Sunland Education Quarterly Report Infographic: Revenue of 470 million, Net profit of 38.4 million, Down 34% Year-over-Year

Why is AI operating profit increasing but net profit decreasing?

Leidi Network, Leijianping, April 2

Sunland Education ( NYSE: STG ) recently released its financial report as of December 31, 2025. The report shows that Sunland Education’s revenue for 2025 was 2.02 billion yuan (about $289 million), a 1.5% increase compared to 1.99 billion yuan in the same period last year; Sunland Education’s total billings (non-GAAP) for 2025 were 1.4674 billion yuan ($209.8 million), compared to 1.55B yuan in 2024.

Sunland Education’s new student enrollment in 2025 was 579,788, down 14% from 674,649 in 2024.

Sunland Education’s gross profit for 2025 was 1.7555 billion yuan ($251 million), compared to 1.6726 billion yuan in 2024.

Sunland Education’s net profit for 2025 was 365.6 million yuan ($52.3 million), up from 342.1 million yuan in 2024; net profit margin was 18.1%, compared to 17.2% in 2024.

As of December 31, 2025, Sunland Education’s deferred revenue balance was 585.3 million yuan ($83.7 million), down from 916.5 million yuan as of December 30, 2024.

Sunland Education expects its net income for the first quarter of 2026 to be between 420 million and 440 million yuan, a decrease of 9.8% to 13.9% year-over-year.

Sunland Education Q4 revenue of 470 million, down 2.7% year-over-year

Sunland Education’s revenue for Q4 2025 was 470 million yuan (about $67.2 million), a 2.7% decrease from 483 million yuan in the same period last year.

Sunland Education’s costs for Q4 2025 were 62.1 million yuan, down 23.9% from 81.7 million yuan in the same period last year.

Sunland Education Q4 gross profit of 400 million, gross margin 87%

Sunland Education’s gross profit for Q4 2025 was 408 million yuan (about $58.4 million), a 1.6% increase from 400 million yuan in the same period last year. The gross margin for Q4 2025 was 87%.

Sunland Education expenses of 300 million, down 14% year-over-year

Sunland Education’s expenses for Q4 2025 were 300 million yuan, down 13.8% from 350 million yuan in the same period last year.

Among these, sales and marketing expenses for Q4 2025 were 255 million yuan, down 19% from 315 million yuan in the same period last year; management expenses were 40.2 million yuan, up 25.9% from 32 million yuan, mainly due to increased salary costs related to administrative and general staff. Product development expenses for Q4 2025 were 7.7 million yuan.

Sunland Education Q4 operating profit of 100M, operating profit margin 22%

Sunland Education’s operating profit for Q4 2025 was 105 million yuan (about $15.04 million), compared to 50.5 million yuan in the same period last year. The operating profit margin for Q4 2025 was 22%.

In Q4 2025, Sunland Education recorded a long-term asset impairment loss of 67.93 million yuan, compared to income from this item in the same period last year.

Sunland Education Q4 net profit of 38.4 million, down 34% year-over-year

Sunland Education’s net profit for Q4 2025 was 38.4 million yuan, down 34% from 57.8 million yuan in the same period last year.

The EBITDA (non-GAAP) for Q4 2025 was 83.74 million yuan.

As of December 31, 2025, Sunland Education held cash and cash equivalents, restricted cash totaling 577 million yuan (about $82.5 million), with short-term investments of 235.9 million yuan.

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