Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Exhibit 99.1
TAL
Education Group Announces Unaudited Financial Results for the
Fourth
Fiscal Quarter and the Fiscal Year 2026
(Beijing–April 23, 2026)—TAL
Education Group (NYSE: TAL) (“TAL” or the “Company”), a smart learning solutions provider in China, today announced
its unaudited financial results for the fourth quarter and the fiscal year ended February 28, 2026.
Highlights for the Fourth Quarter
of Fiscal Year 2026
| - | Net revenues
were US$802.4 million, compared to net revenues of US$610.2 million in the same period of
the prior year. |
| - | Income
from operations was US$72.5 million, compared to loss from operations of US$16.0 million
in the same period of the prior year. |
| - | Non-GAAP
income from operations, which excluded share-based compensation expenses, was US$82.2 million,
compared to non-GAAP loss from operations of US$1.7 million in the same period of the prior
year. |
| - | Net income
attributable to TAL was US$244.8 million, compared to net loss attributable to TAL of US$7.3
million in the same period of the prior year. |
| - | Non-GAAP
net income attributable to TAL, which excluded share-based compensation expenses, was US$254.5
million, compared to non-GAAP net income attributable to TAL of US$7.0 million in the same
period of the prior year. |
| - | Basic
and diluted net income per American Depositary Share (“ADS”) were both US$0.44. Non-GAAP
basic and diluted net income per ADS, which excluded share-based compensation expenses, were
US$0.46 and US$0.45, respectively. Three ADSs represent one Class A common share. |
| - | Cash,
cash equivalents and short-term investments totaled US$3,239.3 million as of February 28,
2026, compared to US$3,618.4 million as of February 28, 2025. |
Highlights for the Fiscal Year Ended
February 28, 2026
| - | Net revenues
were US$3,008.9 million, compared to net revenues of US$2,250.2 million in the prior year. |
| - | Income
from operations was US$276.0 million, compared to loss from operations of US$3.2 million
in the prior year. |
| - | Non-GAAP
income from operations, which excluded share-based compensation expenses, was US$319.1 million,
compared to non-GAAP income from operations of US$61.8 million in the prior year. |
| - | Net income
attributable to TAL was US$530.8 million, compared to net income attributable to TAL of US$84.6
million in the prior year. |
| - | Non-GAAP
net income attributable to TAL, which excluded share-based compensation expenses, was US$573.8
million, compared to non-GAAP net income attributable to TAL of US$149.5 million in the prior
year. |
| - | Basic
and diluted net income per ADS were US$0.93 and US$0.92, respectively. Non-GAAP
basic and diluted net income per ADS, which excluded share-based compensation expenses, were
US$1.00 and US$0.99, respectively. |
Financial Data——Fourth
Quarter and Fiscal Year 2026
(In US$ thousands, except
per ADS data and percentages)
| | |
Three Months Ended | |
| | |
February 28, | |
| | |
2025 | | |
2026 | | |
Pct. Change | |
| Net revenues | |
| 610,239 | | |
| 802,389 | | |
| 31.5 | % |
| (Loss)/income from operations | |
| (16,015 | ) | |
| 72,473 | | |
| (552.5 | )% |
| Non-GAAP (loss)/income from operations | |
| (1,692 | ) | |
| 82,224 | | |
| (4,959.6 | )% |
| Net (loss)/income attributable to TAL | |
| (7,311 | ) | |
| 244,790 | | |
| (3,448.2 | )% |
| Non-GAAP net income attributable to TAL | |
| 7,012 | | |
| 254,541 | | |
| 3,530.1 | % |
| Net (loss)/income per ADS attributable to TAL – basic | |
| (0.01 | ) | |
| 0.44 | | |
| (3,774.6 | )% |
| Net (loss)/income per ADS attributable to TAL – diluted | |
| (0.01 | ) | |
| 0.44 | | |
| (3,735.4 | )% |
| Non-GAAP net income per ADS attributable to TAL – basic | |
| 0.01 | | |
| 0.46 | | |
| 3,883.9 | % |
| Non-GAAP net income per ADS attributable to TAL – diluted | |
| 0.01 | | |
| 0.45 | | |
| 3,899.7 | % |
| | |
