TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and the Fiscal Year 2025

Rhea-AI Summary

TAL Education Group reported its Q4 and FY2025 financial results, showing significant growth in revenue but mixed profitability metrics. Q4 net revenues increased 42.1% to US$610.2 million, though the company recorded a loss from operations of US$16.0 million.

For FY2025, net revenues grew 51% to US$2,250.2 million, with net income of US$84.6 million compared to a loss in the previous year. The company's cash position remains strong at US$3,618.4 million. Operating costs increased 43.2% to US$2,257.6 million for the full year.

The Board extended the share repurchase program through April 2026, with approximately US$490.7 million available for future repurchases. Additionally, Mr. Yi Wang was appointed as an independent director, while Dr. Weiru Chen resigned but will continue in an advisory role.

Positive

• 51% year-over-year revenue growth to US$2,250.2 million in FY2025
• Strong cash position of US$3,618.4 million
• Turned net loss to profit with US$84.6 million net income in FY2025
• Deferred revenue increased 56.7% to US$671.2 million
• Non-GAAP income from operations grew 214.1% to US$61.8 million in FY2025

Negative

• Q4 operating loss increased to US$16.0 million from US$11.1 million year-over-year
• Q4 net loss of US$7.3 million compared to net income of US$27.5 million in previous year
• Operating costs rose 43.2% to US$2,257.6 million in FY2025
• Selling and marketing expenses increased 73.1% in Q4
• Non-GAAP Q4 operating income turned to loss of US$1.7 million from income of US$9.4 million

Insights

Financial Analyst

TAL showed strong annual revenue growth despite quarterly profitability challenges in Q4.

TAL Education Group's fiscal 2025 results demonstrate impressive top-line growth with mixed profitability metrics. The $610.2 million Q4 revenue represents a 42.1% year-over-year increase, while full-year revenue grew an outstanding 51.0% to $2,250.2 million.

The annual financial trajectory shows significant improvement despite Q4 challenges. Full-year losses from operations decreased dramatically by 95.4% to just $3.2 million, compared to $69.2 million in fiscal 2024. More importantly, TAL achieved net income of $84.6 million for fiscal 2025, a substantial turnaround from the previous year's $3.6 million loss.

Q4 presented profitability headwinds with operating losses increasing to $16.0 million from $11.1 million and a net loss of $7.3 million compared to last year's $27.5 million profit. This decline coincided with a 73.1% jump in selling and marketing expenses to $218.0 million, suggesting significant growth investments.

TAL's balance sheet remains exceptionally strong with $3,618.4 million in cash and short-term investments, up from $3,303.3 million a year ago. The 56.7% increase in deferred revenue to $671.2 million indicates robust future revenue visibility. The Board's authorization to extend the share repurchase program through April 2026 further demonstrates confidence in the company's financial position.

Education Industry Expert

TAL successfully pivoted to enrichment learning and smart devices with strong market traction.

TAL Education Group has effectively transformed its business model as evidenced by the 51.0% revenue growth for fiscal 2025. The company's diversified approach combining in-person teaching, online programs, and smart learning tools is clearly resonating with Chinese families seeking comprehensive educational solutions.

The substantial increase in deferred revenue - up 56.7% to $671.2 million - reflects growing market acceptance of TAL's enrichment learning programs. Management specifically highlighted positive user feedback across both online and offline formats, indicating successful product-market fit.

TAL's expansion strategy is reflected in the 73.1% increase in Q4 marketing expenditures, which likely contributed to the temporary profitability decline but supported the 42.1% quarterly revenue growth. This investment approach appears strategically sound given the company's robust cash position of $3,618.4 million.

The appointment of Yi Wang, who brings Harvard Center Shanghai experience alongside corporate expertise from Goldman Sachs and McKinsey, strengthens the Board's educational and business acumen. His background bridging academic and corporate environments adds valuable perspective as TAL continues navigating its business transformation.

The company's emphasis on "full-stack capability" indicates an integrated educational ecosystem approach that combines traditional teaching methods with technological solutions - positioning TAL to capture growth in China's evolving education market.

