17 Education & Technology Group Inc. Announces Second Quarter 2026 Unaudited Financial Results
17EdTech delivered rapid revenue growth, higher margins and its first quarterly net profit while maintaining a sizable cash position.
Rhea-AI Summary
17 Education & Technology Group (YQ) reported unaudited second quarter 2026 results showing a sharp turnaround to profitability and rapid revenue growth.
Q2 2026 net revenues were RMB90.1 million, up 254.6% from RMB25.4 million a year earlier, driven mainly by the expansion of Yiqi Aixue, its consumer-facing AI application, plus district- and school-level projects. Gross margin rose to 69.2% from 57.5%. The company recorded net income of RMB1.1 million versus a net loss of RMB26.0 million in Q2 2025, while adjusted net income (non-GAAP) reached RMB4.7 million compared with an adjusted net loss of RMB18.9 million.
For the first half of 2026, net revenues were RMB189.5 million versus RMB47.1 million a year ago, with the net loss narrowing to RMB18.3 million from RMB56.9 million. Cash and cash equivalents, restricted cash and term deposits totaled RMB456.9 million as of June 30, 2026, up from RMB407.0 million at year-end 2025.
Positive
- Q2 2026 net revenues RMB90.1m, up 254.6% year over year
- Q2 2026 gross margin 69.2%, up from 57.5% in Q2 2025
- Q2 2026 net income RMB1.1m vs. net loss RMB26.0m a year ago
- Q2 2026 adjusted net income (non-GAAP) RMB4.7m vs. adjusted net loss RMB18.9m
- H1 2026 net revenues RMB189.5m vs. RMB47.1m in H1 2025
- Cash, restricted cash and term deposits RMB456.9m at June 30, 2026, up from RMB407.0m at Dec 31, 2025
Negative
- Total operating expenses Q2 2026 RMB63.0m, up 46.2% year over year
- Sales and marketing Q2 2026 RMB26.9m, up 92.2% year over year
- Research and development Q2 2026 RMB20.0m, up 66.8% year over year
- H1 2026 net loss RMB18.3m despite improved performance
- H1 2026 adjusted net loss (non-GAAP) RMB10.4m vs. RMB41.3m in H1 2025 (still negative)
News Explained
Q2 reached GAAP net income, but operations remained loss-making; June 30 liquidity was reported entirely as cash and cash equivalents.
In the reported, unaudited second-quarter period, 17EdTech posted
As of
The quarter therefore reached reported net profitability without eliminating the operating loss, and the disclosed liquidity mix shifted toward cash equivalents rather than restricted cash or term deposits.
Key Figures
- Q2 Net Revenues
- RMB90.1 million (US$13.3 million)
- Q2 2026 vs. RMB25.4 million in Q2 2025
- Gross Margin
- 69.2%
- Q2 2026 vs. 57.5% in Q2 2025
- Net Income
- RMB1.1 million (US$0.2 million)
- Q2 2026 vs. RMB26.0 million net loss in Q2 2025
- Adjusted Net Income
- RMB4.7 million (US$0.7 million)
- Non-GAAP Q2 2026 vs. RMB18.9 million adjusted net loss in Q2 2025
- First-Half Net Revenues
- RMB189.5 million (US$27.9 million)
- First half of 2026 vs. RMB47.1 million in the first half of 2025
- First-Half Net Loss
- RMB18.3 million (US$2.7 million)
- First half of 2026 vs. RMB56.9 million in the first half of 2025
- Cash Position
- RMB456.9 million (US$67.3 million)
- As of June 30, 2026, vs. RMB407.0 million as of December 31, 2025
Previous Earnings Reports
-
Revenue and margin improved, but the company remained loss-making in Q1 2026
-
Revenue declined while margin improved and the net loss narrowed year over year
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial
gaap financial
operating leverage financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BEIJING, Sept. 09, 2026 (GLOBE NEWSWIRE) -- 17 Education & Technology Group Inc. (NASDAQ: YQ) (“17EdTech” or the “Company”), a leading AI-powered application service provider focused on personalized learning solutions, today announced its unaudited financial results for the second quarter of 2026.
