1. EDU's total net revenues increased 9.4% year-over-year to $1.24 billion. 2. Operating loss of $8.7 million contrasts with previous operating income. 3. Net income dropped 73.7%, attributed to increased operational expenses. 4. Non-GAAP net income increased by 59.4%, indicating strong management efforts. 5. Future revenue is projected to grow by 5-10% in FY2026.
The revenue growth is encouraging, but the operating loss and net income decline raise concerns. Historical performance shows that significant operational losses can impact market confidence, but growth in non-GAAP metrics indicates potential for recovery.
The article provides crucial financial metrics and future revenue projections which directly affect EDU’s stock valuation and investor sentiment.
The company aims for sustainable growth strategies over the next fiscal year. Future revenue projections and strategic initiatives suggest potential long-term value creation.
BEIJING, July 30, 2025 /PRNewswire/ -- New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the fourth fiscal quarter and fiscal year ended May 31, 2025.
(in thousands US$, except per ADS data)
| 4Q FY2025 | 4Q FY2024 | % 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 | 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 | 98,083 | 61,539 | 59.4 % |
| Net income per ADS - basic | 0.04 | 0.16 | -72.6 % |
| Net income per ADS - diluted | 0.04 | 0.16 | -72.8 % |
Financial Highlights for the Fiscal Year Ended May 31, 2025
| FY2025 | FY2024 | % of change | |
|---|---|---|---|
| Net revenues | 4,900,262 | 4,313,586 | 13.6 % |
| Operating income | 428,250 | 350,425 | 22.2 % |
| Non-GAAP operating income | 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 | 517,071 | 463,956 | 11.4 % |
| Net income per ADS - basic | 2.29 | 1.87 | 22.6 % |
| Net income per ADS - diluted | 2.28 | 1.85 | 23.3 % |
(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.
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..."
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..."
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..."
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...
On July 29, 2025, the Board approved a three-year shareholder return plan, effective from the fiscal year 2026...
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...
New Oriental's management will host an earnings conference call at 8 AM on July 30, 2025, U.S. Eastern Time...
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...
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...
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...
For investor and media inquiries, please contact:
Ms. Rita Fong, FTI Consulting, Tel: +852 3768 4548, Email: [email protected]
Ms. Sisi Zhao, New Oriental Education & Technology Group Inc., Tel: +86-10-6260-5568, Email: [email protected]