Fiscal Year Ended | |
| | |
February 28, | |
| | |
2025 | | |
2026 | | |
Pct. Change | |
| Net revenues | |
| 2,250,233 | | |
| 3,008,908 | | |
| 33.7 | % |
| (Loss)/income from operations | |
| (3,155 | ) | |
| 276,039 | | |
| (8,849.3 | )% |
| Non-GAAP income from operations | |
| 61,784 | | |
| 319,132 | | |
| 416.5 | % |
| Net income attributable to TAL | |
| 84,591 | | |
| 530,751 | | |
| 527.4 | % |
| Non-GAAP net income attributable to TAL | |
| 149,530 | | |
| 573,844 | | |
| 283.8 | % |
| Net income per ADS attributable to TAL – basic | |
| 0.14 | | |
| 0.93 | | |
| 565.5 | % |
| Net income per ADS attributable to TAL – diluted | |
| 0.14 | | |
| 0.92 | | |
| 567.4 | % |
| Non-GAAP net income per ADS attributable to TAL – basic | |
| 0.25 | | |
| 1.00 | | |
| 307.0 | % |
| Non-GAAP net income per ADS attributable to TAL – diluted | |
| 0.24 | | |
| 0.99 | | |
| 308.2 | % |
"We concluded fiscal year 2026
with solid progress across our core businesses. We have expanded our reach to more users and strengthened engagement by enhancing our
offerings and operational capabilities. This has also enabled us to better serve the evolving needs of learners, " said Alex Peng,
TAL’s President & Chief Financial Officer.
Mr. Peng added,
"As we enter fiscal year 2027, we remain focused on driving quality growth across our business lines. We will also continue to strengthen
our operational execution to support long-term efficiency improvements."
Financial Results for the Fourth Quarter of Fiscal Year
2026
Net Revenues
In the fourth quarter
of fiscal year 2026, TAL reported net revenues of US$802.4 million, representing a 31.5% increase from US$610.2 million in the fourth
quarter of fiscal year 2025.
Operating
Costs and Expenses
In the fourth quarter
of fiscal year 2026, operating costs and expenses were US$729.9 million, representing a 16.6% increase from US$626.3 million in the fourth
quarter of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$720.2 million,
representing a 17.7% increase from US$611.9 million in the fourth quarter of fiscal year 2025.
Cost of revenues
increased by 28.2% to US$375.2 million from US$292.6 million in the fourth quarter of fiscal year 2025. Non-GAAP cost of revenues, which
excluded share-based compensation expenses, increased by 28.5% to US$374.8 million, from US$291.7 million in the fourth quarter of fiscal
year 2025.
Selling and marketing
expenses increased by 1.4% to US$220.9 million from US$218.0 million in the fourth quarter of fiscal year 2025. Non-GAAP selling and
marketing expenses, which excluded share-based compensation expenses, increased by 2.0% to US$218.5 million, from US$214.3 million in
the fourth quarter of fiscal year 2025.
General and administrative
expenses increased by 15.7% to US$133.8 million from US$115.6 million in the fourth quarter of fiscal year 2025. Non-GAAP general and
administrative expenses, which excluded share-based compensation expenses, increased by 19.7% to US$126.8 million, from US$106.0 million
in the fourth quarter of fiscal year 2025.
Total share-based
compensation expenses allocated to the related operating costs and expenses decreased by 31.9% to US$9.8 million in the fourth quarter
of fiscal year 2026 from US$14.3 million in the same period of fiscal year 2025.
Gross Profit
Gross profit increased
by 34.5% to US$427.2 million from US$317.6 million in the fourth quarter of fiscal year 2025. The gross margin for the fourth quarter
of fiscal year 2026 was 53.2%, compared to 52.0% in the same period of the prior year.
(Loss)/Income from Operations
Income from operations
was US$72.5 million in the fourth quarter of fiscal year 2026, compared to loss from operations of US$16.0 million in the fourth quarter
of fiscal year 2025. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$82.2 million, compared
to Non-GAAP loss from operations of US$1.7 million in the same period of the prior year.
