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Nov 20, 2025 8:10 AM

Youdao Maintains Profitability for Five Consecutive Quarters, Operating Profit for the First Three Quarters of 2025 Grows Nearly 150% Year-over-Year

BEIJING, Nov. 20, 2025 /PRNewswire/ -- On November 20, 2025, Youdao (NYSE: DAO), a subsidiary of NetEase and a leading provider of intelligent learning solutions, announced its unaudited financial results for the third quarter of 2025. The report reveals that, driven by its "AI-Native" strategy, the company has maintained profitability for five consecutive quarters, with operating profit for the first three quarters of 2025 growing nearly 150% year-over-year. Both net revenue from online marketing services and sales from AI-driven subscription services reached record highs.

In Q3 2025, Youdao reported net revenue of RMB 1.6 billion, marking a year-over-year increase of 3.6%. Operating profit stood at RMB 28.3 million, and operating cash outflow narrowed by 31.4% compared to the same period of the previous year, reflecting continued improvement in the company's operating efficiency and liquidity position. Youdao's Chief Executive Officer Feng Zhou stated, "We are confident in achieving the rapid improvement in operating profit set at the beginning of the year and annual operating cash-flow breakeven for the first time."

Additionally, Youdao has been included in the "2026 GSV 150" list, recognizing the company as one of the most transformative innovators in the global ...