Sunlands Technology shares surge 21.25% intraday after reporting 40.5% net income growth, 13.1% gross profit rise, and 5.5% lower operating expenses in Q3 2025.

Sunlands Technology Group surged 21.25% intraday following the release of its unaudited Q3 2025 financial results, which highlighted a 40.5% year-over-year increase in net income to RMB125.4 million and a 13.1% rise in gross profit to RMB462.7 million. Management attributed the performance to a strategic shift toward high-margin courses, disciplined cost control, and improved operating leverage, with operating expenses declining 5.5% year-over-year. The company also noted a 6.5% growth in net revenues and a 24.0% net income margin, outpacing the 18.2% margin in the prior-year period. Positive guidance on cash flow, a robust balance sheet with RMB777.5 million in combined cash and short-term investments, and a share repurchase program of US$4.7 million further reinforced investor confidence in the company’s operational resilience and long-term growth prospects.