QuantaSing Announces Unaudited Financial Results for the Third Quarter of Fiscal Year 2025
- Net income increased 181.2% year-over-year to RMB41.1M (US$5.7M)
- Strategic acquisition of 61% stake in Letsvan expands business into pop toys market
- Total registered users grew 19.9% to 145M
- Announced new US$20M share repurchase program
- Maintained strong cash position of RMB1,134.9M (US$156.4M)
- Revenue declined 39.6% year-over-year to RMB570.7M
- Individual online learning services revenue decreased 43.6% YoY
- Gross billings of individual online learning services decreased 47.5% YoY
- Enterprise services revenue declined 26.1% YoY
- Paying learners decreased to approximately 0.3M in Q3
Insights
QuantaSing shows significant revenue decline amid strategic pivot, maintains profitability while diversifying into pop toys market.
QuantaSing's Q3 FY2025 results reveal a company in strategic transition. Revenue declined
The contrasting revenue and profit trends reflect management's deliberate shift from traffic-driven growth to a more sustainable model. This transformation is evident in the
The
The new
Investors should monitor whether the strategic shift to pop toys can offset the education segment's contraction, and whether profit margins can remain resilient during this transition period. The combination of strategic pivoting, maintained profitability and substantial cash reserves presents a mixed but potentially transformative financial picture.
QuantaSing executes strategic pivot from education to consumer products, trading short-term revenue for long-term brand value.
QuantaSing is orchestrating a calculated strategic transformation, pivoting from a high-volume, marketing-intensive online education model toward a product and brand-centric approach. The Letsvan acquisition represents more than diversification – it's a fundamental business model shift from selling courses through aggressive user acquisition to developing valuable IP and physical products with recurring purchase potential.
This transition follows a classic strategic inflection pattern: deliberately sacrificing short-term revenue (
The pop toys market entry is particularly shrewd from a business model perspective. Unlike education services that require constant reinvestment in content and marketing, successful toy IP can generate recurring revenue through product refreshes, licensing, and international expansion with more favorable economics. Letsvan's established distribution channels and existing IPs (WAKUKU, ZIYULI, etc.) provide immediate capabilities, while QuantaSing brings scaling expertise.
Geographic expansion into Southeast Asia and potentially the US market reflects an understanding that pop culture collectibles represent a global opportunity less constrained by the regulatory challenges facing China's education sector. The "test-and-scale methodology" mentioned suggests a disciplined approach to this expansion, using data to identify which products and markets merit additional investment.
This transformation represents a high-stakes strategic bet that product-led growth will ultimately deliver superior economics to their previous customer acquisition-driven model. The true measure of success will be whether they can establish IPs valuable enough to drive repeat purchases without the marketing intensity that characterized their education business.
BEIJING, June 06, 2025 (GLOBE NEWSWIRE) -- QuantaSing Group Limited (NASDAQ: QSG) (“QuantaSing” or the “Company”), a leading lifestyle solution provider, today announced its unaudited financial results for the third quarter of the fiscal year ending June 30, 2025 (the “third quarter of FY 2025”, which refers to the quarter from January 1, 2025 to March 31, 2025).
Business and Financial Highlights for the Third Quarter of FY 2025
- Revenues for the third quarter of FY 2025 were RMB570.7 million (US
$78.6 million ), representing a decrease of21.5% from the second quarter of the fiscal year ending June 30, 2025 (the “second quarter of FY 2025”) and a decrease of39.6% from the third quarter of the fiscal year ended June 30, 2024 (the “third quarter of FY 2024”). - Gross billings of individual online learning services1 for the third quarter of FY 2025 were RMB515.6 million (US
$71.0 million ), representing a decrease of5.6% from the second quarter of FY 2025 and a decrease of47.5% from the third quarter of FY 2024. - Net income for the third quarter of FY 2025 was RMB41.1 million (US
$5.7 million ), representing a decrease of67.5% from the second quarter of FY 2025 and an increase of181.2% from the third quarter of FY 2024. - Adjusted net income2 for the third quarter of FY 2025 was RMB37.8 million (US
$5.2 million ), representing a decrease of71.3% from the second quarter of FY 2025 and an increase of18.5% from the third quarter of FY 2024. - Total registered users increased by
19.9% to approximately 145.0 million as of March 31, 2025, from 121.0 million as of March 31, 2024. - Paying learners was approximately 0.3 million in the third quarter of FY 2025.
