Youdao, Inc. Financials
Youdao, Inc. (DAO) reported $845.0M in revenue for fiscal year 2025, up 9.6% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Profitability now comes from a leaner cost structure, while the balance sheet still reflects years of cash dependence.
From FY2023 to FY2025, gross margin compressed materially while operating margin moved from-8.7% to3.8% , meaning the earnings turnaround came from cost resets below gross profit rather than stronger unit economics. That is reinforced by R&D staying lower than earlier years while operating profit kept improving, so management is extracting profit from a leaner expense base even as each sales dollar carries less gross profit.
FY2025's cash conversion looks more believable than FY2024's because positive earnings finally arrived with
The balance sheet remains the main constraint: the current ratio stayed below 1x, which means short-term obligations still outweigh near-term assets. Liabilities of
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Youdao, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Youdao, Inc. has an operating margin of 3.8%, meaning the company retains $4 of operating profit per $100 of revenue. This results in a moderate score of 37/100, indicating healthy but not exceptional operating efficiency. This is up from 2.6% the prior year.
Youdao, Inc.'s revenue grew 9.6% year-over-year to $845.0M, a solid pace of expansion. This earns a growth score of 52/100.
Not available for Youdao, Inc., and counted as zero in the overall score.
Youdao, Inc.'s current ratio of 0.59 is below the typical benchmark, resulting in a score of 6/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Youdao, Inc.'s free cash flow margin of 0.5% results in a low score of 25/100. Capital expenditures of $3.7M absorb a large share of operating cash flow.
Not available for Youdao, Inc., and counted as zero in the overall score.
Youdao, Inc. passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Youdao, Inc. generates $0.57 in operating cash flow ($7.9M OCF vs $13.9M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Youdao, Inc. earns $3.51 in operating income for every $1 of interest expense ($31.6M vs $9.0M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Youdao, Inc. generated $845.0M in revenue in fiscal year 2025. This represents an increase of 9.6% from the prior year.
Youdao, Inc.'s EBITDA was $35.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 43.7% from the prior year.
Youdao, Inc. reported $13.9M in net income in fiscal year 2025. This represents an increase of 34.6% from the prior year.
Youdao, Inc. earned $0.13 per diluted share (EPS) in fiscal year 2025. This represents an increase of 30.0% from the prior year.
Cash & Balance Sheet
Youdao, Inc. generated $4.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 138.7% from the prior year.
Youdao, Inc. held $62.9M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Youdao, Inc.'s gross margin was 44.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 4.6 percentage points from the prior year.
Youdao, Inc.'s operating margin was 3.8% in fiscal year 2025, reflecting core business profitability. This is up 1.1 percentage points from the prior year.
Youdao, Inc.'s net profit margin was 1.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.3 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
Youdao, Inc. invested $73.5M in research and development in fiscal year 2025. This represents a decrease of 0.6% from the prior year.
Youdao, Inc. invested $3.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 126.6% from the prior year.
Not reported for fiscal year 2025.
