TAL Education Group Announces Unaudited Financial Results for the Second Fiscal Quarter Ended August 31, 2026, Declares Cash Dividend and Issues Notice of Annual General Meeting

The extended repurchase authorization allows purchases of up to approximately US$393.7 million through July 28, 2027.

Rhea-AI Summary

TAL Education Group (NYSE: TAL) reported fiscal second-quarter revenue of US$994.6 million, alongside a quarterly net loss and a cash dividend declaration. Revenue rose 15.5% year over year in the quarter ended August 31, 2026, while operating income rose 145.4% to US$235.9 million. Net loss attributable to TAL was US$47.4 million, versus US$124.1 million in net income a year earlier.

Other expense reached US$189.7 million, mainly reflecting investment fair-value fluctuations, and income tax expense rose to US$135.9 million. First-half revenue increased 22.0% to US$1,753.0 million, with attributable net income of US$360.6 million. Cash, cash equivalents and short-term investments fell to US$2,748.5 million from US$3,239.3 million at February 28, 2026. TAL declared US$0.1 per ADS, payable on or about December 18, 2026, and extended its repurchase program by 12 months.

17 points · 0 major

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointSecond-quarter revenue rose 15.5% year over year to US$994.6 million.
• Moderate pointSecond-quarter operating income increased 145.4% year over year to US$235.9 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Repurchase program extended 12 months, permitting up to approximately US$393.7 million through July 28, 2027. 7.1% of market cap
• Moderate pointSecond-quarter gross profit increased 21.1% year over year to US$594.6 million.
• Moderate pointSecond-quarter gross margin reached 59.8%, versus 57.0% a year earlier.
• Moderate pointSecond-quarter selling and marketing expenses fell 15.3% year over year to US$226.4 million.

11 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Cash dividend declared at US$0.3 per common share (US$0.1 per ADS), payable on or about December 18, 2026.
• Minor pointFirst-half revenue increased 22.0% year over year to US$1,753.0 million.
• Minor pointFirst-half operating income rose 237.8% year over year to US$373.1 million.
• Minor pointFirst-half attributable net income rose 132.1% year over year to US$360.6 million.
• Minor pointFirst-half basic and diluted earnings per ADS reached US$0.65, versus US$0.26 each a year earlier.
• Minor pointFirst-half operating activities generated US$299.2 million in cash.
• Minor pointFirst-half gross profit increased 28.1% year over year to US$1,032.8 million.
• Minor pointFirst-half gross margin reached 58.9%, versus 56.1% a year earlier.
• Minor pointFirst-half selling and marketing expenses fell 11.1% year over year to US$398.4 million.
• Minor pointFirst-half other income increased to US$215.5 million, versus US$76.5 million a year earlier.
• Minor pointDeferred revenue increased to US$930.4 million at August 31, 2026, from US$882.2 million at February 28, 2026.

Negative

• Moderate pointSecond-quarter attributable net loss was US$47.4 million, versus US$124.1 million net income a year earlier.
• Moderate pointSecond-quarter operating activities used US$179.1 million in cash.
• Moderate pointCash, equivalents and short-term investments fell to US$2,748.5 million at August 31, from US$3,239.3 million at February 28, 2026.
• Minor pointSecond-quarter basic and diluted loss per ADS was US$0.09, versus earnings of US$0.22 and US$0.21, respectively.
• Minor pointSecond-quarter other expense was US$189.7 million, versus US$67.1 million other income a year earlier.

6 minor points

• Minor pointSecond-quarter income tax expense rose to US$135.9 million, from US$51.1 million a year earlier.
• Minor pointFirst-half income tax expense rose to US$279.6 million, from US$62.2 million a year earlier.
• Minor pointSecond-quarter cost of revenues increased 8.0% year over year to US$400.0 million.
• Minor pointSecond-quarter general and administrative expenses increased 3.7% year over year to US$132.4 million.
• Minor pointFirst-half cost of revenues increased 14.3% year over year to US$720.2 million.
• Minor pointFirst-half general and administrative expenses increased 5.4% year over year to US$261.3 million.

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Market move: TAL -4.47% vs previous close. 2Q27 earnings report

-6.1% Trough in 2 min

$9.01 – $10.03 Day Range

$5.33B Mkt Cap at Last Price

On Oct 29, the day this news came out, the latest delayed price for TAL is 4.47% below the previous close. Argus tracked a trough of -6.1% from its starting point during tracking. Our momentum scanner has recorded 7 alerts for this stock so far that day. The latest delayed price is $9.61. Relative volume is exceptionally heavy at 37.2x the average.