Second Quarter 2026 Highlights1
- Net revenues were RMB90.1 million (US
$13.3 million ), compared with net revenues of RMB25.4 million in the second quarter of 2025. - Gross margin was
69.2% , compared with57.5% in the second quarter of 2025. - Net income was RMB1.1 million (US
$0.2 million ), compared with net loss of RMB26.0 million in the second quarter of 2025. - Net income as a percentage of net revenues was
1.2% in the second quarter of 2026, compared with negative102.1% in the second quarter of 2025. - Adjusted net income (non-GAAP), which excluded share-based compensation expenses of RMB3.6 million (US
$0.5 million ), was RMB4.7 million (US$0.7 million ), compared with adjusted net loss (non-GAAP) of RMB18.9 million in the second quarter of 2025. - Adjusted net income (non-GAAP) as a percentage of net revenues was
5.2% in the second quarter of 2026, compared with negative74.3% in the second quarter of 2025.
First Half 2026 Highlights1
- Net revenues were RMB189.5 million (US
$27.9 million ), compared with net revenues of RMB47.1 million in the first half of 2025. - Gross margin was
65.4% , compared with47.7% in the first half of 2025. - Net loss was RMB18.3 million (US
$2.7 million ), compared with net loss of RMB56.9 million in the first half of 2025. - Net loss as a percentage of net revenues was negative
9.6% in the first half of 2026, compared with negative120.9% in the first half of 2025. - Adjusted net loss (non-GAAP), which excluded share-based compensation expenses of RMB7.8 million (US
$1.2 million ), was RMB10.4 million (US$1.5 million ), compared with adjusted net loss (non-GAAP) of RMB41.3 million in the first half of 2025. - Adjusted net loss (non-GAAP) as a percentage of net revenues was negative
5.5% in the first half of 2026, compared with negative87.7% in the first half of 2025.
| 1 | For a reconciliation of non-GAAP numbers, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” at the end of this press release. | ||
Mr. Andy Liu, Founder, Chairman and Chief Executive Officer of the Company commented, “We are pleased to report another quarter of strong progress, with net revenues increasing
“As we continue to extend our AI capabilities across the education ecosystem, we recently introduced a dedicated AI agent for teachers, designed to support key teaching workflows, including assessment, content generation and learning analytics, building upon our district-level AI agent initiatives and student-facing personalized learning services. Together, our district-level, teacher-facing and student-facing AI applications are forming an interconnected ecosystem spanning education administration, teaching and personalized learning. Going forward, we will continue to leverage AI to enhance our products and internal workflows, improve operating efficiency and support healthy, sustainable growth,” he added.
Ms. Sishi Zhou, Chief Financial Officer of the Company, commented, “Our second-quarter results underscore the improving economics of our evolving business model. Gross margin expanded to
“With a cash position of RMB456.9 million as of quarter end, we maintain a strong financial position to support continued investment in innovation and long-term growth. We will remain disciplined in capital allocation as we balance growth investments with our commitment to sustainable profitability and long-term shareholder value creation.”
