Gaotu Techedu Inc. (DE:18WA)
NYSE:18WA
18WA Stock Chart & Stats
€2.10
-€0.04(-2.04%)
At close: 4:00 PM EST
€2.10
-€0.04(-2.04%)
Day’s Range― - ―
52-Week Range€1.41 - €3.48
Previous CloseN/A
Volume0.00
Average Volume (3M)0.00
Market Cap
€338.28M
Enterprise Value€4.30B
Total Cash (Recent Filing)€3.42B
Total Debt (Recent Filing)€585.67M
Price to Earnings (P/E)―
Beta1.57
Next Earnings
Sep 01, 2026EPS Estimate
-0.06Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)-0.88
Shares Outstanding128,495,200
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)4.75
Price to Sales (P/S)0.97
P/FCF Ratio24.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€2.15Price Target Upside2.35% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)€6.06B
Bulls Say, Bears Say
Bulls Say
Revenue Recovery & ScaleGaotu’s sharp rebound in revenue (2025 +226% YoY after strong 2024 growth) indicates restored demand and scale benefits across its online education offerings. Durable top-line expansion over multiple years supports fixed-cost absorption, product investment, and potential sustainable margin improvement as the company converts billings into recurring recognized revenue.
High And Stable Gross MarginsConsistently strong gross margins (~67–73%) point to favorable unit economics and pricing power in Gaotu’s digital and AI-enhanced course delivery. High gross margins create a structural cushion for profitability once operating expenses are controlled, enabling durable operating leverage as revenue scales and content/platform investments benefit multiple cohorts.
Improved Cash GenerationPositive operating cash flow (~RMB 416M) and free cash flow (~RMB 247M) in 2025 signal improved working-capital discipline and cash conversion despite accounting losses. Sustainable cash generation provides the company flexibility to fund AI and offline expansion, service obligations and targeted buybacks without immediate capital raises, strengthening medium-term financial resilience.
Bears Say
Inconsistent ProfitabilityAlthough losses narrowed, Gaotu remains historically inconsistent on profitability, with large earlier losses (2020–2021) and a 2025 net loss near -5%. This uneven profit track record means operating improvements must be sustained across cycles to prove durable earnings power; transient gains could reverse if growth or cost control weakens.
Rising Leverage And Declining EquityLeverage has meaningfully increased to a debt-to-equity of ~0.47 while equity has fallen, reducing the company’s financial cushion. Rising leverage limits flexibility for opportunistic investment or weathering revenue shocks and increases refinancing and interest risks, making capital structure a medium-term governance and solvency consideration.
High Selling Costs & Operating Cash PressureA sharp rise in net operating cash outflow (+73.6% YoY to RMB 828.4M) and persistently high selling costs (selling ~50% of revenue) strain durable profitability and cash balance. Continued heavy customer acquisition and channel spend can erode margins as scale benefits are delayed, making sustainable operating leverage dependent on sustained revenue mix improvements and cost discipline.
Gaotu Techedu News
18WA FAQ
What was Gaotu Techedu Inc.’s price range in the past 12 months?
Gaotu Techedu Inc. lowest stock price was €1.41 and its highest was €3.48 in the past 12 months.
What is Gaotu Techedu Inc.’s market cap?
Gaotu Techedu Inc.’s market cap is €338.28M.
When is Gaotu Techedu Inc.’s upcoming earnings report date?
Gaotu Techedu Inc.’s upcoming earnings report date is Sep 01, 2026 which is in 88 days.
How were Gaotu Techedu Inc.’s earnings last quarter?
Gaotu Techedu Inc. released its earnings results on Jun 02, 2026. The company reported €0.018 earnings per share for the quarter, beating the consensus estimate of -€0.005 by €0.023.
Is Gaotu Techedu Inc. overvalued?
According to Wall Street analysts Gaotu Techedu Inc.’s price is currently Undervalued.
Does Gaotu Techedu Inc. pay dividends?
Gaotu Techedu Inc. does not currently pay dividends.
What is Gaotu Techedu Inc.’s EPS estimate?
Gaotu Techedu Inc.’s EPS estimate is -0.06.
How many shares outstanding does Gaotu Techedu Inc. have?
Gaotu Techedu Inc. has 128,495,200 shares outstanding.
What happened to Gaotu Techedu Inc.’s price movement after its last earnings report?
Gaotu Techedu Inc. reported an EPS of €0.018 in its last earnings report, beating expectations of -€0.005. Following the earnings report the stock price went up 2.667%.
Which hedge fund is a major shareholder of Gaotu Techedu Inc.?
Currently, no hedge funds are holding shares in DE:18WA
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Gaotu Techedu Stock Smart Score
Underperform
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10
Analyst Consensus
Hold
Average Price Target:
€2.15 (2.35% Upside)
€2.15 (2.35% Upside)
Blogger Sentiment
Bullish
DE:18WA Sentiment 100%
Sector Average ―
Sector Average ―
News Sentiment
Bullish
Bullish news 75%
Bearish news 25%
Bearish news 25%
Technicals
SMA
Negative
20 days / 200 days
Momentum
-49.23%
12-Months-Change
Fundamentals
Return on Equity
-20.84%
Trailing 12-Months
Asset Growth
11.46%
Trailing 12-Months
Company Description
Gaotu Techedu Inc.
Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. Its K-12 after-school tutoring courses cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides foreign language courses comprising English and Japanese, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher's qualification, the Chartered Financial Analyst designation, securities qualification exams, and other exams. In addition, it offers admission courses for admission tests, including national graduate entrance examination, civil service examinations, and others; and Gaotu App, an interactive learning app to various student groups. Further, the company provides other courses, including offline business consulting courses to enhance management skills for principals and other officers of private education institutions; and develops and sells smart devices, such as multi-function translation pen, as well as teaching and learning tools, which includes smart learning machine. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
18WA Earnings Call
Q1 2026
0:00 / 0:00
Earnings Call Sentiment|Neutral
The call presented a mix of constructive execution and growth signals alongside clear operating and cash-flow pressures. Revenue, gross profit and deferred revenue growth, sustained profitability (second consecutive profitable Q1 on a GAAP and non-GAAP basis), solid segment-level growth (one-on-one, nonacademic, college/adult services), disciplined R&D and active AI/offline initiatives are positive indicators. However, materially higher operating expenses (particularly selling costs), a 73.6% increase in net operating cash outflow, thin GAAP operating margins and significant share buybacks that consumed cash temper the outlook. Management emphasized efficiency gains and longer-term investments in AI, talent and offline expansion, and provided Q2 revenue guidance implying continued mid-teens YoY growth.View all DE:18WA earnings summaries18WA Stock 12 Month Forecast
Average Price Target
€2.15
▲(2.35% Upside)
Technical Analysis
Options Prices
Currently, No data available
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