FMP
Gaotu Techedu Inc. (NYSE:GOTU) Faces Financial Challenges Despite Revenue Growth
Nov 26, 2025
Gaotu Techedu Inc. (NYSE:GOTU) reported an earnings per share (EPS) of -$0.08, beating the estimated EPS of -$0.12, though still indicating profitability struggles. The company's revenue for Q3 2025 was $223.04 million, slightly higher than the estimated $222.2 million, and it showed a 30.7% increase in local currency terms from the same period in 2024.
GOTU's financial ratios such as a price-to-sales ratio of 1.18 and a debt-to-equity ratio of 0.31 suggest a balanced valuation and moderate debt level. Gaotu Techedu Inc. (NYSE:GOTU) is a leading technology-driven education company in China, focusing on providing comprehensive educational products and solutions. The company integrates online and offline formats and uses full-stack AI to enhance user experience.
Despite its innovative approach, GOTU faces challenges in meeting financial expectations, as seen in its recent earnings report.On November 26, 2025, GOTU reported an earnings per share (EPS) of -$0.08, beating the estimated EPS of -$0.12. This result highlights the company's current struggle with profitability, as reflected in its negative price-to-earnings (P/E) ratio of -9.17. The negative earnings yield of -10.90% further underscores the company's unprofitable status.
GOTU's actual revenue for the third quarter of 2025 was approximately $223.04 million, slightly higher than the estimated $222.2 million. However, in local currency terms, the company reported net revenues of RMB1.58 billion, a 30.7% increase from the same period in 2024. This growth indicates a positive trend in revenue generation, despite ongoing challenges.
The company's financial ratios provide additional insights into its current standing. With a price-to-sales ratio of 1.18 and an enterprise value to sales ratio of 1.13, GOTU's valuation appears relatively balanced when considering its debt and cash. The debt-to-equity ratio of 0.31 suggests a moderate level of debt, while a current ratio of 1.11 indicates reasonable short-term financial health.During the Q3 2025 earnings call, key figures like CEO Larry Chen and CFO Nan Shen discussed the company's strategic direction. They emphasized GOTU's commitment to addressing user needs and enhancing the learning lifecycle. The call, attended by industry analysts, provided valuable insights into the company's future plans and challenges.
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