BEIJING, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's adult online education market and China's adult personal interest learning market, today announced its unaudited financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial and Operational Snapshots
-- Net revenues were RMB406.4 million (US$59.9 million), compared to
RMB539.0 million in the second quarter of 2025.
-- Gross billings (non-GAAP) were RMB286.2 million (US$42.2 million),
compared to RMB400.3 million in the second quarter of 2025.
-- Gross profit was RMB349.2 million (US$51.5 million), compared to RMB469.4
million in the second quarter of 2025.
-- Net income was RMB83.5 million (US$12.3 million), compared to RMB126.6
million in the second quarter of 2025.
-- Net income margin1 was 20.5%, compared to 23.5% in the second quarter of
2025.
-- New student enrollments2 were 95,280, compared to 159,154 in the second
quarter of 2025.
-- As of June 30, 2026, the Company's deferred revenue balance was RMB433.5
million (US$63.9 million), compared to RMB585.3 million as of December
31, 2025.
___________________________
(1) Net income margin is defined as net income as a percentage of net revenues.
(2) New student enrollments for a given period refer to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses, such as "mini courses" and "RMB1 courses", which we offer in the form of recorded videos or short live streaming, to strengthen our competitiveness and improve customer experience.
Mr. Tongbo Liu, Chief Executive Officer of Sunlands, commented, "During the second quarter of 2026, we continued to refine our course offerings and customer acquisition activities in response to evolving learner needs. Our focus remained on strengthening the quality and sustainability of the business while continuing to improve operating efficiency. In May 2026, we announced a new share repurchase program, reflecting our confidence in the Company's long-term prospects and intrinsic value. Looking ahead, we will continue to improve our products and services and pursue new opportunities at a measured pace."
Mr. Hangyu Li, Finance Director of Sunlands, added, "In the second quarter of 2026, net revenues were RMB406.4 million and net income was RMB83.5 million, representing a net income margin of 20.5%. We delivered our 21st consecutive profitable quarter, supported by disciplined cost management, while gross billings per new student enrollment increased by 19.4% year-over-year. With a solid liquidity position, we retain the flexibility to invest selectively in courses, services and technology, advance our share repurchase program, and maintain prudent capital allocation."
Financial Results for the Second Quarter of 2026
Net Revenues
In the second quarter of 2026, net revenues decreased by 24.6% to RMB406.4 million (US$59.9 million) from RMB539.0 million in the second quarter of 2025. The decrease was primarily due to the year-over-year decline in gross billings.
Cost of Revenues
Cost of revenues decreased by 17.9% to RMB57.2 million (US$8.4 million) in the second quarter of 2026 from RMB69.6 million in the second quarter of 2025. The decrease was mainly due to declined service fees paid to educational institutions.
Gross Profit
Gross profit decreased by 25.6% to RMB349.2 million (US$51.5 million) in the second quarter of 2026 from RMB469.4 million in the second quarter of 2025.
Operating Expenses
In the second quarter of 2026, operating expenses were RMB265.7 million (US$39.2 million), representing a 22.5% decrease from RMB342.6 million in the second quarter of 2025.
Sales and marketing expenses decreased by 24.5% to RMB228.4 million (US$33.7 million) in the second quarter of 2026 from RMB302.5 million in the second quarter of 2025. The decrease was mainly due to the decreases of compensation for sales personnel and the spending on branding and marketing activities focused on interest courses offerings.
General and administrative expenses decreased by 4.0% to RMB31.8 million (US$4.7 million) in the second quarter of 2026 from RMB33.2 million in the second quarter of 2025.
Product development expenses decreased by 20.8% to RMB5.5 million (US$0.8 million) in the second quarter of 2026 from RMB6.9 million in the second quarter of 2025. The decrease was mainly due to declined compensation expenses related to the Company's product development personnel.
Net Income
Net income for the second quarter of 2026 was RMB83.5 million (US$12.3 million), as compared to RMB126.6 million in the second quarter of 2025.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB12.58 (US$1.85) in the second quarter of 2026, as compared to RMB18.75 in the second quarter of 2025.
Cash, Cash Equivalents and Short-term Investments
As of June 30, 2026, the Company had RMB520.6 million (US$76.7 million) of cash, cash equivalents and RMB336.9 million (US$49.6 million) of short-term investments, as compared to RMB576.8 million of cash, cash equivalents and restricted cash and RMB235.9 million of short-term investments as of December 31, 2025.
Deferred Revenue
As of June 30, 2026, the Company had a deferred revenue balance of RMB433.5 million (US$63.9 million), as compared to RMB585.3 million as of December 31, 2025.
