TAL - Earnings call transcript Q2 2025

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Operator

Ladies and gentlemen, good day, and thank you for standing by. Welcome to TAL Education Group's Fiscal 2025 Second Quarter Earnings Conference Call. [Operator Instructions] Please be informed that today's conference is being recorded. I'd now like to hand the conference over to Ms. [ Fong Liu ], Investor Relations Director. you. Thank ahead. go Please

Unknown Executive

find for Fiscal today Call. Year distributed the you release all IR the Group's or website The TAL Second was through may and today, Quarter XXXX earlier copy joining you on for company's us Newswire's. Education earnings a Thank Earnings Conference

from During Mr. Chief Deputy Jackson hear Peng, and Mr. call, this will Chief President Ding, Financial Alex you Financial and Officer. Officer;

Peng Mr. answer the Mr. will be remarks, to Following available your questions. Ding and prepared

note please made harbor of Securities continue, Before discussion statements the XXXX. today's Private we contain forward-looking of that under will States Act the provisions Litigation safe Reform United

Forward-looking statements are to, the those from uncertainties materially our may are current public SEC. outlined expectations. in not cause limited our and and filings but that actual Potential with results include, differ to subject to risks risks uncertainties

and more our to refer and which directly would ahead. Alex, earnings please uncertainties, refer to go measures. I these measures to call comparable our over non-GAAP GAAP this measures. about of the like reconciliation earnings please include certain For the contains filings Also, release the the of Mr. financial information SEC. Alex most call to risks Peng. with our to discussions release, turn non-GAAP Please a

Zhuangzhuang Peng

Fong. XXXX. fiscal in performance also and of progress of today's Thank business call, quarter all you, discuss participating I'd year financial our like the conference for this you thank to we'll call. In for second

long-term learning is generating and We opening same growth, the experience. At building results. just past users, but outlook. ongoing reflects a In sustained we the our consistently for customer experiencing societal quarter, brief value will broader I'll new through strategy experiences also our our that business some not our teams update development to review key time, our business services vision. on by dedication a business Afterwards, or fiscal through centers, our provide refined

have through creation resulted objectives, excellence on our value sustained services. In alignment operations. maintained and course Our with in and user our of engagement innovation, core various service their user strategic businesses has products focus our

for talk growth Next, our we let's quarter the while new exploring continue year XXXX. second this about our of quarter, to actively enhance opportunities. performance core Throughout businesses fiscal

investing focus and also approach operational between operational sustainability. strategic We efficiency additional long-term balanced adjust and capabilities, allocation a exploring we opportunities maintained While to and efficiency. on in continuously our resource a ensure growth and

enrichment operational Our progress services online high-quality develop steadily learners offline learning reflects commitment empowering service to capacity. learning through This our of continue expansion our our to programs. and and

approach products, several and each center We acceptance operating managing to as take user of market plan, learning our dynamic in expansion our evaluating efficiency. capability in a continue factors our such area, demand

online So our in with business learning line objectives, enrichment our track. on remain strategic

behaviors sector. changing the offerings to innovate We user continue to and Over landscape a our in provide to we the and years, evolving efficient online learning for digital of customers. learning have new designed engaging experience an introduced recent response in range

tailored to audience, more it solutions individual to For to their expanded devices, our a offerings learning making find product easier reach needs. for users broader learning we

is learners features by journeys their goal comprehensive Our and home self-learning integrated our to on at motivate devices. into leveraging resources smart

and to library, acceptance. gain students' experience. further a our are engaging needs. We adding that ASP launched hardware upgrading software that quarter, we needs serves has begun driving practice our Efforts XBook upgraded growth. learning well in the a enhancing to reading device lower market August, as it financial create these So like ], which more we [ features smart In call and goal practical learning this with mind, online and content section the immersive as

RMB X,XXX.X million year-over-year XX.X% increases U.S. representing of XX.X% dollar XXX.X USD million and were revenues in for and respectively. quarter, net or Our RMB the terms,

attributable the income net respectively. Our quarter million non-GAAP USD USD XX.X were TAL for and and income million, operations non-GAAP to XX.X from

that now Jackson, over the review operational provide update the will our our second who quarter. advancements for on I'll we've you. will lines. an the fiscal financial So over overview, core performance to to Jackson, call also business hand He with made in

