17 Education Q2 revenue jumps 255%, turns profit
YQ delivered triple-digit revenue growth and its first quarterly profit while continuing to invest heavily in AI-powered education services.
Rhea-AI Filing Summary
17 Education & Technology Group Inc. (YQ) reported a sharp turnaround for the quarter ended June 30, 2026, with net revenues of RMB90.1 million, up 254.6% year over year, and moving from a net loss to a small net profit of RMB1.1 million as net margin improved to 1.2%.
Gross margin expanded to 69.2% from 57.5%, driven by growth of Yiqi Aixue, its consumer-facing AI application, and a more favorable revenue mix. Operating expenses rose 46.2% as the company increased sales, marketing and R&D investments, yet adjusted net income reached RMB4.7 million, and cash, restricted cash and term deposits increased to RMB456.9 million, supporting ongoing AI-driven product development.
Positive
- Net revenues rose 254.6% year over year in Q2 2026 to RMB90.1 million, showing strong traction for the AI-powered Yiqi Aixue service and related education projects.
- First quarterly profitability achieved, with Q2 2026 net income of RMB1.1 million versus a RMB26.0 million loss a year earlier, and adjusted net income turning to RMB4.7 million from an RMB18.9 million adjusted loss.
- Gross margin improved to 69.2% in Q2 2026 from 57.5% in Q2 2025, reflecting a more profitable revenue mix and scaling of AI application services.
- Cash, restricted cash and term deposits increased to RMB456.9 million as of June 30, 2026 from RMB407.0 million at year-end 2025, indicating a stronger liquidity position to fund ongoing operations and innovation.
Negative
- The company remained loss-making for the first half of 2026, with a net loss of RMB18.3 million and adjusted net loss of RMB10.4 million despite strong quarterly improvements.
- Operating expenses grew 46.2% year over year in Q2 2026 to RMB63.0 million, with sales and marketing up 92.2% and R&D up 66.8%, keeping operating margin slightly negative.
- Shareholders’ equity declined to RMB270.2 million as of June 30, 2026 from RMB286.6 million at December 31, 2025, as cumulative losses continued to weigh on the equity base.
Filing Explained
Quarterly net profit was achieved, but operating loss and first-half net loss show the improvement had not yet extended across 2026.
The company’s September 9 Form 6-K reports unaudited second-quarter net income of
Adjusted net income is a non-GAAP measure that excludes share-based compensation; it was
Key Figures
Key Terms
adjusted net income (loss) (non-GAAP) financial
gross margin financial
deferred revenue and advances from customers financial
ADS financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did 17 Education & Technology Group Inc. (YQ) perform financially in Q2 2026?
Did YQ achieve profitability in the second quarter of 2026?
What were YQ’s revenues and losses for the first half of 2026?
How strong was 17 Education & Technology Group Inc.’s (YQ) balance sheet at June 30, 2026?
What drove YQ’s revenue growth in Q2 2026?
How did operating expenses change for YQ in Q2 2026?
What gross margin did 17 Education & Technology Group Inc. (YQ) report for the first half of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month September 2026
Commission File Number 001-39742
17 EDUCATION & TECHNOLOGY GROUP INC.
(Translation of registrant’s name into English)
16/F, Block B, Wangjing Greenland Center
Chaoyang District, Beijing 100102
People’s Republic of China
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F
EXHIBIT INDEX
Exhibit No. |
Description |
Exhibit 99.1 |
Press Release—17 Education & Technology Group Inc. Announces Second Quarter 2026 Unaudited Financial Results |
SIGNATURES
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.
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17 EDUCATION & TECHNOLOGY GROUP INC. |
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By: |
/s/ Sishi Zhou |
|
Name: |
Sishi Zhou |
|
Title: |
Chief Financial Officer |
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|
Date: September 9, 2026 |
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Exhibit 99.1
17 Education & Technology Group Inc. Announces Second Quarter
2026 Unaudited Financial Results
BEIJING, China, September 9, 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
First Half 2026 Highlights1
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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. |
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1
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 254.6% year over year and both GAAP and non-GAAP profitability achieved for the first time. More importantly, these results further validate our strategic transformation into an AI-powered application service provider and demonstrate the scalability and operating leverage of our evolving business model.”
