Gaotu Q4 2025 and Annual Financial Reports: Full-year revenue increased by 35%, exceeding targets, with continuous improvement in operational quality

On March 5, 2026, Goto Group (NYSE: GOTU) released its financial report for the fourth quarter of fiscal year 2025 and for the full year.

The financial report shows that, as of December 31, 2025, during the fourth quarter, Goto achieved revenue of RMB 1.69 billion, up 21.4% year over year, and cash revenue of RMB 2.57 billion, up 19.1% year over year.

At the same time, as of December 31, 2025, for the full year 2025, Goto achieved revenue of RMB 6.15 billion, up 35.0% year over year, and cash revenue of RMB 6.90 billion, up 23.0% year over year.

Goto Group’s founder, Chairman and CEO Xiangdong Chen said, “2025 was a year in which Goto maintained high-quality development. Improvements in teaching quality, breakthroughs in operating efficiency, and a comprehensive enhancement of organizational capabilities drove us to exceed our annual scale targets. Full-year revenue was RMB 6.15 billion, with a growth rate of 35.0%, exceeding our expectations for revenue scale set at the beginning of the year. Operating net cash flow reached RMB 420 million, an increase of RMB 160 million year over year. After excluding the impact of share repurchases, cash reserves increased by RMB 220 million. In the fourth quarter, while maintaining steady growth, we achieved an operating leverage effect: revenue growth of 21.4%, and year-over-year improvement of 38.0% in net profit and loss driven by efficiency gains. The company has long been committed to enhancing shareholder value. Under the current share repurchase program, the cumulative repurchase value of approximately RMB 670 million in ADS represents 12.8% of total shares outstanding; of this, repurchases in 2025 amounted to RMB 340 million. In 2026, Goto will lead with profitable growth, with improvements in AI capability as the main operating line—All with AI, always AI. By improving business health, operating efficiency, and the long-term accumulation of value, we are committed to becoming an education technology company that accompanies learners as they grow, creating long-term value for shareholders and society.”

Goto Group’s CFO Nan Shen said, “Driven by both growth in scale and improvement in operating efficiency, we have already released operating leverage for five consecutive quarters, resulting in an improvement in net profit and loss. In 2025, the company firmly advanced the deep integration strategy of ‘AI + education.’ By systematically optimizing our product mix and channel structure—using AI technology in vertical domains as the foundation, learning solutions as the core, and AI organizational digitalization to improve efficiency as support—we achieved a significant improvement in teaching products and end-to-end operating efficiency. We focus on user experience, and with AI as a tool and medium, we significantly enhance organizational capability and productivity. From ‘scale growth,’ we are building a new engine for profitable growth driven by efficiency.”

Financial Highlights: Revenue exceeded targets, operating leverage delivered results

Performance beat expectations: fourth-quarter revenue was RMB 1.69 billion, up 21.4% year over year. Full-year 2025 revenue was RMB 6.15 billion, up 35.0% year over year, demonstrating strong market-demand conversion capability and product recognition.

Profitability continued to improve: net profit and loss improved year over year by 38.0% and 69.2% in the fourth quarter and for all of 2025, respectively.

Operating leverage was significant: operating leverage was released for five consecutive quarters, achieving high-quality growth characterized by “efficiency-driven” development.

Healthy cash flow: in the fourth quarter, operating net cash inflow was approximately RMB 970 million, up 23.1% year over year, showing steady improvement in operating efficiency and business health.

Abundant cash reserves: as of December 31, 2025, the total of the company’s cash and cash equivalents, restricted funds, short-term investments, and long-term investments was nearly RMB 4.0 billion. After excluding the impact of ongoing share repurchases on cash, it increased by RMB 220 million year over year, providing a solid foundation for future development and AI investment.

Ongoing share repurchases: as of March 4, 2026, under the two share repurchase programs previously announced, the company had cumulatively repurchased approximately 30.62 million ADS, with a total value of approximately RMB 670 million. Of this, repurchases in 2025 reached RMB 340 million.

