TAL Education Group Announces Unaudited Financial Results for the Third Fiscal Quarter Ended November 30, 2025

Rhea-AI Summary

TAL Education Group (NYSE: TAL) reported strong third-quarter fiscal 2026 results for the quarter ended November 30, 2025, with net revenues of US$770.2M (up 27.0% year-over-year) and net income attributable to TAL of US$130.6M. Gross margin improved to 56.1% and cash, cash equivalents and short-term investments totaled US$3,617.4M. The company reported income from operations of US$93.1M and non-GAAP income from operations of US$104.0M. Deferred revenue rose to US$1,162.8M. The board authorized a US$600M share repurchase program; US$27.7M repurchased so far.

Positive

• Net revenues +27.0% YoY to US$770.2M
• Income from operations turned positive to US$93.1M
• Net income attributable to TAL +466.1% YoY to US$130.6M
• Gross margin improved to 56.1%
• Cash, cash equivalents and short-term investments at US$3,617.4M
• Deferred revenue increased to US$1,162.8M
• Board authorized US$600M share repurchase program

Negative

• Cost of revenues +18.0% YoY to US$338.4M
• Selling and marketing expenses +25.9% YoY for first nine months to US$668.1M
• Short-term investments declined from US$1,847.1M to US$1,471.1M

News Market Reaction – TAL

+18.03% 3.7x vol

61 alerts

+18.03% Session close to close

+14.5% Peak in 10 hr 58 min

$7.83B Market Cap

3.7x Rel. Volume

In the Jan 29 session, TAL gained 18.03%, reflecting a significant positive market reaction. Argus tracked a peak move of +14.5% during that session. Our momentum scanner triggered 61 alerts that day, indicating high trading interest and price volatility. Trading volume was very high at 3.7x the daily average, suggesting strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +18.0% in the session following this news. A strong positive reaction aligns with T...

Analysis

The stock surged +18.0% in the session following this news. A strong positive reaction aligns with TAL’s history of sizeable earnings-related moves, where prior reports saw average one-day changes of about 11.7%. The latest results showed higher net revenues, improved operating income, and robust cash and deferred revenue balances. Investors would still need to monitor execution on growth initiatives and cost discipline, as well as any future shifts in demand for smart learning solutions.

Key Figures

Q3 FY2026 net revenues: US$770.2 million Q3 FY2025 net revenues: US$606.4 million Q3 income from operations: US$93.1 million +5 more

8 metrics

Q3 FY2026 net revenues US$770.2 million Third quarter of fiscal year 2026

Q3 FY2025 net revenues US$606.4 million Same quarter prior year

Q3 income from operations US$93.1 million vs. US$(17.4) million loss prior-year quarter

Q3 net income attributable to TAL US$130.6 million vs. US$23.1 million in prior-year quarter

Cash & short-term investments US$3,617.4 million As of November 30, 2025

Deferred revenue US$1,162.8 million As of November 30, 2025

Share repurchase authorization US$600 million Program authorized July 28, 2025

Shares repurchased 844,856 shares for ~US$27.7 million Between October 30, 2025 and January 28, 2026

Previous Earnings Reports

5 past events · Latest: Oct 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Oct 30	Q2 FY2026 earnings	Positive	+7.3%	Strong Q2 revenue growth, higher income from operations, and share repurchases.
Jul 31	Q1 FY2026 earnings	Positive	+8.4%	Q1 revenue up 38.8% with margin improvement and return to operating profit.
Apr 24	Q4 & FY2025 earnings	Negative	-18.7%	FY2025 revenue growth but Q4 operating loss and higher operating costs weighed on results.
Jan 23	Q3 FY2025 earnings	Positive	+21.3%	Q3 revenue up 62.4% and swing from net loss to net income with strong cash balance.
Oct 24	Q2 FY2025 earnings	Positive	+2.8%	Q2 revenue up 50.4% and higher income from operations with solid cash position.

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

Pattern Detected

Earnings releases have frequently coincided with sizable price moves, generally positive when results highlight strong revenue and profit growth.

Recent Company History

Over the past year, TAL’s earnings reports have highlighted rapid revenue growth and a transition to sustained profitability. Q3 FY2025 showed strong revenue expansion and a swing to net income. Subsequent Q2 and Q1 FY2026 results delivered higher net revenues and improved margins, alongside robust cash balances and active share repurchase plans. The current Q3 FY2026 release, with higher net revenues and net income, continues this pattern of scaling the smart learning business while maintaining a solid liquidity position.

