TAL Education (TAL) Q2 Earnings call transcript Oct 24, 2025

TAL Education Group, a leading provider of educational services in China, recently held its Fiscal 2025 Second Quarter Earnings Conference Call, providing a comprehensive overview of its financial performance and business strategy. Key executives, including President and Chief Financial Officer Alex Peng and Deputy Chief Financial Officer Jackson Ding, discussed the company's achievements, challenges, and future outlook.

Financial Performance and Business Strategy

TAL Education Group reported strong financial results for the second quarter of fiscal year 2025. The company's net revenues reached USD 619.4 million or RMB 4,473.9 million, representing a year-over-year increase of 50.4% and 50.8%, respectively. The company's non-GAAP income from operations and net income attributable to TAL for the quarter were USD 64.5 million and USD 74.3 million, respectively.

Alex Peng highlighted the company's focus on innovation, user engagement, and service excellence, which has led to sustained user value creation through its various products and services. TAL Education Group's core businesses, including learning services and online enrichment learning, have remained on track, with a steady expansion of operational capacity and a commitment to high-quality service.

Operational Advancements

Jackson Ding provided insights into the operational advancements across TAL Education Group's core business lines. Learning services, particularly Peiyou small class offerings, have experienced significant growth, driven by expanding operational capacity and user demand. The online enrichment learning business has also shown progress, with a focus on adapting to the evolving market landscape and user needs. The launch of the XBook device, a lower ASP device designed to cater to students' learning and practice needs, has gained market acceptance, further enhancing the company's financial growth.

Future Outlook and Strategic Priorities

Looking ahead, TAL Education Group remains committed to driving healthy and sustainable long-term growth across all business lines. The company will continue refining its various learning programs, investing in technological innovation, and exploring new initiatives to meet customers' evolving needs. TAL Education Group's strategic priorities include expanding its learning services, enhancing the capabilities of its learning devices, and exploring new revenue opportunities.

Market Trends and Competitive Landscape

The earnings call also provided valuable insights into the broader market trends and competitive landscape. The company acknowledged the entrance of full stack players in the learning device sector, which is expected to enhance user experience and increase customer awareness. TAL Education Group is confident in its ability to compete on multiple levels, focusing on product quality, attracting multidisciplinary talent, and exploring efficient sales and marketing channels.

Investment in AI and Future Products

TAL Education Group's investment in AI technologies, particularly in the learning device sector, was also discussed. The company plans to leverage its industry-specific data and develop AI-powered applications to enhance user learning experiences. These efforts are aimed at bridging cutting-edge technology with solving customers' pain points and providing learners with enhanced learning efficiency.

Conclusion

TAL Education Group's Fiscal 2025 Second Quarter Earnings Conference Call provided a comprehensive overview of the company's financial performance, business strategy, and future outlook. With a focus on innovation, user engagement, and service excellence, TAL Education Group is well-positioned to navigate the evolving educational landscape and continue driving value for its customers and shareholders. The company's commitment to technological innovation, strategic investments, and a customer-centric approach underscores its confidence in delivering sustainable growth and long-term success.