New Oriental Plunges 9.6% on Widening Losses

On July 30, 2025, New Oriental's stock price dropped by 9.6% in pre-market trading, reflecting investor concerns over the company's financial performance and strategic shifts.

New Oriental reported a 9.4% year-over-year increase in total net revenues for the fourth fiscal quarter ended May 31, 2025, driven by growth in educational new business initiatives. However, the company's operating loss widened to $8.7 million, compared to an operating income of $10.5 million in the same period last year. This decline was attributed to increased operating costs and expenses, including a significant impairment of goodwill.

Despite the financial setbacks, New Oriental's management highlighted the company's strategic focus on enhancing product capabilities and quality, as well as developing educational resources and improving operational efficiency. The company also emphasized its commitment to delivering exceptional service to clients and enhancing its brand influence.

Looking ahead, New Oriental expects total net revenues in the first quarter of the fiscal year 2026 to be in the range of $1.46 billion to $1.51 billion, representing a year-over-year increase of 2% to 5%. The company also provided a full fiscal year net revenue outlook, expecting total net revenues in the fiscal year 2026 to be in the range of $5.15 billion to $5.39 billion, representing a year-over-year increase of 5% to 10%.