Key Terms

non-gaap, american depositary share, ads, share-based compensation, +2 more

6 terms

non-gaap financial

"Non-GAAP income from operations, which excluded share-based compensation expenses, was US$104.0 million"

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 income per American Depositary Share ("ADS") were US$0.24 and US$0.23"

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.

ads financial

"Basic and diluted net income per American Depositary Share ("ADS") were US$0.24 and US$0.23"

Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.

share-based compensation financial

"Non-GAAP income from operations, which excluded share-based compensation expenses, was US$104.0 million"

Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.

deferred revenue financial

"As of November 30, 2025, the Company's deferred revenue balance was US$1,162.8 million"

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

View in glossary

impairment loss financial

"Impairment loss on long-term investments was US$1.4 million for the first nine months"

An impairment loss is an accounting write-down recorded when an asset’s recorded value on the books is higher than what the company can realistically recover from using or selling it. Think of it like admitting a used car is worth much less than the loan balance and adjusting the records to match the true value; for investors, impairment losses reduce reported profits and net assets, can signal weaker future cash flow from that asset, and may affect covenants and valuation.

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

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BEIJING, Jan. 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 third quarter of fiscal year 2026 ended November 30, 2025.

Highlights for the Third Quarter of Fiscal Year 2026

- Net revenues were US$770.2 million, compared to net revenues of US$606.4 million in the same period of the prior year.

- Income from operations was US$93.1 million, compared to loss from operations of US$17.4 million in the same period of the prior year.

- Non-GAAP income from operations, which excluded share-based compensation expenses, was US$104.0 million, compared to non-GAAP loss from operations of US$1.9 million in the same period of the prior year.

- Net income attributable to TAL was US$130.6 million, compared to net income attributable to TAL of US$23.1 million in the same period of the prior year.

- Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$141.4 million, compared to non-GAAP net income attributable to TAL of US$38.6 million in the same period of the prior year.

- Basic and diluted net income per American Depositary Share ("ADS") were US$0.24 and US$0.23, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.25. Three ADSs represent one Class A common share.

- Cash, cash equivalents and short-term investments totaled US$3,617.4 million as of November 30, 2025, compared to US$3,618.4 million as of February 28, 2025.

Highlights for the Nine Months Ended November 30, 2025

- Net revenues were US$2,206.5 million, compared to net revenues of US$1,640.0 million in the same period of the prior year.

- Income from operations was US$203.6 million, compared to income from operations of US$12.9 million in the same period of the prior year.

- Non-GAAP income from operations, which excluded share-based compensation expenses, was US$236.9 million, compared to non-GAAP income from operations of US$63.5 million in the same period of the prior year.

- Net income attributable to TAL was US$286.0 million, compared to net income attributable to TAL of US$91.9 million in the same period of the prior year.

- Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$319.3 million, compared to non-GAAP net income attributable to TAL of US$142.5 million in the same period of the prior year.

- Basic and diluted net income per ADS were US$0.50 and US$0.49, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.55. 

Financial Data——Third Quarter and First Nine Months of Fiscal Year 2026

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

	Three Months Ended
	November 30,
	2024	2025	Pct. Change
Net revenues	606,446	770,167	27.0 %
(Loss)/Income from operations	(17,432)	93,123	(634.2 %)
Non-GAAP (loss)/income from operations	(1,920)	103,950	(5,514.1 %)
Net income attributable to TAL	23,069	130,595	466.1 %
Non-GAAP net income attributable to TAL	38,581	141,422	266.6 %
Net income per ADS attributable to TAL – basic	0.04	0.24	517.6 %
Net income per ADS attributable to TAL – diluted	0.04	0.23	518.7 %
Non-GAAP net income per ADS attributable to TAL – basic	0.06	0.25	299.9 %
Non-GAAP net income per ADS attributable to TAL – diluted	0.06	0.25	300.6 %

 