Jackson Ding

I during the business class summer customers. share second the unaudited. in details across contributor quarter by business, quality, its both Key quarter of user was teaching demand services offerings, Thank advancements small note operational momentum continued am that which with Peiyou of in that retention operational business capacity. range enrollment all development while maintained you, and pleased the financial the year programs for core line period which data growth, lines. The our are Alex. growth some learning operating meet remained capacity. a in includes quarter-over-quarter. to product multiple our We others such sustainability fiscal across XXXX. made with start increased by business stable struck the to a vacation assessed demand year-over-year, I'll relatively revenue trajectory. the allowed We learning we balance upward our broad this our efficiency. you propelled Learning driven efficiency Please expansion Peiyou growing progress fiscal indicators the managing of primarily about as supported remains carefully our for by us and quarter their rate second lines. largest services and Revenue

well to us online building long-term market while for interactive and product and competitiveness. value business, Based on market continue expand as adapting operations and to solid a remain formats, experience. we This and focused strengthening efficacy evolving deliver new we on through feedback enrichment we to our online allows user our For products our learners and By innovation. and operational insights, strategies. marketing create current invest in consistent user learning foundation learning introducing landscape for as our capabilities needs

companions learning user thanks business; continued and sales at-home user believe why quarter, optimize are efforts revenue our is our our its Content devices enhance experience. grow for to Solutions to We which and feedback products, closely self-learning, Next, this strengthen experiences monitor we channels. to our

generation amid this we August, user result, an and expanding launched our enriching at and XBook, engagement rising further lineup. The a time offers In a learning on easier sales spent practicing various learning, quarter. features We base, user our practice more to healthy three and product a modes: system, and scenarios. catering devices making remained efficient. reading, tablet and tiered color display developed As levels ePaper latest practicing

Additionally, it and study range a comprehensive ecosystem. content with offer aids proprietary Along publishers well-known of comes and to educational we reading partnered with wide content a with providers multilayered content, youth materials. our

fiscal classic enhanced we also quarter, e-books children's includes newly over [indiscernible] devices. The section learning and this reading During publications. featuring X,XXX our upgraded reading materials, literature existing essential

to system our developmental various aligns standards to and It leveled in launched I the ICS a With developed offers like X.X would reading companion. that from introduced school. now caters financial Moreover, also covers levels learning the with that AI We children's our high ] results of [ newly school features, host to making June a primary practical periods. curriculum new quarter. for second overview, and key a it intelligent share more fiscal

million was compared includes operating of year. Income of year-over-year. from increased period Non-GAAP income USD costs in XX.X% of Non-GAAP the to million which from for million USD year-over-year. General XXX.X total margin attributable operations, from XX.X to last percentage from period same USD expenses, for to to a share-based year-over-year increased compensation same XX.X% XX.X% TAL XXX.X USD in XX.X% rising representing last revenues, expenses the XX.X% were from to in XX.X same year of net fiscal to second in XX.X% XX.X% the year. Gross with terms, by dollar XXX.X which the attributable expenses, XXX.X million year. Non-GAAP year-over-year an with a Our from and same quarter XXX.X net million XX.X excludes in USD same operations USD a XX.X% XXXX second to of Net or attributable period the net of same of million XX.X% same general fiscal of non-GAAP same attributable USD million USD USD XXX.X year. excludes net XX.X% USD the expense the last XX.X XXX.X from million and increase XXX.X of XX.X% increase Total of last to and last XX.X was in Non-GAAP of quarter in Non-GAAP XXXX. quarter the by of of USD decreased period increased million decreased million to fiscal TAL USD by Cost income XX.X USD XXX.X from last compared XXX.X expenses, of which net total and USD million net of million XX.X% share-based income USD costs, Gross compensation year. million quarter the profit to second XXXX. revenues income last million excuse compensation the expenses, XXXX period RMB expenses for million in of share-based which XX.X excludes from and and of increased in from same which million revenues allocated revenue million million to fiscal by related to an a percentage year-over-year which the million XXX.X the XX.X% year. million cost last XX.X of second was year XX.X XXXX in year. marketing as RMB respectively. year. of by quarter million, compared for TAL, Selling XX.X% expenses million share-based expenses, last from administrative U.S. year for USD marketing last the in share-based XXX.X XX.X% XX.X excludes USD period income second from operations the in was second to million and increased by in administrative USD year XXX.X to decreased XX.X% to general USD -- expenses XXXX, income expenses from quarter share-based million same were quarter period compensation USD administrative million an year. income same period period expenses, period USD non-GAAP $XX.X year from USD and USD selling USD fiscal excludes compared increased to million, and for from to revenues the marketing of XX.X TAL compensation fiscal Non-GAAP as the operations last period year. compensation Selling of the the me, of by increased X,XXX.X year.