Other Income
Other income was US$275.0 million for
the fourth quarter of fiscal year 2026, compared to other income of US$13.0 million in the fourth quarter of fiscal year 2025. The change
in other income for the fourth quarter was mainly driven by fluctuations in the fair value of certain investments.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments
was US$41.4 million in the fourth quarter of fiscal year 2026, compared to US$4.2 million in the fourth quarter of fiscal year 2025.
Income Tax Expense
Income tax expense
was US$77.0 million in the fourth quarter of fiscal year 2026, compared to income tax expense of US$14.0 million in the fourth quarter
of fiscal year 2025.
Net (Loss)/Income Attributable
to TAL Education Group
Net income attributable
to TAL was US$244.8 million in the fourth quarter of fiscal year 2026, compared to net loss attributable to TAL of US$7.3 million in
the fourth quarter of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
US$254.5 million, compared to Non-GAAP net income attributable to TAL of US$7.0 million in the fourth quarter of fiscal year 2025.
Basic and Diluted Net (Loss)/Income
per ADS
Basic and diluted
net income per ADS were both US$0.44, in the fourth quarter of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which
excluded share-based compensation expenses, were US$0.46 and US$0.45, respectively, in the fourth quarter of fiscal year 2026.
Cash Flow
Net cash used in
operating activities for the fourth quarter of fiscal year 2026 was US$215.0 million.
Cash, Cash Equivalents, and Short-Term
Investments
As of February
28, 2026, the Company had US$1,523.9 million of cash and cash equivalents and US$1,715.4 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 February
28, 2026, the Company’s deferred revenue balance was US$882.2 million, compared to US$671.2 million as of February 28, 2025.
Financial Results for the Fiscal
Year Ended February 28, 2026
Net Revenues
In fiscal year 2026, TAL reported net
revenues of US$3,008.9 million, representing a 33.7% increase from US$2,250.2 million in fiscal year 2025.
Operating Costs and Expenses
In fiscal year 2026, operating costs
and expenses were US$2,732.9 million, representing a 21.3% increase from US$2,253.4 million in fiscal year 2025. Non-GAAP
operating costs and expenses, which excluded share-based compensation expenses, were US$2,689.8 million, representing a 22.9% increase
from US$2,188.4 million in fiscal year 2025.
Cost of revenues increased by 27.9%
to US$1,343.4 million from US$1,050.0 million in fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based
compensation expenses, increased by 28.6% to US$1,341.6 million from US$1,043.6 million in fiscal year 2025.
Selling and marketing expenses increased
by 18.7% to US$889.1 million from US$748.8 million in fiscal year 2025. Non-GAAP selling and marketing expenses,
which excluded share-based compensation expenses, increased by 19.9% to US$878.2 million from US$732.6 million in
fiscal year 2025.
General and administrative expenses
increased by 10.1% to US$500.4 million from US$454.7 million in fiscal year 2025. Non-GAAP general and administrative expenses,
which excluded share-based compensation expenses, increased by 14.0% to US$470.0 million from US$412.2 million in fiscal year 2025.
Total share-based compensation expenses
allocated to the related operating costs and expenses decreased by 33.6% to US$43.1 million in fiscal year 2026 from US$64.9 million
in fiscal year 2025.
Gross Profit
Gross profit increased by 38.8% to US$1,665.5
million from US$1,200.3 million in fiscal year 2025. The gross margin in fiscal year 2026 was 55.4%, compared to 53.3%
in the prior year.
(Loss)/Income from Operations
Income from operations was US$276.0
million in fiscal year 2026, compared to loss from operations of US$3.2 million in the prior year. Non-GAAP income from
operations, which excluded share-based compensation expenses, was US$319.1 million, compared to US$61.8 million Non-GAAP income
from operations in the prior year.
Other Income
Other income was US$390.2 million in
fiscal year 2026, compared to other income of US$64.7 million in the prior year. The change in other income in fiscal year 2026 was mainly
driven by fluctuations in the fair value of certain investments.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments
was US$42.8 million in fiscal year 2026, compared to US$12.9 million in fiscal year 2025.
