TAL Education Group (TAL) Q2 2025 Earnings Report

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TAL Education Group

TAL

$11.36 2.34%

Exchange: NYSE | Sector: Consumer Defensive | Industry: Education Training Services

Q2 2025

Published: Oct 24, 2024

Earnings Highlights

Revenue of $619.36M up 50.4% year-over-year
EPS of $0.09 increased by 50.5% from previous year
Gross margin of 56.3%
Net income of 57.43M
"'Throughout this quarter, we continue to enhance our core businesses while actively exploring new growth opportunities.'" - Alex Peng

TAL

TAL Education Group

Period Q2 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

In the second quarter of fiscal year 2025, TAL Education Group reported robust revenue growth of 50.4% year-over-year, reaching $619.4 million. This strong performance was fueled primarily by the success of its enrichment learning services, supported by effective strategic initiatives in product innovation and user engagement. Management emphasized the commitment to long-term growth through improved operational efficiencies and an expanding range of learning devices. Overall, while facing a competitive landscape, TAL's efforts in enhancing user experience are evident, paving the way for sustainable business momentum going forward.

Key Performance Indicators

Revenue

Increasing

619.36M

QoQ: 49.54% | YoY: 50.36%

Gross Profit

Increasing

348.73M

56.30% margin

QoQ: 62.82% | YoY: 43.78%

Operating Income

Increasing

47.62M

QoQ: 374.80% | YoY: 49.80%

Net Income

Increasing

57.43M

QoQ: 403.69% | YoY: 51.52%

EPS

Increasing

0.09

QoQ: 404.84% | YoY: 50.48%

Revenue Trend

Margin Analysis

Financial Highlights

- Revenue: $619.4 million, up 50.4% YoY and 49.5% QoQ.
- Gross Profit: $348.7 million, a 43.8% increase YoY.
- Operating Income: $47.6 million, reflecting a 49.8% YoY growth.
- Net Income: $57.4 million, up by 51.5% YoY.
- EPS: $0.0939, a 50.5% increase YoY.
- Gross Margin: 56.3%, down from 58.9% due to rising cost of revenue.
- Cash Position: $2.09 billion in cash and cash equivalents, indicating strong liquidity.
- Deferred Revenue: $511.7 million, underlining future revenue recognition.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	619.36M	50.36%	49.54%
Gross Profit	348.73M	43.78%	62.82%
Operating Income	47.62M	49.80%	374.80%
Net Income	57.43M	51.52%	403.69%
EPS	0.09	50.48%	404.84%

Key Financial Ratios

Gross Profit Margin

Good

56.30%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Fair

7.69%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

9.27%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

1.08%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

1.53%

Return on equity suggests inefficient capital allocation

Current Ratio

Strong

3.06

Current ratio indicates excellent liquidity and financial flexibility

Debt to Equity

Conservative

0.09

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Fair Value

21.33x

P/E ratio in line with market averages

Price to Book

Fair Value

1.30x

Price-to-book ratio reasonable for profitable companies

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	576.53	0.05	+39.2%	View
Q4 2025	610.24	-0.01	+42.1%	View
Q3 2025	606.45	0.04	+62.4%	View
Q2 2025	619.36	0.09	+50.4%	View
Q1 2025	414.19	0.02	+50.4%	View

TAL Education Group (TAL) Q2 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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