China’s online education firm reports RMB 38.4 million net income for Q4, driven by margin expansion and cost controls.
Sunlands Technology Group reported Q4 2025 net revenue of RMB 470.2 million and net income of RMB 38.4 million, extending its streak of profitable quarters to 19. Full-year revenue reached RMB 2.02 billion, up 1.5% year-over-year, while net income rose 6.9% to RMB 365.6 million.
Gross margin expanded by 2.9 percentage points to 86.9% for the year, reflecting the company’s focus on operational efficiency and disciplined customer acquisition. Degree and diploma-oriented programs contributed 13.5% of full-year revenue, underscoring a shift toward higher-margin offerings.
The results align with management’s strategy of prioritizing precision over scale, with deliberate cost controls and improved delivery consistency driving profitability gains.