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17 Education & Technology Group
(NASDAQ:YQ)
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Rating:57Neutral
Price Target:
$2.50
▼(-28.16% Downside)
Action:Reiterated
Date:06/17/26
The score is driven by mixed fundamentals: persistent losses and recent revenue shrinkage weigh on financial performance and valuation, partially offset by low leverage and a 2025 cash-flow rebound. The earnings call is a clear positive with strong Q1 growth, major gross-margin expansion, and improving loss metrics, while technical indicators remain broadly neutral and do not add strong support.
Positive Factors
Low Leverage / Balance Sheet Flexibility
Low debt levels (debt-to-equity around 5% in 2025) materially reduce refinancing and interest-rate risk, giving management flexibility to fund AI product development and district rollouts from the balance sheet. This structural cushion supports multi-quarter investments without levered financial strain.
Negative Factors
Persistent Losses / Negative ROE
Sharply negative returns on equity (~-52% in 2025) reflect multi-year net losses that have eroded shareholder capital. Structurally, prolonged unprofitability limits retained-capital growth, constrains strategic optionality, and requires sustained margin recovery to restore durable shareholder value and fund growth internally.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Balance Sheet Flexibility
Low debt levels (debt-to-equity around 5% in 2025) materially reduce refinancing and interest-rate risk, giving management flexibility to fund AI product development and district rollouts from the balance sheet. This structural cushion supports multi-quarter investments without levered financial strain.
Read all positive factors
17 Education & Technology Group (YQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.49M
Dividend YieldN/A
Average Volume (3M)47.48K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth1.78%
EPS Growth31.44%
CountryUS
Employees1,017
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-13.76
Shares Outstanding6,855,688
10 Day Avg. Volume57,423
30 Day Avg. Volume47,475
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.88
Price to Sales (P/S)2.43
P/FCF Ratio8.47
Enterprise Value/Market Cap-2.98
Enterprise Value/Revenue-0.45
Enterprise Value/Gross Profit-0.79
Enterprise Value/Ebitda0.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
17 Education & Technology Group Business Overview & Revenue Model
Company Description
17 Education & Technology Group Inc. is an education technology firm based in the People's Republic of China. The company delivers a variety of educational and tech-driven services. Its offerings encompass educational content available through mem...
How the Company Makes Money
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17 Education & Technology Group Earnings Call Summary
Earnings Call Date:Jun 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Positive
The call presents a notably positive operational inflection: exceptionally strong top-line growth (359% YoY) and steep gross margin expansion (to 61.9%) driven by the Yiqi Aixue AI product, along with narrower GAAP and adjusted losses. However, the company is still operating at a loss, with nearly doubled operating expenses, sharply higher sales and marketing spend (+232% YoY), and a modest decline in cash. While there are clear near-term cost and concentration risks as the business scales, the magnitude of revenue growth, margin improvement, and shrinking losses indicate the positives significantly outweigh the negatives.Positive Updates
Revenue Surge
Net revenues for Q1 2026 were CNY 99.5 million (USD 14.4M), up 359.0% year-over-year (from CNY 21.7M) and up 155% sequentially, driven primarily by expansion of the Yiqi Aixue consumer AI membership product and contributions from district- and school-level subscriptions.
Negative Updates
Rising Cost of Revenues with Scale
Cost of revenues increased to CNY 37.9 million (USD 5.5M), up 173.7% year-over-year, driven by scaling AI-powered service delivery to support Yiqi Aixue growth, increasing pressure on gross cost base even as margins improved overall.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Surge
Net revenues for Q1 2026 were CNY 99.5 million (USD 14.4M), up 359.0% year-over-year (from CNY 21.7M) and up 155% sequentially, driven primarily by expansion of the Yiqi Aixue consumer AI membership product and contributions from district- and school-level subscriptions.