Share Repurchase
On May 29, 2026, the Company's board of directors authorized a share repurchase program, under which the Company may repurchase up to US$50.0 million of Class A ordinary shares in the form of ADSs over the next 36 months. As of August 17, 2026, the Company had repurchased an aggregate of 680,353 ADSs for approximately US$2.3 million under the share repurchase program.
Financial Results for the First Six Months of 2026
Net Revenues
In the first six months of 2026, net revenues decreased by 17.5% to RMB847.0 million (US$124.8 million) from RMB1,026.6 million in the first six months of 2025. The decrease was primarily due to the year-over-year decline in gross billings.
Cost of Revenues
Cost of revenues decreased by 17.8% to RMB116.7 million (US$17.2 million) in the first six months of 2026 from RMB142.0 million in the first six months of 2025. The decrease was mainly due to declined cost of revenues from sales of goods such as learning materials and books and decreased service fees paid to educational institutions.
Gross Profit
Gross profit decreased by 17.5% to RMB730.3 million (US$107.6 million) from RMB884.7 million in the first six months of 2025.
Operating Expenses
In the first six months of 2026, operating expenses were RMB550.0 million (US$81.1 million), representing a 19.6% decrease from RMB683.8 million in the first six months of 2025.
Sales and marketing expenses decreased by 22.0% to RMB470.2 million (US$69.3 million) in the first six months of 2026 from RMB603.0 million in the first six months of 2025. The decrease was mainly due to the decreases of compensation for sales personnel and the spending on branding and marketing activities focused on interest courses offerings.
General and administrative expenses increased by 0.1% to RMB67.7 million (US$10.0 million) in the first six months of 2026 from RMB67.6 million in the first six months of 2025.
Product development expenses decreased by 8.3% to RMB12.1 million (US$1.8 million) in the first six months of 2026 from RMB13.2 million in the first six months of 2025.
Net Income
Net income for the first six months of 2026 was RMB160.3 million (US$23.6 million), compared with RMB201.8 million in the first six months of 2025.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB24.05 (US$3.54) in the first six months of 2026, compared with RMB29.87 in the first six months of 2025.
Outlook
For the third quarter of 2026, Sunlands currently expects net revenues to be between RMB330 million to RMB350 million, which would represent a decrease of between 33.1% to 36.9% year-over-year. The above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.
Exchange Rate
The Company's business is primarily conducted in China and all revenues are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.7851 to US$1.00, the effective noon buying rate for June 30, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2026, or at any other rate.
About Sunlands
Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), formerly known as Sunlands Online Education Group, is a leader in China's adult online education market and China's adult personal interest learning market. With a one to many live streaming platform, Sunlands offers various degree- or diploma-oriented post-secondary courses as well as professional certification preparation, professional skills and interest courses. Students can access the Company's services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.
About Non-GAAP Financial Measures
We use gross billings, EBITDA, non-GAAP operating cost and expenses, non-GAAP income from operations and non-GAAP net income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes.
We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. Adjusted EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, income tax expenses and impairment loss on long-lived assets. We believe that gross billings, EBITDA and adjusted EBITDA provide valuable insight into the sales of our course packages and the performance of our business.
These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measures prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, adjusted EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, income from operations excluding share-based compensation expenses, and basic and diluted net income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings, EBITDA and adjusted EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends, " "plans," "believes," "estimates," "confident" and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students' learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands' corporate structure, business and industry; and general economic and business condition in China. Further information regarding these and other risks, uncertainties or factors is included in Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law.