BEIJING, April 24, 2025 /PRNewswire/ -- 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.

Highlights for the Fourth Quarter of Fiscal Year 2025

• Net revenues were US$610.2 million, compared to net revenues of US$429.6 million in the same period of the prior year.
• Loss from operations was US$16.0 million, compared to loss from operations of US$11.1 million in the same period of the prior year.
• Non-GAAP loss from operations, which excluded share-based compensation expenses, was US$1.7 million, compared to non-GAAP income from operations of US$9.4 million in the same period of the prior year.
• Net loss attributable to TAL was US$7.3 million, compared to net income attributable to TAL of US$27.5 million in the same period of the prior year.
• Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$7.0 million, compared to non-GAAP net income attributable to TAL of US$48.0 million in the same period of the prior year.
• Basic and diluted net loss per American Depositary Share ("ADS") were both US$0.01. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.01. Three ADSs represent one Class A common share.
• Cash, cash equivalents and short-term investments totaled US$3,618.4 million as of February 28, 2025, compared to US$3,303.3 million as of February 29, 2024.

Highlights for the Fiscal Year Ended February 28, 2025

• Net revenues were US$2,250.2 million, compared to net revenues of US$1,490.4 million in the prior year.
• Loss from operations was US$3.2 million, compared to loss from operations of US$69.2 million in the prior year.
• Non-GAAP income from operations, which excluded share-based compensation expenses, was US$61.8 million, compared to non-GAAP income from operations of US$19.7 million in the prior year.
• Net income attributable to TAL was US$84.6 million, compared to net loss attributable to TAL of US$3.6 million in the prior year.
• Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$149.5 million, compared to non-GAAP net income attributable to TAL of US$85.3 million in the prior year.
• Basic and diluted net income per ADS were both US$0.14. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.25 and US$0.24, respectively.

Financial Data——Fourth Quarter and Fiscal Year 2025
(In US$ thousands, except per ADS data and percentages)

	Three Months Ended
	February 29/28,
	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 %)
Non-GAAP net income per ADS attributable to TAL – basic	0.08		0.01		(85.5 %)
Non-GAAP net income per ADS attributable to TAL – diluted	0.08		0.01		(85.4 %)

 

	Fiscal Year Ended
	February 29/28,
	2024		2025		Pct. Change
Net revenues	1,490,440		2,250,233		51.0 %
Loss from operations	(69,229)		(3,155)		(95.4 %)
Non-GAAP income from operations	19,669		61,784		214.1 %
Net (loss)/income attributable to TAL	(3,573)		84,591		(2,467.5 %)
Non-GAAP net income attributable to TAL	85,325		149,530		75.2 %
Net (loss)/income per ADS attributable to TAL – basic	(0.01)		0.14		(2,483.2 %)
Net (loss)/income per ADS attributable to TAL – diluted	(0.01)		0.14		(2,445.4 %)
Non-GAAP net income per ADS attributable to TAL – basic	0.14		0.25		76.4 %
Non-GAAP net income per ADS attributable to TAL – diluted	0.14		0.24		76.7 %

 

"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."

Financial Results for the Fourth Quarter of Fiscal Year 2025

Net Revenues

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.

Operating Costs and Expenses

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.

Cost of revenues increased by 44.7% to US$292.6 million from US$202.2 million in the fourth quarter of fiscal year 2024. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 46.1% to US$291.7 million, from US$199.6 million in the fourth quarter of fiscal year 2024.

Selling and marketing expenses increased by 73.1% to US$218.0 million from US$125.9 million in the fourth quarter of fiscal year 2024. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 77.9% to US$214.3 million, from US$120.4 million in the fourth quarter of fiscal year 2024.

General and administrative expenses increased by 0.8% to US$118.2 million from US$117.2 million in the fourth quarter of fiscal year 2024. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 3.5% to US$108.5 million, from US$104.9 million in the fourth quarter of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 30.1% to US$14.3 million in the fourth quarter of fiscal year 2025 from US$20.5 million in the fourth quarter of fiscal year 2024.

