Tal Education Group Stock Earnings Reports

TAL reported strong top-line growth in Q2 FY2025 with net revenues of US$619.4 million (RMB4.4739 billion), up ~50% year-over-year. Learning services — led by Peiyou small-class enrichment — showed continued demand and enrollment growth, while online enrichment (xueersi.com) and content solutions expanded through product innovation. Learning devices remain a strategic growth area: the company launched the lower-ASP Xbook and upgraded xPad, driving device sales and high user engagement, but the device business is currently loss-making due to R&D, BOM and go-to-market investments. Gross profit rose 43.8% YoY but gross margin compressed to 56.3% from 58.9%; selling & marketing spend increased ~56% (to US$181.9m) as the company builds channels and promotes devices/content. Non-GAAP operating income and net income improved versus prior year (non-GAAP net income attributable to TAL US$74.3m). Balance sheet remains strong with ~US$2.09bn cash, US$1.37bn short-term investments, and deferred revenue of ~RMB5,117.6m. Management emphasizes continued investments in AI, product R&D and content, a measured center expansion approach, and a focus on long-term sustainable growth while maintaining operational efficiency; a $503.8m share repurchase authorization remains in place (about $13.1m executed YTD).