For investor and media enquiries, please contact:
Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com
SOURCE: Sunlands Technology Group
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share
data, or otherwise noted)
As of December 31, As of June 30,
------------------ ------------------
2025 2026
------------------ ------------------
RMB RMB US$
ASSETS
Current assets
Cash and cash equivalents 575,740 520,635 76,732
Restricted cash 1,023 - -
Short-term investments 235,937 336,876 49,649
Prepaid expenses and other
current assets 82,566 93,852 13,832
Deferred costs, current 22,125 14,029 2,068
Total current assets 917,391 965,392 142,281
------------------ --------- -------
Non-current assets
Property and equipment, net 662,178 528,254 77,855
Intangible assets, net 250 95 14
Right-of-use assets 99,111 94,324 13,902
Deferred costs, non-current 10,643 6,502 958
Long-term investments 318,791 339,178 49,989
Deferred tax assets 19,104 17,149 2,527
Other non-current assets 19,750 18,274 2,693
Total non-current assets 1,129,827 1,003,776 147,938
------------------ --------- -------
TOTAL ASSETS 2,047,218 1,969,168 290,219
================== ========= =======
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES
Current liabilities
Accrued expenses and other
current liabilities 366,011 317,064 46,730
Deferred revenue, current
portion 384,334 266,443 39,269
Lease liabilities, current
portion 9,104 9,347 1,378
Total current liabilities 759,449 592,854 87,377
------------------ --------- -------
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-continued
(Amounts in thousands, except for share and per share
data, or otherwise noted)
As of December 31, As of June 30,
------------------ ------------------------
2025 2026
------------------ ------------------------
RMB RMB US$
Non-current
liabilities
Deferred revenue,
non-current portion 200,960 167,011 24,614
Lease liabilities,
non-current portion 129,564 123,761 18,240
Deferred tax
liabilities 5,786 9,596 1,414
Other non-current
liabilities 7,392 6,650 980
Total non-current
liabilities 343,702 307,018 45,248
----------------- ---------- --------
TOTAL LIABILITIES 1,103,151 899,872 132,625
================= ========== ========
SHAREHOLDERS' EQUITY
Class A ordinary
shares (par value of
US$0.00005,
796,062,195 shares
authorized; 3,131,807
and 3,131,807 shares
issued as of December
31, 2025
and June 30, 2026,
respectively;
2,538,047 and
2,227,653 shares
outstanding as of
December 31, 2025 and
June 30, 2026,
respectively) 1 1 -
Class B ordinary
shares (par value of
US$0.00005, 826,389
shares
authorized; 826,389
and 826,389 shares
issued and
outstanding
as of December 31,
2025 and June 30,
2026, respectively) - - -
Class C ordinary
shares (par value of
US$0.00005,
203,111,416 shares
authorized; 3,332,062
and 3,332,062 shares
issued and
outstanding
as of December 31,
2025 and June 30,
2026, respectively) 1 1 -
Treasury stock - - -
Statutory reserves 22,440 22,440 3,307
Accumulated deficit (1,486,011) (1,325,704) (195,385)
Additional paid-in
capital 2,287,553 2,273,605 335,088
Accumulated other
comprehensive income 121,570 100,440 14,803
----------------- ---------- --------
Total Sunlands
Technology Group
shareholders' equity 945,554 1,070,783 157,813
----------------- ---------- --------
Non-controlling
interest (1,487) (1,487) (219)
TOTAL SHAREHOLDERS'
EQUITY 944,067 1,069,296 157,594
----------------- ---------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 2,047,218 1,969,168 290,219
================= ========== ========
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and per share
data, or otherwise noted)
For the Three Months Ended June 30,
-------------------------------------------
2025 2026
--------------- --------------------------
RMB RMB US$
Net revenues 539,015 406,367 59,891
Cost of revenues (69,641) (57,201) (8,430)
Gross profit 469,374 349,166 51,461
----------- ---------- ----------
Operating expenses
Sales and marketing
expenses (302,527) (228,378) (33,659)
Product development
expenses (6,946) (5,498) (810)
General and
administrative expenses (33,150) (31,811) (4,688)
Total operating expenses (342,623) (265,687) (39,157)
----------- ---------- ----------
Income from operations 126,751 83,479 12,304
----------- ---------- ----------
Interest income 6,734 5,753 848
Interest expense (273) - -
Other income, net 7,240 8,314 1,225
Gain on disposal of
subsidiaries - 661 97
Income before income tax
expenses
and loss from equity
method investments 140,452 98,207 14,474
----------- ---------- ----------
Income tax expenses (13,550) (14,158) (2,087)
Loss from equity method
investments (257) (589) (87)
Net income 126,645 83,460 12,300
=========== ========== ==========
Less: Net loss
attributable to
non-controlling
interest - - -
Net income attributable
to Sunlands Technology
Group 126,645 83,460 12,300
----------- ---------- ----------
Net income per share
attributable to ordinary
shareholders of
Sunlands Technology
Group:
Basic and diluted 18.75 12.58 1.85
Weighted average shares
used in calculating net
income
per ordinary share:
Basic and diluted 6,753,895 6,633,622 6,633,622
----------- ---------- ----------
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(Amounts in thousands)
For the Three Months Ended June 30,