Gross Profit                                                                                                                                 

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

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. Non-GAAP loss from operations, which excluded share-based compensation expenses, was US$1.7 million, compared to Non-GAAP income from operations of US$9.4 million in the fourth quarter of fiscal year 2024.

Other Income

Other income was US$13.0 million in the fourth quarter of fiscal year 2025, compared to other income of US$37.3 million in the fourth quarter of fiscal year 2024.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$4.2 million in the fourth quarter of fiscal year 2025, compared to US$14.0 million in the fourth quarter of fiscal year 2024.

Income Tax Expense

Income tax expense was US$14.0 million in the fourth quarter of fiscal year 2025, compared to US$6.5 million of income tax expense in the fourth quarter of fiscal year 2024.

Net Income/(Loss) attributable to TAL Education Group

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. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$7.0 million, compared to Non-GAAP net income attributable to TAL of US$48.0 million in the fourth quarter of fiscal year 2024.

Basic and Diluted Net Income/(Loss) per ADS

Basic and diluted net loss per ADS were both US$0.01 in the fourth quarter of fiscal year 2025. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.01 in the fourth quarter of fiscal year 2025. 

Cash Flow

Net cash used in operating activities in the fourth quarter of fiscal year 2025 was US$226.3 million.

Cash, Cash Equivalents, and Short-Term Investments

As of February 28, 2025, the Company had US$1,771.3 million of cash and cash equivalents and US$1,847.1 million of short-term investments, compared to US$2,208.7 million of cash and cash equivalents and US$1,094.6 million of short-term investments as of February 29, 2024.

Deferred Revenue

As of February 28, 2025, the Company's deferred revenue balance was US$671.2 million, compared to US$428.3 million as of February 29, 2024.

Financial Results for the Fiscal Year Ended February 28, 2025

Net Revenues

In fiscal year 2025, TAL reported net revenues of US$2,250.2 million, representing a 51.0% increase from US$1,490.4 million in fiscal year 2024.

Operating Costs and Expenses

In fiscal year 2025, operating costs and expenses were US$2,257.6 million, representing a 43.2% increase from US$1,576.1 million in fiscal year 2024. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$2,192.7 million, representing a 47.4% increase from US$1,487.2 million in fiscal year 2024.

Cost of revenues increased by 53.4% to US$1,050.0 million in fiscal year 2025 from US$684.3 million in fiscal year 2024. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 54.7% to US$1,043.6 million in fiscal year 2025 from US$674.7 million in fiscal year 2024.

Selling and marketing expenses increased by 62.1% to US$748.8 million in fiscal year 2025 from US$461.9 million in fiscal year 2024. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 67.6% to US$732.6 million in fiscal year 2025 from US$437.2 million in fiscal year 2024.

General and administrative expenses increased by 6.7% to US$458.9 million in fiscal year 2025 from US$429.9 million in fiscal year 2024. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 11.0% to US$416.4 million in fiscal year 2025 from US$375.3 million in fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 27.0% to US$64.9 million in fiscal year 2025 from US$88.9 million in fiscal year 2024.

Gross Profit

Gross profit increased by 48.9% to US$1,200.3 million in fiscal year 2025 from US$806.1 million in fiscal year 2024.

Loss from Operations

Loss from operations was US$3.2 million in fiscal year 2025, compared to loss from operations of US$69.2 million in fiscal year 2024. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$61.8 million in fiscal year 2025, compared to US$19.7 million Non-GAAP income from operations in fiscal year 2024.

Other Income

Other income was US$64.7 million in fiscal year 2025, compared to other income of US$48.8 million in fiscal year 2024.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$12.9 million in fiscal year 2025, compared to US$47.0 million in fiscal year 2024.

Income Tax Expense

Income tax expense was US$38.3 million in fiscal year 2025, compared to US$15.4 million of income tax expense in fiscal year 2024.

Net Income/(Loss) Attributable to TAL Education Group

Net income attributable to TAL was US$84.6 million in fiscal year 2025, compared to net loss attributable to TAL of US$3.6 million in fiscal year 2024. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$149.5 million in fiscal year 2025, compared to US$85.3 million Non-GAAP net income attributable to TAL in fiscal year 2024.

