TAL Education Q1 rev. $575mln, up 39% YoY, income from operations $14.3mln.

• TAL Education Group reports Q1 FY26 net revenues of $575mln, up from $414.2mln in the prior year. • Income from operations reached $14.3mln, a significant improvement from a loss of $17.3mln in the same period last year. • Non-GAAP income from operations was $25.1mln, compared to $0.9mln in the prior year. • Net income attributable to TAL was $31.3mln, up from $11.4mln in the prior year. • Non-GAAP net income attributable to TAL was not specified.

TAL Education Group, a leading smart learning solutions provider in China, has announced its unaudited financial results for the first quarter of fiscal year 2026 ended May 31, 2025. The company reported significant improvements in its financial performance, with net revenues and income from operations showing substantial growth.

Key Financial Highlights

- Net Revenues: TAL reported net revenues of US$575.0 million for the first quarter of fiscal year 2026, up by 38.8% from US$414.2 million in the same period of the prior year [1].
- Income from Operations: Income from operations reached US$14.3 million, marking a significant improvement from a loss of US$17.3 million in the same period last year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$25.1 million, compared to US$0.9 million in the prior year [1].
- Net Income Attributable to TAL: Net income attributable to TAL was US$31.3 million, up from US$11.4 million in the prior year. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$42.0 million, compared to US$29.6 million in the prior year [1].
- Basic and Diluted Net Income per ADS: Both basic and diluted net income per American Depositary Share (ADS) were US$0.05, with non-GAAP basic and diluted net income per ADS, excluding share-based compensation expenses, at US$0.07 [1].
- Cash and Short-Term Investments: As of May 31, 2025, the company had US$3,472.8 million in cash, cash equivalents, and short-term investments, a decrease from US$3,618.4 million as of February 28, 2025 [1].

Operating Costs and Expenses

Operating costs and expenses increased by 29.9% to US$561.5 million, while non-GAAP operating costs and expenses, excluding share-based compensation expenses, increased by 33.0% to US$550.7 million. Cost of revenues increased by 29.8% to US$259.6 million, and non-GAAP cost of revenues increased by 31.0% to US$258.9 million. Selling and marketing expenses rose by 47.7% to US$180.8 million, and non-GAAP selling and marketing expenses increased by 50.5% to US$177.7 million. General and administrative expenses increased by 10.4% to US$121.1 million, and non-GAAP general and administrative expenses increased by 16.1% to US$114.0 million [1].

Outlook

TAL Education Group's President and Chief Financial Officer, Alex Peng, noted that the company achieved year-over-year revenue growth driven by solid progress in learning services and AI-powered devices. He emphasized the company's commitment to driving innovation in the K-12 learning sector and adapting to evolving user needs and advancements in AI and technology [1].

References

[1] https://www.marketscreener.com/news/tal-education-group-announces-unaudited-financial-results-for-the-first-fiscal-quarter-ended-may-31-ce7c5fdcd08af027