Gaotu Techedu narrows annual loss as AI strategy drives 35% revenue growth

Gaotu Techedu (NYSE:GOTU) reported a 35% increase in annual revenue and a sharp narrowing of its net loss for fiscal year 2025, as the company’s pivot toward AI-integrated learning solutions began to deliver sustained operating leverage.

For the full year ended Dec. 31, 2025, the Beijing-based company posted net revenues of RMB6,146.8 million ($865.8 million), up from RMB4,553.6 million in the prior year.

Gross billings for the year rose 23% to RMB6,903.7 million.

Notably, the company’s net loss saw a dramatic improvement, shrinking to RMB323.3 million from a loss of over RMB1 billion in 2024.

Management attributed the improved performance to five consecutive quarters of operating leverage and a deepened focus on "All with AI" initiatives.

In the fourth quarter specifically, revenues reached RMB1,685.3 million, while the net loss narrowed to RMB84.2 million.

The company also demonstrated a stronger cash position, with annual operating cash inflow rising to RMB416.1 million.

Reflecting confidence in its long-term trajectory, Gaotu executed an aggressive capital return strategy, repurchasing approximately RMB670 million in shares—equivalent to roughly 12.8% of its total outstanding stock.

Looking ahead, the company issued a first-quarter 2026 revenue guidance of between RMB1,578 million and RMB1,598 million, signaling continued year-over-year momentum.