Company Highlight for the Third Quarter of FY 2025
- Completed acquisition of
61% equity interest in Shenzhen Yiqi Culture Co., Ltd. ("Letsvan") on March 31, 2025 for a total cash consideration of RMB235.0 million through a multi-step transaction. Results of operations of Letsvan were included in consolidated financials of the Company beginning April 1, 2025. The acquired assets and liabilities of Letsvan are included at fair value in the Company’s consolidated balance sheet as of March 31, 2025.
Mr. Peng Li, Chairman and Chief Executive Officer of QuantaSing, commented, “Our third quarter results reflect our strategic pivot toward product-driven business models that create long-term value. The acquisition of Letsvan marks a significant milestone in our expansion into the pop toys market, a sector with strong growth potential that perfectly aligns with our brand-first philosophy. The early success of our WAKUKU IP, including the recent Fox and Rabbit collection launch, validates our approach of pairing strong product development capabilities with efficient go-to-market strategies. As we integrate Letsvan's operations, we're applying our test-and-scale methodology to build a global presence in this resilient market segment. We aim to create businesses where brand strength and product excellence drive sustainable growth, rather than simply pursuing traffic-driven metrics.”
Mr. Dong Xie, Chief Financial Officer of QuantaSing, added, “Our financial performance this quarter underscores our commitment to disciplined capital allocation during this transformation phase. While revenue moderated to RMB570.7 million as we shifted resources away from traffic-driven businesses, we've maintained strong cash generation across our businesses. Our ROI-focused assessment methodology has allowed us to exit underperforming areas while preserving resources for high-potential opportunities. With our healthy cash position, we have the flexibility to support both our existing operations and our strategic initiatives in the pop toys space. Though we anticipate some near-term profitability fluctuations as we optimize our business mix, our financial foundation remains robust as we execute this strategic evolution.”
Financial Results for the Third Quarter of FY 2025
Revenues
Revenues were RMB570.7 million (US
- Revenues from individual online learning services decreased by
43.6% year over year to RMB467.2 million (US$64.4 million ) in the third quarter of FY 2025, from RMB828.1 million in the third quarter of FY 2024. This decrease was primarily due to a decrease of RMB268.3 million (US$37.0 million ) in revenues from skills upgrading courses, a decline of RMB74.1 million (US$10.2 million ) in revenues from financial literacy courses and a decline of RMB18.5 million (US$2.5 million ) in revenues from recreation and leisure courses. - Revenues from enterprise services were RMB48.1 million (US
$6.6 million ) in the third quarter of FY 2025, compared to RMB65.1 million in the third quarter of FY 2024, representing a year-over-year change of26.1% . The decline was primarily driven by reduced marketing services to enterprise customers. - Revenues from consumer business3 were RMB48.7 million (US
$6.7 million ) in the third quarter of FY 2025, compared to RMB49.4 million in the third quarter of FY 2024. The slight change was primarily attributable to the decline in baijiu revenue, partially offset by the modest increase in wellness products revenue. - Revenues from others3 were RMB6.7 million (US
$0.9 million ) in the third quarter of FY 2025, compared to RMB3.0 million in the third quarter of FY 2024, primarily due to revenue from the Company’s newly initiated business.
Cost of revenues
Cost of revenues was RMB96.6 million (US
Sales and marketing expenses
Sales and marketing expenses were RMB395.2 million (US
Research and development expenses
Research and development expenses were RMB20.9 million (US
General and administrative expenses
General and administrative expenses were RMB25.0 million (US
Remeasurement gain of previously held equity interests in connection with step acquisitions
Remeasurement gain of previously held equity interests in connection with step acquisitions were RMB8.1 million (US
Others, net
Others, net were RMB15.4 million (US
Net income and adjusted net income
Net income was RMB41.1 million (US
Earnings per share and adjusted earnings per share4
Basic and diluted net income per share were both RMB0.25 (US
Balance Sheet
As of March 31, 2025, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1,134.9 million (US
Recent Developments
Investments in Letsvan
On March 24, 2025, the Company announced that it entered into definitive agreements to invest in Shenzhen Yiqi Culture Co., Ltd., a PRC-based company specializing in IP incubation, copyright commercialization, and the promotion and sales of pop toys. The transaction marks the Company's strategic entry into the pop toys market and broader consumer goods sector. Upon the completion of the investments in March 2025, Letsvan became a controlled subsidiary of the Company.
