TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and the Fiscal Year 2025
Highlights for the Fourth Quarter of Fiscal Year 2025
- Net revenues were
US$610.2 million , compared to net revenues ofUS$429.6 million in the same period of the prior year. - Loss from operations was
US$16.0 million , compared to loss from operations ofUS$11.1 million in the same period of the prior year. - Non-GAAP loss from operations, which excluded share-based compensation expenses, was
US$1.7 million , compared to non-GAAP income from operations ofUS$9.4 million in the same period of the prior year. - Net loss attributable to TAL was
US$7.3 million , compared to net income attributable to TAL ofUS$27.5 million in the same period of the prior year. - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
US$7.0 million , compared to non-GAAP net income attributable to TAL ofUS$48.0 million in the same period of the prior year. - Basic and diluted net loss per American Depositary Share ("ADS") were both
US$0.01 . Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were bothUS$0.01 . Three ADSs represent one Class A common share. - Cash, cash equivalents and short-term investments totaled
US$3,618.4 million as ofFebruary 28, 2025 , compared toUS$3,303.3 million as ofFebruary 29, 2024 .
Highlights for the Fiscal Year Ended
- Net revenues were
US$2,250.2 million , compared to net revenues ofUS$1,490.4 million in the prior year. - Loss from operations was
US$3.2 million , compared to loss from operations ofUS$69.2 million in the prior year. - Non-GAAP income from operations, which excluded share-based compensation expenses, was
US$61.8 million , compared to non-GAAP income from operations ofUS$19.7 million in the prior year. - Net income attributable to TAL was
US$84.6 million , compared to net loss attributable to TAL ofUS$3.6 million in the prior year. - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
US$149.5 million , compared to non-GAAP net income attributable to TAL ofUS$85.3 million in the prior year. - Basic and diluted net income per ADS were both
US$0.14 . Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, wereUS$0.25 andUS$0.24 , respectively.
Financial Data——Fourth Quarter and Fiscal Year 2025
(In US$ thousands, except per ADS data and percentages)
|
Three Months Ended |
||||
|
February 29/28, |
||||
|
2024 |
|
2025 |
|
Pct. Change |
Net revenues |
429,563 |
|
610,239 |
|
42.1 % |
Loss from operations |
(11,061) |
|
(16,015) |
|
44.8 % |
Non-GAAP income/(loss) from operations |
9,440 |
|
(1,692) |
|
(117.9 %) |
Net income/(loss) attributable to TAL |
27,508 |
|
(7,311) |
|
(126.6 %) |
Non-GAAP net income attributable to TAL |
48,009 |
|
7,012 |
|
(85.4 %) |
Net income/(loss) per ADS attributable to TAL – |
0.05 |
|
(0.01) |
|
(126.4 %) |
Net income/(loss) per ADS attributable to TAL – |
0.04 |
|
(0.01) |
|
(126.9 %) |
Non-GAAP net income per ADS attributable to |
0.08 |
|
0.01 |
|
(85.5 %) |
Non-GAAP net income per ADS attributable to |
0.08 |
|
0.01 |
|
(85.4 %) |
|
Fiscal Year Ended |
||||
|
February 29/28, |
||||
|
2024 |
|
2025 |
|
Pct. Change |
Net revenues |
1,490,440 |
|
2,250,233 |
|
51.0 % |
Loss from operations |
(69,229) |
|
(3,155) |
|
(95.4 %) |
Non-GAAP income from operations |
19,669 |
|
61,784 |
|
214.1 % |
Net (loss)/income attributable to TAL |
(3,573) |
|
84,591 |
|
(2,467.5 %) |
Non-GAAP net income attributable to TAL |
85,325 |
|
149,530 |
|
75.2 % |
Net (loss)/income per ADS attributable to TAL – |
(0.01) |
|
0.14 |
|
(2,483.2 %) |
Net (loss)/income per ADS attributable to TAL – |
(0.01) |
|
0.14 |
|
(2,445.4 %) |
Non-GAAP net income per ADS attributable to |
0.14 |
|
0.25 |
|
76.4 % |
Non-GAAP net income per ADS attributable to |
0.14 |
|
0.24 |
|
76.7 % |
"We are pleased to share our fiscal fourth-quarter and full-year performance, delivering year-over-year revenue growth across both learning services and content solutions. We continued to receive positive user feedback in both online and offline enrichment learning programs, as more families seek solutions that enable learners' holistic development," said
"Our learning devices have also gained momentum over the past year, reflecting their growing role in students' self-learning journeys. Moving forward, by integrating in-person teaching, interactive online programs, and smart learning tools, we are confident in TAL's full-stack capability to deliver value to students and families."
