17 Schooling & Know-how Group Inc. Stories Q3 2025 Monetary Outcomes

BEIJING, Dec. 10, 2025 (GLOBE NEWSWIRE) — 17 Schooling & Know-how Group Inc. (NASDAQ: YQ) (“17EdTech” or the “Firm”), a number one training know-how firm in China, in the present day introduced its unaudited monetary outcomes for the third quarter of 2025.

Third Quarter 2025 Highlights¹

• Web revenues had been RMB20.0 million (US$2.8 million), in contrast with internet revenues of RMB59.6 million within the third quarter of 2024.

• Gross margin was 51.2%, in contrast with 60.9% within the third quarter of 2024.

• Web loss was RMB44.5 million (US$6.3 million), in contrast with internet lack of RMB17.4 million within the third quarter of 2024.

• Web loss as a share of internet revenues was destructive 222.5% within the third quarter of 2025, in contrast with destructive 29.2% within the third quarter of 2024.

• Adjusted internet loss² (non-GAAP), which excluded share-based compensation bills of RMB6.3 million (US$0.9 million), was RMB38.2 million (US$5.4 million), in contrast with adjusted internet loss (non-GAAP) of RMB5.7 million within the third quarter of 2024.

• Adjusted internet loss (non-GAAP) as a share of internet revenues was destructive 191.0% within the third quarter of 2025, in contrast with destructive 9.5% adjusted internet loss (non-GAAP) as a share of internet revenues within the third quarter of 2024.

First 9 Months 2025 Highlights¹

• Web revenues had been RMB67.1 million (US$9.4 million), in contrast with internet revenues of RMB152.6 million within the first 9 months of 2024.

• Gross margin was 48.7%, in contrast with 37.3% within the first 9 months of 2024.

• Web loss was RMB101.4 million (US$14.2 million), in contrast with internet lack of RMB129.2 million within the first 9 months of 2024.

• Web loss as a share of internet revenues was destructive 151.2% within the first 9 months of 2025, in contrast with destructive 84.6% within the first 9 months of 2024.

• Adjusted internet loss² (non-GAAP), which excluded share-based compensation bills of RMB21.9 million (US$3.1 million), was RMB79.5 million (US$11.2 million), in contrast with adjusted internet loss (non-GAAP) of RMB90.9 million within the first 9 months of 2024.

• Adjusted internet loss (non-GAAP) as a share of internet revenues was destructive 118.5% within the first 9 months of 2025, in contrast with destructive 59.6% of adjusted internet loss (non-GAAP) as a share of internet revenues within the first 9 months of 2024.

Mr. Andy Liu, Founder, Chairman and Chief Government Officer of the Firm, commented, “We maintained regular progress in our present core enterprise within the third quarter, marked by robust consumer engagement and wholesome buyer retention.

By way of AI transformation, leveraging our beforehand gathered model endorsement, consumer recognition, non-public area assets, in addition to mature {hardware} capabilities and AI infrastructure, now we have effectively superior the R&D and launch of recent merchandise whereas sustaining wholesome money place.”

“Following the profitable launch of “Yiqi Tongxue” Clever Agent, now we have efficiently rolled out our new C-end product —Yiqi Aixue. This AI membership providing embodies our core philosophy of “Precision and Customized Studying,” seamlessly integrating sensible {hardware} and software program options, with in depth content material assets, superior AI capabilities, and knowledge insights gathered up to now decade. The brand new product has obtained outstanding market response, indicating strong development prospects for the long run.” he continued.

Ms. Sishi Zhou, Performing Chief Monetary Officer of the Firm, commented, “Regardless of the corporate’s elevated funding in R&D to assist the launch of recent AI merchandise, we nonetheless narrowed losses within the first 9 months by constantly specializing in operational effectivity, decreasing our working bills by 29.8% and narrowing internet loss by 21.5% for the primary 9 months on a GAAP foundation. Within the means of steady innovation, now we have additionally constantly targeted on the effectivity of useful resource funding and the well being of money circulate. As of the tip of this quarter, we nonetheless maintain money reserves of RMB341.9 million. The favorable market response to new merchandise will additional bolster optimistic expectations for future money circulate.”

“The profitable launch of our new C-end AI product marks a brand new milestone within the firm’s AI transformation. We are going to proceed to reinforce our product capabilities, try to enhance our prospects’ studying effectivity and expertise, and drive sustained, wholesome development for the Firm.” she added.

Third Quarter 2025 Unaudited Monetary Outcomes

Web Revenues

Web revenues for the third quarter of 2025 had been RMB20.0 million (US$2.8 million), representing a year-over-year lower of 66.4% from RMB59.6 million within the third quarter of 2024. This was primarily as a result of discount in internet revenues from district-level tasks, as we prioritize our assets on school-based challenge which requires longer interval of income recognition.