Letsvan currently operates a number of established IPs, including "WAKUKU", "ZIYULI", "FUNII", "FIILA" and "PIDOL", with distribution channels spanning both online and offline platforms across China and Southeast Asian markets. Letsvan’s current growth strategy encompasses three key areas: strengthening collaborations with major retail partners to enhance IP influence and expand sales, developing self-operated retail locations including a recently opened pop-up store at Chaoyang Joy City in Beijing, and building comprehensive online brand and sales capabilities.
International expansion initiatives are underway. Letsvan has already established its footprints in certain Southeast Asian markets and has been exploring opportunities in other overseas markets including the United States. With respect to IPs, Letsvan continues to strengthen internal product incubation and operational capabilities, partner with third-party artists, and collaborate with established IPs to diversify its product portfolio.
Recent product launches include the "WAKUKU Fox and Bunny Trick or Treat", which commenced offline distribution on May 17, 2025, followed by online channel availability on May 20, 2025. The Beijing Chaoyang Joy City pop-up store launch has generated favorable user response and increased product visibility in the market.
2024 Share Repurchase Program
On June 11, 2024, the Company announced that the Board had approved a share repurchase program of up to US
2025 Share Repurchase Program
On June 6, 2025, the Company announced that the Board had approved a new share repurchase program of up to US
Conference Call Information
The Company's management team will hold an earnings conference call at 07:00 A.M. Eastern Time on Friday, June 6, 2025 (07:00 P.M. Beijing Time on the same day) to discuss the financial results.
Listeners may access the call by dialing the following numbers:
| International: | 1-412-902-4272 | |
| United States Toll Free: | 1-888-346-8982 | |
| Mainland China Toll Free: | 4001-201203 | |
| Hong Kong Toll Free: | 800-905945 | |
| Conference ID: | QuantaSing Group Limited | |
The replay will be accessible through June 13, 2025 by dialing the following numbers:
| International: | 1-412-317-0088 | |
| United States Toll Free: | 1-877-344-7529 | |
| Replay Access Code: | 3611954 | |
A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.quantasing.com.
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, the Company uses gross billings of individual online learning services, adjusted net income and basic and diluted adjusted net income per share as its non-GAAP financial measures. Gross billings of individual online learning services for a specific period represents revenues of the Company’s individual online learning services net of the changes in deferred revenues in such period, further adjusted by value-added tax in such period. Adjusted net income represents net income excluding share-based compensation expenses and remeasurement gain of previously held equity interests inconnection with step acquisitions. Basic and diluted adjusted net income per share represents adjusted net income attributable to QuantaSing Group Limited divided by weighted average number of ordinary shares outstanding during the periods used in computing adjusted net income per share, basic and diluted. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for revenue, net income, net income per share, basic and diluted or other consolidated statements of operations data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on these non-GAAP financial measures, please see the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this release.
Exchange Rate Information
This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.2567 to US
Safe Harbor Statements
This announcement contains forward-looking statements within the meaning of Section 27A of Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1955. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding QuantaSing’s financial outlook, beliefs and expectations. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new users and learners and to increase the spending and revenues generated from users and learners; its ability to maintain and enhance the recognition and reputation of its brand; its expectations regarding demand for and market acceptance of its services and products; the expected growth, trends and competition in the markets that the Company operates in; changes in its revenues and certain cost or expense items; PRC governmental policies and regulations relating to the Company’s business and industry, general economic and political conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the SEC, including, without limitation, the final prospectus related to the IPO filed with the SEC dated January 24, 2023. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
About QuantaSing Group Limited
QuantaSing is a leading lifestyle solution provider that offers engaging, affordable and accessible online and offline services, as well as consumer products in selected areas that address senior users' wellness aspirations. QuantaSing has expanded into the pop toys sector and continues to strategically diversify its portfolio by capturing opportunities in promising consumer sectors while maintaining financial discipline.
For more information, please visit: https://ir.quantasing.com.
Contact
Investor Relations
Leah Guo
QuantaSing Group Limited
Email: ir@quantasing.com
Tel: +86 (10) 6493-7857
Robin Yang, Partner
ICR, LLC
Email: QuantaSing.IR@icrinc.com
Phone: +1 (212) 537-0429
_________________________________
1 Gross billings of individual online learning services is a non-GAAP financial measure. For a reconciliation of revenues of individual online learning services to gross billings of individual online learning services, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
2 Adjusted net income is a non-GAAP financial measure. For a reconciliation of net income to adjusted net income, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
3 Effective from the fourth quarter of FY 2024, the Company has introduced “Revenues from Consumer Business” as a separate line item. This revenue was previously included in “Revenues from Others”. The historical revenues presentation has been conformed to the current presentation.