Financial Results for the Fourth Quarter of Fiscal Year 2025
Net Revenues
In the fourth quarter of fiscal year 2025, TAL reported net revenues of
Operating Costs and Expenses
In the fourth quarter of fiscal year 2025, operating costs and expenses were
Cost of revenues increased by 44.7% to
Selling and marketing expenses increased by 73.1% to
General and administrative expenses increased by 0.8% to
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 30.1% to
Gross Profit
Gross profit increased by 39.7% to
Loss from Operations
Loss from operations was
Other Income
Other income was
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was
Income Tax Expense
Income tax expense was
Net Income/(Loss) attributable to
Net loss attributable to TAL was
Basic and Diluted Net Income/(Loss) per ADS
Basic and diluted net loss per ADS were both
Cash Flow
Net cash used in operating activities in the fourth quarter of fiscal year 2025 was
Cash, Cash Equivalents, and Short-Term Investments
As of
Deferred Revenue
As of
Financial Results for the Fiscal Year Ended
Net Revenues
In fiscal year 2025, TAL reported net revenues of
Operating Costs and Expenses
In fiscal year 2025, operating costs and expenses were
Cost of revenues increased by 53.4% to
Selling and marketing expenses increased by 62.1% to
General and administrative expenses increased by 6.7% to
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 27.0% to
Gross Profit
Gross profit increased by 48.9% to
Loss from Operations
Loss from operations was
Other Income
Other income was
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was
Income Tax Expense
Income tax expense was
Net Income/(Loss) Attributable to TAL Education Group
Net income attributable to TAL was US$84.6 million in fiscal year 2025, compared to net loss attributable to TAL of US$3.6 million in fiscal year 2024. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
Cash Flow
Net cash provided by operating activities in fiscal year 2025 was
Basic and Diluted Net Income/(Loss) per ADS
Basic and diluted net income per ADS were both
Extension of Share Repurchase Program by the Company
The Company's board of directors (the "Board") has authorized to extend the Company's share repurchase program (the "Share Repurchase Program") initially launched in
Board Member Changes
The Board has appointed Mr.
"We are pleased to welcome
Since 2014,
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the fourth fiscal quarter of fiscal year 2025 ended
Please note that you will need to pre-register for conference call participation at
https://register-conf.media-server.com/register/BI775d26b88d684bfd81abe62dd23861a6.
Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
About
TAL Education Group is a smart learning solutions provider in
About Non-GAAP Financial Measures
In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the
TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
For further information, please contact:
Investor Relations
Tel: +86 10 5292 6669-8809
Email: ir@tal.com
|
||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(In thousands of |
||||
|
||||
|
As of
|
|
As of
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
Restricted cash-current |
167,656 |
|
187,846 |
|
Short-term investments |
1,094,593 |
|
1,847,120 |
|
Inventory |
68,328 |
|
104,876 |
|
Amounts due from related parties-current |
343 |
|
37 |
|
Prepaid expenses and other current assets |
159,498 |
|
215,781 |
|
Total current assets |
3,699,174 |
|
4,126,920 |
|
Restricted cash-non-current |
81,064 |
|
32,625 |
|
Property and equipment, net |
405,319 |
|
472,366 |
|
Deferred tax assets |
4,620 |
|
3,487 |
|
Rental deposits |
16,947 |
|
22,131 |
|
Land use rights, net |
189,049 |
