Gaotu Techedu Trims Losses as AI Integration Drives Growth

The company’s net revenues climbed to RMB1.67 billion, a 20.2% increase compared to the same period in 2025. According to management, this growth stems from rising market demand and the successful scaling of educational services. By embedding AI across its teaching and back-office operations, Gaotu reduced its operating expenses as a percentage of net revenue by 7.9 percentage points, contributing to a robust net operating cash inflow of RMB861.2 million.

Founder and CEO Larry Xiangdong Chen emphasized that the company is utilizing a "growth flywheel" strategy, where data-driven insights from online platforms bolster offline expansion. While the company continues to report a net loss, the trajectory shows a consistent reduction in operational friction. Looking ahead, Gaotu anticipates third-quarter revenues between RMB1.84 billion and RMB1.86 billion, signaling confidence in its current push toward sustainable, long-term profitability.