What is Youdao, Inc.'s earnings per share (EPS)?

Youdao, Inc. (DAO) reported diluted earnings per share of $0.13 for fiscal year 2025. This represents a 30.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Youdao, Inc. Financials

DAO

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Youdao, Inc. (DAO) financial statements, including the 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).

Rhea AI DAO FY2025 2026-04-22

Profitability has turned positive, but cash generation and the balance sheet still show a business operating with little cushion.

FY2024's profit inflection did not become a fuller operating turnaround until FY2025 cash conversion: net income stayed positive in both years, but operating cash flow moved from -$9.3M to $7.9M only once working capital became less of a drag. That matters because the same stretch also brought a gross-margin decline from 48.9% to 44.3%, implying the earnings recovery came more from expense control below gross profit than from richer unit economics.

Liability financing remains the structural reality: FY2025 assets were only $282.4M against liabilities of $559.0M, leaving equity negative even after profits returned. With a current ratio of 0.6x, the company has improved earnings without yet building a strong short-term buffer.

Revenue growth is no longer being bought with heavier R&D: sales reached $845.0M in FY2025 while R&D held near $73.5M, a much lighter burden than in the loss years. Combined with lower inventory, that points to leaner operating discipline helping the shift from accounting profit to modest free cash flow.

Financial Health Signals

Financial Profile 16/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). 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.

Profitability

Youdao, Inc. has an operating margin of 3.8%, meaning the company retains $4 of operating profit per $100 of revenue. This below-average margin results in a low score of 24/100, suggesting thin profitability after operating expenses. This is up from 2.6% the prior year.

Growth

Youdao, Inc.'s revenue grew 9.6% year-over-year to $845.0M, a solid pace of expansion. This earns a growth score of 43/100.

Leverage

Youdao, Inc. has elevated debt relative to equity (D/E of -2.02), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 0/100, reflecting increased financial risk.

Liquidity

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.

Cash Flow

Youdao, Inc.'s free cash flow margin of 0.5% results in a low score of 20/100. Capital expenditures of $3.7M absorb a large share of operating cash flow.

Piotroski F-Score Neutral

4/9

Youdao, Inc. passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Mixed

0.57x

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.

Interest Coverage Adequate

3.5x

Youdao, Inc. earns $3.5 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

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Earnings & Revenue

Revenue

$845.0M

YoY+9.6%

5Y CAGR+11.7%

Youdao, Inc. generated $845.0M in revenue in fiscal year 2025. This represents an increase of 9.6% from the prior year.

EBITDA

$35.0M

YoY+43.7%

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.

Net Income

$13.9M

YoY+34.6%

Youdao, Inc. reported $13.9M in net income in fiscal year 2025. This represents an increase of 34.6% from the prior year.

EPS (Diluted)

$0.13

YoY+30.0%

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

Free Cash Flow

$4.2M

YoY+138.7%

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.

Cash & Debt

$62.9M

YoY-22.6%

5Y CAGR-7.6%

Youdao, Inc. held $62.9M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

119M

YoY+0.9%

5Y CAGR+0.7%

Youdao, Inc. had 119M shares outstanding in fiscal year 2025. This represents an increase of 0.9% from the prior year.

Margins & Returns

Gross Margin

44.3%

YoY-4.6pp

5Y CAGR-1.6pp

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.

Operating Margin

3.8%

YoY+1.1pp

5Y CAGR+60.8pp

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.

Net Margin

1.6%

YoY+0.3pp

5Y CAGR+57.0pp

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.

Return on Equity

N/A

Capital Allocation

R&D Spending

$73.5M

YoY-0.6%

5Y CAGR+2.5%

Youdao, Inc. invested $73.5M in research and development in fiscal year 2025. This represents a decrease of 0.6% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$3.7M

YoY+126.6%

5Y CAGR-8.3%

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.

DAO Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$845.0M+9.6%	$770.7M+1.5%	$759.1M+4.4%	$726.8M+15.3%	$630.2M+29.8%	$485.4M
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
Gross Profit	$374.2M-0.6%	$376.5M-3.4%	$389.8M+3.9%	$375.0M+20.2%	$312.1M+40.0%	$222.9M
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
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
Operating Income	$31.6M+55.2%	$20.4M+131.0%	-$65.7M+41.5%	-$112.3M+24.1%	-$148.0M+46.5%	-$276.7M
Interest Expense	$9.0M-10.1%	$10.0M+2.3%	$9.8M+48.0%	$6.6M+33.1%	$5.0M+3.8%	$4.8M
Income Tax	$2.4M+188.2%	$823K-47.3%	$1.6M-22.2%	$2.0M+92.4%	$1.0M+132.3%	$449K
Net Income	$13.9M+34.6%	$10.3M+113.3%	-$77.5M+28.4%	-$108.1M+30.8%	-$156.2M+41.8%	-$268.6M
EPS (Diluted)	$0.13+30.0%	$0.10+115.6%	$-0.64+24.7%	$-0.85+33.6%	$-1.28+46.2%	$-2.38