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Key Figures

Q2 net revenues: US$994.6 million; up 15.5% Q2 income from operations: US$235.9 million Q2 net loss attributable to TAL: US$47.4 million loss +5 more

Q2 net revenues

US$994.6 million; up 15.5%

Second quarter of fiscal 2027, compared with the prior-year quarter

Q2 income from operations

US$235.9 million

Compared with US$96.1 million in the prior-year quarter

Q2 net loss attributable to TAL

US$47.4 million loss

Compared with US$124.1 million net income in the prior-year quarter

Q2 diluted net loss per ADS

US$0.09

Second quarter of fiscal 2027

Cash, cash equivalents and short-term investments

US$2,748.5 million

As of August 31, 2026

Share repurchase authorization

Up to approximately US$393.7 million

May repurchase common shares through July 28, 2027

Cash dividend per ADS

US$0.10

Declared dividend; payment scheduled on or about December 18, 2026

Aggregate cash dividend

Approximately US$55.2 million

Declared payment to all shareholders

Historical Context

1 past event · Latest: Jul 30

1 event

1. Jul 30

   Q1 earnings

   24h Move

   +13.3%

   Q1 revenue rose 31.9%, operating income increased, and net income reached US$408.0 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, american depositary share, share-based compensation expenses, deferred tax liabilities

4 terms

non-gaap financial

"Non-GAAP income from operations, which excluded share-based compensation expenses"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

american depositary share financial

"Basic and diluted net loss per American Depositary Share ("ADS")"

An American Depositary Share (ADS) is a U.S.-listed certificate that represents a specified number of shares in a foreign company, held by a custodian bank; it works like a receipt that allows U.S. investors to buy and trade foreign equity on American exchanges without dealing with another country’s markets. Investors care because ADSs make foreign stocks easier to access, improve liquidity and settlement in dollars, and can affect dividend payments, voting rights and regulatory oversight compared with buying the underlying foreign shares directly.

share-based compensation expenses financial

"which excluded share-based compensation expenses"

Share-based compensation expenses are the accounting costs a company records when it pays employees, directors or contractors with company stock, stock options, or other equity instruments instead of cash. Investors care because these expenses reduce reported profits and can increase the number of outstanding shares, diluting ownership — like a business paying wages with gift cards that count as payroll cost and also add more gift cards in circulation.

deferred tax liabilities financial

"changes in deferred tax liabilities relating to withholding tax"

An accounting entry that records taxes a company will likely have to pay in the future because the way profit is reported for investors (financial accounts) differs from how taxable income is calculated today. It matters to investors because it signals real future cash outflows that will reduce funds available for dividends, debt repayment or investment—think of it as a bill put on layaway that the company still must settle later, affecting valuation and financial strength.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BEIJING, Oct. 29, 2026 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the second quarter of fiscal year 2027 ended August 31, 2026 and issued notice of Annual General Meeting.

Highlights for the Second Quarter of Fiscal Year 2027

• Net revenues were US$994.6 million, compared to net revenues of US$861.4 million in the same period of the prior year.
• Income from operations was US$235.9 million, compared to income from operations of US$96.1 million in the same period of the prior year.
• Non-GAAP income from operations, which excluded share-based compensation expenses, was US$247.7 million, compared to non-GAAP income from operations of US$107.8 million in the same period of the prior year.
• Net loss attributable to TAL was US$47.4 million, compared to net income attributable to TAL of US$124.1 million in the same period of the prior year.
• Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was US$35.6 million, compared to non-GAAP net income attributable to TAL of US$135.8 million in the same period of the prior year.
• Basic and diluted net loss per American Depositary Share ("ADS") were both US$0.09. Non-GAAP basic and diluted net loss per ADS, which excluded share-based compensation expenses, were both US$0.06. Three ADSs represent one Class A common share.
• Cash, cash equivalents and short-term investments totaled US$2,748.5 million as of August 31, 2026, compared to US$3,239.3 million as of February 28, 2026.

