Key Points – Gaotu Techedu returned to profitability in Q1 2026, with revenue up 13.2% year over year to about RMB 1.7 billion and non-GAAP net income of RMB 41.4 million.
Management said disciplined spending and improved operating efficiency helped support the result. – Learning services remained the core growth engine, contributing more than 95% of net revenue, while non-academic tutoring and traditional learning services drove most of the business
Offline and one-on-one tutoring also posted strong growth, and deferred revenue rose 24.1% year over year to nearly RMB 1.8 billion. – AI integration and offline expansion are key strategic priorities for future growth. The company is using AI to improve curriculum, tutoring, and employee productivity, while continuing to expand offline services cautiously, with plans to extend its model to Wuhan in 2026. Gaotu Techedu (NYSE:GOTU) reported first-quarter 2026 revenue growth and a return to profitability on a non-GAAP basis, as management emphasized disciplined spending, artificial intelligence integration and expansion of offline learning services during the company’s earnings call.
Founder, Chairman and Chief Executive Officer Larry Chen said the quarter represented “another important step” in strengthening the company’s operational quality under its profitable growth strategy. He said revenue rose 13.2% year over year to approximately RMB 1.7 billion, while non-GAAP operating profit reached RMB 13.8 million and non-GAAP net profit totaled RMB 41.4 million. Chen said that, excluding the impact of share repurchases, Gaotu’s cash position increased by RMB 69.7 million year over year, which he said provides support for continued investment in products, technology and talent.