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17 Education & Technology Group (YQ) AI Stock Analysis
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17 Education & Technology Group
(NASDAQ:YQ)
The overall score reflects weak but gradually stabilizing financial fundamentals dominated by past revenue collapse, recurring losses, and equity erosion, offset by a very positive recent earnings trajectory with strong growth, margin gains, and first profitability, alongside an extended but mature technical uptrend and a valuation still constrained by negative earnings and lack of dividend support.
17 Education & Technology Group (YQ) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $26.06M
- Dividend Yield
- ―
- Average Volume (3M)
- 70.58K
- Price to Earnings (P/E)
- -1.6
- Beta (1Y)
- 1.22
- Revenue Growth
- 80.33%
- EPS Growth
- 31.05%
- Country
- US
- Employees
- 1,017
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Education & Training Services
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 member...
How the Company Makes Money
The company historically generated revenue primarily by charging fees for online tutoring and related education services delivered via its platforms. Key revenue streams have included: (1) Tuition and service fees from students (or their parents) enr...
17 Education & Technology Group Earnings Call Summary
The call was strongly positive, supported by exceptional revenue growth, substantial gross-margin expansion, the first quarterly GAAP and non-GAAP profits, improving operating leverage, progress in agentic AI services, and a strong cash position. The main cautions were the remaining small operating loss and management's comments about potential seasonality and quarterly fluctuations.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management said it remains optimistic about the long-term opportunity but would not extrapolate any single quarter into a specific growth trajectory, noting that there may be seasonality and quarterly fluctuations; it plans to continue developing benchmark projects in G and B-end, productizing and replicating proven capabilities across school-based scenarios, enhancing personalized AI learning services in C-end, and exploring additional individual user applications across 3 core scenarios. The Minhang digital teaching systems are deployed across more than 3,000 classes with teacher and student coverage of 97.8%, and the company will remain selective on new GN and BN opportunities, focusing on projects that are strategically aligned, replicable, and commercially sound. The board also authorized a share repurchase program of up to USD 10 million during a 12-month period starting from September 3, 2026.
17 Education & Technology Group Financial Statement Overview
Summary
Financial performance is weak overall: revenue has collapsed versus prior years, the company still posts sizable operating and net losses, and shareholder equity and total assets have eroded, although low leverage and recent improvement to positive free cash flow modestly reduce risk.
Income Statement
25NegativeBalance Sheet
42NeutralCash Flow
48Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 248.05M | 103.14M | 189.21M | 170.96M | 531.06M | 2.18B |
| Gross Profit | 151.90M | 49.25M | 69.21M | 80.70M | 324.86M | 1.31B |
| EBITDA | -107.10M | -149.37M | -201.53M | -326.58M | -186.42M | -1.29B |
| Net Income | -115.04M | -150.21M | -192.93M | -311.78M | -177.71M | -1.44B |
Balance Sheet | ||||||
| Total Assets | 594.13M | 590.90M | 549.52M | 684.53M | 980.52M | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 457.02M | 407.23M | 359.25M | 476.69M | 733.44M | 1.19B |
| Total Debt | 12.08M | 14.69M | 11.06M | 17.31M | 26.25M | 147.21M |
| Total Liabilities | 323.81M | 304.09M | 155.88M | 190.26M | 221.66M | 783.38M |
| Stockholders Equity | 270.32M | 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YQ, the sentiment is Negative. The current price of 2.69 is below the 20-day moving average (MA) of 3.25, below the 50-day MA of 3.23, and below the 200-day MA of 2.71, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 33.99 is Neutral, neither overbought nor oversold. The STOCH value of 0.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
0 New Risks17 Education & Technology Group Peers Comparison
Overall Rating
IH73Outperform
TAL72Outperform
EDU70Outperform
GOTU58Neutral- YQ55Neutral
COE45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IH | 73Outperform | $60.32M | 3.30 | 2.54% | 8.47% | -12.17% | -78.28% |
| TAL | 72Outperform | $4.75B | 2.45 | 19.00% | ― | 25.56% | 350.25% |
| EDU | 70Outperform | $6.84B | 14.87 | 12.52% | 2.47% | 20.74% | 41.78% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| GOTU | 58Neutral | $531.22M | -16.46 | -26.92% | ― | 24.86% | 48.69% |
| YQ | 55Neutral | $29.17M | -1.65 | -39.66% | ― | 80.33% | 31.05% |
| COE | 45Neutral | $67.80M | -0.07 | 52.88% | ― | 74.92% | -149.51% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| YQ | 17 Education & Technology Group, Inc. | 2.69 | -2.41 | -47.25% | |
| EDU | New Oriental Education & Technology | 48.68 | -9.03 | -15.64% | |
| COE | China Online Education Group | 11.33 | -35.97 | -76.05% | |
| TAL | TAL Education | 9.87 | -1.90 | -16.14% | |
| GOTU | Gaotu Techedu Inc. | 2.26 | -0.55 | -19.57% | |
| IH | Ihuman Inc. | 1.18 | -1.51 | -56.05% |
17 Education & Technology Group Corporate Events
17 Education & Technology Group Posts First Quarterly Profit on Surging AI Education Revenues
On September 9, 2026, 17 Education & Technology Group reported unaudited results for the second quarter of 2026 showing a sharp turnaround, with net revenues surging 254.6% year on year to RMB90.1 million and gross margin expanding to 69.2%. The...
17 Education & Technology Group Launches US$10 Million Share Buyback Program
On September 3, 2026, 17 Education & Technology Group Inc. announced that its board had approved a new share repurchase program authorizing the company to buy back up to US$10 million of its ordinary shares and ADSs over the following 12 months....
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.
Date of analysis: Sep 11, 2026