Gaotu Techedu Inc. (GOTU) saw its stock price surge 5.03% in pre-market trading on Tuesday following the release of its impressive second-quarter 2025 financial results. The Chinese technology-driven education company demonstrated significant growth and improved operational efficiency, capturing investors' attention.
The company reported a 37.6% year-over-year increase in net revenues, reaching RMB1,389.4 million for Q2 2025. Gross billings, a key metric for the education sector, rose by 36.2% to RMB2,252.4 million. Notably, Gaotu Techedu substantially narrowed its losses, with the net loss decreasing to RMB216.0 million from RMB429.6 million in the same period last year.
Looking ahead, Gaotu provided an optimistic outlook for Q3, projecting revenue growth between 28.9% and 30.6% year-over-year. The company's focus on "healthy growth" strategy and operational efficiency improvements were evident in the financial results, with customer acquisition efficiency reaching its best level in four years. These positive developments have likely contributed to the pre-market stock price surge as investors respond favorably to the company's progress.
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