Youdao Q4 Revenue Rises 16.8% to RMB1.6 Billion; Operating Income Down 28.5%
Youdao's fourth-quarter net revenues reached RMB1.6 billion (US$223.7 million), up 16.8% year-on-year, driven by 17.7% growth in learning services and a 37.2% surge in online marketing. For full-year 2025, revenue climbed 5.0% to RMB5.9 billion with operating income up 48.7% and first positive operating cash flow.
1. Fourth Quarter Results
Net revenues in Q4 2025 reached RMB1.6 billion, a 16.8% increase from Q4 2024. Learning services revenue rose 17.7% to RMB727.2 million while online marketing grew 37.2% to RMB660.9 million. Smart device sales fell 26.6% to RMB176.5 million. Gross margin narrowed to 45.1% and operating income declined 28.5% to RMB60.2 million, with basic EPS of RMB0.41.
2. Full-Year 2025 Performance
Total net revenues for 2025 were RMB5.9 billion, up 5.0% year-on-year. Learning services revenue dipped 4.2% to RMB2.6 billion, and smart device revenue dropped 18.2% to RMB739.6 million, while online marketing surged 28.5% to RMB2.5 billion. Operating income rose 48.7% to RMB221.3 million and non-GAAP EPS reached RMB1.37, alongside the company's first annual positive operating cash flow.
3. Strategic Outlook
Management remains focused on its AI-Native strategy, prioritizing learning services and advertising. Plans include advancing vertical large language models and expanding AI-driven applications and agents to enhance user experience and support sustainable long-term growth.