Sunlands second quarter revenue falls to RMB406 million

• Sunlands Technology Group (NYSE:STG) reported Q2 2026 net revenues of RMB406.4 million, down 24.6% year-over-year.
• Net income declined to RMB83.5 million, while the company maintained its 21st consecutive profitable quarter.
• Sunlands expects Q3 2026 revenue of RMB330–350 million and continues its US$50 million share repurchase programme.

Sunlands Technology Group (NYSE:STG) reported second quarter 2026 net revenues of RMB406.4 million, down 24.6% year-over-year, while net income declined to RMB83.5 million from RMB126.6 million in the prior-year period.

The results reflected lower new student enrollments, which fell to 95,280 from 159,154, while the company reduced operating expenses and maintained profitability compared with the previous year.

Sunlands reported gross profit of RMB349.2 million, down 25.6% year-over-year, while operating expenses decreased 22.5% to RMB265.7 million and cash, cash equivalents and short-term investments totaled RMB857.5 million as of June 30, 2026.

For the third quarter of 2026, Sunlands expects net revenues of RMB330 million to RMB350 million, representing a company-provided projected decline of 33.1% to 36.9% year-over-year.

Sunlands authorized a US$50 million share repurchase programme in May 2026 and had repurchased 680,353 ADSs for approximately US$2.3 million by August 17, 2026, while continuing its online education operations in China.