Second Quarter 2026 Unaudited Financial Results
Net Revenues
Net revenues for the second quarter of 2026 were RMB90.1 million (US
Cost of Revenues
Cost of revenues for the second quarter of 2026 was RMB27.8 million (US
Gross Profit and Gross Margin
Gross profit for the second quarter of 2026 was RMB62.3 million (US
Gross margin for the second quarter of 2026 was
Total Operating Expenses
The following table sets forth a breakdown of operating expenses by amounts and percentages of revenue during the periods indicated (in thousands, except for percentages):
| For the three months ended June 30, | ||||||||||||||||||||||||
| 2025 | 2026 | Year- | ||||||||||||||||||||||
| RMB | % | RMB | USD | % | over-year | |||||||||||||||||||
| Sales and marketing expenses | 13,995 | 55.1 | % | 26,894 | 3,964 | 29.9 | % | 92.2 | % | |||||||||||||||
| Research and development expenses | 12,002 | 47.2 | % | 20,025 | 2,951 | 22.2 | % | 66.8 | % | |||||||||||||||
| General and administrative expenses | 17,066 | 67.2 | % | 16,032 | 2,363 | 17.8 | % | -6.1 | % | |||||||||||||||
| Total operating expenses | 43,063 | 169.5 | % | 62,951 | 9,278 | 69.9 | % | 46.2 | % | |||||||||||||||
Total operating expenses for the second quarter of 2026 were RMB63.0 million (US
Sales and marketing expenses for the second quarter of 2026 were RMB26.9 million (US
Research and development expenses for the second quarter of 2026 were RMB20.0 million (US
General and administrative expenses for the second quarter of 2026 were RMB16.0 million (US
Loss from Operations
Loss from operations for the second quarter of 2026 was RMB0.6 million (US
Net Income (Loss)
Net income for the second quarter of 2026 was RMB1.1 million (US
Adjusted Net Income (Loss) (non-GAAP)
Adjusted net income (non-GAAP) for the second quarter of 2026 was RMB4.7 million (US
Please refer to the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” at the end of this press release for a reconciliation of net loss under U.S. GAAP to adjusted net loss (non-GAAP).
Cash and Cash Equivalents, Restricted Cash and Term Deposits
Cash and cash equivalents, restricted cash and term deposits were RMB456.9 million (US
Conference Call Information
The Company will hold a conference call on Tuesday, September 8, 2026 at 9:00 p.m. U.S. Eastern Time (Wednesday, September 9, 2026 at 9:00 a.m. Beijing time) to discuss the financial results for the second quarter of 2026.
Please note that all participants will need to preregister for the conference call participation by navigating to https://register-conf.media-server.com/register/BI6a9b3074492c49129db706c4d4bc5622.
Upon registration, you will receive an email containing participant dial-in numbers, and PIN number. To join the conference call, please dial the number you receive, enter the PIN number, and you will be joined to the conference call instantly.
Additionally, a live and archived webcast of this conference call will be available at https://ir.17zuoye.com/.
Non-GAAP Financial Measures
17EdTech’s management uses adjusted net income (loss) as a non-GAAP financial measure to gain an understanding of 17EdTech’s comparative operating performance and future prospects.
Adjusted net income (loss) represents net income (loss) excluding share-based compensation expenses, and such adjustment has no impact on income tax.
Adjusted net income (loss) is used by 17EdTech’s management in its financial and operating decision-making as a non-GAAP financial measure, because management believes it reflects 17EdTech’s ongoing business and operating performance in a manner that allows meaningful period-to-period comparisons. 17EdTech’s management believes that such non-GAAP measure provides useful information to investors and others in understanding and evaluating 17EdTech’s operating performance in the same manner as management does, if they so choose. Specifically, 17EdTech believes the non-GAAP measure provides useful information to both management and investors by excluding certain charges that the Company believes are not indicative of its core operating results.
The non-GAAP financial measure has limitations. It does not include all items of income and expense that affect 17EdTech’s income (loss) from operations. Specifically, the non-GAAP financial measure is not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and, with respect to the non-GAAP financial measure that excludes certain items under GAAP, does not reflect any benefit that such items may confer to 17EdTech. Management compensates for these limitations by also considering 17EdTech’s financial results as determined in accordance with GAAP. The presentation of this additional information is not meant to be considered superior to, in isolation from or as a substitute for results prepared in accordance with U.S. GAAP.
Exchange Rate Information
The Company’s business is primarily conducted in China and all of the revenues are denominated in Renminbi (“RMB”). However, periodic reports made to shareholders will include current period amounts translated into U.S. dollars (“USD” or “US$”) using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in shareholders’ equity and cash flows from RMB into USD as of and for the three months ended June 30, 2026 are solely for the convenience of the readers and were calculated at the rate of US
About 17 Education & Technology Group Inc.