in our cash. sheet; million cash current on million Moving XXXX, we had balance and USD million X,XXX.X and XXX.X cash equivalents, short-term August to XX, investments restricted in and USD USD in as X,XXX.X of noncurrent

of million USD balance the XXX.X quarter. of deferred as was revenue Our end second fiscal

share quarter second was Pursuant the flow common repurchase turning launched by to in XX, cash its Directors to used extended company to XX In up the million. share purchase program spend to months. Board XXXX, in statement; repurchase may the program, X.X approximately operating for fiscal April April our year company's its extend cash of USD XXXX Now XXXX April to XXX.X million through net shares activities XXXX. of the authorized USD

XXXX, please the million on under Alex, aggregate update of shares program. That to company approximately an outlook. has you financial common approximately the XX, consideration As briefly August back the I business to ahead. XX.X hand the concludes at our share will of now call repurchase purchased section. go XXX,XXX Alex USD

Felix Liu

demand, peak across Thanks, season quarter. our to dedicated seasonal performance Nevertheless, The third quarter growth our upcoming the we for and due share Jackson. to to like fluctuations sustainable healthy learning a generally outlook is would fiscal driving our may factors. all enrichment lines. experience long-term remain we in business for business not and I

deliver base. refining various to continue programs growing our a user we'll all, services of high-quality learning to First learning

We our are both in committed ensure quality to to learning learning online services and ongoing users receive in-person. investments experiences, that

smart technological personalized harnessing innovation, high-quality devices We that the enhance AI Next, we'll learning technologies. experiences. our devices iterate focused on learning target remain launching to functionality by of consistently

we'll on efforts Together, intelligent self-directed our We managing also learning and provide remain optimizing home. Meanwhile, a channels learning will sales companion keep marketing these and for more and practical tools. users' focused smart updated will introducing our content an our strategies. at

and company explore design seizing a As we to products ever-evolving and operating core up opportunities. needs, will services. managing business our and lines To customers' our we'll dedicated keep while differentiated new initiatives and learning, new with continue exploring

customers and operational Our to market deliver value and strength seize opportunities business efficiency our with enduring positions model our brand and us for combined shareholders.

So I now that questions. remarks. to the call for Operator, ready my prepared open concludes we're think

Operator

[Operator from first Instructions] comes Felix the UBS. of Our Liu question line from

Felix Liu

And share on here? is for outlook operating business? learning on of operating My efficiency Could question Can color is you more service your service the you hear business. -- the me strong okay? the momentum and your on results. learning what growth Congratulations sorry, leverage the from

Zhuangzhuang Peng

Thanks, Felix. This is Alex.

Jackson when to first, me demand last generation business. on start at educational add quarters, I continued own increasing question to Let this momentum we learning additional parents develop philosophies. that seeing take parental on the enrichment look learning we've some We've our call and their of and growth enrichment may few as for seen insight. new Really, for been

academic had in think I is parents called more their new kids to whole seeing performance. envisioning. developed of confirmation. This we And something person calls, have earlier development I of well-rounded on more think that were generation we out now that this addition and more we're in focus

in by learning learning really really interest. overall -- -- we terms observed more not which ground, this the and on indicating and growing how We've customer user growing. is the inquiries enrichment the for activities think of come to still is I enrichment I think market Although fast is data easy

holistic with experience in learning, engaging enrichment experience. to with tandem our market been has progress. growth their by learners development help So our the interactive, been providing services aiming of We've experiencing learning continued learning business

terms these We of enrichment in they also type They that of learners exhibit engaged continued have effectively. really they programs, very learn in their stay observed and interest. growth

more the Jackson specifically about growth momentum can and had that think asked. talk you operating the I efficiency

Jackson Ding

thank Thank you, Alex, and you, Felix.

some but learning feel follow businesses life the within limit know, up. small There to are largest are learning lines, learning enrichment first, our Peiyou within slightly at conversation trends. their as our maybe and of them have which, you stage some free services cycle other you services. our And different different category, more may to business Let's questions of extent is a other exhibit the to business on class

to our market growth. look we services; capability overall others, two, the a we growth. lenses have enrichment are: development away the amongst to and train recruit Alex we in key just from and market parallel believe The been contributing of with bit business like in drivers, the and interest an And our said, of at important if look growth has growth one, So ourselves, Peiyou our seen user lecturers. quality factor shift

quality, and standardized service been an For student-centric learning have on and experience. approach on we'll continue to providing we interactive lecturing focused focus while

service lecturers most and to training, in-house ourselves recruiting For in pride lecture we training of our consistent ensure quality.

