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New Oriental Education & Technology Group Inc

New Oriental Announces Results for the Fourth Fiscal Quarter and the Fiscal Year Ended May 31, 2025

BEIJING , July 30, 2025 /PRNewswire/ -- New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the fourth fiscal quarter and fiscal year ended May 31, 2025.  

Financial Highlights for the Fourth Fiscal Quarter Ended May 31, 202 5

  • Total net revenues increased by 9.4% year over year to US$1,243.2 million for the fourth fiscal quarter of 2025. Total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, increased by 18.7% year over year to US$1,088.5 million for the fourth fiscal quarter of 2025.
  • Operating loss was US$8.7 million, compared to operating income of US$10.5 million in the same period of the prior fiscal year. Operating loss, excluding operating income generated from East Buy private label products and livestreaming business, was US$15.9 million, compared to operating income excluding operating income generated from East Buy private label products and livestreaming business of US$7.5 million in the same period of the prior fiscal year.
  • Net income attributable to New Oriental decreased by 73.7% year over year to US$7.1 million for the fourth fiscal quarter of 2025.

Key Financial Results

(in thousands US$, except per ADS(1) data)

4Q FY202 5

4Q FY202 4

% of change

Net revenues

1,243,155

1,136,679

9.4 %

Operating (loss)/income

(8,674)

10,527

-182.4 %

Non-GAAP operating income (2)(3)

81,678

37,769

116.3 %

Net income attributable to New Oriental

7,100

26,972

-73.7 %

Non-GAAP net income attributable to New Oriental (2)(3)

98,083

61,539

59.4 %

Net income per ADS attributable to New Oriental - basic

0.04

0.16

-72.6 %

Net income per ADS attributable to New Oriental - diluted

0.04

0.16

-72.8 %

Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4)

0.62

0.37

65.9 %

Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4)

0.61

0.37

66.9 %





(in thousands US$, except per ADS(1) data)

 FY202 5

FY202 4

% of change

Net revenues

4,900,262

4,313,586

13.6 %

Operating income

428,250

350,425

22.2 %

Non-GAAP operating income (2)(3)

554,228

478,786

15.8 %

Net income attributable to New Oriental

371,716

309,591

20.1 %

Non-GAAP net income attributable to New Oriental (2)(3)

517,071

463,956

11.4 %

Net income per ADS attributable to New Oriental - basic

2.29

1.87

22.6 %

Net income per ADS attributable to New Oriental - diluted

2.28

1.85

23.3 %

Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4)

3.19

2.81

13.8 %

Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4)

3.17

2.76

14.7 %





(1)  Each ADS represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.

(2)  GAAP represents Generally Accepted Accounting Principles in the United States of America.

(3)  New Oriental provides non-GAAP financial measures on net income attributable to New Oriental, operating income and net income per ADS attributable to New Oriental that exclude share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, (gain)/loss from equity method investments, impairment of long-term investments, impairment of goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments. For further details on these adjustments, please refer to the section titled "About Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures" set forth at the end of this release.

(4)  The Non-GAAP net income per ADS attributable to New Oriental is computed using Non-GAAP net income attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation.

Operating Highlights for the Fourth Fiscal Quarter Ended May 31, 202 5

Michael Yu, New Oriental's Executive Chairman, commented, "We are delighted to conclude the fiscal year 2025 with a healthy top line growth of 9.4% in this quarter. Total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, increased by 18.7% year over year. Revenues from overseas test preparation and overseas study consulting businesses increased by approximately 14.6% and 8.2% year over year, respectively. In addition, the domestic test preparation business targeting adults and university students grew by approximately 17.0% year over year. Furthermore, our new educational business initiatives maintained strong momentum during this fiscal quarter, with revenue growth of 32.5% year over year. Notably, our non-academic tutoring courses were offered in around 60 cities, attracting approximately 918,000 student enrollments in this fiscal quarter. Simultaneously, our intelligent learning system and devices were adopted in around 60 cities, with approximately 255,000 active paid users in this fiscal quarter. Over the past year, we have gradually solidified our long-term development strategy. In the new fiscal year, we will intensify management efforts on our core educational business, with a priority on enhancing product capabilities and quality, as well as systematically developing our educational resources, and improving operational efficiency. We remain steadfast in our commitment to delivering exceptional service to our clients, enhancing our brand influence, and creating sustainable long-term value for shareholders."

