1. TAL's net revenues rose 51% to $2.25 billion for FY 2025. 2. Net loss increased to $7.31 million in Q4 2025 from $27.51 million profit. 3. TAL's gross profit for Q4 2025 grew 39.7% to $317.6 million. 4. Operating costs surged 43.2% as gross revenues increased. 5. Share repurchase program extended with potential buybacks up to $490.7 million.
Despite a net loss, revenue growth and extension of buyback boosts investor confidence. Previous instances of strong revenue growth led to stock price increases for TAL.
High revenue growth and management's optimistic outlook can attract new investors. However, losses may temper immediate enthusiasm slightly.
Immediate market reactions will likely be influenced by financial performance. Investors may respond quickly to revenue growth and positive management statements.
TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended February 28, 2025.
(In US$ thousands, except per ADS data and percentages)
| 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 – basic | 0.05 | (0.01) | (126.4 %) |
| Net income/(loss) per ADS attributable to TAL – diluted | 0.04 | (0.01) | (126.9 %) |
"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 Alex Peng, TAL's President & Chief Financial Officer.
"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."
In the fourth quarter of fiscal year 2025, TAL reported net revenues of US$610.2 million, representing a 42.1% increase from US$429.6 million in the fourth quarter of fiscal year 2024.
In the fourth quarter of fiscal year 2025, operating costs and expenses were US$628.8 million, representing a 41.2% increase from US$445.4 million in the fourth quarter of fiscal year 2024. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$614.5 million, representing a 44.6% increase from US$424.9 million in the fourth quarter of fiscal year 2024.
Gross profit increased by 39.7% to US$317.6 million from US$227.3 million in the fourth quarter of fiscal year 2024.
Loss from operations was US$16.0 million in the fourth quarter of fiscal year 2025, compared to loss from operations of US$11.1 million in the fourth quarter of fiscal year 2024.
Net loss attributable to TAL was US$7.3 million in the fourth quarter of fiscal year 2025, compared to net income attributable to TAL of US$27.5 million in the fourth quarter of fiscal year 2024.
Net cash used in operating activities in the fourth quarter of fiscal year 2025 was US$226.3 million.
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 April 2021 by another 12 months. The Company has repurchased its ADSs, every three representing one Class A common share, at an aggregate consideration of approximately US$13.1 million under the Share Repurchase Program between April 1, 2024 and April 24, 2025.
The Board has appointed Mr. Yi Wang as an independent director, effective April 22, 2025.
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 February 28, 2025.
Please note that you will need to pre-register for conference call participation at this link.
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.
TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students.
Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: jackson.ding@100tal.com