17 Education shares rise 10.72% intraday amid positive market response to new AI products and reduced operating expenses.

17 Education & Technology Group Inc (YQ) surged 10.72% intraday following its Q3 2025 earnings call, driven by positive operational updates despite revenue declines. The company highlighted a 29.8% reduction in operating expenses, a narrowed net loss by 21.5%, and strong market reception to new AI products like Yiqi Tongxue, which align with national AI-in-education strategies. Management emphasized healthy customer retention, a double-digit increase in school-based subscription revenue, and robust cash reserves of RMB341.9 million. While net revenue fell 66.4% year-over-year due to reduced district-level projects, investors appeared to focus on cost discipline, R&D efficiency, and growth potential in AI-driven offerings. The call underscored strategic alignment with AI trends and long-term value-added service expansion, outweighing short-term revenue concerns in the intraday rally.