1. EDU reported Q3 2025 net revenues of $1.18 billion, down 2.0%. 2. Operating income increased by 9.8% year-over-year to $124.5 million. 3. Non-GAAP net income decreased by 14.3% year-over-year to $113.3 million. 4. Deferred revenue rose by 15.0% to $1.75 billion compared to last year. 5. The company revised share repurchase program, increasing buyback authorization to $700 million.
Despite operating income growth, declining net revenues and non-GAAP income reflect underlying weakness. Historical performance suggests similar trends have led to recovery challenges post-pressures.
Despite mixed results, the emphasis on revenue growth in new segments and share repurchase may resonate positively with investors.
The immediate effects are visible in Q3 results; however, recovery may take several quarters. The share repurchase announcement may afford medium-term uplift but faces short-term sentiment headwinds.
New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the third fiscal quarter ended February 28, 2025, which is the third quarter of New Oriental's fiscal year 2025.
(in thousands US$, except per ADS(1) data)
| Item | 3Q FY2025 | 3Q FY2024 | % of change |
|---|---|---|---|
| Net revenues | 1,183,055 | 1,207,286 | -2.0 % |
| Operating income | 124,519 | 113,432 | 9.8 % |
| Net income | 87,255 | 87,167 | 0.1 % |
| Net income per ADS attributable to New Oriental - basic | 0.54 | 0.53 | 2.7 % |
Michael Yu, New Oriental's Executive Chairman, commented, "I am encouraged to see that our Q3 performance has been positively set with total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, increasing by 21.2% year over year. Revenues from overseas test preparation and overseas study consulting businesses increased by approximately 7.1% and 21.4% year over year, respectively."
New Oriental's management will host an earnings conference call at 8 AM on April 23, 2025, U.S. Eastern Time (8 PM on April 23, 2025, Beijing/Hong Kong 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. For more information about New Oriental, please visit http://www.neworiental.org/english/.