4 Basic and diluted adjusted net income per share are non-GAAP financial measures. For a reconciliation of basic and diluted net income per share to basic and diluted adjusted net income per share, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
| QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for share and per share data) | |||||
| As of | |||||
| June 30, 2024 | March 31, 2025 | March 31, 2025 | |||
| RMB | RMB | US$ | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 779,931 | 985,677 | 135,830 | ||
| Restricted cash | 160 | 675 | 93 | ||
| Short-term investments | 246,195 | 148,532 | 20,468 | ||
| Accounts receivable, net | 16,676 | 37,392 | 5,153 | ||
| Amounts due from related parties | 4,488 | 489 | 67 | ||
| Inventory, net | 6,345 | 28,120 | 3,875 | ||
| Prepayments and other current assets | 275,549 | 173,582 | 23,920 | ||
| Total current assets | 1,329,344 | 1,374,467 | 189,406 | ||
| Non-current assets: | |||||
| Property and equipment, net | 6,569 | 11,571 | 1,595 | ||
| Long-term investments | 9,010 | 44,428 | 6,122 | ||
| Intangible assets, net | - | 68,973 | 9,505 | ||
| Operating lease right-of-use assets | 58,889 | 29,479 | 4,062 | ||
| Deferred tax assets | 847 | 914 | 126 | ||
| Goodwill | - | 187,598 | 25,852 | ||
| Other non-current assets | 21,360 | 5,177 | 713 | ||
| Total non-current assets | 96,675 | 348,140 | 47,975 | ||
| TOTAL ASSETS | 1,426,019 | 1,722,607 | 237,381 | ||
| LIABILITIES | |||||
| Current liabilities: | |||||
| Short-term Borrowings | - | 14,500 | 1,998 | ||
| Accounts payables | 62,066 | 55,219 | 7,609 | ||
| Accrued expenses and other current liabilities | 190,508 | 186,084 | 25,643 | ||
| Income tax payable | 20,399 | 53,565 | 7,381 | ||
| Contract liabilities, current portion | 385,227 | 310,189 | 42,745 | ||
| Advance from customers | 162,257 | 148,332 | 20,441 | ||
| Operating lease liabilities, current portion | 49,099 | 30,837 | 4,249 | ||
| Total current liabilities | 869,556 | 798,726 | 110,066 | ||
| Non-current liabilities: | |||||
| Contract liabilities, non-current portion | 11,365 | 33,495 | 4,616 | ||
| Operating lease liabilities, non-current portion | 16,989 | 3,123 | 430 | ||
| Deferred tax liabilities | 11,625 | 42,269 | 5,825 | ||
| Total non-current liabilities | 39,979 | 78,887 | 10,871 | ||
| TOTAL LIABILITIES | 909,535 | 877,613 | 120,937 | ||
| QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS- continued (Amounts in thousands, except for share and per share data) | ||||||||
| As of | ||||||||
| June 30, 2024 | March 31, 2025 | March 31, 2025 | ||||||
| RMB | RMB | US$ | ||||||
| MEZZANINE EQUITY | ||||||||
| Non-controlling interests with liquidation preferences | - | 40,999 | 5,650 | |||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Class A ordinary shares | 81 | 81 | 11 | |||||
| Class B ordinary shares | 34 | 34 | 5 | |||||
| Treasury stock | (109,257 | ) | (41,898 | ) | (5,774 | ) | ||
| Additional paid-in capital | 1,192,474 | 1,069,620 | 147,398 | |||||
| Accumulated other comprehensive income | 17,313 | 18,491 | 2,548 | |||||
| Accumulative deficit | (584,161 | ) | (335,573 | ) | (46,243 | ) | ||
| TOTAL QUANTASING GROUP LIMITED SHAREHOLDERS’ EQUITY | 516,484 | 710,755 | 97,945 | |||||
| Non-controlling interests | - | 93,240 | 12,849 | |||||
| TOTAL SHAREHOLDERS’ EQUITY | 516,484 | 803,995 | 110,794 | |||||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | 1,426,019 | 1,722,607 | 237,381 | |||||
| QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Amounts in thousands, except for shares and per share data) | |||||||||||||||||
| For the Three Months Ended March 31, | For the Nine Months Ended March 31, | ||||||||||||||||
