. Finally, Federation des caisses Desjardins du Quebec purchased a new position in shares of Gaotu Techedu in the 4th quarter worth about $104,000. Institutional investors own 48.42% of the company’s stock.

About Gaotu Techedu

(Get Free Report)

Gaotu Techedu Inc (NYSE:GOTU), formerly known as GSX Techedu, is a Beijing-based provider of online education services in China. Since its founding in 2014, the company has built a technology-driven platform that delivers live, interactive tutoring sessions to students primarily in the K-12 segment. Gaotu Techedu’s rebranding in 2021 underscored its commitment to leveraging cutting-edge digital tools to expand access to quality instruction across core academic subjects.

The company’s main offerings include small-group and one-on-one classes in mathematics, Chinese, English, physics and chemistry, as well as targeted test preparation for high-stakes national and local examinations.