Gaotu Techedu Inc. (NYSE: GOTU) saw its stock price surge 7.11% in pre-market trading on Thursday following the release of its impressive first-quarter 2025 financial results and the announcement of a new share repurchase program. The Chinese education technology company's performance significantly exceeded market expectations, driving investor optimism.

The company reported quarterly earnings of $0.07 per share, with revenue reaching RMB 1,493 million ($205.75 million), representing a substantial 56.89% increase compared to the same period last year. Gaotu's adjusted net income stood at RMB 137.3 million, while its adjusted gross profit for the quarter was RMB 1,042.7 million, boasting an impressive adjusted gross margin of 69.8%. The strong financial performance was attributed to the company's successful business strategies and market expansion efforts.

Adding to the positive sentiment, Gaotu Techedu provided an optimistic outlook for the second quarter, projecting revenue growth between 28.5% and 30.5%, with expected revenue ranging from RMB 1,298 million to RMB 1,318 million. The announcement of a new share repurchase program further bolstered investor confidence, as it demonstrates the company's commitment to enhancing shareholder value. These factors collectively contributed to the significant pre-market stock price appreciation, setting a positive tone for the upcoming trading session.