Gaotu Revenue Hits RMB 1.67B, Up 20.2% in Q2 2026

For EdTech operators, Gaotu's second quarter is a case study in post-regulatory repositioning. The company grew revenue 20.2% to RMB 1,670.1 million while shifting toward non-academic tutoring, adult education, and civil service prep—segments that now carry the growth story.

On August 27, 2026, Gaotu posted second-quarter results that underscore how Chinese education technology firms are pivoting beyond legacy K12 tutoring into more diversified, non-academic and adult learning markets. Total revenue reached RMB 1,670.1 million, a 20.2% increase from a year earlier, while gross billings climbed 19.4% to RMB 2,689.1 million. The company still recorded a net loss of RMB 135.8 million, but that represented a meaningful narrowing from the RMB 216.0 million loss in the second quarter of 2025. Perhaps the most strategic data point is that non-academic tutoring revenue grew 30% year over year and now accounts for more than 40% of total company revenue, while its gross billings contributed more than 45% of the total. Online one-on-one tutoring gross billings for new enrollments rose more than 55%, signaling robust demand for flexible, high-touch instruction. These numbers reflect a structural shift in Gaotu's model: the company is no longer dependent on traditional K12 subject tutoring, which has been constrained by China's regulatory framework, and is instead building a broader learning services platform.

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The bull case centers on the 20.2% revenue growth, 19.4% gross billings expansion, 46.3% cash inflow growth, and the fact that more than 40% of revenue now comes from faster-growing non-academic services.

The earnings call transcript also reveals improving operating discipline. Loss from operations narrowed 38.1% to RMB 149.8 million from RMB 241.9 million in the prior-year period, and the operating expense ratio declined by 7.9 percentage points as a percentage of net revenues. Net operating cash inflow jumped 46.3% to RMB 861.2 million, a sign that the company's enrollment and cash collection engine is strengthening even if GAAP profitability remains elusive. Deferred revenue increased 18.9% to RMB 2.6 billion, largely tuition received in advance, giving management visibility into future quarters. Cash reserves stood at RMB 3,992.9 million as of June 30, 2026, a substantial liquidity position that can fund continued marketing and product investment. Meanwhile, selling expenses reached RMB 913.2 million, a significant outlay that explains why the company remains loss-making despite strong top-line growth. For an EdTech audience, this is a classic trade-off: heavy customer acquisition spending is driving revenue and billings but delaying operating breakeven.

Segment-level detail provides further texture. Traditional learning services gross billings increased more than 17% year over year and still represented more than 40% of total gross billings, indicating that Gaotu's legacy business has stabilized rather than collapsed. College and adult services revenue grew more than 15% and made up over 10% of total revenue, while combined college and civil service revenue grew over 40% as the company updated its service framework for different student development stages. This mix shift matters because non-academic tutoring and adult/career services are generally viewed as less exposed to K12 regulatory risk, and they also benefit from China's competitive civil service exam market and professional upskilling demand. The company's framing of 'effective response to market demand and improved product recognition' suggests that brand trust built over years in K12 is being converted into new categories.