Youdao releases transcript of Q2 2026 earnings conference call

Youdao discussed 2Q 2026 results on an earnings call attended by CEO Feng Zhou, President Lei Jin, SVP Peng Su and VP Finance Wayne Li.

• Net revenue was RMB 1.5 billion, up 3.5% year over year; operating profit was RMB 111.5 million, nearly fourfold; operating margin was 7.6%.
• Net income attributable to ordinary shareholders was RMB 73.8 million versus a RMB 17.8 million loss; operating cash inflow was RMB 334.2 million, up 80.7%.
• Learning services revenue was RMB 795.6 million, up 20.9%; gross margin was 65.5%; AI subscription products generated about RMB 100 million in sales.
• Confucius 4 launched with multimodal upgrades; translation inference speed increased about 80%; online marketing revenue was RMB 584.4 million, down 7.7%.