| 2024 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Revenues | 945,570 | 570,706 | 78,645 | 2,795,248 | 2,107,757 | 290,457 | |||||||||||
| Cost of revenues | (145,848 | ) | (96,556 | ) | (13,306 | ) | (409,058 | ) | (353,516 | ) | (48,716 | ) | |||||
| Gross Profit | 799,722 | 474,150 | 65,339 | 2,386,190 | 1,754,241 | 241,741 | |||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing expenses | (729,620 | ) | (395,175 | ) | (54,457 | ) | (2,006,884 | ) | (1,317,206 | ) | (181,516 | ) | |||||
| Research and development expenses | (38,840 | ) | (20,891 | ) | (2,879 | ) | (123,655 | ) | (77,325 | ) | (10,656 | ) | |||||
| General and administrative expenses | (36,390 | ) | (25,049 | ) | (3,452 | ) | (114,211 | ) | (86,194 | ) | (11,878 | ) | |||||
| Total operating expenses | (804,850 | ) | (441,115 | ) | (60,788 | ) | (2,244,750 | ) | (1,480,725 | ) | (204,050 | ) | |||||
| (Loss)/Income from operations | (5,128 | ) | 33,035 | 4,551 | 141,440 | 273,516 | 37,691 | ||||||||||
| Other income: | |||||||||||||||||
| Interest income | 2,513 | 880 | 121 | 8,369 | 4,040 | 557 | |||||||||||
| Remeasurement gain of previously held equity interests in connection with step acquisitions | - | 8,109 | 1,117 | - | 8,109 | 1,117 | |||||||||||
| Others, net | 7,685 | 15,400 | 2,122 | 22,163 | 31,418 | 4,330 | |||||||||||
| Income before income tax | 5,070 | 57,424 | 7,911 | 171,972 | 317,083 | 43,695 | |||||||||||
| Income tax benefit/(expense) | 9,560 | (16,280 | ) | (2,243 | ) | 16,948 | (68,495 | ) | (9,439 | ) | |||||||
| Net income | 14,630 | 41,144 | 5,668 | 188,920 | 248,588 | 34,256 | |||||||||||
| Net loss attributable to noncontrolling interests | - | 1 | - | - | 1 | - | |||||||||||
| Net income attributable to QuantaSing Group Limited | 14,630 | 41,145 | 5,668 | 188,920 | 248,589 | 34,256 | |||||||||||
| Other comprehensive income/(loss) | |||||||||||||||||
| Foreign currency translation adjustments, net of nil tax | 423 | (289 | ) | (40 | ) | (4,954 | ) | 1,178 | 162 | ||||||||
| Total other comprehensive income/(loss) | 423 | (289 | ) | (40 | ) | (4,954 | ) | 1,178 | 162 | ||||||||
| Total comprehensive income | 15,053 | 40,855 | 5,628 | 183,966 | 249,766 | 34,418 | |||||||||||
| Total comprehensive loss attributable to noncontrolling interests | - | 1 | - | - | 1 | - | |||||||||||
| Comprehensive income attributable to QuantaSing Group Limited | 15,053 | 40,856 | 5,628 | 183,966 | 249,767 | 34,418 | |||||||||||
| Net income per ordinary share | |||||||||||||||||
| - Basic | 0.09 | 0.25 | 0.03 | 1.14 | 1.55 | 0.21 | |||||||||||
| - Diluted | 0.09 | 0.25 | 0.03 | 1.10 | 1.52 | 0.21 | |||||||||||
| Weighted average number of ordinary shares used in computing net income per share | |||||||||||||||||
| - Basic | 164,753,256 | 162,791,862 | 162,791,862 | 166,399,349 | 160,479,027 | 160,479,027 | |||||||||||
| - Diluted | 170,890,581 | 165,216,173 | 165,216,173 | 171,089,530 | 163,949,787 | 163,949,787 | |||||||||||
| Share-based compensation expenses included in | |||||||||||||||||
| Cost of revenues | (2,878 | ) | (1,431 | ) | (197 | ) | (9,945 | ) | (5,214 | ) | (719 | ) | |||||
| Sales and marketing expenses | (2,779 | ) | (642 | ) | (88 | ) | 8,678 | (1,540 | ) | (212 | ) | ||||||
| Research and development expenses | (3,599 | ) | (167 | ) | (23 | ) | (10,611 | ) | (2,474 | ) | (341 | ) | |||||
| General and administrative expenses | (8,039 | ) | (2,571 | ) | (354 | ) | (28,961 | ) | (8,073 | ) | (1,112 | ) | |||||
QUANTASING GROUP LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except for shares and per share data)
The following table below sets forth a reconciliation of revenues to gross billings for the periods indicated:
