Youdao Q4 Earnings Call Highlights

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MarketBeat

Wed, February 11, 2026 astatine 6:35 AM CST 7 min read

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Financials and currency flow: Q4 nett gross was RMB 1.6 cardinal (up 16.8% YoY) and operating nett reached RMB 60.2 million, marking the sixth consecutive profitable quarter, portion full-year 2025 gross roseate to RMB 5.9 cardinal and the institution recorded its archetypal yearly affirmative operating currency travel of RMB 55.2 million.
AI-driven learning rebound: Learning services returned to growth—Q4 learning gross roseate 17.7% to RMB 727.2 million—with AI-driven subscriptions exceeding RMB 100 cardinal successful Q4 (up >80% YoY) and full-year subscription income adjacent RMB 400 million, supported by products similar Youdao Lingshi, ScholarAI, and planned AI essay-grading tools powered by the “Confucius” LLM.
Strong online selling momentum: Online selling gross grew 37.2% successful Q4 to RMB 660.9 million, driven by request from NetEase, overseas markets, gaming (+50% YoY) and high-growth AI apps, alongside planetary KOL enlargement and continued concern successful AI ad-optimization tools.
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Youdao (NYSE:DAO) reported fourth-quarter 2025 nett revenues of RMB 1.6 billion, up 16.8% twelvemonth implicit year, arsenic absorption highlighted improving currency travel and continued profitability alongside accelerating momentum successful learning services and online marketing. Net currency provided by operating activities was RMB 184.2 cardinal successful the quarter, up 16.4% from the anterior twelvemonth period, portion operating nett reached RMB 60.2 million, marking the company’s sixth consecutive 4th of operating profitability.

For full-year 2025, Youdao said full nett revenues roseate 5% twelvemonth implicit twelvemonth to RMB 5.9 billion. Operating nett accrued 48.7% to RMB 221.3 million. Management besides emphasized that 2025 was the archetypal twelvemonth the institution generated affirmative nett operating currency travel connected an yearly basis, with RMB 55.2 cardinal of currency provided by operating activities compared with RMB 67.9 cardinal of currency utilized successful 2024.

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VP of Finance Wei Li said the company’s 2026 nonsubjective is to “achieve faster maturation successful operating profit” and physique operating currency travel to a “more meaningful and important level.” He added that absorption would not “blindly tighten expenditures” solely to execute affirmative full currency flow, describing a absorption connected balancing strategical concern with outgo discipline.

In the 4th quarter, learning services nett revenues grew 17.7% twelvemonth implicit twelvemonth to RMB 727.2 million, which CEO Feng Zhou attributed to the conception returning to a maturation trajectory pursuing the completion of strategical restructuring. Within the segment, integer contented services contributed RMB 436.1 million, up 12.2% twelvemonth implicit year.