Youdao Reports Q4 2025 Financial Highlights with Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
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- Revenue Growth: Total net revenues for Q4 2025 reached RMB 1.6 billion (approximately $223.7 million), representing a 16.8% increase from the same period in 2024, indicating strong performance in learning services and online marketing.
- Learning Services Performance: Net revenues from learning services were RMB 727.2 million (approximately $104.0 million), a 17.7% year-over-year increase driven by robust sales of AI-driven subscription services, reflecting sustained market demand for educational technology.
- Decline in Smart Devices: Net revenues from smart devices were RMB 176.5 million (approximately $25.2 million), a 26.6% decrease year-over-year, primarily due to weakened demand for smart learning devices, highlighting challenges in this segment.
- Operating Profit Decline: Operating income for Q4 was RMB 60.2 million (approximately $8.6 million), a 28.5% decrease from the same period in 2024, reflecting pressures on cost control and market competition despite overall revenue growth.
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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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- Participation Instructions: Interested investors can join the call by dialing 1-914-202-3258 and providing conference ID: 10052758, ensuring they stay updated on the latest company developments.
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