Price of Revenues

Price of revenues for the third quarter of 2025 was RMB9.8 million (US$1.4 million), representing a year-over-year lower of 58.1% from RMB23.3 million within the third quarter of 2024, which was largely in step with the lower of internet revenues in the course of the quarter.

Gross Revenue and Gross Margin

Gross revenue for the third quarter of 2025 was RMB10.2 million (US$1.4 million), in contrast with RMB36.3 million within the third quarter of 2024.

Gross margin for the third quarter of 2025 was 51.2%, in contrast with 60.9% within the third quarter of 2024.

Complete Working Bills

The next desk units forth a breakdown of working bills by quantities and percentages of income in the course of the durations indicated (in hundreds, aside from percentages):

Complete working bills for the third quarter of 2025 had been RMB56.9 million (US$8.0 million), together with RMB6.3 million (US$0.9 million) of share-based compensation bills, representing a year-over-year lower of 1.9% from RMB58.0 million within the third quarter of 2024.

Gross sales and advertising and marketing bills for the third quarter of 2025 had been RMB15.9 million (US$2.2 million), together with RMB1.6 million (US$0.2 million) of share-based compensation bills, representing a year-over-year lower of 21.6% from RMB20.2 million within the third quarter of 2024. This was primarily attributed to improved effectivity in advertising and marketing and gross sales pushed by enhanced buyer retention in contrast with the identical interval final yr.

Analysis and growth bills for the third quarter of 2025 had been RMB15.2 million (US$2.1 million), together with RMB2.1 million (US$0.3 million) of share-based compensation bills, representing a year-over-year improve of 19.2% from RMB12.8 million within the third quarter of 2024. The rise was primarily resulting from our elevated headcounts in analysis and growth to assist the rollout of our new product, offset by the lower of share-based compensation.

Basic and administrative bills for the third quarter of 2025 had been RMB25.8 million (US$3.6 million), together with RMB2.6 million (US$0.4 million) of share-based compensation bills, in contrast with RMB25.0 million within the third quarter of 2024.

Loss from Operations

Loss from operations for the third quarter of 2025 was RMB46.6 million (US$6.6 million), in contrast with RMB21.6 million within the third quarter of 2024. Loss from operations as a share of internet revenues for the third quarter of 2025 was destructive 233.1%, in contrast with destructive 36.3% within the third quarter of 2024.

Web Loss

Web loss for the third quarter of 2025 was RMB44.5 million (US$6.3 million), in contrast with internet lack of RMB17.4 million within the third quarter of 2024. Web loss as a share of internet revenues was destructive 222.5% within the third quarter of 2024, in contrast with destructive 29.2% within the third quarter of 2024.

Adjusted Web Loss (non-GAAP)

Adjusted internet loss (non-GAAP) for the third quarter of 2025 was RMB38.2 million (US$5.4 million), in contrast with adjusted internet loss (non-GAAP) of RMB5.7 million within the third quarter of 2024. Adjusted internet loss (non-GAAP) as a share of internet revenues was destructive 191.0% within the third quarter of 2025, in contrast with destructive 9.5% of adjusted internet loss (non-GAAP) as a share of internet revenues within the third quarter of 2024.

Please confer with the desk captioned “Reconciliations of non-GAAP measures to essentially the most comparable GAAP measures” on the finish of this press launch for a reconciliation of internet loss underneath U.S. GAAP to adjusted internet loss (non-GAAP).

Money and Money Equivalents, Restricted Money and Time period Deposit

Money and money equivalents and time period deposit had been RMB341.9 million (US$48.0 million) as of September 30, 2025, in contrast with RMB359.3 million as of December 31, 2024.

Convention Name Info

The Firm will maintain a convention name on Tuesday, December 9, 2025 at 8:00 p.m. U.S. Jap Time (Wednesday, December 10, 2025 at 9:00 a.m. Beijing time) to debate the monetary outcomes for the third quarter of 2025.

Please observe that every one members might want to preregister for the convention name participation by navigating to https://register-conf.media-server.com/register/BI321fdcdf12d243ceabd41e03ae81db1d.

Upon registration, you’ll obtain an e mail containing participant dial-in numbers, and PIN quantity. To hitch the convention name, please dial the quantity you obtain, enter the PIN quantity, and you may be joined to the convention name immediately.

Moreover, a reside and archived webcast of this convention name will likely be accessible at https://ir.17zuoye.com/.

Non-GAAP Monetary Measures

17EdTech’s administration makes use of adjusted internet revenue (loss) as a non-GAAP monetary measure to realize an understanding of 17EdTech’s comparative working efficiency and future prospects.