| For the Three Months Ended March 31, | For the Nine Months Ended March 31, | ||||||||||||||||
| 2024 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Revenues of individual online learning services: | 828,127 | 467,247 | 64,388 | 2,457,588 | 1,777,552 | 244,953 | |||||||||||
| Add: value-added tax | 52,986 | 27,919 | 3,847 | 147,665 | 101,969 | 14,052 | |||||||||||
| Add: ending deferred revenues(1) | 744,320 | 461,026 | 63,531 | 744,320 | 461,026 | 63,531 | |||||||||||
| Less: beginning deferred revenues(1) | (643,929 | ) | (440,632 | ) | (60,721 | ) | (661,360 | ) | (565,030 | ) | (77,863 | ) | |||||
| | |||||||||||||||||
| Gross billings of individual online learning services | 981,504 | 515,560 | 71,045 | 2,688,213 | 1,775,517 | 244,673 | |||||||||||
| (1) Deferred revenues include contract liabilities, advance from customers, and refund liability of individual online learning services included in “accrued expenses and other current liabilities”. | |||||||||||||||||
QUANTASING GROUP LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS - continued
(Amounts in thousands, except for shares and per share data)
The following table below sets forth a reconciliation of net income to adjusted net income and basic and diluted net income per share to basic and diluted adjusted net income per share for the periods indicated:
| For the Three Months Ended March 31, | For Nine Months Ended March 31, | ||||||||||||||||
| 2024 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net income | 14,630 | 41,144 | 5,668 | 188,920 | 248,588 | 34,256 | |||||||||||
| Add: Share-based compensation expenses | 17,295 | 4,811 | 662 | 40,839 | 17,301 | 2,384 | |||||||||||
| Less: Remeasurement gain of previously held equity interests in connection with step acquisitions | - | (8,109 | ) | (1,117 | ) | - | (8,109 | ) | (1,117 | ) | |||||||
| | |||||||||||||||||
| Adjusted net income | 31,925 | 37,846 | 5,213 | 229,759 | 257,780 | 35,523 | |||||||||||
| Attributable to noncontrolling interests | - | 1 | - | - | 1 | - | |||||||||||
| Adjusted net income attributable to QuantaSing Group Limited | 31,925 | 37,847 | 5,213 | 229,759 | 257,781 | 35,523 | |||||||||||
| Weighted average number of ordinary shares used in computing net income per share | |||||||||||||||||
| - Basic | 164,753,256 | 162,791,862 | 162,791,862 | 166,399,349 | 160,479,027 | 160,479,027 | |||||||||||
| - Diluted | 170,890,581 | 165,216,173 | 165,216,173 | 171,089,530 | 163,949,787 | 163,949,787 | |||||||||||
| Weighted average number of ordinary shares used in computing adjusted net income per share | |||||||||||||||||
| - Basic | 164,753,256 | 162,791,862 | 162,791,862 | 166,399,349 | 160,479,027 | 160,479,027 | |||||||||||
| - Diluted | 170,890,581 | 165,216,173 | 165,216,173 | 171,089,530 | 163,949,787 | 163,949,787 | |||||||||||
| Net income per ordinary share | |||||||||||||||||
| - Basic | 0.09 | 0.25 | 0.03 | 1.14 | 1.55 | 0.21 | |||||||||||
| - Diluted | 0.09 | 0.25 | 0.03 | 1.10 | 1.52 | 0.21 | |||||||||||
| Non-GAAP adjustments to net income per ordinary share | |||||||||||||||||
| - Basic | 0.10 | (0.02 | ) | 0.00 | 0.24 | 0.06 | 0.01 | ||||||||||
| - Diluted | 0.10 | (0.02 | ) | 0.00 | 0.24 | 0.05 | 0.01 | ||||||||||
| Adjusted net income per ordinary share | |||||||||||||||||
| - Basic | 0.19 | 0.23 | 0.03 | 1.38 | 1.61 | 0.22 | |||||||||||
| - Diluted | 0.19 | 0.23 | 0.03 | 1.34 | 1.57 | 0.22 | |||||||||||
FAQ
What were QuantaSing's (QSG) key financial results for Q3 FY2025?
How much did QuantaSing pay for the Letsvan acquisition?
What is QuantaSing's new share repurchase program for 2025?
How much cash does QuantaSing (QSG) have as of March 2025?
What caused QuantaSing's revenue decline in Q3 FY2025?