|
182,880 |
|
Amounts due from related parties-non-current |
59 |
|
96 |
|
Long-term investments |
284,266 |
|
305,105 |
|
Long-term prepayments and other non-current assets |
16,347 |
|
28,393 |
|
Operating lease right-of-use assets |
231,104 |
|
329,064 |
|
Total assets |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
|
|
|
Deferred revenue-current |
400,286 |
|
624,272 |
|
Amounts due to related parties-current |
96 |
|
93 |
|
Accrued expenses and other current liabilities |
491,911 |
|
582,227 |
|
Operating lease liabilities, current portion |
62,604 |
|
88,453 |
|
Total current liabilities |
1,082,218 |
|
1,441,345 |
|
Deferred revenue-non-current |
27,993 |
|
46,955 |
|
Deferred tax liabilities |
2,360 |
|
3,474 |
|
Operating lease liabilities, non-current portion |
176,614 |
|
244,895 |
|
Total liabilities |
1,289,185 |
|
1,736,669 |
|
|
|
|
|
|
Equity |
|
|
|
|
Class A common shares |
152 |
|
154 |
|
Class B common shares |
49 |
|
49 |
|
Additional paid-in capital |
4,256,957 |
|
4,294,819 |
|
Statutory reserve |
165,138 |
|
179,537 |
|
Accumulated deficit |
(694,270) |
|
(624,078) |
|
Accumulated other comprehensive loss |
(65,928) |
|
(83,914) |
|
|
3,662,098 |
|
3,766,567 |
|
Noncontrolling interests |
(23,334) |
|
(169) |
|
Total equity |
3,638,764 |
|
3,766,398 |
|
Total liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(In thousands of |
|||||||
|
|||||||
|
For the Three Months Ended |
|
For the Fiscal Year Ended February 29/28, |
||||
|
2024 |
|
2025 |
|
2024 |
|
2025 |
Net revenues |
|
|
|
|
|
|
|
Cost of revenues (note 1) |
202,241 |
|
292,646 |
|
684,316 |
|
1,049,975 |
Gross profit |
227,322 |
|
317,593 |
|
806,124 |
|
1,200,258 |
Operating expenses (note 1) |
|
|
|
|
|
|
|
Selling and marketing |
125,949 |
|
217,981 |
|
461,851 |
|
748,750 |
General and administrative |
117,240 |
|
118,177 |
|
429,947 |
|
458,895 |
Total operating expenses |
243,189 |
|
336,158 |
|
891,798 |
|
1,207,645 |
Government subsidies |
4,806 |
|
2,550 |
|
16,445 |
|
4,232 |
Loss from operations |
(11,061) |
|
(16,015) |
|
(69,229) |
|
(3,155) |
Interest income, net |
20,895 |
|
19,072 |
|
84,928 |
|
83,482 |
Other income |
37,255 |
|
12,950 |
|
48,766 |
|
64,717 |
Impairment loss on long-term |
(13,951) |
|
(4,241) |
|
(46,982) |
|
(12,933) |
Income before income tax |
33,138 |
|
11,766 |
|
17,483 |
|
132,111 |
Income tax expense |
(6,504) |
|
(13,972) |
|
(15,379) |
|
(38,320) |
Income/(loss) from equity method |
694 |
|
(5,194) |
|
(6,242) |
|
(9,531) |
Net income/(loss) |
|
|
|
|
|
|
|
Add: Net loss attributable to |
180 |
|
89 |
|
565 |
|
331 |
Total net income/(loss) |
|
|
|
|
|
|
|
Net income/(loss) per common |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Diluted |
0.13 |
|
(0.04) |
|
(0.02) |
|
0.41 |
Net income/(loss) per ADS (note |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Diluted |
0.04 |
|
(0.01) |
|
(0.01) |
|
0.14 |
|
|
|
|
|
|
|
|
Weighted average shares used in |
|
|
|
|
|
|
|
Basic |
201,140,767 |
|
202,627,554 |
|
203,304,744 |
|
201,963,823 |
Diluted |
205,157,437 |
|
202,627,554 |
|
203,304,744 |
|
205,222,753 |
|
|||||||
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows: |
|||||||
|
|||||||
|
For the Three Months |
|
For the Fiscal Year |
||||
|
Ended February 29/28, |
Ended February 29/28, |
|||||
|
2024 |
|
2025 |
|
2024 |
|
2025 |
Cost of revenues |
|
|
|
|
|
|
|
Selling and marketing expenses |
5,505 |
|
3,691 |
|
24,625 |
|
16,101 |
General and administrative expenses |
12,370 |
|
9,669 |
|
54,658 |
|
42,449 |
Total |
|
|
|
|
|
|
|
|
|||||||
Note 2: Three ADSs represent one Class A common Share. |
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
|||||||
COMPREHENSIVE INCOME/(LOSS) |