Diversified business grew healthily, and the path to profitability remained clear

In 2025, Goto consolidated its foundation and developed steadily. It continued to deepen coordinated development across diversified businesses, including K–12 students, college students, adults, and international education, and actively advanced the “Education +” ecosystem layout. It strengthened localized services and user experience, driving education to evolve toward comprehensive and personalized development.

From a performance perspective, high-quality growth became the main theme. In the fourth quarter, Goto’s revenue grew steadily, and operating leverage was demonstrated for five consecutive quarters, with profitability continuing to improve. For the full year, revenue growth was 35.0%, and net profit and loss improved by more than 69% year over year.

The quality and cultivation business maintained strong momentum throughout the year, becoming an important growth engine for the Group. In the fourth quarter, cash revenue and revenue both grew year over year by more than 30% and 45%, respectively; for the full year, revenue growth exceeded 90%. With the expansion of enrollment-in-progress and the deepening of product value, the profitability of the online business continued to climb. Continuous optimization of the learning experience increased user stickiness and promoted a year-over-year increase in the autumn re-enrollment rate, with the re-enrollment rate for returning students exceeding 75%, demonstrating users’ strong recognition of Goto’s product strength.

The high school business is anchored by “quality and efficiency,” continuing to lead the track. By systematically reshaping service standards and focusing on localized content and curriculum systems, Goto’s high school segment achieved a coordinated breakthrough between products and delivery. The autumn re-enrollment rate continued to rise, and the re-enrollment rate for new students increased by 1.5 percentage points year over year. Leveraging AI big data to precisely optimize the entire process and focusing on localized curricula, the company helped 267 students realize their dreams of getting into Tsinghua or Peking universities over the year, enabling countless students to step into the halls of top universities. By empowering personalized growth with technology, and defining the educational初心 through excellent delivery, Goto’s high school segment continues to lead the high school track, lighting up a deterministic future for countless families.

The college student and adult business focuses on synergy to achieve healthy growth. Taking the college student learning business as an example, around the learning needs of college students at different stages, the company launched innovative product combinations and fully leveraged the synergy effects among course systems. A diversified product matrix effectively extended users’ learning cycles. Both cash revenue and revenue for the college student learning business grew in the low double digits throughout the year, while profit margins steadily improved, reflecting resilient internal growth momentum.

In 2026, Goto will build on the “good teacher” foundation and use AI as the engine to drive high-quality evolution of products and services. Through solid capability building and deep user insights, it will improve business health and operating efficiency, provide learners with personalized growth experiences, and ultimately achieve profitable growth while creating long-term social value.

AI strategy fully implemented, leading intelligent development in education

In 2025, Goto comprehensively deepened its “All with AI, Always AI” strategy, systematically advancing the deep integration of “AI + education,” promoting Goto’s continued high-quality development, achieving improvements in teaching quality, breakthroughs in operating efficiency, and a comprehensive strengthening of organizational capabilities, and driving it to exceed annual scale targets.

Throughout this process, Goto has always adhered to the mission of “rooting in learners and putting good teachers first,” integrating AI deeply into the entire education value chain, all scenarios, and all learner groups, and exploring a “warm” new paradigm for intelligent education.

Founder Xiangdong Chen emphasized that AI is the mandatory answer for education companies to survive. Regarding the combination of education and AI, Goto has always insisted on “education as the foundation and technology as the tool,” building an AI ecosystem across the full lifecycle of learners and creating a three-teacher closed loop of “master teachers delivering instruction + assistant teaching services + AI companionship for study.”

In the “human-AI co-intelligence” mode, teachers remain at the core, and AI empowers every role by providing solutions that combine professional expertise with humanistic care. In this setup, AI is positioned as a “super partner” to enhance teachers and serve students, aiming to address real problems faced by learners rather than replace the human core of education. In actual AI applications, Goto not only focuses on learning outcomes, but also works to strengthen five key pillars: efficiency, experience, habits, motivation, and goals, promoting coordinated cultivation of students’ intellectual development and健全人格.

At the same time, in its AI application efforts, Goto rejects single-point breakthroughs. Instead, it permeates all touchpoints before class, during class, and after class, releasing value in key scenarios. By truly enabling teaching tailored to each student, balancing character shaping with sparking interest, Goto promotes the deep integration of technology and education, bringing education back to its essence of nurturing people.