Cash Flow

Net cash provided by operating activities in fiscal year 2025 was US$397.9 million.

Basic and Diluted Net Income/(Loss) per ADS

Basic and diluted net income per ADS were both US$0.14 in fiscal year 2025. Non-GAAP basic net income per ADS, which excluded share-based compensation expenses, was US$0.25, and Non-GAAP diluted net income per ADS was US$0.24.

Extension of Share Repurchase Program by the Company

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. Pursuant to the extended Share Repurchase Program, the Company may repurchase up to approximately US$490.7 million of its common shares through April 30, 2026. The share repurchases may be effected from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and will be implemented in accordance with applicable rules and regulations. The Company expects to fund the repurchases out of its existing cash balance.

Board Member Changes

The Board has appointed Mr. Yi Wang as an independent director, effective April 22, 2025. Mr. Wang will also serve as Chair of the Compensation Committee and as a member of both the Audit Committee and the Nominating and Corporate Governance Committee. Dr. Weiru Chen has resigned from the Board and all Board committees for personal reasons. Dr. Chen will continue to support the Company in an advisory capacity. 

"We are pleased to welcome Mr. Wang to the Board of TAL. Mr. Wang brings extensive experience across both the business and education sectors, and we are confident that his insights will further strengthen TAL's strategic direction, governance, and operational excellence," said Mr. Bangxin Zhang, Founder, Chairman of the Board, and Chief Executive Officer of TAL, "We also want to express our deep appreciation to Dr. Weiru Chen for his outstanding service and invaluable contributions over the past decade. We look forward to continuing our collaboration with Dr. Chen in his new advisory role."

Since 2014, Mr. Wang has served as the Executive Director of the Harvard Center Shanghai, where he oversees Harvard University's initiatives and programs in China. Prior to his role at Harvard, Mr. Wang held significant positions in the corporate sector, including Managing Director at Goldman Sachs and Partner at McKinsey & Company. He also served the financial industry as an independent director of Citibank (China) from 2017 to 2023. In addition to his professional endeavors, Mr. Wang is deeply committed to education-related charitable work. He is the co-founder and Vice Chair of the Board of UWC Changshu China and a founding board member of Tsinglan School in Dongguan, China.

Conference Call

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 at 8:00 a.m. Eastern Time on April 24, 2025 (8:00 p.m. Beijing time on April 24, 2025).

Please note that you will need to pre-register for conference call participation at
https://register-conf.media-server.com/register/BI775d26b88d684bfd81abe62dd23861a6.

Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.

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, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, 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 the Company'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 continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

About TAL Education Group

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 through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".

About Non-GAAP Financial Measures

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income/(loss) from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. 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 table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from 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 TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL 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 non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's 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.

For further information, please contact:

Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com

 

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
	As of February 29, 2024			As of February 28, 2025
ASSETS
Current assets
Cash and cash equivalents	$ 2,208,756			$ 1,771,260
Restricted cash-current	167,656			187,846
Short-term investments	1,094,593			1,847,120
Inventory	68,328			104,876
Amounts due from related parties-current	343			37
Prepaid expenses and other current assets	159,498			215,781
Total current assets	3,699,174			4,126,920
Restricted cash-non-current	81,064			32,625
Property and equipment, net	405,319			472,366
Deferred tax assets	4,620			3,487
Rental deposits	16,947			22,131
Land use rights, net	189,049			182,880
Amounts due from related parties-non-current	59			96
Long-term investments	284,266			305,105
Long-term prepayments and other non-current assets	16,347			28,393
Operating lease right-of-use assets	231,104			329,064
Total assets	$ 4,927,949			$ 5,503,067
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$ 127,321			$ 146,300
Deferred revenue-current	400,286			624,272
Amounts due to related parties-current	96			93
Accrued expenses and other current liabilities	491,911			582,227
Operating lease liabilities, current portion	62,604			88,453
Total current liabilities	1,082,218			1,441,345
Deferred revenue-non-current	27,993			46,955
Deferred tax liabilities	2,360			3,474
Operating lease liabilities, non-current portion	176,614			244,895
Total liabilities	1,289,185			1,736,669
Equity
Class A common shares	152			154
Class B common shares	49			49
Additional paid-in capital	4,256,957			4,294,819
Statutory reserve	165,138			179,537
Accumulated deficit	(694,270)			(624,078)
Accumulated other comprehensive loss	(65,928)			(83,914)
Total TAL Education Group's equity	3,662,098			3,766,567
Noncontrolling interests	(23,334)			(169)
Total equity	3,638,764			3,766,398
Total liabilities and equity	$ 4,927,949			$ 5,503,067