Highlights for the Six Months Ended August 31, 2026

• Net revenues were US$1,753.0 million, compared to net revenues of US$1,436.4 million in the same period of the prior year.
• Income from operations was US$373.1 million, compared to income from operations of US$110.4 million in the same period of the prior year.
• Non-GAAP income from operations, which excluded share-based compensation expenses, was US$396.4 million, compared to non-GAAP income from operations of US$133.0 million in the same period of the prior year.
• Net income attributable to TAL was US$360.6 million, compared to net income attributable to TAL of US$155.4 million in the same period of the prior year.
• Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$383.9 million, compared to non-GAAP net income attributable to TAL of US$177.9 million in the same period of the prior year.
• Basic and diluted net income per ADS were both US$0.65. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.69.

Financial Data——Second Quarter and First Six Months of Fiscal Year 2027

(In US$ thousands, except per ADS data and percentages)

	Three Months Ended
	August 31,
	2025	2026	Pct. Change
Net revenues	861,353	994,648	15.5 %
Income from operations	96,097	235,861	145.4 %
Non-GAAP income from operations	107,849	247,692	129.7 %
Net income/(loss) attributable to TAL	124,084	(47,438)	(138.2 %)
Non-GAAP net income/(loss) attributable to TAL	135,836	(35,607)	(126.2 %)
Net income/(loss) per ADS attributable to TAL – basic	0.22	(0.09)	(139.5 %)
Net income/(loss) per ADS attributable to TAL – diluted	0.21	(0.09)	(140.0 %)
Non-GAAP net income/(loss) per ADS attributable to TAL – basic	0.24	(0.06)	(127.1 %)
Non-GAAP net income/(loss) per ADS attributable to TAL – diluted	0.24	(0.06)	(127.4 %)
	Six Months Ended
	August 31,
	2025	2026	Pct. Change
Net revenues	1,436,352	1,753,025	22.0 %
Income from operations	110,443	373,065	237.8 %
Non-GAAP income from operations	132,958	396,434	198.2 %
Net income attributable to TAL	155,366	360,569	132.1 %
Non-GAAP net income attributable to TAL	177,881	383,938	115.8 %
Net income per ADS attributable to TAL – basic	0.26	0.65	146.9 %
Net income per ADS attributable to TAL – diluted	0.26	0.65	147.9 %
Non-GAAP net income per ADS attributable to TAL – basic	0.30	0.69	129.6 %
Non-GAAP net income per ADS attributable to TAL – diluted	0.30	0.69	130.6 %

"In the second quarter of fiscal year 2027, we delivered steady revenue growth and continued to improve operational efficiency," said Alex Peng, TAL's President and Chief Financial Officer. "Our focus remains on strengthening our core businesses and delivering better learning experiences for students."

Mr. Peng added, "Looking ahead, we will continue to combine our educational expertise with technology to better serve students and create long-term value."

Financial Results for the Second Quarter of Fiscal Year 2027

Net Revenues

In the second quarter of fiscal year 2027, TAL reported net revenues of US$994.6 million, representing a 15.5% increase from US$861.4 million in the second quarter of fiscal year 2026.

Operating Costs and Expenses

In the second quarter of fiscal year 2027, operating costs and expenses were US$758.8 million, representing a 0.8% decrease from US$765.3 million in the second quarter of fiscal year 2026. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$747.0 million, representing a 0.9% decrease from US$753.5 million in the second quarter of fiscal year 2026.

Cost of revenues increased by 8.0% to US$400.0 million from US$370.3 million in the second quarter of fiscal year 2026. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 8.0% to US$399.5 million, from US$369.8 million in the second quarter of fiscal year 2026.

Selling and marketing expenses decreased by 15.3% to US$226.4 million from US$267.3 million in the second quarter of fiscal year 2026. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 15.6% to US$223.3 million, from US$264.4 million in the second quarter of fiscal year 2026.

General and administrative expenses increased by 3.7% to US$132.4 million from US$127.6 million in the second quarter of fiscal year 2026. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 4.1% to US$124.2 million, from US$119.3 million in the second quarter of fiscal year 2026.

Total share-based compensation expenses allocated to the related operating costs and expenses increased by 0.7% to US$11.8 million in the second quarter of fiscal year 2027 from US$11.8 million in the same period of fiscal year 2026.

Gross Profit                                                                                                    

Gross profit increased by 21.1% to US$594.6 million from US$491.0 million in the second quarter of fiscal year 2026. The gross margin for the second quarter of fiscal year 2027 was 59.8%, compared to 57.0% in the same period of the prior year.