Chenggang Zhou, New Oriental's Chief Executive Officer, added, "In this fiscal quarter, we continued to monitor our capacity expansion to ensure alignment with revenue growth and operating efficiency. At the same time, we focused on revamping our OMO (online-merge-offline) teaching system and invested in applying AI technologies across our education ecosystem. Recently, we launched a new generation of AI-powered Intelligent Learning Device and introduced an AI-driven Smart Study Solution. The integration of new technologies into our offline and online products has consistently strengthened our product capabilities. Additionally, we developed innovative technologies to support daily operations for teachers and staff, enhancing operational efficiency and service satisfaction. In this fiscal year, East Buy continued to invest in its 'healthy and high-quality' private label products strategy—enriching product categories, achieving blockbuster breakthroughs, and innovating on products, resulting in stable and widely applicable private label products that have become household staples and gained greater market recognition."

Stephen Zhihui Yang, New Oriental's Executive President and Chief Financial Officer, commented, "To better reflect New Oriental's core educational businesses, the following operating margin numbers for this fiscal quarter exclude the financial results of East Buy's private label products and livestreaming business. Our non-GAAP operating margin, excluding operating margin generated from East Buy private label products and livestreaming business for the quarter, was 6.5%, representing a year over year improvement of 410 basis points. Although we experienced a slowdown in revenue growth within our overseas-related businesses and invested in our newly-integrated tourism-related business during fiscal year 2025, our non-GAAP operating margin, excluding operating margin generated from East Buy private label products and livestreaming business for the full year, was 12.8%, representing a year over year improvement of 150 basis points. As we enter fiscal year 2026, we will continue to execute cost optimization and efficiency enhancement initiatives across all business lines, pursuing healthy and sustainable revenue growth and enhanced profitability."

Previous Share Repurchase Program

The Company's board of directors (the "Board") approved a Share Repurchase Program in July 2022, under which the Company was authorized to repurchase up to US$400 million of the Company's ADSs or common shares through the next twelve months. The Board further approved extending the effective time of the Share Repurchase Program to May 31, 2025, and increasing the aggregate value of shares that the Company was authorized to repurchase from US$400 million to US$700 million. As of May 31, 2025, the Share Repurchase Program had expired and the Company had repurchased an aggregate of approximately 14.5 million ADSs for approximately US$700 million from the open market under the Share Repurchase Program.

New Shareholder Return Plan

On July 29, 2025, the Board approved a three-year shareholder return plan, effective from the fiscal year 2026. Under this plan, no less than 50% of the Company's net income attributable to New Oriental for the preceding fiscal year will be dedicated to returning value to shareholders, including through dividend distribution and/or share repurchases. The Board will reevaluate this plan upon its expiration. For the fiscal year 2026, the Board will determine the implementation of this plan based on the net income attributable to New Oriental for the fiscal year ended May 31, 2025 in due course.

In establishing this plan, the Board considered the recent and anticipated growth of the private education industry, as well as the Company's own performance and growth strategies. Under this plan, the Board reserves discretion to determine the form, timing and amount of shareholder return measures in any fiscal year based on the Company's results of operations, capital requirements and other relevant factors.

Financial Results for the Fourth Fiscal Quarter Ended May 31, 202 5

Net Revenues

For the fourth fiscal quarter of 2025, New Oriental reported net revenues of US$1,243.2 million, representing a 9.4% increase year over year. Net revenues, excluding revenues generated from East Buy private label products and livestreaming business, were US$1,088.5 million, representing an 18.7% increase year over year. The growth was mainly driven by the increase in net revenues from the Company's educational new business initiatives.

Operating Costs and Expenses

Operating costs and expenses for the quarter were US$1,251.8 million, representing an 11.2% increase year over year.