including in long quality and these what our drivers growth expect train earlier, lecturers, market as business our as to talked we prevail, Now demand, continue about growth line to and service this continue. recruit capability to we

numbers refund our in few a ago. Felix, years coming to gradually rate also rate business would level as with long-term We However, future, higher off several balancing metrics at a through we the expect our utilization taper base asked always operating level the level next about we believe maintain enrichment's model, we the to center years, rate, are are current learning measure consistent to and think growth that do Peiyou a aspire such than our of I sustain Currently, our efficiency off operating operating as efficiency. efficiency. will our demand we you we of viable capacity couple In network. prudently retention maintain observe. efficiency indicators of manage we market and We aim rate.

that think we growth about your and our I Felix. how We learning efficiency as will answers manage center network. balance hope to question,

Operator

from question Morgan. next Our line of the S. D. from comes Kim J.P.

D. S. Kim

print on ]. strong bit [ ]. [ for Congrats a you great Thank such

for great I I okay. devices, a well. if have think it learning should stock the on as be question

and had the like first and whatnot strategy quarter. But value-added why indicate even user reason contracted profitability have the this device learning base streams on Morgan and say, I follow-up which bit momentum can enhance what's profitable a that my B, after big is, think really services additional the I this. a about strong already be fast question. thought is to over a revenue or our think, That's device monetizing I And utilize, segment Our question ask, may quite installed J.P. might And summer, I to base. basis? accounting sales anyway, channel we checks A, cash here, have the

Zhuangzhuang Peng

we're over new, is for Hey ago. relatively for opportunity Look, think But I and have really to. And while business some little that of wider where a we built the D. devices, Alex. customers learning a lot devices our track If they're that We have see before. our been of sold really a new, recall, in tablet further This never through high-quality areas learning about learning thoughtful X.X Thanks experiences us, to really been our really S. centers which learning you first learning AI accessibility these range we market provide excited new question. devices. for where to right? bit a into February XXXX, devices years came just is sold to content

So think an segment limitation AI-powered a learning devices availability present these customers expand really physical the of these of footprint there. opportunity without much many I to content to to our to and serve really experiences us and wider students more the out high-quality

So new little territory. in the earlier. we recently It's talked with a in XBook. lower bit ASP called launched about goal a that this We mind, device

more content, So product learning has also to functions. addition this daily high-quality in practice

as So on tandem. feedback receiving in they a practice really And important needs, they serve learner's which new positive been well needs we've learning this as that go are product.

business of primarily selling The currently product research is bill major expenses loss-making. learning are and items our materials. development, device cost So and

to content limited space. also R&D quality or investing experiences but in functions, to our to is development AI the I'd research software that like R&D create and on into strongly add are for not We users. And really here product and hardware

own as proprietary continue ongoing. mentioned content experience. as to As earlier, development our publishers, content is from which curating development user also into content well Jackson further enhances make leading we this And investment

standards Jackson our we different new obviously curriculum earlier, content upgrade mentioned rolling and in curriculum grades, new standards. As we into to these have accordance

So to user create more greater we business the really to serve societal invest experience intend continue to to elevate really into this customers and value. to

think help learning more at this of resources, features learning with empower can self-directed journey integrated devices. intelligent here enabling and our all We into abundant development. their home I aim users by are their to the in that engage our we leveraging to is and which hope children really kind self-learning personal

for service and highly any think the base. really, installed active engaged value-added value-added is we look, foundation an As of services,

As capabilities, of high a witnessed result a ever-expanding devices learning on user engagement of our really an steady an our product example. level for we give base. you I'll user

weekly majority So with we weekly base of days more the users base rate of on averaging have five actually active as at or active growing. And an even around are the actually, XX%, user usage. per active user kept week our

to So that of not new quality come terms value-added opportunities, we're exploring user S., always to continue I to but the in interested user nothing your we'll focused and experience. D. needs tangible stay at answers on this of but at hope this I've experience. revenue point in product expense services, share question?

