Net revenues reached RMB 1.6 billion in the quarter, increasing 16.8% year over year, led by Learning Services recovery and strong Online Marketing Services performance. Operating profit was RMB 60.2 million, representing six consecutive quarters of operating profitability, up 113% sequentially but down 28.5% year over year. Operating cash flow totaled RMB 184.2 million for the quarter, with full-year net operating cash inflow of RMB 55.2 million versus an outflow in 2024. Learning Services revenue rose to RMB 727.2 million, with digital content services contributing RMB 436.1 million. AI-driven subscription services sales exceeded RMB 100 million, growing more than 80% year over year. Online Marketing Services revenue increased to RMB 660.9 million, while Smart Devices segment revenue declined 26.6% year over year.
"Net Revenues -- RMB 1.6 billion in the quarter, up 16.8% year over year, driven primarily by Learning Services recovery and robust Online Marketing Services performance. Operating Profit -- RMB 60.2 million, marking six consecutive quarters of operating profitability, up 113% sequentially from Q3 2025 but down 28.5% year over year."
"Net Cash Flow from Operating Activities -- RMB 184.2 million for the quarter, up 16.4% year over year; full year net operating cash inflow of RMB 55.2 million versus an outflow of RMB 67.9 million in 2024. Learning Services Segment Revenue -- RMB 727.2 million, up 17.7% year over year; digital content services contributed RMB 436.1 million, rising 12.2% year over year."
"Youdao Lingshi Revenue and Retention -- Revenue surged over 40% year over year; retention rates improved to over 75%, about 5 percentage points higher. AI-Driven Subscription Services Sales -- Sales exceeded RMB 100 million for the quarter, more than 80% growth year over year; full year total sales approached RMB 400 million with annual growth over 50%."
"Online Marketing Services Revenue -- RMB 660.9 million, up 37.2% year over year, with increased demand from NetEase Group and overseas markets. Online Marketing Gross Margin -- 27.8% for the quarter, up 2 percentage points sequentially, but down year over year; new clients represented about 30% of advertisers. Smart Devices Segment Revenue -- RMB 176.5 million, a decline of 26.6% year over year."
#financial-performance #learning-services #online-marketing-services #ai-subscription-services #operating-cash-flow
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