Income from Operations

Income from operations was US$235.9 million in the second quarter of fiscal year 2027, compared to income from operations of US$96.1 million in the second quarter of fiscal year 2026. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$247.7 million, compared to Non-GAAP income from operations of US$107.8 million in the same period of the prior year.

Other Income/(Expense)

Other expense was US$189.7 million for the second quarter of fiscal year 2027, compared to other income of US$67.1 million in the second quarter of fiscal year 2026. The change in other income/(expense) for the second quarter was mainly driven by fluctuations in the fair value of certain investments.

Income Tax Expense

Income tax expense was US$135.9 million in the second quarter of fiscal year 2027, compared to US$51.1 million of income tax expense in the second quarter of fiscal year 2026. The increase in income tax expense was mainly due to changes in deferred tax liabilities relating to withholding tax.

Net Income/(Loss) Attributable to TAL Education Group

Net loss attributable to TAL was US$47.4 million in the second quarter of fiscal year 2027, compared to net income attributable to TAL of US$124.1 million in the second quarter of fiscal year 2026. Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was US$35.6 million, compared to Non-GAAP net income attributable to TAL of US$135.8 million in the second quarter of fiscal year 2026.

Basic and Diluted Net Income/(Loss) per ADS

Basic and diluted net loss per ADS were both US$0.09 in the second quarter of fiscal year 2027. Non-GAAP basic and diluted net loss per ADS, which excluded share-based compensation expenses, were both US$0.06 in the second quarter of fiscal year 2027.

Cash Flow

Net cash used in operating activities for the second quarter of fiscal year 2027 was US$179.1 million.

Cash, Cash Equivalents, and Short-term Investments

As of August 31, 2026, the Company had US$1,952.6 million of cash and cash equivalents and US$795.9 million of short-term investments, compared to US$1,523.9 million of cash and cash equivalents and US$1,715.4 million of short-term investments as of February 28, 2026.

Deferred Revenue

As of August 31, 2026, the Company's deferred revenue balance was US$930.4 million, compared to US$882.2 million as of February 28, 2026.

Financial Results for the First Six Months of Fiscal Year 2027

Net Revenues

For the first six months of fiscal year 2027, TAL reported net revenues of US$1,753.0 million, representing a 22.0% increase from US$1,436.4 million in the first six months of fiscal year 2026.

Operating Costs and Expenses

In the first six months of fiscal year 2027, operating costs and expenses were US$1,380.0 million, representing a 4.1% increase from US$1,325.9 million in the first six months of fiscal year 2026. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$1,356.6 million, representing a 4.1% increase from US$1,303.4 million in the first six months of fiscal year 2026.

Cost of revenues increased by 14.3% to US$720.2 million from US$629.9 million in the first six months of fiscal year 2026. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 14.4% to US$719.2 million from US$628.8 million in the first six months of fiscal year 2026.

Selling and marketing expenses decreased by 11.1% to US$398.4 million from US$448.1 million in the first six months of fiscal year 2026. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 11.2% to US$392.6 million from US$442.1 million in the first six months of fiscal year 2026.

General and administrative expenses increased by 5.4% to US$261.3 million from US$247.9 million in the first six months of fiscal year 2026. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 5.3% to US$244.9 million from US$232.5 million in the first six months of fiscal year 2026.

Total share-based compensation expenses allocated to the related operating costs and expenses increased by 3.8% to US$23.4 million in the first six months of fiscal year 2027 from US$22.5 million in the same period of fiscal year 2026.

Gross Profit

Gross profit increased by 28.1% to US$1,032.8 million from US$806.4 million in the first six months of fiscal year 2026. The gross margin for the first six months of fiscal year 2027 was 58.9%, compared to 56.1% in the same period of the prior year.

Income from Operations

Income from operations was US$373.1 million in the first six months of fiscal year 2027, compared to income from operations of US$110.4 million in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$396.4 million, compared to US$133.0 million Non-GAAP income from operations in the same period of the prior year.

Other Income/(Expense)

Other income was US$215.5 million in the first six months of fiscal year 2027, compared to other income of US$76.5 million in the same period of the prior year. The change in other income for the first six months was mainly driven by fluctuations in the fair value of certain investments.

Income Tax Expense

Income tax expense was US$279.6 million in the first six months of fiscal year 2027, compared to US$62.2 million for the first six months of fiscal year 2026. The increase in income tax expense was mainly due to changes in deferred tax liabilities relating to withholding tax.

