Fourth Quarter 2025 Financial and Operational Snapshots
- Net revenues were
RMB470.2 million (US$67.2 million ), compared toRMB483.5 million in the fourth quarter of 2024. - Gross billings (non-GAAP) were
RMB305.7 million (US$43.7 million ), compared toRMB412.4 million in the fourth quarter of 2024. - Gross profit was
RMB408.1 million (US$58.4 million ), compared toRMB401.8 million in the fourth quarter of 2024. - Net income was
RMB38.4 million (US$5.5 million ), compared toRMB57.8 million in the fourth quarter of 2024. - Net income margin1 was 8.2% in the fourth quarter of 2025, compared to 12.0% in the fourth quarter of 2024.
- New student enrollments2 were 114,058, compared to 172,200 in the fourth quarter of 2024.
- As of
December 31, 2025 , the Company’s deferred revenue balance wasRMB585.3 million (US$83.7 million ), compared toRMB916.5 million as ofDecember 31, 2024 .
_______________________
1 Net income margin is defined as net income as a percentage of net revenues.
2 New student enrollments for a given period refer to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses, such as “mini courses” and “RMB1 courses”, which we offer in the form of recorded videos or short live streaming, to strengthen our competitiveness and improve customer experience.
Full Year 2025 Financial and Operational Snapshots
- Net revenues were
RMB2,019.9 million (US$288.8 million ), compared toRMB1,990.2 million in 2024. - Gross billings (non-GAAP) were
RMB1,467.4 million (US$209.8 million ), compared toRMB1,555.4 million in 2024. - Gross profit was
RMB1,755.5 million (US$251.0 million ), compared toRMB1,672.6 million in 2024. - Net income was
RMB365.6 million (US$52.3 million ), compared toRMB342.1 million in 2024. - Net income margin was 18.1%, compared to 17.2% in 2024.
- New student enrollments were 579,788, compared to 674,649 in 2024.
“2025 was a year defined by discipline and precision for Sunlands,” said
“Looking ahead, we remain focused on the parts of our business where learner value and operating quality can reinforce one another over time,” Liu continued. “Interest-based learning, particularly among senior learners, is becoming an increasingly important growth driver, supported by strong engagement, high repurchase rates, and a long runway for development. At the same time, we are advancing the practical application of AI across curriculum design, service delivery, and user experience. As we enter 2026, we will continue to place greater emphasis on achieving high-quality growth.”
“Our 2025 financial performance embodies disciplined growth, operational efficiency and prudent capital allocation. Profitability and gross margin improved steadily, backed by healthy operating cash flow that bolsters our financial flexibility for strategic investments and navigating market uncertainties. We optimized cost structures while increasing R&D spending to build long-term technological capabilities, reflecting a shift from scale-focused to quality-driven operations. With strong liquidity and a robust balance sheet at year-end, we enter 2026 with a proven operational foundation. We are well-positioned to seize core market opportunities and drive sustainable, high-quality growth ahead,” said Mr.
Financial Results for the fourth quarter of 2025
Net Revenues
In the fourth quarter of 2025, net revenues decreased by 2.7% to
Cost of Revenues
Cost of revenues decreased by 23.9% to
Gross Profit
Gross profit increased by 1.6% to
Operating Expenses
In the fourth quarter of 2025, operating expenses were
Sales and marketing expenses decreased by 19.0% to
General and administrative expenses increased by 25.9% to
Product development expenses increased by 71.3% to
Net Income
Net income for the fourth quarter of 2025 was
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was
Cash, Cash Equivalents, Restricted Cash and Short-term Investments
As of
Deferred Revenue
As of
Share Repurchase
On
Financial Results for the Year 2025
Net Revenues
In the year of 2025, net revenues increased by 1.5% to
Cost of Revenues
Cost of revenues decreased by 16.7% to
Gross Profit
Gross profit increased by 5.0% to
Operating Expenses
In the year of 2025, operating expenses were
Sales and marketing expenses decreased by 6.5% to
General and administrative expenses increased by 8.3% to
Product development expenses increased by 18.2% to
Net Income
Net income for 2025 was
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was
Outlook
For the first quarter of 2026,
Exchange Rate
The Company’s business is primarily conducted in
Conference Call and Webcast
Sunlands’ management team will host a conference call at
For participants who wish to join the call, please access the link provided below to complete online registration 15 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.
