Youdao IncDAO
Mentioned
Impact on stocks 1
Consumer Discretionary
Youdao IncYoudao Reports Q2 2026 Revenue of RMB 1.5 Billion, Operating Profit Up Nearly Fourfold
Earnings
Youdao reported second-quarter 2026 net revenues of RMB 1.5 billion, up 3.5% year-over-year, with operating profit reaching RMB 111.5 million, nearly fourfold higher than a year ago, marking its eighth consecutive quarter of operating profitability. The company's learning services segment generated RMB 795.6 million in revenue, up 20.9%, driven by strong performance of Youdao Lingshi, while online marketing services revenue fell 7.7% to RMB 584.4 million due to a focus on higher-margin opportunities. Smart devices revenue declined 31.5% to RMB 86.8 million, but the company expects gross margin for that segment to recover to over 40% in the second half of 2026. Net income attributable to ordinary shareholders was RMB 73.8 million, compared with a net loss of RMB 17.8 million in the same period last year. Management highlighted the launch of Confucius 4, its proprietary large language model, and plans to introduce new AI agents and products in September.
Youdao Inc