“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 69.2%, while continued revenue growth and disciplined cost management enabled us to achieve our first quarterly GAAP net profit. We are particularly encouraged that this improvement was achieved while continuing to invest in AI capabilities and product innovation.”
“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$13.3 million), representing a year-over-year increase of 254.6% from RMB25.4 million in the second quarter of 2025. The substantial revenue growth was primarily driven by the continued expansion of Yiqi Aixue, the Company's consumer-facing AI application service, together with ongoing contributions from district-level and school-based projects.
Cost of Revenues
Cost of revenues for the second quarter of 2026 was RMB27.8 million (US$4.1 million), representing a year-over-year increase of 157.2% from RMB10.8 million in the second quarter of 2025, which was mainly due to the increased related service delivery costs, driven by the continued growth of Yiqi Aixue.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2026 was RMB62.3 million (US$9.2 million), compared with RMB14.6 million in the second quarter of 2025.
Gross margin for the second quarter of 2026 was 69.2%, compared with 57.5% in the second quarter of 2025, representing an improvement of 11.7 percentage points. The increase in gross margin was primarily attributable to the growing contribution of Yiqi Aixue, the Company's consumer-facing AI application service and the continued optimization of the Company's revenue mix.
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$9.3 million), including RMB3.6 million (US$0.5 million) of share-based compensation expenses, representing a year-over-year increase of 46.2% from RMB43.1 million in the second quarter of 2025.
2
Sales and marketing expenses for the second quarter of 2026 were RMB26.9 million (US$4.0 million), including RMB1.1 million (US$0.2 million) of share-based compensation expenses, representing a year-over-year increase of 92.2% from RMB14.0 million in the second quarter of 2025. The increase was primarily attributable to increased sales and marketing investment activities in support of the continued expansion of Yiqi Aixue.
Research and development expenses for the second quarter of 2026 were RMB20.0 million (US$3.0 million), including RMB0.9 million (US$0.1 million) of share-based compensation expenses, representing a year-over-year increase of 66.8% from RMB12.0 million in the second quarter of 2025. The increase in research and development expenses was primarily attributable to higher personnel-related costs associated with research and development activities to support a broader range of AI application scenarios.
General and administrative expenses for the second quarter of 2026 were RMB16.0 million (US$2.4 million), including RMB1.5 million (US$0.2 million) of share-based compensation expenses, representing a year-over-year decrease of 6.1% from RMB17.1 million in the second quarter of 2025. The decrease was primarily attributable to lower share-based compensation expenses and disciplined cost management.
Loss from Operations
Loss from operations for the second quarter of 2026 was RMB0.6 million (US$0.1 million), compared with RMB28.5 million in the second quarter of 2025. Loss from operations as a percentage of net revenues for the second quarter of 2026 was negative 0.7%, compared with negative 112.0% in the second quarter of 2025.
Net Income (Loss)
Net income for the second quarter of 2026 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 negative 102.1% in the second quarter of 2025.
Adjusted Net Income (Loss) (non-GAAP)
Adjusted net income (non-GAAP) for the second quarter of 2026 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 negative 74.3% of adjusted net loss (non-GAAP) as a percentage of net revenues in the second quarter of 2025.
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 deposit were RMB456.9 million (US$67.3 million) as of June 30, 2026, compared with RMB407.0 million as of December 31, 2025.
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.
3
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$1.00=RMB6.7851 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on June 30, 2026. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2026, or at any other rate.
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
4
17 EDUCATION & TECHNOLOGY GROUP INC. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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|||||||||||
(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 |
|
5
|
|
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 |
|
6
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 |
|
|
|
|
|
|
|
|
|
|||
of 17 Education & Technology Group Inc. |
|
|
(25,952 |
) |
|
|
1,106 |
|
|
|
163 |
|
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) |
|
|
|
|
|
|
|
|
|
|||
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. |
|
|
|
|
|
|
|
|
|
|||
7
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 |
|
8
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 |
|
|
(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 |
|
|
|
|
|
|
|
|
|
|||
Education & Technology Group Inc. |
|
|
(56,896 |
) |
|
|
(18,252 |
) |
|
|
(2,690 |
) |
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 loss per |
|
|
|
|
|
|
|
|
|
|||
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. |
|
|
|
|
|
|
|
|
|
|||
9
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 |
) |
10