Registration Link:
https://register-conf.media-server.com/register/BI88fc6ed315134f59b4b04e27482ea94a
Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands’ website at https://ir.sunlands.com/.
About
About Non-GAAP Financial Measures
We use gross billings, EBITDA, non-GAAP operating cost and expenses, non-GAAP income from operations and non-GAAP net income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes.
We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. Adjusted EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, income tax expenses and impairment loss on long-lived assets. We believe that gross billings, EBITDA and adjusted EBITDA provide valuable insight into the sales of our course packages and the performance of our business.
These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measures prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, adjusted EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, income from operations excluding share-based compensation expenses, and basic and diluted net income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings, EBITDA and adjusted EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the
For investor and media enquiries, please contact:
Investor Relations
Email: sl-ir@sunlands.com
SOURCE:
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||
| As of | As of | |||||
| 2024 | 2025 | |||||
| RMB | RMB | US$ | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 507,229 | 575,740 | 82,330 | |||
| Restricted cash | - | 1,023 | 146 | |||
| Short-term investments | 276,029 | 235,937 | 33,739 | |||
| Prepaid expenses and other current assets | 96,916 | 82,566 | 11,807 | |||
| Deferred costs, current | 4,139 | 22,125 | 3,164 | |||
| Total current assets | 884,313 | 917,391 | 131,186 | |||
| Non-current assets | ||||||
| Property and equipment, net | 758,215 | 662,178 | 94,690 | |||
| Intangible assets, net | 723 | 250 | 36 | |||
| Right-of-use assets | 110,154 | 99,111 | 14,173 | |||
| Deferred costs, non-current | 56,657 | 10,643 | 1,522 | |||
| Long-term investments | 260,083 | 318,791 | 45,587 | |||
| Deferred tax assets | 24,699 | 19,104 | 2,732 | |||
| Other non-current assets | 26,319 | 19,750 | 2,824 | |||
| Total non-current assets | 1,236,850 | 1,129,827 | 161,564 | |||
| TOTAL ASSETS | 2,121,163 | 2,047,218 | 292,750 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Accrued expenses and other current liabilities | 404,865 | 366,011 | 52,342 | |||
| Deferred revenue, current | 382,047 | 384,334 | 54,959 | |||
| Lease liabilities, current portion | 8,317 | 9,104 | 1,302 | |||
| Long-term debt, current portion | 6,154 | - | - | |||
| Total current liabilities | 801,383 | 759,449 | 108,603 | |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-continued (Amounts in thousands, except for share and per share data, or otherwise noted) | |||||||||
| As of | As of | ||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Non-current liabilities | |||||||||
| Deferred revenue, non-current | 534,463 | 200,960 | 28,737 | ||||||
| Lease liabilities, non-current portion | 137,040 | 129,564 | 18,527 | ||||||
| Deferred tax liabilities | 5,724 | 5,786 | 827 | ||||||
| Other non-current liabilities | 7,309 | 7,392 | 1,057 | ||||||
| Long-term debt, non-current portion | 35,386 | - | - | ||||||
| Total non-current liabilities | 719,922 | 343,702 | 49,148 | ||||||
| TOTAL LIABILITIES | 1,521,305 | 1,103,151 | 157,751 | ||||||
| SHAREHOLDERS’ EQUITY | |||||||||
| Class A ordinary shares (par value of | |||||||||
| authorized; 3,131,807 and 3,131,807 shares issued as of | |||||||||
| and | |||||||||
| outstanding as of | 1 | 1 | - | ||||||
| Class B ordinary shares (par value of | |||||||||
| authorized; 826,389 and 826,389 shares issued and outstanding | |||||||||
| as of | - | - | - | ||||||
| Class C ordinary shares (par value of | |||||||||
| authorized; 3,332,062 and 3,332,062 shares issued and outstanding | |||||||||
