Why Did Sunlands Technology STG Soar 10.37%?

On July 15, 2025, Sunlands Technology experienced a significant pre-market surge, rising by 10.37%.

Sunlands Technology Group, trading under the ticker STG, has seen a notable increase in its stock value, reflecting positive investor sentiment and sparking interest among market participants. The company reported a net income of RMB75.2 million for the first quarter of 2025, marking its 16th consecutive profitable quarter. This was supported by effective cost optimization and operational efficiency improvements, resulting in a net income margin of 15.4%.

The company maintained positive operating cash flow for the seventh consecutive quarter, demonstrating sound execution and prudent cash management. However, net revenues decreased by 6.8% year-over-year to RMB487.6 million, driven by a decline in gross billings from post-secondary courses. Gross profit also decreased by 7.9% year-over-year to RMB415.3 million. The decline in net income, from RMB112.7 million in the first quarter of 2024 to RMB75.2 million in the first quarter of 2025, was attributed to various factors, including a reduction in product development expenses by 11% due to headcount reduction, which may impact future innovation.