On the technology side, Goto actively brings in top talent to strengthen the deep integration of education with large-scale models and co-build AI laboratories with universities. On the organizational side, Goto advances “AI for everyone,” establishing dedicated institutions, using data to drive decisions, and using training to spark innovation.

Looking ahead, Goto will uphold long-termism, continue expanding learning scenarios for primary, secondary, and students of all ages, as well as vocational education, international education, and family education. It will deepen the application of AIGC in curriculum generation, intelligent assessment, and emotional companionship. Adhering to the “Love to the power of 3” educational philosophy of “igniting interest + cultivating habits + shaping character,” Goto will move learning experiences from merely “efficient” to genuinely “warm,” making improvement endless.

Professional philanthropy in action, precisely supporting more balanced development of educational resources

In 2025, the Beijing Goto Public Welfare Foundation entered a new stage in the field of philanthropy—more professional and more systematic. In its first year since inception, the foundation focused on educational resource balancing and high-quality development. Its programs have covered 611 county-level districts across the country, 13k schools, and benefited more than 90k teachers and students.

The “Qingyun Ladder” college employment public welfare program went into universities such as Sun Yat-sen University and Beijing Normal University. By providing internship positions, employment assistance grants, mentor groups, and workplace lectures, it helped young people find jobs smoothly;

“I AI Science Class,” jointly with the China Youth Development Foundation, launched a rural science education project in Baise, Guangxi. Through a “curriculum + teacher training + supplies” model and fun “science boxes,” it attracted 18k rural teachers to participate;

“Birth of a Great Lesson,” jointly with Beijing Normal University, systematically improved rural teachers’ capabilities and cultivated “spark teachers” who radiated their peers;

“Longfeng Assistance” donated more than 90k books to Gansu, Yunnan, Inner Mongolia, and other regions, and also customized winter uniforms for students to deliver warmth.

Meanwhile, in response to disasters such as the earthquake in Tibet and floods in Beijing-Tianjin-Hebei, the Goto Public Welfare Foundation responded quickly, donating funds and supplies, and carrying out the original mission of “gathering countless faint lights and lighting up with love” through concrete action.

In 2025, Goto Group worked together with multiple parties, including the Youth League Xin’an County Committee and the Education Bureau of Qixingguan District in Guiyang, to continuously carry out a series of education-related public welfare activities in places including Xin’an, Henan; Zhengzhou; and Bijie, Guizhou.

Launched the winter care event “Goto with Love, Warming the Campus,” delivering warm winter care gift packs to rural teachers and students;

Through the “Dream-Chasing Action,” subsidized 100 aspiring college students from families with financial difficulties, and continued to distribute scholarships;

During “Children’s Day (June 1),” visited multiple elementary schools to donate uniforms, sports equipment, and love gift packs;

Organized outstanding students during the summer to go to Beijing for study tours and cultural tours;

Introduced the innovative “Qingxin Wish Blind Box Plan” to care for the children of delivery riders;

Built the “Bai’ai Island” at the 57th Middle School in Zhengzhou to promote Red Cross culture into schools;

Set up the “Goto Outstanding Teacher Award Program” to incentivize frontline education workers;

Carried out group-based education assistance in Bijie, Guizhou, to improve local teaching standards.

In 2025, Goto conveyed warmth in precise, diversified, and sustainable ways, demonstrating the responsibility and commitment of an education company. In December 2025, Goto Group and the Goto Public Welfare Foundation separately won the “Annual Technology Public Welfare Award” and the “Annual Education Public Welfare Contribution Award,” respectively, at the 15th Public Welfare Festival. Founder Xiangdong Chen received the ONA Award’s “2025 Outstanding Caring Entrepreneur” title.

In the new era led by AI intelligence, Goto deepens the integration of AI with education. By empowering personalized learning through technology, it breaks down regional barriers so that high-quality resources benefit every student. Looking to the future, Goto will stay true to its philanthropic mission, insist that technology promotes development, and, driven by both innovation and public welfare, will promote inclusive, balanced, and high-quality development of education. By creating social value, it will achieve commercial value, contributing solid strength to building an education superpower.