|||||||
(In thousands of |
|||||||
|
|||||||
|
For the Three Months Ended February 29/28, |
|
For the Fiscal Year Ended February 29/28, |
||||
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
|
|
|
|
|
|
|
Net income/(loss) |
|
|
|
|
|
|
|
Other comprehensive loss, net |
(8,062) |
|
(13,376) |
|
(34,301) |
|
(17,724) |
Comprehensive income/(loss) |
19,266 |
|
(20,776) |
|
(38,439) |
|
66,536 |
Add: Comprehensive |
(40) |
|
44 |
|
(396) |
|
69 |
Comprehensive
income/(loss) |
|
|
|
|
|
|
|
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
|||||||
CASH FLOWS |
|||||||
(In thousands of |
|||||||
|
|||||||
|
For the Three Months Ended February 29/28, |
|
For the Fiscal Year Ended February 29/28, |
||||
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
|
|
|
|
|
|
|
Net cash (used in)/provided by |
|
|
|
|
|
|
$ 397,923 |
Net cash (used in)/provided by |
(38,887) |
|
(314,289) |
|
95,068 |
|
(847,028) |
Net cash provided by/(used in) |
206 |
|
(55,104) |
|
(233,095) |
|
(13,167) |
Effect of exchange rate |
(2,465) |
|
(998) |
|
(5,576) |
|
(3,473) |
Net (decrease)/increase in |
(64,892) |
|
(596,723) |
|
162,569 |
|
(465,745) |
Cash, cash equivalents and |
2,522,368 |
|
2,588,454 |
|
2,294,907 |
|
2,457,476 |
Cash, cash equivalents and |
|
|
|
|
|
|
|
|
|||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures |
|||||||
(In thousands of |
|||||||
|
|||||||
|
For the Three Months Ended February 29/28, |
|
For the Fiscal Year Ended February 29/28, |
||||
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
Share-based compensation expenses |
2,626 |
|
963 |
|
9,615 |
|
6,389 |
Non-GAAP cost of revenues |
199,615 |
|
291,683 |
|
674,701 |
|
1,043,586 |
|
|
|
|
|
|
|
|
Selling and marketing expenses |
125,949 |
|
217,981 |
|
461,851 |
|
748,750 |
Share-based compensation expenses |
5,505 |
|
3,691 |
|
24,625 |
|
16,101 |
Non-GAAP selling and marketing |
120,444 |
|
214,290 |
|
437,226 |
|
732,649 |
General and administrative |
117,240 |
|
118,177 |
|
429,947 |
|
458,895 |
Share-based compensation expenses |
12,370 |
|
9,669 |
|
54,658 |
|
42,449 |
Non-GAAP general and |
104,870 |
|
108,508 |
|
375,289 |
|
416,446 |
|
|
|
|
|
|
|
|
Operating costs and expenses |
445,430 |
|
628,804 |
|
1,576,114 |
|
2,257,620 |
Share-based compensation expenses |
20,501 |
|
14,323 |
|
88,898 |
|
64,939 |
Non-GAAP operating costs and |
424,929 |
|
614,481 |
|
1,487,216 |
|
2,192,681 |
|
|
|
|
|
|
|
|
Loss from operations |
(11,061) |
|
(16,015) |
|
(69,229) |
|
(3,155) |
Share-based compensation expenses |
20,501 |
|
14,323 |
|
88,898 |
|
64,939 |
Non-GAAP income/(loss) from |
9,440 |
|
(1,692) |
|
19,669 |
|
61,784 |
|
|
|
|
|
|
|
|
Net income/(loss) attributable to |
27,508 |
|
(7,311) |
|
(3,573) |
|
84,591 |
Share-based compensation expenses |
20,501 |
|
14,323 |
|
88,898 |
|
64,939 |
Non-GAAP net income |
|
|
|
|
|
|
|
Net income/(loss) per ADS |
|
||||||
Basic |
|
|
|
|
|
|
|
Diluted |
0.04 |
|
(0.01) |
|
(0.01) |
|
0.14 |
Non-GAAP Net income per ADS |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Diluted |
0.08 |
|
0.01 |
|
0.14 |
|
0.24 |
ADSs used in calculating net |
|
|
|
|
|
|
|
Basic |
603,422,301 |
|
607,882,662 |
|
609,914,232 |
|
605,891,469 |
Diluted |
615,472,311 |
|
607,882,662 |
|
609,914,232 |
|
615,668,259 |
ADSs used in calculating Non- |
|
|
|
|
|
|
|
Basic |
603,422,301 |
|
607,882,662 |
|
609,914,232 |
|
605,891,469 |
Diluted |
615,472,311 |
|
616,868,733 |
|
620,629,080 |
|
615,668,259 |
|
|||||||
Note 3: The tax effect of share-based compensation expenses was immaterial in the fourth quarter and in the fiscal year 2025. |
View original content:https://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-2025-302437140.html
SOURCE