DAO Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Revenue | $845.0M+9.6% | $770.7M+1.5% | $759.1M+4.4% | $726.8M+15.3% | $630.2M+29.8% | $485.4M+159.0% | $187.4M |
| Cost of Revenue | $470.8M+19.4% | $394.2M+6.8% | $369.3M+5.0% | $351.8M+10.6% | $318.1M+21.1% | $262.6M+95.7% | $134.2M |
| Gross Profit | $374.2M-0.6% | $376.5M-3.4% | $389.8M+3.9% | $375.0M+20.2% | $312.1M+40.0% | $222.9M+318.7% | $53.2M |
| R&D Expenses | $73.5M-0.6% | $74.0M-29.3% | $104.7M-10.2% | $116.5M+22.3% | $95.3M+46.5% | $65.1M+64.5% | $39.6M |
| SG&A Expenses | $28.2M+9.9% | $25.6M-18.0% | $31.3M-5.9% | $33.2M+11.3% | $29.9M+40.7% | $21.2M+101.6% | $10.5M |
| Operating Income | $31.6M+55.2% | $20.4M+131.0% | -$65.7M+41.5% | -$112.3M+24.1% | -$148.0M+46.5% | -$276.7M-220.6% | -$86.3M |
| Interest Expense | $9.0M-10.1% | $10.0M+2.3% | $9.8M+48.0% | $6.6M+33.1% | $5.0M+3.8% | $4.8M | N/A |
| Income Tax | $2.4M+188.2% | $823K-47.3% | $1.6M-22.2% | $2.0M+92.4% | $1.0M+132.3% | $449K+28.7% | $349K |
| Net Income | $13.9M+34.6% | $10.3M+113.3% | -$77.5M+28.4% | -$108.1M+30.8% | -$156.2M+41.8% | -$268.6M-210.9% | -$86.4M |
| EPS (Diluted) | $0.13+30.0% | $0.10+115.6% | -$0.64+24.7% | -$0.85+33.6% | -$1.28+46.2% | -$2.38-147.9% | -$0.96 |
DAO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Total Assets | $282.4M+13.6% | $248.6M+5.9% | $234.7M-28.9% | $330.0M-20.2% | $413.3M+30.3% | $317.3M+5.9% | $299.7M |
| Current Assets | $246.3M+20.9% | $203.7M+11.2% | $183.1M-32.5% | $271.1M-23.9% | $356.2M+25.5% | $283.8M-2.7% | $291.6M |
| Cash & Equivalents | $62.9M-22.6% | $81.2M+26.8% | $64.0M-43.7% | $113.6M+124.3% | $50.7M-45.7% | $93.4M+275.0% | $24.9M |
| Inventory | $20.1M-15.9% | $23.9M-21.7% | $30.6M-9.2% | $33.7M-16.0% | $40.1M+75.9% | $22.8M+116.6% | $10.5M |
| Accounts Receivable | $54.5M-4.9% | $57.4M+15.0% | $49.9M-15.1% | $58.7M+50.7% | $39.0M-5.4% | $41.2M+42.9% | $28.8M |
| Goodwill | $15.7M+4.4% | $15.1M-2.7% | $15.5M-2.9% | $15.9M-7.6% | $17.3M | N/A | N/A |
| Total Liabilities | $559.0M+4.5% | $534.8M0.0% | $534.6M-1.8% | $544.2M+3.1% | $528.0M-0.9% | $532.9M+107.8% | $256.5M |
| Current Liabilities | $419.7M+4.0% | $403.7M-7.5% | $436.5M-5.3% | $460.9M-3.2% | $476.1M-8.5% | $520.1M+105.9% | $252.6M |
| Total Equity | -$276.6M+3.4% | -$286.2M+6.2% | -$305.2M-36.5% | -$223.5M-76.1% | -$126.9M+41.1% | -$215.6M-598.7% | $43.2M |
Not reported in any period shown, so not listed: Long-Term Debt, Retained Earnings.
