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DAOYoudao, Inc.
$13.05$1.5B
Overview & Verdict
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DAO logoYoudao, Inc.(DAO)Earnings, Financials & Key Ratios

DAO•NYSE
$13.05
98.5× P/E·Price updated Jul 7, 2026
SectorConsumer DefensiveIndustryEducation & TrainingSub-IndustryConsumer Learning Platforms and Apps
AboutYoudao, Inc., an internet technology company, provides online services in the field of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It offers online knowledge tools, which include Youdao and other dictionaries and translation tools; learning services consisting of tutoring, fee-based premium, and other services; STEAM courses, adult and vocational courses, and other courses, such as China University MOOC; smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, Youdao Smart Lamp, Youdao Pocket Translator, and Youdao Super Dictionary; education digitalization solutions comprising technologies and solutions licensed to schools or enterprise customers, such as Youdao Smart Learning Terminal, and Youdao Smart Cloud; and online marketing services. In addition, the company provides online courses comprising Youdao Premium Courses and NetEase Cloud Classroom, as well as technical support to the variable interest entities (VIEs). Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.Show more
  • Revenue$5.91B+5.0%
  • EBITDA$251M+32.4%
  • Net Income$107M+30.6%
  • EPS (Diluted)0.90+28.6%
  • Gross Margin44.29%-9.4%
  • EBITDA Margin4.25%+26.0%
  • Operating Margin3.86%+34.8%
  • Net Margin1.82%+24.3%

DAO Price & Volume

Youdao, Inc. (DAO) stock price & volume — 10-year historical chart

Loading chart...

Persistent Margin Compression Masks Structural Solvency Risks

Investment Thesis • Updated 2025Q4

VerdictNegative
Growth:Mixed
Profitability:Strained
Financial:Vulnerable
Cash Flow:Mixed
Primary Risk:Regulatory and consumption sensitivity

Key Thesis Takeaways

  • Youdao's transition toward hardware and vocational services has resulted in a volatile top-line trajectory, with revenue growth fluctuating between a 9.5% contraction and a 16.8% expansion over the last ten quarters.
  • The company faces significant structural headwinds, characterized by a persistent negative equity position of -$2.0B and a reliance on high SG&A spending that threatens long-term profitability.
  • Investors should remain cautious as the firm struggles to achieve consistent operating leverage, evidenced by a 42.9% decline in EPS during 2025Q4 despite double-digit revenue growth.

Verdict Logic

the company's structural weakness is highlighted by a persistent negative equity position of -$2.0B and a forward P/E of 7.64 that may not fully account for the volatility in core earnings quality.

DAO Growth Metrics

Youdao, Inc. (DAO) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years-
5 Years18.52%
3 Years5.63%
TTM5.03%

Profit CAGR

10 Years-
5 Years-
3 Years-
TTM30.57%

EPS CAGR

10 Years-
5 Years-
3 Years-
TTM31.03%

Return on Capital

10 Years-229.77%
5 Years-319.23%
3 Years-
Last Year-

DAO Recent Earnings

Youdao, Inc. (DAO) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 10/12 qtrs (100%)●Beat Revenue 5/12 qtrs (50%)
Q2 2026Latest
May 21, 2026
Metric
Actual
Est
EPS
$0.05+7.3%
$0.05
Rev
$195M-3.0%
$201M
Q1 2026
Feb 11, 2026
Metric
Actual
Est
EPS
$0.07+92.8%
$0.04
Rev
$224M+3.9%
$215M
Q4 2025
Nov 20, 2025
Metric
Actual
Est
EPS
$0.01
$0.00
Rev
$229M+8.2%
$211M
Q3 2025
Aug 14, 2025
Metric
Actual
Est
EPS
$0.01+674.7%
$0.00
Rev
$198M+2.7%
$192M
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestMay 21, 2026
$0.05vs $0.05+7.3%
$195Mvs $201M-3.0%
Q1 2026Feb 11, 2026
$0.07vs $0.04+92.8%
$224Mvs $215M+3.9%
Q4 2025Nov 20, 2025
$0.01vs $0.00
$229Mvs $211M+8.2%
Q3 2025Aug 14, 2025
$0.01vs $0.00+674.7%
$198Mvs $192M+2.7%
Based on last 12 quarters of dataView full earnings history →

Latest DAO News

Recent stock market news and headlines for Youdao, Inc. (DAO)

GuruFocus·Jun 30, 2026
Youdao Inc (DAO) Shares Surge 3.1% -- What GF Score of 67 Tells Investors

On June 30, 2026, Youdao Inc (DAO) shares rose 3.1% today, bringing the current price to $12.30. The stock has shown a 52-week range of $8.30 to $13.10, indicat

Newsfile Corp·Jun 15, 2026
TRON DAO Participates in ETHConf and Hosts TRON Academy Powered by niTROn at ETHGlobal New York 2026

Geneva, Switzerland--(Newsfile Corp. - June 15, 2026) - TRON DAO, the community-governed DAO dedicated to accelerating the decentralization of the internet through blockchain technology and decentralized applications (dApps), participated in ETHConf, held June 8-10 in New York, organized by ETHGlobal. TRON DAO also extended its presence throughout the week with a dedicated TRON Academy Happy Hour alongside the ETHGlobal New York 2026 hackathon, held between June 12-14.

Peers Comparison

Key metrics vs top competitors for Youdao, Inc. (DAO)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
DAO logoDAOYoudao, Inc.Current
$13.05$1.54B98.515.03%1.82%——
TAL logoTALTAL Education Group
$10.00$1.87B3.6234.21%13.82%10.85%—
EDU logoEDUNew Oriental Education & Technology Group Inc.
$47.81$7.64B20.7913.6%7.37%9.09%—
GOTU logoGOTUGaotu Techedu Inc.
$1.76$638.43M-14.2334.99%-5.26%-20.84%—
DUOL logoDUOLDuolingo, Inc.
$131.95$6.15B15.4038.71%38.44%33.63%—
CHGG logoCHGGChegg, Inc.
$0.94$105.11M-0.98-38.97%-26.89%-62.94%—

Compare DAO vs Peers

Youdao, Inc. (DAO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs TAL

Most directly comparable listed peer for DAO.

Scale Benchmark

vs GOOGL

Larger-name benchmark to compare DAO against a more recognizable public peer.

Peer Set

Compare Top 5

vs TAL, EDU, GOTU, DUOL

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DAO Frequently Asked Questions

Youdao, Inc. (DAO) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Youdao, Inc.'s revenue?

Youdao, Inc. (DAO) reported $5.91B in revenue for fiscal year 2025. This represents a 1197% increase from $455.7M in 2017.

How fast is Youdao, Inc. growing?

Youdao, Inc. (DAO) grew revenue by 5.0% over the past year. This is steady growth.

Is DAO profitable?

Yes, Youdao, Inc. (DAO) is profitable, generating $107.3M in net income for fiscal year 2025 (1.8% net margin).

What if you invested $1,000 in DAO back in 2017?

Total return calculator · dividends reinvested · 9+ years of data

See returns →