| as of | 1 | 1 | - | ||||||
| - | - | - | |||||||
| Statutory reserves | 11,083 | 22,440 | 3,209 | ||||||
| Accumulated deficit | (1,840,285 | ) | (1,486,011 | ) | (212,497 | ) | |||
| Additional paid-in capital | 2,294,381 | 2,287,553 | 327,116 | ||||||
| Accumulated other comprehensive income | 136,164 | 121,570 | 17,384 | ||||||
| 601,345 | 945,554 | 135,212 | |||||||
| Non-controlling interest | (1,487 | ) | (1,487 | ) | (213 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 599,858 | 944,067 | 134,999 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,121,163 | 2,047,218 | 292,750 | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for share and per share data, or otherwise noted) | |||||||||
| For the Three Months Ended | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net revenues | 483,477 | 470,192 | 67,237 | ||||||
| Cost of revenues | (81,687 | ) | (62,133 | ) | (8,885 | ) | |||
| Gross profit | 401,790 | 408,059 | 58,352 | ||||||
| Operating expenses | |||||||||
| Sales and marketing expenses | (314,847 | ) | (254,935 | ) | (36,455 | ) | |||
| Product development expenses | (4,492 | ) | (7,694 | ) | (1,100 | ) | |||
| General and administrative expenses | (31,956 | ) | (40,231 | ) | (5,753 | ) | |||
| Total operating expenses | (351,295 | ) | (302,860 | ) | (43,308 | ) | |||
| Income from operations | 50,495 | 105,199 | 15,044 | ||||||
| Interest income | 11,149 | 5,040 | 721 | ||||||
| Interest expense | (758 | ) | (58 | ) | (8 | ) | |||
| Other income, net | 7,058 | 7,941 | 1,136 | ||||||
| Impairment loss on long-lived assets | - | (67,931 | ) | (9,714 | ) | ||||
| Income before income tax expenses | |||||||||
| and loss from equity method investments | 67,944 | 50,191 | 7,179 | ||||||
| Income tax expenses | (8,275 | ) | (11,613 | ) | (1,661 | ) | |||
| Loss from equity method investments | (1,863 | ) | (204 | ) | (29 | ) | |||
| Net income | 57,806 | 38,374 | 5,489 | ||||||
| Less: Net loss attributable to non-controlling interest | - | - | - | ||||||
| Net income attributable to | 57,806 | 38,374 | 5,489 | ||||||
| Net income per share attributable to ordinary shareholders of | |||||||||
| Basic and diluted | 8.55 | 5.72 | 0.82 | ||||||
| Weighted average shares used in calculating net income | |||||||||
| per ordinary share: | |||||||||
| Basic and diluted | 6,761,323 | 6,704,595 | 6,704,595 | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) | |||||||||
| For the Three Months Ended | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net income | 57,806 | 38,374 | 5,489 | ||||||
| Other comprehensive income/(loss), net of tax effect of nil: | |||||||||
| Change in cumulative foreign currency translation adjustments | 24,246 | (11,127 | ) | (1,591 | ) | ||||
| Unrealized (loss)/gain on available-for-sale investments, | |||||||||
| net of tax effect of nil | (24,083 | ) | 3,041 | 435 | |||||
| Total comprehensive income | 57,969 | 30,288 | 4,333 | ||||||
| Less: comprehensive income attributable to non-controlling interest | - | - | - | ||||||
| Comprehensive income attributable to | 57,969 | 30,288 | 4,333 | ||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||||
| For the Three Months Ended | ||||||
| 2024 | 2025 | |||||
| RMB | RMB | |||||
| Net revenues | 483,477 | 470,192 | ||||
| Less: other revenues | (81,373 | ) | (67,887 | ) | ||
| Add: tax and surcharges | 21,694 | 16,961 | ||||
| Add: ending deferred revenue | 916,510 | 585,294 | ||||
| Add: ending refund liability | 112,342 | 64,393 | ||||
| Less: beginning deferred revenue | (920,593 | ) | (695,459 | ) | ||
| Less: beginning refund liability | (119,618 | ) | (67,828 | ) | ||
| Gross billings (non-GAAP) | 412,439 | 305,666 | ||||
| Net income | 57,806 | 38,374 | ||||
| Add: income tax expenses | 8,275 | 11,613 | ||||
| Add: depreciation and amortization | 7,319 | 7,170 | ||||
| Add: interest expense | 758 | 58 | ||||