	Nine Months Ended
	November 30,
	2024	2025	Pct. Change
Net revenues	1,639,994	2,206,519	34.5 %
Income from operations	12,860	203,566	1,482.9 %
Non-GAAP income from operations	63,476	236,908	273.2 %
Net income attributable to TAL	91,902	285,961	211.2 %
Non-GAAP net income attributable to TAL	142,518	319,303	124.0 %
Net income per ADS attributable to TAL – basic	0.15	0.50	226.4 %
Net income per ADS attributable to TAL – diluted	0.15	0.49	227.3 %
Non-GAAP net income per ADS attributable to TAL – basic	0.24	0.55	135.0 %
Non-GAAP net income per ADS attributable to TAL – diluted	0.23	0.55	135.7 %

"In the third quarter of fiscal year 2026, our net revenues continued their steady growth trajectory. We remain focused on integrating technology into learning experiences and are dedicated to enhancing our content, products, and services to support students' holistic development." said Alex Peng, TAL's President and Chief Financial Officer.

Mr. Peng added, "We will continue to drive forward our strategic initiatives and dynamically allocate resources to build competitive advantages and generate value for our users and society."

Financial Results for the Third Quarter of Fiscal Year 2026

Net Revenues

In the third quarter of fiscal year 2026, TAL reported net revenues of US$770.2 million, representing a 27.0% increase from US$606.4 million in the third quarter of fiscal year 2025.

Operating Costs and Expenses

In the third quarter of fiscal year 2026, operating costs and expenses were US$677.0 million, representing an 8.5% increase from US$623.9 million in the third quarter of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$666.2 million, representing a 9.5% increase from US$608.4 million in the third quarter of fiscal year 2025.

Cost of revenues increased by 18.0% to US$338.4 million from US$286.7 million in the third quarter of fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 18.4% to US$338.0 million, from US$285.4 million in the third quarter of fiscal year 2025.

Selling and marketing expenses decreased by 2.8% to US$220.1 million from US$226.4 million in the third quarter of fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 2.1% to US$217.6 million, from US$222.4 million in the third quarter of fiscal year 2025.

General and administrative expenses increased by 7.1% to US$118.6 million from US$110.7 million in the third quarter of fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 10.0% to US$110.7 million, from US$100.6 million in the third quarter of fiscal year 2025.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 30.2% to US$10.8 million in the third quarter of fiscal year 2026 from US$15.5 million in the same period of fiscal year 2025.

Gross Profit                                                                                                                                 

Gross profit increased by 35.0% to US$431.8 million from US$319.8 million in the third quarter of fiscal year 2025. The gross margin for the third quarter of fiscal year 2026 was 56.1%, compared to 52.7% in the same period of the prior year.

(Loss)/Income from Operations

Income from operations was US$93.1 million in the third quarter of fiscal year 2026, compared to loss from operations of US$17.4 million in the third quarter of fiscal year 2025. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$104.0 million, compared to Non-GAAP loss from operations of US$1.9 million in the same period of the prior year.

Other Income

Other income was US$38.6 million for the third quarter of fiscal year 2026, compared to other income of US$18.2 million in the third quarter of fiscal year 2025.

Income Tax Benefit/(Expense)

Income tax expense was US$15.3 million in the third quarter of fiscal year 2026, compared to US$3.6 million of income tax benefit in the third quarter of fiscal year 2025.

Net Income attributable to TAL Education Group

Net income attributable to TAL was US$130.6 million in the third quarter of fiscal year 2026, compared to net income attributable to TAL of US$23.1 million in the third quarter of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$141.4 million, compared to Non-GAAP net income attributable to TAL of US$38.6 million in the third quarter of fiscal year 2025.

Basic and Diluted Net Income per ADS

Basic and diluted net income per ADS were US$0.24 and US$0.23, respectively, in the third quarter of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.25 in the third quarter of fiscal year 2026.

Cash Flow

Net cash provided by operating activities for the third quarter of fiscal year 2026 was US$526.7 million.

Cash, Cash Equivalents, and Short-Term Investments

As of November 30, 2025, the Company had US$2,146.3 million of cash and cash equivalents and US$1,471.1 million of short-term investments, compared to US$1,771.3 million of cash and cash equivalents and US$1,847.1 million of short-term investments as of February 28, 2025.

Deferred Revenue

As of November 30, 2025, the Company's deferred revenue balance was US$1,162.8 million, compared to US$671.2 million as of February 28, 2025.