Operator

Our Sachs. Timothy question next of Goldman from from the line comes Zhao

Timothy Zhao

could learning year-on-year results. say your your is very Congrats this quarterly devices or quarter expenses, sales and I to I big marketing noticed a that and content I My be marketing sales XX%. the regarding solutions on think business. would within growth around related expenses strong portion which the is for question

devices landscape how you competitive Just per marketing forward? going for about device this has And do the this year? trend increased sales do about think these and think And for the you year? wondering how expenses the

Zhuangzhuang Peng

Thanks, Tim. again. Alex This is

take Let this on. me

this few like to at levels. So a I'd unpack different

are confident think products. we in learning I our devices First,

changing to the We the sector. in continue to response innovate competitive and demands landscape evolving user in

witnessed feedback market the entering stack But or features goal self-learning obviously, on and resources leveraging and our reflected Our this to into value engagement players smart really either full really metrics. has the time, think learners motivate journeys their positive market. same all the our investing in I user this our user at integrated more been we've into is user healthy by devices. And

in full content in by have and mean mean I I stack? do who hardware, in players software and AI, assets what and solutions. learning So experience

of is to With these a which in inherent result I entire believe likely industry the players, good think entrance the lead learning of customers. This this could stack in and the benefit which and this journey, this value full broader also customer will really might industry, also user we its the product the creating customers. experience awareness thing in for category enhanced

one of We're net business industry's really up to in some keep it priorities. and instances, make lead to our excited our about with really is to and So prospect out, its we'll learning innovations. strategic effort the device

talent think on exists on I in to the industry, There's for going customers. our competition level, competing competition for be levels. really product competing multiple and

we And service invest takes As that by quality, aim talent our for for a know-how. leveraging development. industry attract our and product company pride learning expertise our in talent, competition and product heavily research as to technology really and the in we multidisciplinary in

users As I in for to development sales the admit, does of it and impact I think industry. I competition customers, we the and for the do think beneficial marketing the ultimately, discussed to some both earlier, as occasions. really, it's

We'll and lead stable, efficient new emerging focus and marketing this they So channels. In an do we've stable right? exploring the is that ways do sales on other of not and key is this also category, while stable anticipate marketing channels. competency I while with we witnessed, especially channels within and existing building But sales capabilities, in building channels, could customers, increased. our some think communicate believe hard to they that in to stay product and is the given they to both

build we monitor do to our market across this with efficiency sales channels. So We channels has the specific capabilities. out go-to-market with mechanisms closely as the

hope I that answers question. your Tim, So

Operator

comes Our Citi. Alice Cai line from from the of question next

Alice Cai

scale and plans the needed AI, more the upcoming love sector? hear to your learning in robust I in particularly road would AI share map on the product device investment Congrats you about -- your needed. results. investment scale Could AI

Zhuangzhuang Peng

Alex Alice. again. Thanks, is This

maybe in with into road spent plan, map in in we our way, AI and in landscape me the the have By players week capability for the at industry. U.S. the in And is and share AI this at the vertical product AI how a what and look go think that a people you industry we specifically trend investment Valley the market Silicon talking have that of domains more to players let surprised AI before So across observing models I improve, continued of and to foundation that many might they a us. many education. world in is improve I pace

So this presents exciting including not already opportunities primarily. if actually for vertical this players on like two us. focus vertical tailwind, on, focusing We will probably think that players, lighting things us,

trend leveraging second the by reinforcement that's The models. wealth leverage industry is that data And first vertical vertical data. one, is to the regard, developing as as train the think, first of the recent particular So I this really in well interesting is learning that's right? the way, the models an foundation models. capabilities powerful applications to And of toward the

possess breadth player success vertical to as us structured AI space to really data and and a in suitable a keys the relevant AI era. to the the of of is to One unstructured

with investments historical AI on really have trove of sit of we data technologies treasure generations Some prior of great today. that our benefited into a us

really well-positioned to AI. such I the learning's hardest crack we in AI-powered complexity by abundance learning applications, some As take understand problems we is a of are and of really, We think through believe of we complexity from years developing of at for this applications coming an have developing powered experience endeavors. And experience. technology

product I'd to next, about investment share preface, that said the you plan. like map having and road So specific with more

road out product products. functions our really a of products in embedded combination AI AI-powered native our So newly existing map rolled entails and

functions been can visible on verticals, existing existing they new unlike other out coming features. also upgrades out. making but coming our you imagine, as on keep AI-powered many As they're products. And we've probably progress as And features, through

possible our on for we about there. we stop doesn't think [indiscernible] feedback, without and correction and data, English What it with natural capabilities? And industry-specific XBook, mathematics, and the with few functionalities these correction users' but learning and efforts answers. accuracy on model launched language-based we to is In the assistant them. example, now had math, calls, significantly ] provide this of higher we SD I our handwritten can Chinese questions can MathGPT on really of be call these such AI than other as built some talked tablet, newly get last the makes now [

solving example few in So pain of we out AI making to cutting-edge with so, learning on where technology And application. just we bridge an really provide this AI-native applications. We've customers' points. progress an we question-and-answer last also function the rolled doing is months, learners been enhanced In efficiency.

