New Oriental (EDU) Q4 2025 Earnings Transcript

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Wed, April 22, 2026 astatine 10:54 AM CDT 29 min read

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Wednesday, July 30, 2025 astatine 8 a.m. ET

• Executive President and CFO — Zhihui Yang

• Chief Financial Officer — Sisi Zhao

Zhihui Yang: Thank you, Sisi. Hello, everyone, and convey you for joining america connected the call. It's that clip of the twelvemonth again. We're pleased to denote that Q4 show exceeded expectations, demonstrating our beardown committedness and capabilities to heighten operational consistency and thrust semipermanent worth creation. This quarter's full nett revenue, excluding revenues generated from East Buy backstage statement merchandise and unrecorded streaming concern accrued by 18.7% year-over-year, chiefly contributed by the continued enlargement of our caller ventures. Bottom line-wise, we're delighted to spot that our efforts to trim outgo and improved ratio person proven effectual with non-GAAP operating margin, again, excluding operating borderline generated from East Buy reached 6.5% this quarter, representing a year-over- twelvemonth betterment of 410 ground points.

Our cardinal remaining concern remains solid, portion our caller initiatives person besides shown affirmative momentum. Breaking it down for the 4th fourth of 2025. Overseas trial prep concern recorded a gross summation of 15% year-over-year. Overseas studies consulting concern reported a gross summation of astir 8% year-over-year. Our adults and assemblage students concern recorded a gross summation of 17% year-over-year. At the aforesaid time, our continued investments successful caller acquisition concern initiatives, chiefly centered connected facilitating students' all-around improvement person besides delivered accordant progress, further driving the company's wide momentum. Firstly, the non-academic tutoring business, which absorption connected cultivating students' innovative quality and broad prime has shown being rolled retired to astir 60 cities.

Market penetration has importantly increased, peculiarly crossed higher-tier cities. The apical 10 cities lend implicit 60% of this business. Secondly, the quality learning strategy and instrumentality business, which utilizes our past teaching acquisition information and exertion to supply personalized and targeted learning and workout contented to amended students' learning efficiency, has been tested successful astir 60 existing cities. We're blessed to spot improved lawsuit retention and scalability of this caller business. The apical 10 cities lend implicit 50% of this business. In summary, our caller acquisition concern initiatives reported a gross summation of 33% year-over-year for the 4th fourth of 2025.