Financial Results for the First Nine Months of Fiscal Year 2026

Net Revenues

For the first nine months of fiscal year 2026, TAL reported net revenues of US$2,206.5 million, representing a 34.5% increase from US$1,640.0 million in the first nine months of fiscal year 2025.

Operating Costs and Expenses

In the first nine months of fiscal year 2026, operating costs and expenses were US$2,003.0 million, representing a 23.1% increase from US$1,627.1 million in the first nine months of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$1,969.6 million, representing a 24.9% increase from US$1,576.5 million in the first nine months of fiscal year 2025.

Cost of revenues increased by 27.9% to US$968.3 million from US$757.3 million in the first nine months of fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.6% to US$966.8 million from US$751.9 million in the first nine months of fiscal year 2025.

Selling and marketing expenses increased by 25.9% to US$668.1 million from US$530.8 million in the first nine months of fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 27.3% to US$659.7 million from US$518.4 million in the first nine months of fiscal year 2025.

General and administrative expenses increased by 8.1% to US$366.6 million from US$339.0 million in the first nine months of fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 12.1% to US$343.2 million from US$306.3 million in the first nine months of fiscal year 2025.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 34.1% to US$33.3 million in the first nine months of fiscal year 2026 from US$50.6 million in the same period of fiscal year 2025.

Gross Profit

Gross profit increased by 40.3% to US$1,238.2 million from US$882.7 million in the first nine months of fiscal year 2025. The gross margin for the first nine months of fiscal year 2026 was 56.1%, compared to 53.8% in the same period of the prior year.

(Loss)/Income from Operations

Income from operations was US$203.6 million in the first nine months of fiscal year 2026, compared to income from operations of US$12.9 million in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$236.9 million, compared to US$63.5 million Non-GAAP income from operations in the same period of the prior year.

Other Income

Other income was US$115.1 million for the first nine months of fiscal year 2026, compared to other income of US$51.8 million in the same period of the prior year.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$1.4 million for the first nine months of fiscal year 2026, compared to US$8.7 million for the first nine months of fiscal year 2025.

Income Tax Benefit/(Expense)

Income tax expense was US$77.5 million in the first nine months of fiscal year 2026, compared to US$24.3 million of income tax expense in the first nine months of fiscal year 2025.

Net Income Attributable to TAL Education Group

Net income attributable to TAL was US$286.0 million in the first nine months of fiscal year 2026, compared to net income attributable to TAL of US$91.9 million in the first nine months of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$319.3 million, compared to US$142.5 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 US$0.50 and US$0.49, respectively, in the first nine months of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.55, in the first nine months of fiscal year 2026.

Cash Flow

Net cash provided by operating activities for the first nine months of fiscal year 2026 was US$816.4 million.

Share Repurchase

On July 28, 2025, TAL's board of directors authorized a new share repurchase program under which the Company may repurchase up to US$600 million of the Company's common shares over the next 12 months. Between October 30, 2025 and January 28, 2026, the Company has repurchased 844,856 common shares at an aggregate consideration of approximately US$27.7 million.

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the third fiscal quarter of fiscal year 2026 ended November 30, 2025 at 7:00 a.m. Eastern Time on January 29, 2026 (8:00 p.m. Beijing time on January 29, 2026).

Please note that you will need to pre-register for conference call participation at https://dpregister.com/sreg/10205339/102f9a80ea5.

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.100tal.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, 2025		As of November 30, 2025
ASSETS
Current assets
Cash and cash equivalents	$ 1,771,260		$ 2,146,309
Restricted cash, current	187,846		305,144
Short-term investments	1,847,120		1,471,116
Inventory, net	104,876		136,952
Amounts due from related parties, current	37		25
Prepaid expenses and other current assets	215,781		252,069
Total current assets	4,126,920		4,311,615
Restricted cash, non-current	32,625		34,148
Property and equipment, net	472,366		495,202
Deferred tax assets	3,487		1,469
Rental deposits	22,131		25,668
Intangible assets, net	394		47,169
Goodwill	155		45,705
Land use rights, net	182,880		185,012
Amounts due from related parties, non-current	96		99
Long-term investments	305,105		371,948
Long-term prepayments and other non-current assets	27,844		30,744
Operating lease right-of-use assets	329,064		370,809
Total assets	$ 5,503,067		$ 5,919,588
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$ 146,300		$ 161,086
Deferred revenue, current	624,272		1,110,709
Amounts due to related parties, current	93		89
Accrued expenses and other current liabilities	582,227		705,754
Operating lease liabilities, current	88,453		104,318
Total current liabilities	1,441,345		2,081,956
Deferred revenue, non-current	46,955		52,051
Deferred tax liabilities	3,474		13,907
Operating lease liabilities, non-current	244,895		273,036
Total liabilities	1,736,669		2,420,950
Equity
Class A common shares	154		156
Class B common shares	49		49
Treasury stock	-		(20)
Additional paid-in capital	4,294,819		3,703,604
Statutory reserve	179,537		175,957
Accumulated deficit	(624,078)		(334,537)
Accumulated other comprehensive loss	(83,914)		(46,207)
Total TAL Education Group's equity	3,766,567		3,499,002
Non-controlling interests	(169)		(364)
Total equity	3,766,398		3,498,638
Total liabilities and equity	$ 5,503,067		$ 5,919,588