Income Tax Expense
Income tax expense was US$154.4
million in fiscal year 2026, compared to US$38.3 million of income tax expense in fiscal year 2025.
Net (Loss)/Income Attributable
to TAL Education Group
Net income attributable to TAL was US$530.8
million in fiscal year 2026, compared to net income attributable to TAL of US$84.6 million in fiscal year 2025. Non-GAAP
net income attributable to TAL, which excluded share-based compensation expenses, was US$573.8 million, compared to US$149.5
million Non-GAAP net income attributable to TAL in the prior year.
Basic and Diluted Net (Loss)/Income
per ADS
Basic and diluted net income per ADS
were US$0.93 and US$0.92, respectively, in fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based
compensation expenses, were US$1.00 and US$0.99, respectively, in fiscal year 2026.
Cash Flow
Net cash provided
by operating activities in fiscal year 2026 was US$601.5 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 January 29, 2026 and April 22, 2026, the Company has repurchased 101,371 common shares
at an aggregate consideration of approximately US$3.3 million.
Change to the Management Team
Effective April 22, 2026, Mr. Mi Tian
has stepped down as Chief Technology Officer and transitioned to Senior Vice President. Mr. Tian will focus on selected technology initiatives
in his new capacity.
Conference Call
The Company will
host a conference call and live webcast to discuss its financial results for the fourth fiscal quarter of fiscal year 2026 ended February
28, 2026 at 8:00 a.m. Eastern Time on April 23, 2026 (8:00 p.m. Beijing time on April 23, 2026).
Please note that you will need to pre-register
for conference call participation at https://dpregister.com/sreg/10208034/103bc38d804.
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,
2025 |
|
|
As of
February 28,
2026 |
|
| ASSETS |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
1,771,260 |
|
|
$ |
1,523,879 |
|
| Restricted cash, current |
|
|
187,846 |
|
|
|
227,551 |
|
| Short-term investments |
|
|
1,847,120 |
|
|
|
1,715,446 |
|
| Inventory, net |
|
|
104,876 |
|
|
|
143,326 |
|
| Amounts due from related parties, current |
|
|
37 |
|
|
|
46 |
|
| Prepaid expenses and other current assets |
|
|
215,781 |
|
|
|
232,870 |
|
| Total current assets |
|
|
4,126,920 |
|
|
|
3,843,118 |
|
| Restricted cash, non-current |
|
|
32,625 |
|
|
|
34,608 |
|
| Property and equipment, net |
|
|
472,366 |
|
|
|
500,710 |
|
| Deferred tax assets |
|
|
3,487 |
|
|
|
3,170 |
|
| Rental deposits |
|
|
22,131 |
|
|
|
28,058 |
|
| Intangible assets, net |
|
|
394 |
|
|
|
45,975 |
|
| Goodwill |
|
|
155 |
|
|
|
45,545 |
|
| Land use rights, net |
|
|
182,880 |
|
|
|
189,779 |
|
| Amounts due from related parties, non-current |
|
|
96 |
|
|
|
134 |
|
| Long-term investments |
|
|
305,105 |
|
|
|
828,249 |
|
| Long-term prepayments and other non-current assets |
|
|
27,844 |
|
|
|
37,216 |
|
| Operating lease right-of-use assets |
|
|
329,064 |
|
|
|
379,727 |
|
| Total assets |
|
$ |
5,503,067 |
|
|
$ |
5,936,289 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
146,300 |
|
|
$ |
152,513 |
|
| Deferred revenue, current |
|
|
624,272 |
|
|
|
832,839 |
|
| Amounts due to related parties, current |
|
|
93 |
|
|
|
97 |
|
