The company exhibits extreme margin volatility, with operating margins reaching -140.2% in 2025Q4 as SG&A expenses continue to disproportionately outpace revenue generation.
| Sales/Revenue | 103.14M | 189.21M | 170.96M | 531.06M | 2.18B | 1.29B | 406.25M | 310.71M |
| Revenue Growth % | -45.49% | 10.67% | -67.81% | -75.69% | 68.77% | 218.62% | 30.75% | - |
| Cost of Goods Sold | 53.89M | 120M | 90.26M | 206.21M | 878.24M | 495.67M | 173.48M | 104.97M |
| COGS % of Revenue | 52.25% | 63.42% | 52.79% | 38.83% | 40.2% | 38.29% | 42.7% | 33.78% |
| Gross Profit | 49.25M | 69.21M | 80.7M | 324.86M | 1.31B | 798.7M | 232.77M | 205.74M |
| Gross Margin % | 47.75% | 36.58% | 47.21% | 61.17% | 59.8% | 61.71% | 57.3% | 66.22% |
| Gross Profit Growth % | -28.84% | -14.24% | -75.16% | -75.13% | 63.55% | 243.13% | 13.14% | - |
| Operating Expenses | 208.34M | 283.02M | 423.45M | 536M | 2.66B | 2.13B | 1.23B | 905.25M |
| OpEx % of Revenue | 202.01% | 149.58% | 247.69% | 100.93% | 121.7% | 164.78% | 303.48% | 291.35% |
| Selling, General & Admin | 158.01M | 211.02M | 255.52M | 300.16M | 1.86B | 1.52B | 741.61M | 506.62M |
| SG&A % of Revenue | 153.2% | 111.53% | 149.46% | 56.52% | 85.07% | 117.28% | 182.55% | 163.05% |
| Research & Development | 54.64M | 72M | 167.93M | 235.85M | 800.16M | 614.77M | 491.27M | 398.63M |
| R&D % of Revenue | 52.98% | 38.05% | 98.23% | 44.41% | 36.63% | 47.5% | 120.93% | 128.3% |
| Other Operating Expenses | -4.3M | 0 | 0 | 0 | 0 | 0 | 0 | 882K |
| Operating Income | -159.09M | -213.81M | -342.75M | -211.15M | -1.47B | -1.33B | -1B | -699.51M |
| Operating Margin % | -154.26% | -113% | -200.48% | -39.76% | -67.45% | -103.07% | -246.18% | -225.14% |
| Operating Income Growth % | 25.59% | 37.62% | -62.33% | 85.67% | -10.45% | -33.4% | -42.97% | - |
| EBITDA | -149.37M | -201.53M | -326.58M | -186.42M | -1.41B | -1.29B | -977.43M | -683.75M |
| EBITDA Margin % | -144.83% | -106.51% | -191.02% | -35.1% | -64.49% | -100% | -240.6% | -220.06% |
| EBITDA Growth % | 25.88% | 38.29% | -75.18% | 86.77% | -8.83% | -32.43% | -42.95% | - |
| D&A (Non-Cash Add-back) | 9.72M | 12.28M | 16.17M | 24.73M | 64.76M | 39.7M | 22.68M | 15.76M |
| EBIT | -159.09M | -213.81M | -342.75M | -211.15M | -1.35B | -1.34B | -963.26M | -656.07M |
| Net Interest Income | 8.42M | 16.26M | 27.81M | 11.35M | 24.57M | 5.5M | 23.35M | 33.98M |
| Interest Income | 8.42M | 16.26M | 27.81M | 11.35M | 24.57M | 8.42M | 23.83M | 33.98M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 2.92M | 485K | 0 |
| Other Income/Expense | 8.89M | 20.89M | 30.97M | 33.28M | 31.57M | -5.79M | 36.36M | 43.44M |
| Pretax Income | -150.21M | -192.93M | -311.78M | -177.87M | -1.44B | -1.34B | -963.75M | -656.07M |
| Pretax Margin % | -145.64% | -101.96% | -182.37% | -33.49% | -66.01% | -103.52% | -237.23% | -211.15% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -150.21M | -192.93M | -311.78M | -177.71M | -1.44B | -1.34B | -964.34M | -656.07M |
| Net Margin % | -145.64% | -101.96% | -182.37% | -33.46% | -66.01% | -103.52% | -237.38% | -211.15% |
| Net Income Growth % | 22.14% | 38.12% | -75.44% | 87.68% | -7.61% | -38.95% | -46.99% | - |
| Net Income (Continuing) | -150.21M | -192.93M | -311.78M | -177.87M | -1.44B | -1.34B | -963.75M | -656.07M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -15.00 | -24.00 | -34.00 | -17.50 | -146.00 | -136.50 | -103.50 | -705.00 |
| EPS Growth % | 37.5% | 29.41% | -94.29% | 88.01% | -6.96% | -31.88% | 85.32% | - |
| EPS (Basic) | -15.00 | -24.00 | -34.00 | -17.50 | -146.00 | -137.50 | -103.50 | -705.00 |
| Diluted Shares Outstanding | 10.03M | 8.04M | 9.17M | 10.06M | 9.88M | 9.58M | 9.3M | 930.49K |
| Basic Shares Outstanding | 10.03M | 8.04M | 9.17M | 10.06M | 9.88M | 9.5M | 9.3M | 930.49K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Unsustainable cash burn rate