 

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
	For the Three Months Ended  February 29/28,				For the Fiscal Year Ended February 29/28,
	2024		2025		2024		2025
Net revenues	$ 429,563		$ 610,239		$ 1,490,440		$ 2,250,233
Cost of revenues (note 1)	202,241		292,646		684,316		1,049,975
Gross profit	227,322		317,593		806,124		1,200,258
Operating expenses (note 1)
Selling and marketing	125,949		217,981		461,851		748,750
General and administrative	117,240		118,177		429,947		458,895
Total operating expenses	243,189		336,158		891,798		1,207,645
Government subsidies	4,806		2,550		16,445		4,232
Loss from operations	(11,061)		(16,015)		(69,229)		(3,155)
Interest income, net	20,895		19,072		84,928		83,482
Other income	37,255		12,950		48,766		64,717
Impairment loss on long-term    investments	(13,951)		(4,241)		(46,982)		(12,933)
Income before income tax    expense and income/(loss) from    equity method investments	33,138		11,766		17,483		132,111
Income tax expense	(6,504)		(13,972)		(15,379)		(38,320)
Income/(loss) from equity method    investments	694		(5,194)		(6,242)		(9,531)
Net income/(loss)	$ 27,328		$ (7,400)		$ (4,138)		$ 84,260
Add: Net loss attributable to    noncontrolling interests	180		89		565		331
Total net income/(loss)    attributable to TAL       Education Group	$ 27,508		$ (7,311)		$ (3,573)		$ 84,591
Net income/(loss) per common    share
Basic	$ 0.14		$ (0.04)		$ (0.02)		$ 0.42
Diluted	0.13		(0.04)		(0.02)		0.41
Net income/(loss) per ADS (note 2)
Basic	$ 0.05		$ (0.01)		$ (0.01)		$ 0.14
Diluted	0.04		(0.01)		(0.01)		0.14
Weighted average shares used in    calculating net income/(loss)    per common share
Basic	201,140,767		202,627,554		203,304,744		201,963,823
Diluted	205,157,437		202,627,554		203,304,744		205,222,753
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:
	For the Three Months				For the Fiscal Year
	Ended February 29/28,				Ended February 29/28,
	2024		2025		2024		2025
Cost of revenues	$ 2,626		$ 963		$ 9,615		$ 6,389
Selling and marketing expenses	5,505		3,691		24,625		16,101
General and administrative expenses	12,370		9,669		54,658		42,449
Total	$ 20,501		$ 14,323		$ 88,898		$ 64,939
Note 2: Three ADSs represent one Class A common Share.

 

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME/(LOSS)
(In thousands of U.S. dollars)
	For the Three Months Ended February 29/28,				For the Fiscal Year Ended February 29/28,
	2024		2025		2024		2025
Net income/(loss)	$ 27,328		$ (7,400)		$ (4,138)		$ 84,260
Other comprehensive loss, net    of tax	(8,062)		(13,376)		(34,301)		(17,724)
Comprehensive income/(loss)	19,266		(20,776)		(38,439)		66,536
Add: Comprehensive    (income)/loss attributable to    noncontrolling interests	(40)		44		(396)		69
Comprehensive income/(loss)     attributable to TAL       Education Group	$ 19,226		$ (20,732)		$ (38,835)		$ 66,605

 