Adjusted internet revenue (loss) represents internet loss excluding share-based compensation bills and such adjustment has no influence on revenue tax.

Adjusted internet revenue (loss) is utilized by 17EdTech’s administration of their monetary and working decision-making as a non-GAAP monetary measure; as a result of administration believes it displays 17EdTech’s ongoing enterprise and working efficiency in a fashion that permits significant period-to-period comparisons. 17EdTech’s administration believes that such non-GAAP measure gives helpful data to buyers and others in understanding and evaluating 17EdTech’s working efficiency in the identical method as administration does, in the event that they so select. Particularly, 17EdTech believes the non-GAAP measure gives helpful data to each administration and buyers by excluding sure prices that the Firm believes will not be indicative of its core working outcomes.

The non-GAAP monetary measure has limitations. It doesn’t embrace all objects of revenue and expense that have an effect on 17EdTech’s revenue from operations. Particularly, the non-GAAP monetary measure shouldn’t be ready in accordance with GAAP, will not be similar to non-GAAP monetary measures utilized by different firms and, with respect to the non-GAAP monetary measure that excludes sure objects underneath GAAP, doesn’t mirror any profit that such objects might confer to 17EdTech. Administration compensates for these limitations by additionally contemplating 17EdTech’s monetary outcomes as decided in accordance with GAAP. The presentation of this extra data shouldn’t be meant to be thought-about superior to, in isolation from or as an alternative choice to outcomes ready in accordance with US GAAP.

Change Price Info

The Firm’s enterprise is primarily performed in China and the entire revenues are denominated in Renminbi (“RMB”). Nonetheless, periodic studies made to shareholders will embrace present interval quantities translated into U.S. {dollars} (“USD” or “US$”) utilizing the trade price as of stability sheet date, for the comfort of the readers. Translations of balances within the consolidated stability sheets and the associated consolidated statements of operations, complete loss, change in shareholders’ deficit and money flows from RMB into USD as of and for the three months ended September 30, 2025 are solely for the comfort of the readers and had been calculated on the price of US$1.00=RMB7.119 representing the midday shopping for price set forth within the H.10 statistical launch of the U.S. Federal Reserve Board on September 30, 2025. No illustration is made that the RMB quantities might have been, or might be, transformed, realized or settled into US$ at that price on September 30, 2025, or at every other price.

About 17 Schooling & Know-how Group Inc.

17 Schooling & Know-how Group Inc. is a number one training know-how firm in China, providing sensible in-school classroom answer that delivers data-driven instructing, studying and evaluation merchandise to academics, college students and oldsters. Leveraging its in depth data and experience obtained from in-school enterprise over the previous decade, the Firm gives instructing and studying SaaS choices to facilitate the digital transformation and improve at Chinese language faculties, with a give attention to enhancing the effectivity and effectiveness of core instructing and studying eventualities similar to homework assignments and in-class instructing. The product makes use of the Firm’s know-how and knowledge insights to offer customized and focused studying and train content material that’s aimed toward enhancing college students’ studying effectivity.

Secure Harbor Assertion

This announcement comprises forward-looking statements. These statements are made underneath the “secure harbor” provisions of the US Non-public Securities Litigation Reform Act of 1995. These forward-looking statements will be recognized by terminology similar to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and comparable statements. Statements that aren’t historic information, together with statements about 17EdTech’s beliefs and expectations, are forward-looking statements. 17EdTech might also make written or oral forward-looking statements in its periodic studies to the SEC, in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or staff to 3rd events. Ahead-looking statements contain inherent dangers and uncertainties. Numerous components might trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: 17EdTech’s development methods; its future enterprise growth, monetary situation and outcomes of operations; its potential to proceed to draw and retain customers; its potential to hold out its enterprise and group transformation, its potential to implement and develop its new enterprise initiatives; the tendencies in, and measurement of, China’s on-line training market; competitors in and related authorities insurance policies and rules regarding China’s on-line training market; its expectations relating to demand for, and market acceptance of, its services and products; its expectations relating to its relationships with enterprise companions; common financial and enterprise circumstances; and assumptions underlying or associated to any of the foregoing. Additional data relating to these and different dangers is included in 17EdTech’s filings with the SEC. All data supplied on this press launch is as of the date of this press launch, and 17EdTech doesn’t undertake any obligation to replace any forward-looking assertion, besides as required underneath relevant legislation.

For investor and media inquiries, please contact:

17 Schooling & Know-how Group Inc.
Ms. Lara Zhao
Investor Relations Supervisor
E-mail: ir@17zuoye.com