TAL Education Group

Latest Results (21.11.2025):

TAL Education Group reported unaudited results for the second quarter of fiscal year 2026 (ended August 31, 2025). Net revenues rose 39.1% year‑over‑year to US$861.4 million, operating and net income more than doubled versus the prior year period, and total cash, cash equivalents and short‑term investments were US$3,248.8 million. The company cited growth across enrichment learning programs and learning devices while continuing investments in user experience, technology and educational models.

Revenue

Net revenues for Q2 FY2026 were US$861.4 million, up 39.1% year‑over‑year. For the first six months, net revenues were US$1,436.4 million, up 39.0% year‑over‑year.

Profitability

Income from operations in Q2 was US$96.1 million (up 101.8% y/y). Non‑GAAP income from operations was US$107.8 million. Net income attributable to TAL was US$124.1 million (up 116.1%); non‑GAAP net income was US$135.8 million.

Earnings per ADS

Basic net income per ADS was US$0.22 and diluted was US$0.21 for Q2 FY2026. Non‑GAAP basic and diluted net income per ADS were both US$0.24. (Three ADSs represent one Class A common share.)

Margins and operating costs

Gross profit was US$491.0 million and gross margin was 57.0% (vs. 56.3% a year earlier). Total operating costs and expenses were US$766.7 million (up 34.0%); selling and marketing expenses rose 46.9% to US$267.3 million.

Cash, liquidity and cash flow

As of August 31, 2025, cash and cash equivalents were US$1,542.2 million and short‑term investments were US$1,706.6 million (total US$3,248.8 million), down from US$3,618.4 million as of February 28, 2025. Net cash used in operating activities in Q2 was US$58.1 million.

Deferred revenue

Deferred revenue increased to US$822.7 million as of August 31, 2025, from US$671.2 million as of February 28, 2025.

Other notable items

Other income was US$67.1 million in Q2 (vs. US$20.5 million prior year). Income tax expense was US$51.1 million. Impairment loss on long‑term investments was US$1.4 million. Share‑based compensation allocated to operating costs decreased 30.5% to US$11.8 million in the quarter.

Management commentary

Management highlighted progress in core businesses (enrichment programs and learning devices), continued investments in UX, technology and educational model innovation, and a strategic focus on sustainable growth and expanding access to high‑quality educational content (comments from Alex Peng, President & CFO).