Aug 27, 2026 earnings call — Profit-focused growth, AI and offline expansion
Net revenues rose 20.2% year-over-year to nearly CNY 1.7 billion.
Revenue $0.0B (est $0.2B) · EPS $-0.09 (est $-0.01)
Key quotes
"First, we have always placed user value at the heart of our sustainable long-term development."
"Second, we remain committed to driving profitable growth, concentrating our resources on businesses with stronger user value proposition and clearer operational returns."
"AI is helping us restructure the content, development workflow, improving efficiency by 5 to 8x in certain scenarios, while significantly lowering the cost of producing personalized content."
Analyst Q&A 1
offline expansion and profit plan
Q (Kewei Chen · Haitong International): The analyst asked for the latest operational progress of the offline segment and for details on the offline expansion strategy for the next 2 or 3 years, including capacity expansion pace and the margin improvement roadmap.
A: Management said offline is an important growth area but they prioritize profitable growth over blind expansion. Recent momentum in Q2 and the summer came from footprint expansion plus better operating quality—higher renewal rates, better classroom use, and staff productivity. They will be selective, focus on filling existing capacity, strengthen teacher supply, review performance after the summer cycle, allocate resources to improving cities, and cut projects that fail profitability standards to move offline toward meaningful profit contribution over time.
"Sure, offline is becoming an important growth area for Gaotu, but we are managing it with a very clear principle, that is profitable growth comes before blind expansion." — Bin Luo (COO)