-------------------------------------------
2025 2026
--------------- --------------------------
RMB RMB US$
Net income 126,645 83,460 12,300
Other comprehensive
(loss)/gain, net of tax
effect of nil:
Change in cumulative
foreign currency
translation adjustments (7,885) (12,510) (1,844)
Unrealized gain on
available-for-sale
investments, net of tax
effect of nil 11,311 6,510 959
----------- ----------- ---------
Total comprehensive
income 130,071 77,460 11,415
----------- ----------- ---------
Less: comprehensive
income attributable to
non-controlling
interest - - -
----------- ----------- ---------
Comprehensive income
attributable to Sunlands
Technology Group 130,071 77,460 11,415
----------- ----------- ---------
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands)
For the Three Months Ended June 30,
-----------------------------------------
2025 2026
-------------------- -------------------
RMB RMB
Net revenues 539,015 406,367
Less: other revenues (60,566) (51,826)
Add: tax and surcharges 19,761 12,928
Add: ending deferred revenue 814,277 433,454
Add: ending refund liability 77,942 43,368
Less: beginning deferred
revenue (891,617) (500,548)
Less: beginning refund
liability (98,516) (57,553)
Gross billings (non-GAAP) 400,296 286,190
================ ================
Net income 126,645 83,460
---------------- ----------------
Add: income tax expenses 13,550 14,158
Add: depreciation and
amortization 7,205 4,783
Add: interest expense 273 -
Less: interest income (6,734) (5,753)
---------------- ----------------
EBITDA (non-GAAP) 140,939 96,648
---------------- ----------------
Add: Impairment loss on
long-lived assets - -
---------------- ----------------
Adjusted EBITDA (non-GAAP) 140,939 96,648
================ ================
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and per share
data, or otherwise noted)
For the Six Months Ended June 30,
-----------------------------------------
2025 2026
-------------- -------------------------
RMB RMB US$
Net revenues 1,026,640 847,027 124,836
Cost of revenues (141,977) (116,740) (17,205)
Gross profit 884,663 730,287 107,631
---------- ---------- ---------
Operating expenses
Sales and marketing
expenses (602,971) (470,238) (69,305)
Product development
expenses (13,188) (12,092) (1,782)
General and administrative
expenses (67,609) (67,680) (9,975)
Total operating expenses (683,768) (550,010) (81,062)
---------- ---------- ---------
Income from operations 200,895 180,277 26,569
---------- ---------- ---------
Interest income 12,141 10,973 1,617
Interest expense (680) - -
Other income, net 13,857 12,955 1,909
Gain on disposal of
subsidiaries - 661 97
Income before income tax
expenses
and loss from equity method
investments 226,213 204,866 30,192
---------- ---------- ---------
Income tax expenses (23,324) (42,963) (6,332)
Loss from equity method
investments (1,068) (1,596) (235)
Net income 201,821 160,307 23,625
========== ========== =========
Less: Net loss
attributable to
non-controlling interest - - -
Net income attributable to
Sunlands Technology Group 201,821 160,307 23,625
---------- ---------- ---------
Net income per share
attributable to ordinary
shareholders of
Sunlands Technology Group:
Basic and diluted 29.87 24.05 3.54
Weighted average shares
used in calculating net
income
per ordinary share:
Basic and diluted 6,756,532 6,664,889 6,664,889
---------- ---------- ---------
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(Amounts in thousands)
For the Six Months Ended June 30,
-----------------------------------------
2025 2026
--------------- ------------------------
RMB RMB US$
Net income 201,821 160,307 23,625
Other comprehensive
(loss)/gain, net of tax
effect of nil:
Change in cumulative
foreign currency
translation adjustments (11,481) (21,666) (3,193)
Unrealized gain on
available-for-sale
investments, net of tax
effect of nil 52 536 79
----------- ---------- --------
Total comprehensive income 190,392 139,177 20,511
----------- ---------- --------
Less: comprehensive income
attributable to
non-controlling interest - - -
----------- ---------- --------
Comprehensive income
attributable to Sunlands
Technology Group 190,392 139,177 20,511
----------- ---------- --------
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands)
For the Six Months Ended June 30,
---------------------------------------
2025 2026
-------------------- -----------------
RMB RMB
Net revenues 1,026,640 847,027
Less: other revenues (119,486) (112,355)
Add: tax and surcharges 42,051 29,151
Add: ending deferred revenue 814,277 433,454
Add: ending refund liability 77,942 43,368
Less: beginning deferred revenue (916,510) (585,294)
Less: beginning refund liability (112,342) (64,393)
Gross billings (non-GAAP) 812,572 590,958
================ ==============
Net income 201,821 160,307
---------------- --------------
Add: income tax expenses 23,324 42,963
Add: depreciation and
amortization 14,423 11,953
Add: interest expense 680 -
Less: interest income (12,141) (10,973)
---------------- --------------
EBITDA (non-GAAP) 228,107 204,250
---------------- --------------
Add: Impairment loss on
long-lived assets - -
---------------- --------------
Adjusted EBITDA (non-GAAP) 228,107 204,250
================ ==============