Net Income/(Loss) Attributable to TAL Education Group

Net income attributable to TAL was US$360.6 million in the first six months of fiscal year 2027, compared to net income attributable to TAL of US$155.4 million in the first six months of fiscal year 2026. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$383.9 million, compared to US$177.9 million Non-GAAP net income attributable to TAL in the same period of the prior year.

Basic and Diluted Net Income per ADS

Basic and diluted net income per ADS were both US$0.65 in the first six months of fiscal year 2027. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.69 in the first six months of fiscal year 2027.

Cash Flow

Net cash provided by operating activities in the first six months of fiscal year 2027 was US$299.2 million.

Share Repurchase

The Company's board of directors (the "Board") has authorized to extend the Company's share repurchase program (the "Share Repurchase Program") initially launched in July 2025 by 12 months. Pursuant to the extended Share Repurchase Program, the Company may repurchase up to approximately US$393.7 million of its common shares through July 28, 2027. Between July 29, 2026 and October 23, 2026, the Company has repurchased 64,226 common shares at an aggregate consideration of approximately US$2.0 million.

Declaration of Cash Dividend

The Company's board of directors has considered and approved the declaration and payment of a cash dividend to our shareholders out of the Company's cash balances in an amount of US$0.3 per common share (US$0.1 per ADS), representing an aggregate dividend payment of approximately US$55.2 million to all shareholders of the Company.

The cash dividend will be paid on or about December 18, 2026 to the Company's shareholders of record as of the close of business on December 1, 2026.

TAL to Hold Annual General Meeting on November 27, 2026

The Company announced that it will hold its annual general meeting of shareholders (the "AGM") at TAL Building No.1, Courtyard No. 9, Qixin Middle Street, Changping District, Beijing, China, on November 27, 2026 at 3:00PM (Beijing time). No proposal will be submitted to shareholders for approval at the AGM. Instead, the AGM will serve as an open forum for shareholders and beneficial owners of the Company's ADSs to discuss Company's affairs with management.

The Company's board of directors has fixed the close of business on November 9, 2026 (Eastern Standard Time) as the record date (the "Record Date"). Holders of record of the Company's common shares at the close of business on the Record Date are entitled to notice of the AGM and any adjournment or postponement thereof. Beneficial owners of the Company's ADSs are welcome to attend the AGM in person.

The notice of the AGM is available on the Investor Relations section of the Company's website at https://ir.tal.com/. The Company has filed its annual report on Form 20-F (the "Annual Report"), which includes the Company's audited financial statements for the fiscal year ended February 28, 2026, with the U.S. Securities and Exchange Commission (the "SEC"). The Company's Annual Report can be accessed on the Investor Relations section of its website at https://ir.tal.com , as well as on the SEC's website at http://www.sec.gov .

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the second quarter of fiscal year 2027 ended August 31, 2026 at 8:00 a.m. Eastern Time on October 29, 2026 (8:00 p.m. Beijing time on October 29, 2026).

Please note that you will need to pre-register for conference call participation at
https://dpregister.com/sreg/10212718/1051b87d48e.

Upon registration, you will receive an email containing participant dial-in numbers, passcode, and a unique access PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.tal.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. 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 ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

About TAL Education Group

TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".

About Non-GAAP Financial Measures

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

For further information, please contact:

Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com

 

TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars)
	As of February 28, 2026		As of August 31, 2026
ASSETS
Current assets
Cash and cash equivalents	$ 1,523,879		$ 1,952,620
Restricted cash, current	227,551		221,561
Short-term investments	1,715,446		795,947
Inventories, net	143,326		254,280
Amounts due from related parties, current	46		25
Prepaid expenses and other current assets	232,870		313,187
Total current assets	3,843,118		3,537,620
Restricted cash, non-current	34,608		32,218
Property and equipment, net	500,710		499,700
Deferred tax assets	3,170		3,513
Rental deposits	28,058		30,404
Intangible assets, net	45,975		43,890
Goodwill	45,545		45,545
Land use rights, net	189,779		191,402
Amounts due from related parties, non-current	134		182
Long-term investments	828,249		1,803,390
Long-term prepayments and other non-current assets	37,216		90,443
Operating lease right-of-use assets	379,727		379,417
Total assets	$ 5,936,289		$ 6,657,724
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$ 152,513		$ 141,754
Deferred revenue, current	832,839		883,234
Amounts due to related parties, current	97		96
Accrued expenses and other current liabilities	672,344		751,095
Operating lease liabilities, current	109,393		120,655
Short-term debt	-		29,763
Total current liabilities	1,767,186		1,926,597
Deferred revenue, non-current	49,353		47,167
Deferred tax liabilities	67,981		245,162
Operating lease liabilities, non-current	278,083		266,464
Total liabilities	2,162,603		2,485,390
Equity
Class A common shares	156		141
Class B common shares	49		49
Treasury stock	(20)		(6)
Additional paid-in capital	3,694,418		3,679,256
Statutory reserve	216,638		212,517
(Accumulated deficit)/retained earnings	(130,428)		234,262
Accumulated other comprehensive (loss)/income	(6,376)		47,044
Total TAL Education Group's equity	3,774,437		4,173,263
Non-controlling interests	(751)		(929)
Total equity	3,773,686		4,172,334
Total liabilities and equity	$ 5,936,289		$ 6,657,724