| Accrued expenses and other current liabilities |
|
|
582,227 |
|
|
|
672,344 |
|
| Operating lease liabilities, current |
|
|
88,453 |
|
|
|
109,393 |
|
| Total current liabilities |
|
|
1,441,345 |
|
|
|
1,767,186 |
|
| Deferred revenue, non-current |
|
|
46,955 |
|
|
|
49,353 |
|
| Deferred tax liabilities |
|
|
3,474 |
|
|
|
67,981 |
|
| Operating lease liabilities, non-current |
|
|
244,895 |
|
|
|
278,083 |
|
| Total liabilities |
|
|
1,736,669 |
|
|
|
2,162,603 |
|
| |
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
|
|
| Class A common shares |
|
|
154 |
|
|
|
156 |
|
| Class B common shares |
|
|
49 |
|
|
|
49 |
|
| Treasury stock |
|
|
- |
|
|
|
(20 |
) |
| Additional paid-in capital |
|
|
4,294,819 |
|
|
|
3,694,418 |
|
| Statutory reserve |
|
|
179,537 |
|
|
|
216,638 |
|
| Accumulated deficit |
|
|
(624,078 |
) |
|
|
(130,428 |
) |
| Accumulated other comprehensive loss |
|
|
(83,914 |
) |
|
|
(6,376 |
) |
| Total TAL Education Group's equity |
|
|
3,766,567 |
|
|
|
3,774,437 |
|
| Non-controlling interests |
|
|
(169 |
) |
|
|
(751 |
) |
| Total equity |
|
|
3,766,398 |
|
|
|
3,773,686 |
|
| Total liabilities and equity |
|
$ |
5,503,067 |
|
|
$ |
5,936,289 |
|
| |
|
|
|
|
|
|
|
|
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
February 28, | | |
For the Fiscal Year Ended February 28, | |
| | |
2025 | | |
2026 | | |
2025 | | |
2026 | |
| Net revenues | |
$ | 610,239 | | |
$ | 802,389 | | |
$ | 2,250,233 | | |
$ | 3,008,908 | |
| Cost of revenues (note 1) | |
| 292,646 | | |
| 375,158 | | |
| 1,049,975 | | |
| 1,343,430 | |
| Gross profit | |
| 317,593 | | |
| 427,231 | | |
| 1,200,258 | | |
| 1,665,478 | |
| Operating expenses (note 1) | |
| | | |
| | | |
| | | |
| | |
| Selling and marketing | |
| 217,981 | | |
| 220,931 | | |
| 748,750 | | |
| 889,053 | |
| General and administrative (note 2) | |
| 115,627 | | |
| 133,827 | | |
| 454,663 | | |
| 500,386 | |
| Total operating expenses | |
| 333,608 | | |
| 354,758 | | |
| 1,203,413 | | |
| 1,389,439 | |
| (Loss)/income from operations | |
| (16,015 | ) | |
| 72,473 | | |
| (3,155 | ) | |
| 276,039 | |
| Interest income, net | |
| 19,072 | | |
| 14,817 | | |
| 83,482 | | |
| 62,030 | |
| Other income | |
| 12,950 | | |
| 275,016 | | |
| 64,717 | | |
| 390,155 | |
| Impairment loss on long-term investments | |
| (4,241 | ) | |
| (41,404 | ) | |
| (12,933 | ) | |
| (42,814 | ) |
| Income before income tax expense and (loss)/income from equity method investments | |
| 11,766 | | |
| 320,902 | | |
| 132,111 | | |
| 685,410 | |
| Income tax expense | |
| (13,972 | ) | |
| (76,952 | ) | |
| (38,320 | ) | |
| (154,417 | ) |
| (Loss)/income from equity method investments | |
| (5,194 | ) | |
| 440 | | |
| (9,531 | ) | |
| (855 | ) |
| Net (loss)/income | |
$ | (7,400 | ) | |
$ | 244,390 | | |
$ | 84,260 | | |
$ | 530,138 | |
| Add: Net loss attributable to non-controlling interests | |
| 89 | | |
| 400 | | |
| 331 | | |
| 613 | |
| Total net (loss)/income attributable to TAL Education Group | |
$ | (7,311 | ) | |
$ | 244,790 | | |
$ | 84,591 | | |
$ | 530,751 | |
| Net (loss)/income per common share | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.04 | ) | |
$ | 1.33 | | |
$ | 0.42 | | |
$ | 2.79 | |
| Diluted | |
| (0.04 | ) | |
| 1.31 | | |
| 0.41 | | |
| 2.75 | |