 

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  November 30,				For the Nine Months Ended November 30,
	2024		2025		2024		2025
Net revenues	$ 606,446		$ 770,167		$ 1,639,994		$ 2,206,519
Cost of revenues (note 1)	286,689		338,361		757,329		968,272
Gross profit	319,757		431,806		882,665		1,238,247
Operating expenses (note 1)
Selling and marketing	226,441		220,063		530,769		668,122
General and administrative(note 2)	110,748		118,620		339,036		366,559
Total operating expenses	337,189		338,683		869,805		1,034,681
(Loss)/income from operations	(17,432)		93,123		12,860		203,566
Interest income, net	21,491		14,330		64,410		47,213
Other income	18,150		38,591		51,767		115,139
Impairment loss on long-term investments	-		-		(8,692)		(1,410)
Income before income tax benefit/(expense) and loss from      equity method investments	22,209		146,044		120,345		364,508
Income tax benefit/(expense)	3,582		(15,307)		(24,348)		(77,465)
Loss from equity method investments	(2,765)		(221)		(4,337)		(1,295)
Net income	23,026		130,516		91,660		285,748
Add: Net loss attributable to noncontrolling interests	43		79		242		213
Total net income attributable to TAL Education Group	$ 23,069		$ 130,595		$ 91,902		$ 285,961
Net income per common share
Basic	$ 0.11		$ 0.71		$ 0.46		$ 1.49
Diluted	0.11		0.70		0.45		1.47
Net income per ADS (note 3)
Basic	$ 0.04		$ 0.24		$ 0.15		$ 0.50
Diluted	0.04		0.23		0.15		0.49
Weighted average shares used in calculating net income            per common share
Basic	201,905,486		185,057,275		201,746,602		192,315,752
Diluted	204,949,612		187,521,021		205,093,389		194,991,739
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:
	For the Three Months Ended November 30,				For the Nine Months Ended November 30,
	2024		2025		2024			2025
Cost of revenues	$ 1,271		$ 387		$ 5,426			$ 1,512
Selling and marketing expenses	4,082		2,477		12,410			8,453
General and administrative expenses	10,159		7,963		32,780			23,377
Total	$ 15,512		$ 10,827		$ 50,616			$ 33,342
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 (loss)/income from operations, net income, shareholders' equity, or cash flows.
Note 3: Three ADSs represent one Class A common Share.

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
(In thousands of U.S. dollars)
	For the Three Months Ended November 30,				For the Nine Months Ended November 30,
	2024		2025		2024		2025
Net income	$ 23,026		$ 130,516		$ 91,660		$ 285,748
Other comprehensive (loss)/income, net of tax	(21,512)		10,383		(4,348)		37,725
Comprehensive income	1,514		140,899		87,312		323,473
Add: Comprehensive (income)/loss attributable to noncontrolling interests	(2,308)		75		25		195
Comprehensive (loss)/income attributable to TAL Education Group	$ (794)		$ 140,974		$ 87,337		$ 323,668