According to recent financial disclosures, YQ's revenue trajectory remains highly erratic, with the most recent quarter showing a 4.9% growth rate following a 66.4% decline in 2025Q3, reflecting the ongoing difficulty in stabilizing the top line during the transition to a SaaS-based institutional model.
The extreme fluctuations in quarterly revenue suggest that the company has yet to establish a predictable recurring revenue base. Investors should monitor whether the recent modest growth in 2025Q4 represents a sustainable recovery or merely a seasonal anomaly in the adoption of its educational content subscriptions.
As reported in the company's income statements, gross margins have fluctuated significantly between 16.0% and 60.9% over the last ten quarters, indicating that the firm lacks the pricing power or cost consistency required to maintain stable profitability in its new operational configuration.
The wide variance in gross margins implies that YQ is struggling to optimize its cost of goods sold relative to its shifting revenue mix. This volatility warrants further investigation into whether the company can achieve the scale necessary to normalize margins in line with industry peers.
Based on the provided figures, YQ's operating margin of -140.2% in 2025Q4 highlights a severe lack of operating leverage, as the company continues to incur substantial administrative and development overhead that far outpaces its current ability to generate gross profit from its core SaaS offerings.
The persistent gap between gross profit and operating expenses suggests that the company's current cost structure is misaligned with its revenue scale. Without a significant reduction in SG&A, the firm appears unlikely to achieve operating break-even in the near term.
Data from recent filings indicates that SG&A expenses remain disproportionately high, often exceeding total revenue, which suggests that management has not yet successfully rightsized the organization to match the reduced scale of its post-regulatory business model.
The reliance on heavy R&D and SG&A spending to drive institutional adoption appears to be a significant drain on resources. Investors should monitor whether these expenditures are yielding tangible improvements in school penetration or if they represent an inefficient allocation of capital.
While the company maintains a cash position of $246 million, the consistent quarterly net losses, such as the $52.3 million reported in 2025Q4, suggest that the firm's current cash burn rate may lead to a rapid depletion of its remaining liquidity if not addressed.
The market may be overestimating the safety provided by the current cash balance, failing to account for the potential acceleration of burn if the SaaS pivot fails to gain traction. This situation warrants further investigation into the company's ability to pivot toward a self-sustaining financial model.
Quick answers to the most common questions about buying YQ stock.
For fiscal year 2025, 17 Education & Technology Group Inc. (YQ) reported total revenue of $103.1M. This represents a 66.8% decline compared to $310.7M in 2018.
17 Education & Technology Group Inc. (YQ) reported a net loss of $150.2M for the fiscal year ending 2025.
17 Education & Technology Group Inc. (YQ) reported an operating income of $-159.1M, resulting in an operating profit margin of -154.3%. This margin reflects the operational efficiency of the business before interest and taxes.
17 Education & Technology Group Inc. (YQ) generated $49.2M in gross profit for the year, representing a gross profit margin of 47.8%. This demonstrates the company's core pricing power and production efficiency.