  • Cost of revenues increased by 5.1% year over year to US$569.9 million.
  • Selling and marketing expenses increased by 1.8% year over year to US$211.9 million.
  • General and administrative expenses increased by 9.1% year over year to US$409.8 million.
  • Impairment of goodwill was US$60.3 million, compared to nil in the same period of the prior fiscal year.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 11.0% to US$28.6 million in the fourth fiscal quarter of 2025.

Operating Income / Loss and Operating Margin

Operating loss was US$8.7 million, compared to the income of US$10.5 million in the same period of the prior fiscal year. Non-GAAP operating income for the quarter, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill assigned to the reporting unit of kindergarten business, was US$81.7 million, representing a 116.3% increase year over year.

Operating margin for the quarter was negative 0.7%, compared to 0.9% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill for the quarter was 6.6%, compared to 3.3% in the same period of the prior fiscal year.

Net Income and Net Income per ADS

Net income attributable to New Oriental for the quarter was US$7.1 million, representing a 73.7% decrease year over year. Basic and diluted net income per ADS attributable to New Oriental were US$0.04 and US$0.04, respectively.

Non-GAAP Net Income and Non-GAAP Net Income per ADS

Non-GAAP net income attributable to New Oriental for the quarter, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, (gain)/loss from equity method investments, impairment of long-term investments, impairment of goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, was US$98.1 million, representing a 59.4% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$0.62 and US$0.61, respectively.

Cash Flow

Net operating cash inflow for the fourth fiscal quarter of 2025 was approximately US$399.1 million and capital expenditures for the quarter were US$65.9 million.

Balance Sheet

As of May 31, 2025, New Oriental had cash and cash equivalents of US$1,612.4 million. In addition, the Company had US$1,447.8 million in term deposits and US$1,873.5 million in short-term investment.

New Oriental's deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods are delivered, at the end of the fourth quarter of fiscal year 2025 was US$1,954.5 million, an increase of 9.8% as compared to US$1,780.1 million at the end of the fourth quarter of fiscal year 2024.

Financial Results for the Fiscal Year Ended May 31, 202 5

For the fiscal year 2025 ended May 31, 2025, New Oriental reported net revenues of $4,900.3 million, representing a 13.6% increase year over year.

Operating income was US$428.3 million, representing a 22.2% increase year over year. Non-GAAP operating income, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill for the fiscal year 2025 was US$554.2 million, representing a 15.8% increase year over year.

Operating margin for the fiscal year 2025 was 8.7%, compared to 8.1% for the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill for the fiscal year 2025, was 11.3%, compared to 11.1% for the same period of the prior fiscal year. 

Net income attributable to New Oriental for the fiscal year 2025 was US$371.7 million, representing a 20.1% increase year over year. Basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2025 amounted to US$2.29 and US$2.28, respectively.

Non-GAAP net income attributable to New Oriental, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss from equity method investments, impairment of long-term investments, impairment of goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, for the fiscal year 2025 was US$517.1 million, representing a 11.4% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2025 amounted to US$3.19 and US$3.17, respectively.

Outlook for the First Quarter and Full Year of FY202 6

New Oriental expects total net revenues in the first quarter of the fiscal year 2026 (June 1, 2025 to August 31, 2025) to be in the range of US$1,464.1 million to US$1,507.2 million, representing a year over year increase in the range of 2% to 5%.

To better reflect our long-term strategic priorities and align with the nature of the education industry, characterized by longer business cycles with seasonality, New Oriental will begin providing a full fiscal year net revenue outlook starting with this release. We believe this approach offers investors a more comprehensive, long term view of the business. New Oriental expects total net revenues in the fiscal year 2026 (June 1, 2025 to May 31, 2026) to be in the range of US$5,145.3 million to US$5,390.3 million, representing a year over year increase in the range of 5% to 10%.

This forecast reflects New Oriental's current and preliminary view, which is subject to change. The forecast is based on the current USD/RMB exchange rate, which is also subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on July 30, 2025, U.S. Eastern Time (8 PM on July 30, 2025, Beijing/Hong Kong Time). 

Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, and unique personal PIN.