 

 

TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
	For the Three Months Ended August 31,			For the Six Months Ended August 31,
	2025		2026		2025		2026
Net revenues	$ 861,353		$ 994,648		$ 1,436,352		$ 1,753,025
Cost of revenues (note 1)	370,340		400,005		629,911		720,183
Gross profit	491,013		594,643		806,441		1,032,842
Operating expenses (note 1)
Selling and marketing	267,286		226,407		448,059		398,434
General and administrative (note 2)	127,630		132,375		247,939		261,343
Total operating expenses	394,916		358,782		695,998		659,777
Income from operations	96,097		235,861		110,443		373,065
Interest income, net	14,161		8,156		32,883		18,061
Other income/(expense)	67,076		(189,683)		76,548		215,530
Impairment loss on long-term     investments	(1,410)		-		(1,410)		-
Income before income tax expense and     (loss)/income from equity method     investments	175,924		54,334		218,464		606,656
Income tax expense	(51,080)		(135,895)		(62,158)		(279,553)
(Loss)/income from equity method     investments	(819)		34,026		(1,074)		33,287
Net income/(loss)	124,025		(47,535)		155,232		360,390
Add: Net loss attributable to non-     controlling interests	59		97		134		179
Total net income/(loss) attributable to     TAL Education Group	$ 124,084		$ (47,438)		$ 155,366		$ 360,569
Net income/(loss) per common share
Basic	$ 0.65		$ (0.26)		$ 0.79		$ 1.96
Diluted	0.64		(0.26)		0.78		1.94
Net income/(loss) per ADS (note 3)
Basic	$ 0.22		$ (0.09)		$ 0.26		$ 0.65
Diluted	0.21		(0.09)		0.26		0.65
Weighted average shares used in     calculating net income/(loss) per     common share
Basic	189,830,408		183,951,220		195,905,541		184,173,570
Diluted	192,494,611		183,951,220		198,687,649		186,010,217
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:
	For the Three Months Ended				For the Six Months Ended
	August 31,				August 31,
	2025		2026		2025		2026
Cost of revenues	$ 503		$ 512		$ 1,125		$ 1,012
Selling and marketing expenses	2,905		3,150		5,976		5,877
General and administrative expenses	8,344		8,169		15,414		16,480
Total	$ 11,752		$ 11,831		$ 22,515		$ 23,369
Note 2: GAAP and non-GAAP general and administrative expenses include government subsidies, which were separately presented in our historical financial statements. This reclassification has been made to conform to the presentation for the current period, and such reclassification had no impact on the Group's previously reported income from operations, net income/(loss), shareholders' equity, or cash flows.
Note 3: Three ADSs represent one Class A common share.

 

 

TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (In thousands of U.S. dollars)
	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2025		2026		2025		2026
Net income/(loss)	$ 124,025		$ (47,535)		$ 155,232		$ 360,390
Other comprehensive income,     net of tax	11,355		27,141		27,342		53,421
Comprehensive income/(loss)	135,380		(20,394)		182,574		413,811
Add: Comprehensive loss     attributable to non-     controlling interests	53		97		120		178
Comprehensive income/(loss)     attributable to TAL     Education Group	$ 135,433		$ (20,297)		$ 182,694		$ 413,989

 

 

TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars)
	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2025		2026		2025		2026
Net cash (used in)/provided by     operating activities	$ (58,095)		$ (179,068)		$ 289,690		$ 299,168
Net cash provided by investing     activities	563,331		306,192		36,022		122,083
Net cash (used in)/provided by     financing activities	(281,885)		131,895		(535,989)		(8,769)
Effect of exchange rate     changes	(328)		(275)		(45)		7,879
Net increase/(decrease) in     cash, cash equivalents and     restricted cash	223,023		258,744		(210,322)		420,361
Cash, cash equivalents and     restricted cash at the     beginning of period	$ 1,558,386		$ 1,947,655		$ 1,991,731		$ 1,786,038
Cash, cash equivalents and     restricted cash at the end     of period	$ 1,781,409		$ 2,206,399		$ 1,781,409		$ 2,206,399

 

 

TAL EDUCATION GROUP Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures (In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2025		2026		2025		2026
Cost of revenues	$ 370,340		$ 400,005		$ 629,911		$ 720,183
Share-based compensation expenses in     cost of revenues	503		512		1,125		1,012
Non-GAAP cost of revenues	369,837		399,493		628,786		719,171
Selling and marketing expenses	267,286		226,407		448,059		398,434
Share-based compensation expenses in     selling and marketing expenses	2,905		3,150		5,976		5,877
Non-GAAP selling and marketing expenses	264,381		223,257		442,083		392,557
General and administrative expenses (note 2)	127,630		132,375		247,939		261,343
Share-based compensation expenses in     general and administrative expenses	8,344		8,169		15,414		16,480
Non-GAAP general and administrative expenses (note 2)	119,286		124,206		232,525		244,863
Operating costs and expenses	765,256		758,787		1,325,909		1,379,960
Share-based compensation expenses in     operating costs and expenses	11,752		11,831		22,515		23,369
Non-GAAP operating costs and     expenses	753,504		746,956		1,303,394		1,356,591
Income from operations	96,097		235,861		110,443		373,065
Share based compensation expenses	11,752		11,831		22,515		23,369
Non-GAAP income from operations	107,849		247,692		132,958		396,434
Net income/(loss) attributable to TAL Education Group	124,084		(47,438)		155,366		360,569
Share based compensation expenses	11,752		11,831		22,515		23,369
Non-GAAP net income/(loss) attributable to TAL Education Group (note 4)	$ 135,836		$ (35,607)		$ 177,881		$ 383,938
Net income/(loss) per ADS
Basic	$ 0.22		$ (0.09)		$ 0.26	$ 0.65
Diluted	0.21		(0.09)		0.26	0.65
Non-GAAP net income/(loss) per ADS
Basic	$ 0.24		$ (0.06)		$ 0.30	$ 0.69
Diluted	0.24		(0.06)		0.30	0.69
ADSs used in calculating net income/(loss) per ADS
Basic	569,491,224		551,853,660		587,716,623	552,520,710
Diluted	577,483,833		551,853,660		596,062,947	558,030,651
ADSs used in calculating Non- GAAP net income/(loss) per ADS
Basic	569,491,224		551,853,660		587,716,623	552,520,710
Diluted	577,483,833		551,853,660		596,062,947	558,030,651
Note 4: The tax effect of share-based compensation expenses was immaterial in the second quarter and in the first six months of fiscal year 2027.

 

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SOURCE TAL Education Group

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were TAL's fiscal second-quarter 2027 earnings results?

TAL reported revenue of US$994.6 million and an attributable net loss of US$47.4 million for the quarter ended August 31, 2026. Revenue increased 15.5% year over year, while attributable earnings shifted from US$124.1 million in net income a year earlier. Basic and diluted loss per ADS were both US$0.09.

How much is TAL's declared cash dividend and when will it be paid?

TAL declared US$0.3 per common share (US$0.1 per ADS), payable on or about December 18, 2026. Shareholders must be holders of record at the close of business on December 1, 2026. The aggregate dividend payment is approximately US$55.2 million and will come from the company's cash balances.

Why did TAL's income tax expense increase in fiscal second-quarter 2027?

TAL attributed the increase mainly to changes in deferred tax liabilities relating to withholding tax. Second-quarter income tax expense was US$135.9 million, compared with US$51.1 million a year earlier.

Will shareholders vote on proposals at TAL's November 27, 2026 annual general meeting?

No proposals will be submitted for shareholder approval at TAL's November 27, 2026 annual general meeting. The meeting will instead be an open forum for shareholders and beneficial owners of ADSs to discuss company affairs with management. Beneficial owners of ADSs are welcome to attend in person.