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Nov 21, 2025 4:10 AM

Youdao Q3 2025 Financial Report: AI-Driven Advertising Revenue Soars, Becoming the Largest Source of Income

BEIJING, Nov. 21, 2025 /PRNewswire/ -- Youdao (NYSE: DAO), a leading provider of intelligent solutions, today announced its unaudited financial results for the third quarter of 2025. The report indicates that, driven by its "AI-Native" Strategy, the company has maintained profitability for five consecutive quarters, with a continued strengthening of the company's financial position. Notably, AI-powered advertising services delivered exceptional performance and emerged as a new engine of growth for the company.

Q3 Financial and Operational Highlights:

Net revenue was RMB 1.6 billion (approx. US$200 million).

Operating profit reached RMB 28.3 million (approx. US$3.93 million), with operating profit for the first three quarters increasing by nearly 150% year-over-year.

Operating cash outflow narrowed by 31.7% year-over-year, reflecting ongoing improvements in operational efficiency.

Advertising Becomes Youdao's Largest Revenue Segment

In Q3 2025, advertising ...