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Youdao posts record Q2 operating profit of RMB 111.5 million

10/9/2026

Youdao (DAO) reported second quarter 2026 net revenues of RMB 1.5 billion, a 3.5% year-over-year increase, alongside a record operating profit of RMB 111.5 million.

Chief Executive Officer Feng Zhou stated on the earnings call that this result marks the company's eighth consecutive quarter of operating profitability.

Net cash inflow from operating activities reached RMB 334.2 million, up 80.7% from the same period last year.

The company's learning services segment drove the top-line growth, with net revenues rising 20.9% year-over-year to RMB 795.6 million.

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