Read all positive updates
Company Guidance
Management guided to "strong year‑over‑year revenue growth and continued improvement in operating performance throughout 2026," while noting quarterly variability and a focus on disciplined execution, prudent capital allocation, and continued investment in product and AI capabilities; that outlook is anchored by Q1 2026 results of CNY99.5 million revenue (USD 14.4M), +359.0% YoY and +155% sequentially, cost of revenues CNY37.9M, gross profit CNY61.6M (gross margin 61.9%, +25.7 percentage points YoY), operating expenses CNY82.9M (including CNY4.2M share‑based comp), sales & marketing CNY43.2M, R&D CNY16.2M, G&A CNY23.5M, loss from operations CNY21.3M (‑21.4% of revenue vs ‑156.3% a year earlier), net loss CNY19.4M (‑19.5% of revenue, down 37.4% YoY), adjusted non‑GAAP net loss CNY15.1M (‑15.2%), and CNY352.4M cash and equivalents as of March 31, 2026.17 Education & Technology Group Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 183.27M | 103.14M | 189.21M | 170.96M | 531.06M | 2.18B |
| Gross Profit | 104.13M | 49.25M | 69.21M | 80.70M | 324.86M | 1.31B |
| EBITDA | -137.42M | -149.37M | -201.53M | -326.58M | -186.42M | -1.29B |
| Net Income | -142.10M | -150.21M | -192.93M | -311.78M | -177.71M | -1.44B |
Balance Sheet | ||||||
| Total Assets | 510.45M | 590.90M | 549.52M | 684.53M | 980.52M | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 352.33M | 407.23M | 359.25M | 476.69M | 733.44M | 1.19B |
| Total Debt | 13.37M | 14.69M | 11.06M | 17.31M | 26.25M | 147.21M |
| Total Liabilities | 241.37M | 304.09M | 155.88M | 190.26M | 221.66M | 783.38M |
| Stockholders Equity | 269.09M | 286.81M | 393.64M | 494.27M | 758.86M | 797.04M |
Cash Flow | ||||||
| Free Cash Flow | 29.63M | 29.63M | -148.59M | -238.66M | -466.69M | -1.64B |
| Operating Cash Flow | 36.31M | 36.31M | -139.22M | -212.07M | -463.93M | -1.51B |
| Investing Cash Flow | -40.47M | -40.47M | 35.59M | -161.14M | -8.93M | -117.60M |
| Financing Cash Flow | 24.77M | 24.77M | 21.33M | -51.36M | -33.86M | 952.00K |
17 Education & Technology Group Technical Analysis
Positive
3.48
Price Trends
2.37
Positive
2.46
Positive
3.41
Negative
Market Momentum
0.02
Negative
59.06
Neutral
98.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YQ, the sentiment is Positive. The current price of 3.48 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.37, and above the 200-day MA of 3.41, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 98.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YQ.
17 Education & Technology Group Risk Analysis
17 Education & Technology Group disclosed 94 risk factors in its most recent earnings report. 17 Education & Technology Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
17 Education & Technology Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $6.40M | -0.79 | ― | ― | ― | ― | |
57 Neutral | $27.49M | -1.24 | -45.82% | ― | 1.78% | 31.44% | |
45 Neutral | $6.75M | -80.93 | -4.26% | ― | 1.12% | 89.63% | |
44 Neutral | $4.28M | -0.63 | -48.49% | ― | 5.19% | -11.78% |
* Consumer Defensive Sector Average
YQ
17 Education & Technology Group
2.52
0.28
12.50%
AMBO
Ambow Education Holding
2.29
-0.71
-23.67%
WAFU
Wah Fu Education Group
1.57
0.09
6.08%
EDTK
Skillful Craftsman Education Technology
0.96
0.01
1.26%
EEIQ
Elite Education Group International
2.63
-7.04
-72.81%
GSUN
Golden Sun Education Group Limited Class A
0.41
-2.85
-87.55%
17 Education & Technology Group Corporate Events
17 Education & Technology Group Posts Surging Q1 2026 Revenue on AI Learning App Growth
Jun 17, 2026
On June 17, 2026, 17 Education Technology Group Inc. reported unaudited results for the first quarter ended March 31, 2026, showing net revenues of RMB99.5 million, a 359% year-on-year surge driven mainly by the rapid expansion of its Yiqi Aixue ...
17 Education & Technology Group Replaces Deloitte With Marcum Asia as Auditor
May 28, 2026
On May 27, 2026, 17 Education Technology Group’s board and audit committee dismissed Deloitte Touche Tohmatsu as its independent registered public accounting firm and appointed Marcum Asia CPAs as auditor for the financial year ending Decem...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.