Conference call registration link: 
https://register-conf.media-server.com/register/BIe7270a5fc1cd4145b314373163cffc42. It will automatically direct you to the registration page of "New Oriental FY2025 Q4 Earnings Conference Call" where you may fill in your details for RSVP.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s) and personal PIN) provided in the confirmation email received at the point of registering.

Joining the conference call via a live webcast:

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.

Listening to the conference call replay:

A replay of the conference call may be accessed via the webcast on-demand by registering at https://edge.media-server.com/mmc/p/m6t5pn89 first. The replay will be available until July 30, 2026.

About New Oriental

New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental's program, service and product offerings mainly consist of educational services and test preparation courses, private label products and livestreaming e-commerce, and overseas study consulting services. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's ADSs, each of which represents ten common shares, are listed and traded on the NYSE. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.

For more information about New Oriental, please visit http://www.neworiental.org/english/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of 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" and similar statements. Among other things, the outlook for the first quarter and full year of fiscal year 2026, quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to effectively and efficiently manage changes of its existing business and new business; its ability to execute its business strategies; uncertainties in relation to the interpretation and implementation of or proposed changes to, the PRC laws, regulations and policies regarding the private education industry; its ability to attract students without a significant increase in course fees; its ability to maintain and enhance its "New Oriental" brand; its ability to maintain consistent teaching quality throughout its school network, or service quality throughout its brand; its ability to achieve the benefits it expects from recent and future acquisitions; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector and livestreaming e-commerce business in China; the continuing efforts of its senior management team and other key personnel, health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in its annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments; operating income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; operating margin excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; and basic and diluted net income per ADS and per share excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding from each non-GAAP measure certain items that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to 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 New Oriental's historical performance and liquidity. New Oriental 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 these non-GAAP measures is that they exclude from each non-GAAP measure certain items that have been and will continue to be for the foreseeable future a significant recurring expense in its 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.

Contacts

For investor and media inquiries, please contact:

Ms. Rita Fong                                                    Ms. Sisi Zhao
FTI Consulting                                                   New Oriental Education & Technology Group Inc.
Tel: +852 3768 4548                                          Tel: +86-10-6260-5568
Email: rita.fong@fticonsulting.com                    Email: zhaosisi@xdf.cn

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.


CONDENSED CONSOLIDATED BALANCE SHEETS


(In thousands)



As of May 31


As of May 31


2025


2024


(Unaudited)


(Audited)



USD


USD


ASSETS:





Current assets:





Cash and cash equivalents

1,612,379


1,389,359


Restricted cash, current

180,724


177,411


Term deposits, current

1,092,115


1,320,167


Short-term investments

1,873,502


2,065,579


Accounts receivable, net

33,629


29,689


Inventory, net

80,884


92,806


Prepaid expenses and other current assets, net

307,902


309,464


Amounts due from related parties, current

6,567


4,403


Total current assets

5,187,702


5,388,878







Restricted cash, non-current

24,030


22,334


Term deposits, non-current

355,665


169,203


Property and equipment, net

767,346


507,981


Land use rights, net

54,900


4,450


Amounts due from related parties, non-current

12,464


7,273


Long-term deposits

48,815


38,161


Intangible assets, net

13,020


18,672


Goodwill, net

43,832


103,958


Long-term investments, net

388,481


355,812


Deferred tax assets, net

97,932


72,727


Right-of-use assets

793,842


653,905


Other non-current assets

17,470


188,319


Total assets

7,805,499


7,531,673







LIABILITIES AND EQUITY





Current liabilities:





Accounts payable

80,484


105,681


Accrued expenses and other current liabilities

830,583


774,805


Income taxes payable

167,881


139,822


Amounts due to related parties

405


551


Deferred revenue

1,954,464


1,780,063


Operating lease liability, current

255,997


199,933


Total current liabilities

3,289,814


3,000,855







Deferred tax liabilities

14,174


19,407


Unsecured senior notes

14,403


14,403


Operating lease liabilities, non-current

533,376


447,994


Total long-term liabilities

561,953


481,804







Total liabilities

3,851,767


3,482,659







Equity





  New Oriental Education & Technology Group Inc.
shareholders' equity

3,661,873


3,775,934


  Non-controlling interests

291,859


273,080


Total equity

3,953,732


4,049,014







Total liabilities and equity

7,805,499


7,531,673


 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except for per share and per ADS amounts)





