Revenue Performance: TAL reported net revenues of USD 576.5 million, a robust growth of 38.8% YoY. This reflects strong sales in learning services and innovations in the product lineup.
Profitability Indicators: Gross profit improved to USD 316.3 million with a gross margin of 54.9%, up from 51.7% a year earlier. Operating income turned positive at USD 14.3 million, allowing for a significant recovery from operational losses seen in previous periods. Net income rose to USD 31.3 million, translating to earnings per share of USD 0.0533.
Cost Management: Selling and marketing costs rose to USD 180.8 million (up 47.7% YoY) but represented a higher percentage of revenues at 30.9%, indicating increased investments in growth initiatives that may bring long-term returns.
Balance Sheet Health: TAL's balance sheet remains strong, with cash and cash equivalents totaling USD 1.27 billion and total current assets reaching USD 4.1 billion against total liabilities of USD 2.14 billion, providing a solid liquidity buffer.