| Net (loss)/income per ADS (note 3) | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.01 | ) | |
$ | 0.44 | | |
$ | 0.14 | | |
$ | 0.93 | |
| Diluted | |
| (0.01 | ) | |
| 0.44 | | |
| 0.14 | | |
| 0.92 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares used in calculating net (loss)/income per common share | |
| | |
| | |
| | |
| |
| Basic | |
| 202,627,554 | | |
| 184,629,323 | | |
| 201,963,823 | | |
| 190,420,468 | |
| Diluted | |
| 202,627,554 | | |
| 186,620,660 | | |
| 205,222,753 | | |
| 192,925,293 | |
Note1: Share-based compensation expenses
are included in the operating costs and expenses as follows:
| | |
For the Three Months | | |
For the Fiscal Year | |
| | |
Ended February 28, | | |
Ended February 28, | |
| | |
2025 | | |
2026 | | |
2025 | | |
2026 | |
| Cost of revenues | |
$ | 963 | | |
$ | 362 | | |
$ | 6,389 | | |
$ | 1,874 | |
| Selling and marketing expenses | |
| 3,691 | | |
| 2,386 | | |
| 16,101 | | |
| 10,839 | |
| General and administrative expenses | |
| 9,669 | | |
| 7,003 | | |
| 42,449 | | |
| 30,380 | |
| Total | |
$ | 14,323 | | |
$ | 9,751 | | |
$ | 64,939 | | |
$ | 43,093 | |
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 (loss)/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 February 28, | | |
For the Fiscal Year Ended February 28, | |
| | |
2025 | | |
2026 | | |
2025 | | |
2026 | |
| Net (loss)/income | |
$ | (7,400 | ) | |
$ | 244,390 | | |
$ | 84,260 | | |
$ | 530,138 | |
| Other comprehensive (loss)/income, net of tax | |
| (13,376 | ) | |
| 39,844 | | |
| (17,724 | ) | |
| 77,569 | |
| Comprehensive (loss)/income | |
| (20,776 | ) | |
| 284,234 | | |
| 66,536 | | |
| 607,707 | |
| Add: Comprehensive loss attributable to non-controlling interests | |
| 44 | | |
| 387 | | |
| 69 | | |
| 582 | |
| Comprehensive (loss)/income attributable to TAL Education Group | |
$ | (20,732 | ) | |
$ | 284,621 | | |
$ | 66,605 | | |
$ | 608,289 | |
TAL EDUCATION
GROUP
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
Cash
flows
(In thousands
of U.S. dollars)
| | |
For the Three Months Ended February 28, | | |
For the Fiscal Year Ended February 28, | |
| | |
2025 | | |
2026 | | |
2025 | | |
2026 | |
| Net cash (used in)/provided by operating activities | |
$ | (226,332 | ) | |
$ | (214,965 | ) | |
$ | 397,923 | | |
$ | 601,467 | |
| Net cash used in investing activities | |
| (314,289 | ) | |
| (475,945 | ) | |
| (847,028 | ) | |
| (175,746 | ) |
| Net cash used in financing activities | |
| (55,104 | ) | |
| (18,937 | ) | |
| (13,167 | ) | |
| (643,512 | ) |
| Effect of exchange rate changes | |
| (998 | ) | |
| 10,284 | | |
| (3,473 | ) | |
| 12,098 | |
| Net decrease in cash, cash equivalents and restricted cash | |
| (596,723 | ) | |
| (699,563 | ) | |
| (465,745 | ) | |
| (205,693 | ) |
| Cash, cash equivalents and restricted cash at the beginning of period | |
| 2,588,454 | | |
| 2,485,601 | | |
| 2,457,476 | | |
| 1,991,731 | |
| Cash, cash equivalents and restricted cash at the end of period | |
$ | 1,991,731 | | |
$ | 1,786,038 | | |
$ | 1,991,731 | | |
$ | 1,786,038 | |
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 February 28, | | |
For the Fiscal Year Ended February 28, | |
| | |
2025 | | |
2026 | | |
2025 | | |
2026 | |
| Cost of revenues | |