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q3'20	Q4'19
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

DAO Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$282.4M+13.6%	$248.6M+5.9%	$234.7M-28.9%	$330.0M-20.2%	$413.3M+30.3%	$317.3M
Current Assets	$246.3M+20.9%	$203.7M+11.2%	$183.1M-32.5%	$271.1M-23.9%	$356.2M+25.5%	$283.8M
Cash & Equivalents	$62.9M-22.6%	$81.2M+26.8%	$64.0M-43.7%	$113.6M+124.3%	$50.7M-45.7%	$93.4M
Inventory	$20.1M-15.9%	$23.9M-21.7%	$30.6M-9.2%	$33.7M-16.0%	$40.1M+75.9%	$22.8M
Accounts Receivable	$54.5M-4.9%	$57.4M+15.0%	$49.9M-15.1%	$58.7M+50.7%	$39.0M-5.4%	$41.2M
Goodwill	$15.7M+4.4%	$15.1M-2.7%	$15.5M-2.9%	$15.9M-7.6%	$17.3M	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
Current Liabilities	$419.7M+4.0%	$403.7M-7.5%	$436.5M-5.3%	$460.9M-3.2%	$476.1M-8.5%	$520.1M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	-$276.6M+3.4%	-$286.2M+6.2%	-$305.2M-36.5%	-$223.5M-76.1%	-$126.9M+41.1%	-$215.6M
Retained Earnings	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q3'20	Q4'19
Total Assets	$282.4M+13.6%	$248.6M+5.9%	$234.7M-28.9%	$330.0M-20.2%	$413.3M+30.3%	$317.3M+12.5%	$282.1M-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+9.1%	$260.0M-10.8%	$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+713.0%	$11.5M-53.9%	$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+68.3%	$13.5M+28.7%	$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-16.3%	$49.2M+70.8%	$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	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+25.4%	$425.1M+65.8%	$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+25.4%	$414.9M+64.2%	$252.6M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	-$276.6M+3.4%	-$286.2M+6.2%	-$305.2M-36.5%	-$223.5M-76.1%	-$126.9M+41.1%	-$215.6M-50.7%	-$143.1M-430.9%	$43.2M
Retained Earnings	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

DAO Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
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
Capital Expenditures	$3.7M+126.6%	$1.6M-35.8%	$2.5M-74.7%	$10.0M-0.1%	$10.0M+76.4%	$5.6M
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
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
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
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	$8.5M-52.5%	$18.0M+144.4%	$7.4M	N/A	N/A

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q3'20	Q4'19
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	$17.1M	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
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

DAO Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	44.3%-4.6pp	48.9%-2.5pp	51.3%-0.2pp	51.6%+2.1pp	49.5%+3.6pp	45.9%
Operating Margin	3.8%+1.1pp	2.6%+11.3pp	-8.6%+6.8pp	-15.4%+8.0pp	-23.5%+33.5pp	-57.0%
Net Margin	1.6%+0.3pp	1.3%+11.5pp	-10.2%+4.7pp	-14.9%+9.9pp	-24.8%+30.6pp	-55.3%
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A
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%
Current Ratio	0.59+0.1	0.50+0.1	0.42-0.2	0.59-0.2	0.75+0.2	0.55
Debt-to-Equity	-2.02-0.2	-1.87-0.1	-1.75+0.7	-2.43+1.7	-4.16-1.7	-2.47
FCF Margin	0.5%+1.9pp	-1.4%+7.0pp	-8.5%+4.9pp	-13.4%+21.7pp	-35.1%-23.8pp	-11.3%

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q3'20	Q4'19
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	0.59+0.1	0.50+0.1	0.42-0.2	0.59-0.2	0.75+0.2	0.55-0.1	0.63-0.5	1.15
Debt-to-Equity	-2.02-0.2	-1.87-0.1	-1.75+0.7	-2.43+1.7	-4.16-1.7	-2.47+0.5	-2.97-8.9	5.93
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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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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.

How many shares does Youdao, Inc. have outstanding?

Youdao, Inc. (DAO) had 119M shares outstanding as of 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 debt-to-equity ratio?

Youdao, Inc. (DAO) had a debt-to-equity ratio of -2.02 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

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 unusual?

Youdao, Inc. (DAO) has negative shareholder equity of -$276.6M as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. 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 9, indicating neutral financial health. 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 3.5x, 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 16 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.