Youdao, Inc. (DAO) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 2, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 20-F for FY2025, filed Apr 15, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the DAO SEC filings page.
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).
Youdao's recent profitability comes from tighter operating spending, but its balance sheet remains burdened by liabilities exceeding assets.
Despite gross-margin compression to44.3% in FY2025, operating margin reached3.8% , showing that improved results did not come from richer unit economics. The improvement coincided with lower research and development and selling, general and administrative spending than in earlier years, making cost allocation the clearest visible mechanism.
Operating cash conversion shifted from an outflow of
Liquidity and solvency remain separate issues: FY2025 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 34/100, 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 21/100. 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
None of these metrics is reported for Q4 2025.
Cash & Balance Sheet
Youdao, Inc. held $62.9M in cash as of Q4 2025; long-term debt is not reported for that period.
Not reported for Q4 2025.
Not reported for Q4 2025.
Margins & Returns
None of these metrics is reported for Q4 2025.
Capital Allocation
None of these metrics is reported for Q4 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. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
Not reported in any period shown, so not listed: Revenue, Cost of Revenue, Gross Profit, R&D Expenses, SG&A Expenses, Operating Income, EBITDA, Interest Expense, Income Tax, Net Income, Diluted Shares (Avg).
DAO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q4'2520-F | Q4'2410-K | Q4'2310-K | Q4'2210-K | Q4'2110-K | Q4'2010-K | Q3'2010-Q | Q4'1910-K |
|---|---|---|---|---|---|---|---|---|
| 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% | $282.1M | $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% | $260.0M | $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% | $11.5M | $24.9M |
| Short-Term Investments | $42.7M+393.7% | $8.6M-14.6% | $10.1M-69.9% | $33.7M-57.4% | $79.1M-11.8% | $89.7M+415.3% | $35.0M | $17.4M |
| 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% | $13.5M | $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% | $49.2M | $28.8M |
| Long-Term Investments | $2.8M-71.4% | $9.9M+37.0% | $7.2M-45.0% | $13.2M+157.7% | $5.1M-21.6% | $6.5M | $0 | $0 |
| Goodwill | $15.7M+4.4% | $15.1M-2.7% | $15.5M-2.9% | $15.9M-7.6% | $17.3M | N/A | 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% | $425.1M | $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% | $414.9M | $252.6M |
| Non-Current Liabilities | $139.3M+6.3% | $131.1M+33.7% | $98.0M+17.6% | $83.3M+60.7% | $51.9M+303.9% | $12.8M+234.6% | $10.3M | $3.8M |
| 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% | -$143.1M | $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. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q4'2520-F | Q4'2410-K | Q4'2310-K | Q4'2210-K | Q4'2110-K | Q4'2010-K | Q3'2010-Q | Q4'1910-K |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | N/A | N/A | N/A | N/A | N/A | $17.1M | N/A | N/A |
| Depreciation & Amortization | N/A | N/A | N/A | N/A | N/A | $801K | N/A | N/A |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | $2.6M | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | $14.5M | N/A | N/A |
| Investing Cash Flow | N/A | N/A | N/A | N/A | N/A | $66.4M | N/A | N/A |
| Financing Cash Flow | N/A | N/A | N/A | N/A | N/A | $1.3M | N/A | N/A |
Not reported in any period shown, so not listed: Stock-Based Compensation, Dividends Paid, Share Buybacks.
DAO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
Not reported in any period shown, so not listed: Gross Margin, Operating Margin, Net Margin, Return on Equity, Return on Assets, Asset Turnover, FCF Margin.
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.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Youdao, Inc. DAO | FY2025 | $845.0M | $13.9M | 1.6% | $1.8B | 19/100 |
| Udemy, Inc. UDMY | FY2025 | $789.8M | $3.8M | 0.5% | $677.3M | 37/100 |
| Gaotu Techedu Inc. GOTU | FY2025 | $879.0M | -$46.2M | -5.3% | $599.4M | 47/100 |
| KinderCare Learning Companies, Inc. KLC | FY2025 | $2.7B | -$112.9M | -4.1% | $220.4M | 30/100 |
| American Public Education, Inc. APEI | FY2025 | $648.9M | $31.6M | 4.9% | $800.3M | 57/100 |
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.
What is Youdao, Inc.'s P/E ratio?
Youdao, Inc. (DAO) trades at 132x earnings, its market capitalization divided by net income of $13.9M net income, FY2025. The market capitalization is $1.8B as of Oct 2, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Youdao, Inc.'s price-to-sales ratio?
Youdao, Inc. (DAO) trades at 2.2x sales, its market capitalization divided by revenue of $845.0M revenue, FY2025. The market capitalization is $1.8B as of Oct 2, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
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 19 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.