solve whole correctly. different model effort it's the effort on to with the explaining questions But user relevant traditional more application in pausing a during to the I'd when compared learner journey journey. The our solution solutions step-by-step, to learner of to the So sure the the the guides help is model market, making concepts a of -- engages stuck, learning level follows say the mathematics learner the help learner one real-time problem-solving their explain one people, the application look, guide kind to and to is the And process. to like really, better.

vertical to the over all So learning past to and experience, decades, tools accumulated thanks two we've accumulated data and launch our experience. industry really practices our to users' that's know-how enhance where such we're the able intelligent

compute now into about we question investment data. infrastructure, have into invested AI; talent coming So and your look, to

are are level I with already we world. And our we we by across think current I think down comfortable infrastructure the is coming we've infrastructure per been made as cost the adequately investment. token of dramatically -- investments served

out just shared of Looking AI applications question. forward, well have. investment roll above current applications in hope I are as will our intend We The to progress. examples focus our what application applications more we that as we your answers the as layer. we on upgrading currently new

Operator

from Our CICC. the next line Zhao Liping question comes of from

Liping Zhao

your of about business. outlook xueersi.com? And [indiscernible] please about should how long-term business? is Could question we the think elaborate xueersi.com my So you growth of that

Jackson Ding

for This Jackson. the question. thanks Liping, is

Let this one. take me

some back like with and First, the a at in thoughts our you we learning ago, on industry learning participants a on general. look user xueersi.com a online share some the In industry that's of through We went I do industry learning heavily acquisition. to not online online years we're the is If phase were evolving, approach. few the would seeing needs focused market space, and think customer where sustainable changing.

more more technology learning different student-centric of participants see transformation in and varied catering programs emerging. terms for we observed are example, supply learning, also and providing. and science side There enrichment particularly product the demand for for demand what formats on is industry We user For needs.

lecturing just The prerecorded one-way and to this Now range large excited supplemented more We're broad with toolkits is to class audience. in the classes, there's market immersion provide of and science also offerings. about really a etcetera. technology than opportunity market experimental

For with master experiment guides understanding. conducting science and to to example, capabilities. science concepts is connecting learners' and innovative This program through develop and our for observing daily hands-on in deeper complex experiments mindset scientific life, scientific curiosity, science results phenomena experiment designed learners problem-solving a various program concepts

about We main and growth and learn have growth continued driver asked effectively. Liping, believe is market, drivers. program They enrolled our quality. outlook this also our engaged stay product interest. we you this growth observed that learners' exhibit they In current in

behaviors in in sectors. learning and innovate to the response continued changing evolving the We landscape user online to

fulfill efficient with learning we have exploring our designed educational an high-quality advantages, years, customers. recent offerings only online currently are online digital online broader We're scarce fully for products. learning provide and of a not observing the but for to demand. designed and products to formats resources habits, new leverage sufficient to enrichment programs range engaging introduced of to also Over a These to various align the experience audience. We're demand unique bringing learning's

exciting So is and new SKUs. old it's mix this think market. an of We about the SKUs

ahead, learning experiences. user to Looking programs and to digital new meet continue our iterate learning demand and we'll enrichment innovate for services

and So in based on our confidence these priorities. xueersi.com of market quality, observations our our on based product one strategic is

being as We have allows into continually solid investing operating as unit our The online for focus on strengthening expand mature business. a xueersi.com well product while think been operations of model do to currently us consistently and economics a model and our explored. yet. has not investing We foundation building this are We operational in strategies. model economics competitiveness. This marketing xueersi.com current capabilities unit just enrichment long-term

phase. growth Liping. balance We during this answers that hope profitability to question, your will try exploration and I

Operator

much comments. the the management We of have the back your for end conference very for now you question-and-answer now team Thank all questions. reached I'll closing turn to session. the

Zhuangzhuang Peng

thanks quarter. So talking us for you and to we joining today, next to forward look again Bye-bye.

Operator

Thank you participation in conference. the your conclude for very This much today's program. does

disconnect. may You now

TAL Education (TAL) 24 Oct 242025 Q2 Earnings call transcript