17 Education & Technology Group Inc. is a leading AI-powered application service provider in China, focused on personalized learning solutions. Leveraging over a decade of large-scale, longitudinal educational insights accumulated from daily teaching and learning interactions across diverse scenarios, alongside deep user engagement, and advanced AI capabilities, the Company develops application services that help students learn more effectively, empower educators, and drive innovation across the education ecosystem.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States 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. Statements that are not historical facts, including statements about 17EdTech’s beliefs and expectations, are forward-looking statements. 17EdTech may also make written or oral forward-looking statements in its periodic reports to 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: 17EdTech’s growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract and retain users; its ability to carry out its business and organization transformation, its ability to implement and grow its new business initiatives; the trends in, and size of, China’s online education market; competition in and relevant government policies and regulations relating to China's online education market; its expectations regarding demand for, and market acceptance of, its products and services; its expectations regarding its relationships with business partners; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 17EdTech’s filings with the SEC. All information provided in this press release is as of the date of this press release, and 17EdTech does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
17 Education & Technology Group Inc.
Ms. Lara Zhao
Investor Relations Manager
E-mail: ir@17zuoye.com
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (In thousands of RMB and USD, except for share and per ADS data, or otherwise noted) | ||||||||||||
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | USD | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 246,448 | 456,856 | 67,332 | |||||||||
| Restricted cash | 49 | — | — | |||||||||
| Term deposits | 160,471 | — | — | |||||||||
| Accounts receivable, net | 42,577 | 24,342 | 3,588 | |||||||||
| Prepaid expenses and other current assets, net | 101,135 | 78,631 | 11,589 | |||||||||
| Total current assets | 550,680 | 559,829 | 82,509 | |||||||||
| Non-current assets | ||||||||||||
| Property and equipment, net | 22,455 | 19,187 | 2,828 | |||||||||
| Right-of-use assets | 15,003 | 12,541 | 1,848 | |||||||||
| Other non-current assets | 2,385 | 2,364 | 348 | |||||||||
| TOTAL ASSETS | 590,523 | 593,921 | 87,533 | |||||||||
| LIABILITIES | ||||||||||||
| Current liabilities | ||||||||||||
| Accrued expenses and other current liabilities | 123,280 | 135,109 | 19,913 | |||||||||
| Deferred revenue and advances from customers, current | 165,939 | 176,513 | 26,015 | |||||||||
| Operating lease liabilities, current | 4,992 | 4,507 | 664 | |||||||||
| Total current liabilities | 294,211 | 316,129 | 46,592 | |||||||||
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Non-current liabilities | ||||||||||||
| Operating lease liabilities, non-current | 9,684 | 7,568 | 1,115 | |||||||||
| TOTAL LIABILITIES | 303,895 | 323,697 | 47,707 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Class A ordinary shares | 256 | 256 | 38 | |||||||||
| Class B ordinary shares | 140 | 140 | 21 | |||||||||
| Treasury stock | (42 | ) | (43 | ) | (6 | ) | ||||||
| Additional paid-in capital | 11,126,837 | 11,134,106 | 1,640,964 | |||||||||
| Accumulated other comprehensive income | 77,527 | 72,107 | 10,626 | |||||||||
| Accumulated deficit | (10,918,090 | ) | (10,936,342 | ) | (1,611,817 | ) | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 286,628 | 270,224 | 39,826 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 590,523 | 593,921 | 87,533 | |||||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (In thousands of RMB and USD, except for share and per ADS data, or otherwise noted) | ||||||||||||