$ | 292,646 | | |
$ | 375,158 | | |
$ | 1,049,975 | | |
$ | 1,343,430 | |
| Share-based compensation expenses in cost of revenues | |
| 963 | | |
| 362 | | |
| 6,389 | | |
| 1,874 | |
| Non-GAAP cost of revenues | |
| 291,683 | | |
| 374,796 | | |
| 1,043,586 | | |
| 1,341,556 | |
| | |
| | | |
| | | |
| | | |
| | |
| Selling and marketing expenses | |
| 217,981 | | |
| 220,931 | | |
| 748,750 | | |
| 889,053 | |
| Share-based compensation expenses in selling and marketing expenses | |
| 3,691 | | |
| 2,386 | | |
| 16,101 | | |
| 10,839 | |
| Non-GAAP selling and marketing expenses | |
| 214,290 | | |
| 218,545 | | |
| 732,649 | | |
| 878,214 | |
| | |
| | | |
| | | |
| | | |
| | |
| General and administrative expenses(note 2) | |
| 115,627 | | |
| 133,827 | | |
| 454,663 | | |
| 500,386 | |
| Share-based compensation expenses in general and administrative expenses | |
| 9,669 | | |
| 7,003 | | |
| 42,449 | | |
| 30,380 | |
| Non-GAAP general and administrative expenses(note 2) | |
| 105,958 | | |
| 126,824 | | |
| 412,214 | | |
| 470,006 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating costs and expenses | |
| 626,254 | | |
| 729,916 | | |
| 2,253,388 | | |
| 2,732,869 | |
| Share-based compensation expenses in operating costs and expenses | |
| 14,323 | | |
| 9,751 | | |
| 64,939 | | |
| 43,093 | |
| Non-GAAP operating costs and expenses | |
| 611,931 | | |
| 720,165 | | |
| 2,188,449 | | |
| 2,689,776 | |
| | |
| | | |
| | | |
| | | |
| | |
| (Loss)/income from operations | |
| (16,015 | ) | |
| 72,473 | | |
| (3,155 | ) | |
| 276,039 | |
| Share-based compensation expenses | |
| 14,323 | | |
| 9,751 | | |
| 64,939 | | |
| 43,093 | |
| Non-GAAP (loss)/income from operations | |
| (1,692 | ) | |
| 82,224 | | |
| 61,784 | | |
| 319,132 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net (loss)/income attributable to TAL Education Group | |
| (7,311 | ) | |
| 244,790 | | |
| 84,591 | | |
| 530,751 | |
| Share-based compensation expenses | |
| 14,323 | | |
| 9,751 | | |
| 64,939 | | |
| 43,093 | |
| Non-GAAP net income attributable to TAL Education Group (note 4) | |
$ | 7,012 | | |
$ | 254,541 | | |
$ | 149,530 | | |
$ | 573,844 | |
| | |
| | |
| | |
| | |
| |
| Net (loss)/income per ADS | |
| | |
| | |
| | |
| |
| Basic | |
$ | (0.01 | ) | |
$ | 0.44 | | |
$ | 0.14 | | |
$ | 0.93 | |
| Diluted | |
| (0.01 | ) | |
| 0.44 | | |
| 0.14 | | |
| 0.92 | |
| Non-GAAP net income per ADS | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 0.01 | | |
$ | 0.46 | | |
$ | 0.25 | | |
$ | 1.00 | |
| Diluted | |
| 0.01 | | |
| 0.45 | | |
| 0.24 | | |
| 0.99 | |
| ADSs used in calculating net (loss)/income per ADS | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 607,882,662 | | |
| 553,887,969 | | |
| 605,891,469 | | |
| 571,261,404 | |
| Diluted | |
| 607,882,662 | | |
| 559,861,980 | | |
| 615,668,259 | | |
| 578,775,879 | |
| ADSs used in calculating Non-GAAP net income per ADS | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 607,882,662 | | |
| 553,887,969 | | |
| 605,891,469 | | |
| 571,261,404 | |
| Diluted | |
| 616,868,733 | | |
| 559,861,980 | | |
| 615,668,259 | | |
| 578,775,879 | |
Note 4: The tax
effect of share-based compensation expenses was immaterial in the fourth quarter and in fiscal year 2026.