DAO Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $7.9M+184.8% | -$9.3M+84.9% | -$61.7M+29.4% | -$87.4M+58.6% | -$211.3M-328.7% | -$49.3M+7.8% | -$53.5M |
| Capital Expenditures | $3.7M+126.6% | $1.6M-35.8% | $2.5M-74.7% | $10.0M-0.1% | $10.0M+76.4% | $5.6M+116.6% | $2.6M |
| Free Cash Flow | $4.2M+138.7% | -$10.9M+83.0% | -$64.2M+34.1% | -$97.4M+56.0% | -$221.2M-302.8% | -$54.9M+2.1% | -$56.1M |
| Investing Cash Flow | -$36.2M-1846.8% | -$1.9M-110.5% | $17.7M-3.1% | $18.2M+147.0% | $7.4M-93.7% | $116.6M+174.9% | -$155.7M |
| Financing Cash Flow | $6.5M-79.2% | $31.3M+1273.4% | -$2.7M-110.0% | $26.8M-90.4% | $279.9M+6777.2% | $4.1M-98.2% | $228.1M |
| Share Buybacks | N/A | $8.5M-52.5% | $18.0M+144.4% | $7.4M | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
DAO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 44.3%-4.6pp | 48.9%-2.5pp | 51.3%-0.2pp | 51.6%+2.1pp | 49.5%+3.6pp | 45.9%+17.5pp | 28.4% |
| Operating Margin | 3.8%+1.1pp | 2.6%+11.3pp | -8.6%+6.8pp | -15.4%+8.0pp | -23.5%+33.5pp | -57.0%-11.0pp | -46.1% |
| Net Margin | 1.6%+0.3pp | 1.3%+11.5pp | -10.2%+4.7pp | -14.9%+9.9pp | -24.8%+30.6pp | -55.3%-9.2pp | -46.1% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | -199.8% |
| Return on Assets | 4.9%+0.8pp | 4.2%+37.2pp | -33.0%-0.3pp | -32.8%+5.0pp | -37.8%+46.9pp | -84.7%-55.8pp | -28.8% |
| Current Ratio | 0.59+0.1x | 0.50+0.1x | 0.42-0.2x | 0.59-0.2x | 0.75+0.2x | 0.55-0.6x | 1.15 |
| Debt-to-Equity | N/A | N/A | N/A | N/A | N/A | N/A | 5.93 |
| FCF Margin | 0.5%+1.9pp | -1.4%+7.0pp | -8.5%+4.9pp | -13.4%+21.7pp | -35.1%-23.8pp | -11.3%+18.6pp | -29.9% |
Note: Shareholder equity is negative (-$276.6M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.59), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Youdao, Inc. Ranks
Frequently Asked Questions
What is Youdao, Inc.'s annual revenue?
Youdao, Inc. (DAO) reported $845.0M in total revenue for fiscal year 2025. This represents a 9.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Youdao, Inc.'s revenue growing?
Youdao, Inc. (DAO) revenue grew by 9.6% year-over-year, from $770.7M to $845.0M in fiscal year 2025.
Is Youdao, Inc. profitable?
Yes, Youdao, Inc. (DAO) reported a net income of $13.9M in fiscal year 2025, with a net profit margin of 1.6%.
What is Youdao, Inc.'s EBITDA?
Youdao, Inc. (DAO) had EBITDA of $35.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Youdao, Inc.'s gross margin?
Youdao, Inc. (DAO) had a gross margin of 44.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Youdao, Inc.'s operating margin?
Youdao, Inc. (DAO) had an operating margin of 3.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Youdao, Inc.'s net profit margin?
Youdao, Inc. (DAO) had a net profit margin of 1.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Youdao, Inc.'s free cash flow?
Youdao, Inc. (DAO) generated $4.2M in free cash flow during fiscal year 2025. This represents a 138.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Youdao, Inc.'s operating cash flow?
Youdao, Inc. (DAO) generated $7.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Youdao, Inc.'s total assets?
Youdao, Inc. (DAO) had $282.4M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Youdao, Inc.'s capital expenditures?
Youdao, Inc. (DAO) invested $3.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Youdao, Inc. spend on research and development?
Youdao, Inc. (DAO) invested $73.5M in research and development during fiscal year 2025.
What is Youdao, Inc.'s current ratio?
Youdao, Inc. (DAO) had a current ratio of 0.59 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Youdao, Inc.'s return on assets (ROA)?
Youdao, Inc. (DAO) had a return on assets of 4.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Youdao, Inc.'s debt-to-equity ratio negative or not reported?
Youdao, Inc. (DAO) has negative shareholder equity of -$276.6M as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Youdao, Inc.'s Piotroski F-Score?
Youdao, Inc. (DAO) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Youdao, Inc.'s earnings high quality?
Youdao, Inc. (DAO) has an earnings quality ratio of 0.57x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Youdao, Inc. cover its interest payments?
Youdao, Inc. (DAO) has an interest coverage ratio of 3.51x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Youdao, Inc.?
Youdao, Inc. (DAO) scores 20 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.