For the Three Months Ended May 31


2025


2024


(Unaudited)


(Unaudited)


USD


USD

Net revenues

1,243,155


1,136,679





Operating cost and expenses (note 1)




Cost of revenues

569,872


542,398

Selling and marketing

211,906


208,241

General and administrative

409,752


375,513

Impairment of goodwill

60,299


-

Total operating cost and expenses

1,251,829


1,126,152

Operating (loss)/ income

(8,674)


10,527

(Loss)/Gain from fair value change of investments

(458)


10,412

Other income, net

19,022


35,820

Provision for income taxes

(1,535)


(5,531)

Gain/(Loss) from equity method investments

2,982


(22,606)

Net income

11,337


28,622





Net income attributable to non-controlling interests

(4,237)


(1,650)

Net income attributable to New Oriental Education
& Technology Group Inc.'s shareholders

7,100


26,972









Net income per share attributable to New Oriental-
Basic (note 2)

0.00


0.02





Net income per share attributable to New Oriental-
Diluted (note 2)

0.00


0.02





Net income per ADS attributable to New Oriental-
Basic (note 2)

0.04


0.16





Net income per ADS attributable to New Oriental-
Diluted (note 2)

0.04


0.16

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

(In thousands except for per share and per ADS amounts)




For the Three Months Ended May 31


2025


2024


(Unaudited)


(Unaudited)


USD


USD





Operating (loss)/ income

(8,674)


10,527

Share-based compensation expenses

28,636


25,797

Amortization of intangible assets resulting from
business acquisitions

1,417


1,445

Impairment of goodwill

60,299


-

Non-GAAP operating income

81,678


37,769





Operating margin

-0.7 %


0.9 %

Non-GAAP operating margin

6.6 %


3.3 %





Net income attributable to New Oriental

7,100


26,972

Share-based compensation expenses

27,174


20,371

Loss/(Gain) from fair value change of investments

458


(10,412)

Amortization of intangible assets resulting from
business acquisitions

878


904

(Gain)/Loss from equity method investments

(2,982)


22,606

Impairment of long-term investments

4,865


4,473

Impairment of goodwill

60,299


-

Gain on disposals of investments and others

(184)


-

Tax effects on Non-GAAP adjustments

475


(3,375)

Non-GAAP net income attributable to New Oriental

98,083


61,539





Net income per ADS attributable to New Oriental-
Basic (note 2)

0.04


0.16

Net income per ADS attributable to New Oriental-
Diluted (note 2)

0.04


0.16





Non-GAAP net income per ADS attributable to New
Oriental - Basic (note 2)

0.62


0.37

Non-GAAP net income per ADS attributable to New
Oriental - Diluted (note 2)

0.61


0.37





Weighted average shares used in calculating basic
net income per ADS (note 2)

1,587,987,886


1,653,165,343

Weighted average shares used in calculating diluted
net income per ADS (note 2)

1,602,366,310


1,671,292,756





Non-GAAP net income per share - basic

0.06


0.04

Non-GAAP net income per share - diluted

0.06


0.04

 

Notes:





Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as
follows:






For the Three Months Ended May 31


2025


2024


(Unaudited)


(Unaudited)


USD


USD

Cost of revenues

477


990

Selling and marketing

1,275


4,475

General and administrative

26,884


20,332

Total

28,636


25,797





Note 2: Each ADS represents ten common shares. 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)






For the Three Months Ended May 31



2025


2024



(Unaudited)


(Unaudited)



USD


USD







Net cash provided by operating activities

399,122


376,835


Net cash used in investing activities

(88,292)


(864,010)


Net cash used in financing activities

(98,477)


(109,230)


Effect of exchange rate changes

15,503


(3,565)







Net change in cash, cash equivalents and restricted
cash

227,856


(599,970)







Cash, cash equivalents and restricted cash at
beginning of period

1,589,277


2,189,074







Cash, cash equivalents and restricted cash at end
of period

1,817,133


1,589,104


 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except for per share and per ADS amounts)