| For the three months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net revenues | 25,410 | 90,092 | 13,278 | |||||||||
| Cost of revenues | (10,798 | ) | (27,772 | ) | (4,093 | ) | ||||||
| Gross profit | 14,612 | 62,320 | 9,185 | |||||||||
| Operating expenses (Note 1) | ||||||||||||
| Sales and marketing expenses | (13,995 | ) | (26,894 | ) | (3,964 | ) | ||||||
| Research and development expenses | (12,002 | ) | (20,025 | ) | (2,951 | ) | ||||||
| General and administrative expenses | (17,066 | ) | (16,032 | ) | (2,363 | ) | ||||||
| Total operating expenses | (43,063 | ) | (62,951 | ) | (9,278 | ) | ||||||
| Loss from operations | (28,451 | ) | (631 | ) | (93 | ) | ||||||
| Interest income | 2,248 | 1,686 | 248 | |||||||||
| Foreign currency exchange loss | (44 | ) | (21 | ) | (3 | ) | ||||||
| Other income, net | 301 | 72 | 11 | |||||||||
| (Loss) income before provision for income tax | (25,946 | ) | 1,106 | 163 | ||||||||
| Income tax expenses | (6 | ) | — | — | ||||||||
| Net (loss) income | (25,952 | ) | 1,106 | 163 | ||||||||
| Net (loss) income available to ordinary shareholders | (25,952 | ) | 1,106 | 163 | ||||||||
| of 17 Education & Technology Group Inc. | ||||||||||||
| Net (loss) income per ordinary share | ||||||||||||
| Basic | (0.06 | ) | 0.00 | 0.00 | ||||||||
| Diluted | (0.06 | ) | 0.00 | 0.00 | ||||||||
| Net (loss) income per ADS (Note 2) | ||||||||||||
| Basic | (3.00 | ) | 0.10 | 0.02 | ||||||||
| Diluted | (3.00 | ) | 0.09 | 0.01 | ||||||||
| Weighted average shares used in calculating net (loss) income per ordinary share | ||||||||||||
| Basic | 461,000,966 | 542,476,566 | 542,476,566 | |||||||||
| Diluted | 461,000,966 | 582,168,348 | 582,168,348 | |||||||||
| Note 1: Share-based compensation expenses were included in the operating expenses as follows: | ||||||||||||
| For the three months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Share-based compensation expenses: | ||||||||||||
| Sales and marketing expenses | 1,929 | 1,118 | 165 | |||||||||
| Research and development expenses | 2,872 | 939 | 138 | |||||||||
| General and administrative expenses | 2,261 | 1,536 | 226 | |||||||||
| Total | 7,062 | 3,593 | 529 | |||||||||
| Note 2: Each one ADS represents fifty Class A ordinary shares. | ||||||||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| Reconciliations of non-GAAP measures to the most comparable GAAP measures | ||||||||||||
| (In thousands of RMB and USD, except for share, per share and per ADS data) | ||||||||||||
| For the three months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net (loss) income | (25,952 | ) | 1,106 | 163 | ||||||||
| Share-based compensation | 7,062 | 3,593 | 529 | |||||||||
| Income tax effect | — | — | — | |||||||||
| Adjusted net (loss) income | (18,890 | ) | 4,699 | 692 | ||||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | |||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (In thousands of RMB and USD, except for share and per ADS data, or otherwise noted) | |||||||||||||
| For the six months ended June 30, | |||||||||||||
| 2025 | 2026 | 2026 | |||||||||||
| RMB | RMB | USD | |||||||||||
| Net revenues | 47,078 | 189,544 | 27,935 | ||||||||||
| Cost of revenues | (24,633 | ) | (65,643 | ) | (9,675 | ) | |||||||
| Gross profit | 22,445 | 123,901 | 18,260 | ||||||||||
| Operating expenses (Note 1) | |||||||||||||
| Sales and marketing expenses | (27,008 | ) | (70,095 | ) | (10,331 | ) | |||||||
| Research and development expenses | (24,594 | ) | (36,212 | ) | (5,337 | ) | |||||||
| General and administrative expenses | (33,167 | ) | (39,519 | ) | (5,824 | ) | |||||||
| Total operating expenses | (84,769 | ) | (145,826 | ) | (21,492 | ) | |||||||
| Loss from operations | (62,324 | ) | (21,925 | ) | (3,232 | ) | |||||||
| Interest income | 4,924 | 3,459 | 510 | ||||||||||
| Foreign currency exchange loss | (111 | ) | (30 | ) | (4 | ) | |||||||
| Other income, net | 621 | 244 | 36 | ||||||||||