| Less: interest income | (11,149 | ) | (5,040 | ) | ||
| EBITDA (non-GAAP) | 63,009 | 52,175 | ||||
| Add: Impairment loss on long-lived assets | - | 67,931 | ||||
| Adjusted EBITDA (non-GAAP) | 63,009 | 120,106 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for share and per share data, or otherwise noted) | |||||||||
| For the Years Ended | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net revenues | 1,990,204 | 2,019,881 | 288,839 | ||||||
| Cost of revenues | (317,570 | ) | (264,424 | ) | (37,812 | ) | |||
| Gross profit | 1,672,634 | 1,755,457 | 251,027 | ||||||
| Operating expenses | |||||||||
| Sales and marketing expenses | (1,216,912 | ) | (1,137,631 | ) | (162,679 | ) | |||
| Product development expenses | (25,008 | ) | (29,553 | ) | (4,226 | ) | |||
| General and administrative expenses | (132,809 | ) | (143,796 | ) | (20,563 | ) | |||
| Total operating expenses | (1,374,729 | ) | (1,310,980 | ) | (187,468 | ) | |||
| Income from operations | 297,905 | 444,477 | 63,559 | ||||||
| Interest income | 38,824 | 23,643 | 3,381 | ||||||
| Interest expense | (5,293 | ) | (852 | ) | (122 | ) | |||
| Other income, net | 26,296 | 30,121 | 4,307 | ||||||
| Loss on disposal of subsidiaries | (838 | ) | - | - | |||||
| Impairment loss on long-lived assets | - | (67,931 | ) | (9,714 | ) | ||||
| Income before income tax expenses | |||||||||
| and loss from equity method investments | 356,894 | 429,458 | 61,411 | ||||||
| Income tax expenses | (1,300 | ) | (59,297 | ) | (8,479 | ) | |||
| Loss from equity method investments | (13,512 | ) | (4,530 | ) | (648 | ) | |||
| Net income | 342,082 | 365,631 | 52,284 | ||||||
| Less: Net loss attributable to non-controlling interest | - | - | - | ||||||
| Net income attributable to | 342,082 | 365,631 | 52,284 | ||||||
| Net income per share attributable to ordinary shareholders of | |||||||||
| Basic and diluted | 50.12 | 54.28 | 7.76 | ||||||
| Weighted average shares used in calculating net income | |||||||||
| per ordinary share: | |||||||||
| Basic and diluted | 6,824,824 | 6,736,373 | 6,736,373 | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) | |||||||||
| For the Years Ended | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net income | 342,082 | 365,631 | 52,284 | ||||||
| Other comprehensive income/(loss), net of tax effect of nil: | |||||||||
| Change in cumulative foreign currency translation adjustments | 16,971 | (26,279 | ) | (3,758 | ) | ||||
| Unrealized (loss)/gain on available-for-sale investments, net of tax effect of nil | (24,083 | ) | 11,685 | 1,671 | |||||
| Total comprehensive income | 334,970 | 351,037 | 50,197 | ||||||
| Less: comprehensive income attributable to non-controlling interest | - | - | - | ||||||
| Comprehensive income attributable to | 334,970 | 351,037 | 50,197 | ||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||||
| For the Years Ended | ||||||
| 2024 | 2025 | |||||
| RMB | RMB | |||||
| Net revenues | 1,990,204 | 2,019,881 | ||||
| Less: other revenues | (287,179 | ) | (248,650 | ) | ||
| Add: tax and surcharges | 77,734 | 75,322 | ||||
| Add: ending deferred revenue | 916,510 | 585,294 | ||||
| Add: deferred revenue in connection with disposal of subsidiaries | 3,423 | - | ||||
| Add: ending refund liability | 112,342 | 64,393 | ||||
| Less: beginning deferred revenue | (1,113,923 | ) | (916,510 | ) | ||
| Less: beginning refund liability | (143,744 | ) | (112,342 | ) | ||
| Gross billings (non-GAAP) | 1,555,367 | 1,467,388 | ||||
| Net income | 342,082 | 365,631 | ||||
| Add: income tax expenses | 1,300 | 59,297 | ||||
| Add: depreciation and amortization | 29,467 | 28,792 | ||||
| Add: interest expense | 5,293 | 852 | ||||
| Less: interest income | (38,824 | ) | (23,643 | ) | ||
| EBITDA (non-GAAP) | 339,318 | 430,929 | ||||
| Add: Impairment loss on long-lived assets | - | 67,931 | ||||
| Adjusted EBITDA (non-GAAP) | 339,318 | 498,860 | ||||