For the Year Ended May 31


2025


2024


(Unaudited)


(Unaudited)


USD


USD

Net revenues

4,900,262


4,313,586





Operating cost and expenses (note 1)




Cost of revenues

2,183,291


2,050,960

Selling and marketing

783,959


660,586

General and administrative

1,444,463


1,251,615

Impairment of goodwill

60,299


-

Total operating cost and expenses

4,472,012


3,963,161

Operating income

428,250


350,425

(Loss)/Gain from fair value change of investments

(10,078)


19,025

Other income, net

118,212


124,391

Provision for income taxes

(146,294)


(109,690)

Loss from equity method investments

(14,257)


(58,933)

Net income

375,833


325,218





Net income attributable to non-controlling interests

(4,117)


(15,627)

Net income attributable to New Oriental Education &
Technology Group Inc.'s shareholders

371,716


309,591









Net income per share attributable to New Oriental-Basic
(note 2)

0.23


0.19





Net income per share attributable to New Oriental-
Diluted (note 2)

0.23


0.18





Net income per ADS attributable to New Oriental-Basic
(note 2)

2.29


1.87





Net income per ADS attributable to New Oriental-
Diluted (note 2)

2.28


1.85

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

(In thousands except for per share and per ADS amounts)




For the Year Ended May 31


2025


2024


(Unaudited)


(Unaudited)


USD


USD





Operating income

428,250


350,425

Share-based compensation expenses

59,933


122,458

Amortization of intangible assets resulting from business
acquisitions

5,746


5,903

Impairment of goodwill

60,299


-

Non-GAAP operating income

554,228


478,786





Operating margin

8.7 %


8.1 %

Non-GAAP operating margin

11.3 %


11.1 %





Net income attributable to New Oriental

371,716


309,591

Share-based compensation expenses

54,829


90,557

Loss/(Gain) from fair value change of investments

10,078


(19,025)

Amortization of intangible assets resulting from business
acquisitions

3,581


3,736

Loss from equity method investments

14,257


58,933

Impairment of long-term investments

4,865


27,801

Impairment of goodwill

60,299


-

Gain on disposals of investments and others

(345)


(185)

Tax effects on Non-GAAP adjustments

(2,209)


(7,452)

Non-GAAP net income attributable to New Oriental

517,071


463,956





Net income per ADS attributable to New Oriental- Basic
(note 2)

2.29


1.87

Net income per ADS attributable to New Oriental-
Diluted (note 2)

2.28


1.85





Non-GAAP net income per ADS attributable to New
Oriental - Basic (note 2)

3.19


2.81

Non-GAAP net income per ADS attributable to New
Oriental - Diluted (note 2)

3.17


2.76





Weighted average shares used in calculating basic net
income per ADS (note 2)

1,619,727,518


1,653,597,432

Weighted average shares used in calculating diluted net
income per ADS (note 2)

1,631,137,164


1,669,499,952





Non-GAAP net income per share - basic

0.32


0.28

Non-GAAP net income per share - diluted

0.32


0.28

     

Notes:








Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as
follows:






For the Year Ended May 31


2025


2024


(Unaudited)


(Unaudited)


USD


USD

Cost of revenues

(1,261)


19,967

Selling and marketing

4,658


26,052

General and administrative

56,536


76,439

Total

59,933


122,458





Note 2: Each ADS represents ten common shares. 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)






For the Year Ended May 31



2025


2024



(Unaudited)


(Unaudited)



USD


USD







Net cash provided by operating activities

896,592


1,122,643


Net cash used in investing activities

(93,428)


(1,153,922)


Net cash used in financing activities

(584,971)


(160,438)


Effect of exchange rate changes

9,836


(24,606)







Net change in cash, cash equivalents and restricted cash

228,029


(216,323)







Cash, cash equivalents and restricted cash at
beginning of period

1,589,104


1,805,427







Cash, cash equivalents and restricted cash at end of
period

1,817,133


1,589,104


 

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SOURCE New Oriental Education and Technology Group Inc.