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands of U.S. dollars)
	For the Three Months Ended February 29/28,				For the Fiscal Year Ended February 29/28,
	2024		2025		2024		2025
Net cash (used in)/provided by    operating activities	$ (23,746)		$ (226,332)		$ 306,172		$  397,923
Net cash (used in)/provided by    investing activities	(38,887)		(314,289)		95,068		(847,028)
Net cash provided by/(used in)    financing activities	206		(55,104)		(233,095)		(13,167)
Effect of exchange rate    changes	(2,465)		(998)		(5,576)		(3,473)
Net (decrease)/increase in    cash, cash equivalents and    restricted cash	(64,892)		(596,723)		162,569		(465,745)
Cash, cash equivalents and    restricted cash at the    beginning of period	2,522,368		2,588,454		2,294,907		2,457,476
Cash, cash equivalents and    restricted cash at the end    of period	$ 2,457,476		$ 1,991,731		$ 2,457,476		$ 1,991,731

 

 

 

TAL EDUCATION GROUP
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
	For the Three Months Ended February 29/28,				For the Fiscal Year Ended February 29/28,
	2024		2025		2024		2025
Cost of revenues	$ 202,241		$ 292,646		$ 684,316		$ 1,049,975
Share-based compensation expenses    in cost of revenues	2,626		963		9,615		6,389
Non-GAAP cost of revenues	199,615		291,683		674,701		1,043,586
Selling and marketing expenses	125,949		217,981		461,851		748,750
Share-based compensation expenses    in selling and marketing expenses	5,505		3,691		24,625		16,101
Non-GAAP selling and marketing expenses	120,444		214,290		437,226		732,649
General and administrative expenses	117,240		118,177		429,947		458,895
Share-based compensation expenses    in general and administrative    expenses	12,370		9,669		54,658		42,449
Non-GAAP general and administrative expenses	104,870		108,508		375,289		416,446
Operating costs and expenses	445,430		628,804		1,576,114		2,257,620
Share-based compensation expenses    in operating costs and expenses	20,501		14,323		88,898		64,939
Non-GAAP operating costs and expenses	424,929		614,481		1,487,216		2,192,681
Loss from operations	(11,061)		(16,015)		(69,229)		(3,155)
Share-based compensation expenses	20,501		14,323		88,898		64,939
Non-GAAP income/(loss) from operations	9,440		(1,692)		19,669		61,784
Net income/(loss) attributable to TAL Education Group	27,508		(7,311)		(3,573)		84,591
Share-based compensation expenses	20,501		14,323		88,898		64,939
Non-GAAP net income attributable to TAL Education Group (note 3)	$ 48,009		$ 7,012		$ 85,325		$ 149,530
Net income/(loss) per ADS
Basic	$ 0.05		$ (0.01)		$ (0.01)		$ 0.14
Diluted	0.04		(0.01)		(0.01)		0.14
Non-GAAP Net income per ADS
Basic	$ 0.08		$ 0.01		$ 0.14		$ 0.25
Diluted	0.08		0.01		0.14		0.24
ADSs used in calculating net income/(loss) per ADS
Basic	603,422,301		607,882,662		609,914,232		605,891,469
Diluted	615,472,311		607,882,662		609,914,232		615,668,259
ADSs used in calculating Non- GAAP net income per ADS
Basic	603,422,301		607,882,662		609,914,232		605,891,469
Diluted	615,472,311		616,868,733		620,629,080		615,668,259
Note 3: The tax effect of share-based compensation expenses was immaterial in the fourth quarter and in the fiscal year 2025.

 

 

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SOURCE TAL Education Group

FAQ

What was TAL Education Group's revenue growth in Q4 2025?

TAL's Q4 2025 net revenues grew 42.1% year-over-year to US$610.2 million from US$429.6 million.

How much cash does TAL Education have available as of February 2025?

TAL had US$3,618.4 million in total cash, cash equivalents and short-term investments as of February 28, 2025.

What is the size of TAL's share repurchase program extension?

TAL may repurchase up to US$490.7 million of its common shares through April 30, 2026.

How did TAL Education perform in fiscal year 2025?

TAL's FY2025 net revenues increased 51% to US$2,250.2 million, with net income of US$84.6 million compared to a loss in the previous year.

What was TAL's deferred revenue balance in Q4 2025?

TAL's deferred revenue balance was US$671.2 million as of February 28, 2025, up from US$428.3 million year-over-year.