Youdao Reports Non-GAAP EPADS of $0.01 and Revenue of $228.8M, Exceeding Expectations by $3.27M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
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Should l Buy DAO?
Source: SeekingAlpha
Financial Performance: Youdao reported a Q3 Non-GAAP EPADS of $0.01 and revenue of $228.8 million, which is a 3.6% year-over-year increase, exceeding expectations by $3.27 million.
Revenue Breakdown: Learning services revenue decreased by 16.2%, smart devices revenue fell by 22.1%, while online marketing services revenue increased by 51.1% compared to the same period in 2024.
Gross Margin: The gross margin for the quarter was 42.2%, down from 50.2% in the same period last year.
Future Outlook: Dr. Zhou emphasized the commitment to the AI-Native Strategy and expressed confidence in achieving full-year financial targets, including operating profit improvements and cash-flow breakeven.
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Analyst Views on DAO
About DAO
Youdao Inc is a holding company principally engaged in the intelligent learning business, providing a variety of learning content, applications and solutions. The Company primarily operates its businesses through three segments. Learning Services segment mainly provides digital content services, science, technology, engineering, the arts and mathematics (STEAM) courses, and adult and vocational courses through the Youdao Lingshi, Youdao Literature, Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC and others. Smart Devices segment mainly develops and offers smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. The Company also provides education digitalization solutions, including Youdao Smart Learning Terminal, Youdao Smart Cloud, and Youdao Sports. Online Marketing Services segment mainly offers online marketing services, including performance-based advertising services and brand advertising services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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