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
	For the Three Months Ended November 30,				For the Nine Months Ended November 30,
	2024		2025		2024		2025
Net cash provided by operating activities	$ 378,038		$ 526,742		$ 624,255		$ 816,432
Net cash (used in)/provided by investing activities	(214,435)		264,177		(532,739)		300,199
Net cash provided by/(used in) financing activities	48,731		(88,586)		41,937		(624,575)
Effect of exchange rate changes	(4,834)		1,859		(2,475)		1,814
Net increase in cash, cash equivalents and restricted cash	207,500		704,192		130,978		493,870
Cash, cash equivalents and restricted cash at the beginning of period	2,380,954		1,781,409		2,457,476		1,991,731
Cash, cash equivalents and restricted cash at the end of period	$ 2,588,454		$ 2,485,601		$ 2,588,454		$ 2,485,601

 

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 November 30,				For the Nine Months Ended November 30,
	2024		2025		2024		2025
Cost of revenues	$ 286,689		$ 338,361		$ 757,329		$ 968,272
Share-based compensation expense in cost of revenues	1,271		387		5,426		1,512
Non-GAAP cost of revenues	285,418		337,974		751,903		966,760
Selling and marketing expenses	226,441		220,063		530,769		668,122
Share-based compensation expense in selling and marketing expenses	4,082		2,477		12,410		8,453
Non-GAAP selling and marketing expenses	222,359		217,586		518,359		659,669
General and administrative expenses(note 2)	110,748		118,620		339,036		366,559
Share-based compensation expense in general and administrative expenses	10,159		7,963		32,780		23,377
Non-GAAP general and administrative expenses(note 2)	100,589		110,657		306,256		343,182
Operating costs and expenses	623,878		677,044		1,627,134		2,002,953
Share-based compensation expense in operating costs and expenses	15,512		10,827		50,616		33,342
Non-GAAP operating costs and expenses	608,366		666,217		1,576,518		1,969,611
(Loss)/income from operations	(17,432)		93,123		12,860		203,566
Share based compensation expenses	15,512		10,827		50,616		33,342
Non-GAAP (loss)/income from operations	(1,920)		103,950		63,476		236,908
Net income attributable to TAL Education Group	23,069		130,595		91,902		285,961
Share based compensation expenses	15,512		10,827		50,616		33,342
Non-GAAP net income attributable to TAL Education Group (note 4)	$ 38,581		$ 141,422		$ 142,518		$ 319,303
Net income per ADS
Basic	$ 0.04		$ 0.24		$ 0.15		$ 0.50
Diluted	0.04		0.23		0.15		0.49
Non-GAAP net income per ADS
Basic	$ 0.06		$ 0.25		$ 0.24		$ 0.55
Diluted	0.06		0.25		0.23		0.55
ADSs used in calculating net income per ADS
Basic	605,716,458		555,171,825		605,239,806		576,947,256
Diluted	614,848,836		562,563,063		615,280,167		584,975,217
ADSs used in calculating Non-GAAP net income per ADS
Basic	605,716,458		555,171,825		605,239,806		576,947,256
Diluted	614,848,836		562,563,063		615,280,167		584,975,217
Note 4: The tax effect of share-based compensation expenses was immaterial in the third quarter and in the first nine months of fiscal year 2026.

 

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SOURCE TAL Education Group

FAQ

What were TAL (NYSE:TAL) net revenues for Q3 fiscal 2026 and the year-over-year change?

TAL reported Q3 fiscal 2026 net revenues of US$770.2 million, up 27.0% year-over-year. According to the company, growth was driven by increased enrollments and higher service uptake across its learning platforms.

How did TAL's profitability change in the quarter ended November 30, 2025 (TAL)?

TAL recorded income from operations of US$93.1 million in Q3 fiscal 2026, reversing a prior-year loss. According to the company, improved gross margin and operating leverage drove the swing to profitability.

What is TAL's cash and liquidity position as of November 30, 2025 (TAL)?

As of November 30, 2025, TAL held US$3,617.4 million in cash, cash equivalents and short-term investments. According to the company, cash plus short-term investments remained largely stable compared with February 28, 2025.

What share repurchase program did TAL (TAL) authorize and how much has been bought back so far?

TAL's board authorized a US$600 million share repurchase program on July 28, 2025. According to the company, it repurchased 844,856 common shares for approximately US$27.7 million between October 30, 2025 and January 28, 2026.

How did TAL's deferred revenue and operating cash flow look for Q3 fiscal 2026 (TAL)?

Deferred revenue increased to US$1,162.8 million as of November 30, 2025, while Q3 net cash provided by operating activities was US$526.7 million. According to the company, higher prepaid tuition receipts supported deferred revenue growth.