| Loss before provision for income tax and income from equity method investments | (56,890 | ) | (18,252 | ) | (2,690 | ) | |||||||
| Income tax expenses | (6 | ) | — | — | |||||||||
| Net loss | (56,896 | ) | (18,252 | ) | (2,690 | ) | |||||||
| Net loss available to ordinary shareholders of 17 | (56,896 | ) | (18,252 | ) | (2,690 | ) | |||||||
| Education & Technology Group Inc. | |||||||||||||
| Net loss per ordinary share | |||||||||||||
| Basic and diluted | (0.12 | ) | (0.03 | ) | (0.00 | ) | |||||||
| Net loss per ADS (Note 2) | |||||||||||||
| Basic and diluted | (6.00 | ) | (1.68 | ) | (0.25 | ) | |||||||
| Weighted average shares used in calculating net income (loss) per ordinary share | |||||||||||||
| Basic and diluted | 461,652,947 | 542,610,162 | 542,610,162 | ||||||||||
| Note 1: Share-based compensation expenses were included in the operating expenses as follows: | |||||||||||||
| For the six months ended June 30, | |||||||||||||
| 2025 | 2026 | 2026 | |||||||||||
| RMB | RMB | USD | |||||||||||
| Share-based compensation expenses: | |||||||||||||
| Sales and marketing expenses | 4,022 | 1,965 | 290 | ||||||||||
| Research and development expenses | 5,269 | 2,631 | 388 | ||||||||||
| General and administrative expenses | 6,317 | 3,239 | 477 | ||||||||||
| Total | 15,608 | 7,835 | 1,155 | ||||||||||
| Note 2: Each one ADS represents fifty Class A ordinary shares. | |||||||||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| Reconciliations of non-GAAP measures to the most comparable GAAP measures | ||||||||||||
| (In thousands of RMB and USD, except for share, per share and per ADS data) | ||||||||||||
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net Loss | (56,896 | ) | (18,252 | ) | (2,690 | ) | ||||||
| Share-based compensation | 15,608 | 7,835 | 1,155 | |||||||||
| Income tax effect | — | — | — | |||||||||
| Adjusted net loss | (41,288 | ) | (10,417 | ) | (1,535 | ) | ||||||
FAQ
What drove 17EdTech’s strong revenue growth in the second quarter of 2026?
The company attributes the substantial year-over-year revenue increase primarily to the continued expansion of Yiqi Aixue, its consumer-facing AI application service, along with ongoing contributions from district-level and school-based projects.
How did operating expenses change in Q2 2026 and what were the main drivers?
Total operating expenses rose 46.2% year over year to RMB63.0 million. Sales and marketing expenses increased 92.2% to RMB26.9 million, mainly due to higher investment to support Yiqi Aixue expansion. Research and development expenses grew 66.8% to RMB20.0 million, driven by personnel-related costs for broader AI application scenarios. General and administrative expenses decreased 6.1% to RMB16.0 million, helped by lower share-based compensation and cost control.
What is 17EdTech’s non-GAAP adjusted net income (loss) measure and why is it used?
Adjusted net income (loss) is defined as net income (loss) excluding share-based compensation expenses, with no impact on income tax. Management uses this non-GAAP measure to evaluate ongoing business and operating performance and to enable period-to-period comparisons, and believes it provides investors additional insight into core operating results. The company also notes that this measure has limitations and is not a substitute for GAAP results.
What was 17EdTech’s cash position at the end of the second quarter of 2026?
As of June 30, 2026, cash and cash equivalents, restricted cash and term deposits totaled RMB456.9 million (US$67.3 million), compared with RMB407.0 million as of December 31, 2025.
When and how can investors access the Q2 2026 earnings conference call?
The company will hold a conference call on Tuesday, September 8, 2026 at 9:00 p.m. U.S. Eastern Time (Wednesday, September 9, 2026 at 9:00 a.m. Beijing time). Participants must preregister at https://register-conf.media-server.com/register/BI6a9b3074492c49129db706c4d4bc5622 to receive dial-in numbers and a PIN. A live and archived webcast will also be available at https://ir.17zuoye.com/.