Research Reports

Total net revenues: RMB 1.3 billion, up 3.8% YoY (CEO, prepared).
Learning Services revenue: RMB 627.5 million, up 4.2% YoY; Youdao Lingshi gross billings grew over 20% YoY; programming courses gross billings also grew over 20% YoY (CEO, prepared).
AI-driven subscription services: total sales exceeded RMB 100 million in Q1, up over 70% YoY (CEO, prepared).
Online Marketing Services revenue: RMB 611.1 million, up 20.9% YoY; gross margin 29.6%, largely stable YoY and up 1.8 ppt sequentially (CEO, prepared).
Smart Devices revenue: RMB 109.4 million, down 42.6% YoY; gross margin 39.9% vs 52.3% in Q1 2025 (CEO, CFO, prepared).
Operating profit: RMB 57.5 million, seventh consecutive quarter of operating profitability; operating margin 4.3%, up 0.5 ppt sequentially but down from 8% in Q1 2025 (CEO, CFO, prepared).
Net income attributable to ordinary shareholders: RMB 38.6 million (USD 5.6 million), vs RMB 76.7 million in Q1 2025 (CFO, prepared).
Non-GAAP net income: RMB 44.9 million (USD 6.5 million), vs RMB 81.7 million in Q1 2025 (CFO, prepared).
Net cash used in operating activities: RMB 93.1 million (USD 13.5 million), narrowed 63.6% YoY (CEO, CFO, prepared).
Contract liability (deferred revenue): RMB 667 million as of March 31, 2026, vs RMB 847.7 million as of December 31, 2025 (CFO, prepared).
Cash and equivalents: RMB 515.2 million (USD 74.7 million) at end of Q1 (CFO, prepared).

Official guidance: No explicit forward guidance ranges provided for next quarter or full year.

Mgmt quotes:

"We've now delivered a solid start in 2026. Our net revenues were RMB 1.3 billion, up 3.8% year-over-year." (CEO)
"We remain focused on delivering full year improvements in profitability and cash flow in 2026." (CEO)
"Our programming cost has maintained strong momentum in the first quarter with gross billings growing by over 20% year-over-year." (CEO)
"In the first quarter, our online marketing services maintained strong momentum, generating RMB 611.1 million in net revenues, up 20.9% year-over-year." (CEO)
"We continue to exercise operational discipline in the segment, prioritizing SKU Health inventory management and profitability over near-term volume growth." (CEO, on Smart Devices)

Metric	Value	Speaker/Context
Total net revenues	RMB 1.3 billion (USD 195.4 million)	CFO, prepared
Learning Services revenue	RMB 627.5 million (USD 91 million)	CFO, prepared
Smart Devices revenue	RMB 109.4 million (USD 15.9 million)	CFO, prepared
Online Marketing Services revenue	RMB 611.1 million (USD 88.6 million)	CFO, prepared
Total gross profit	RMB 602.3 million (USD 87.3 million)	CFO, prepared
Learning Services gross margin	60.2%	CFO, prepared
Smart Devices gross margin	39.9%	CFO, prepared
Online Marketing Services gross margin	29.6%	CFO, prepared
Total operating expenses	RMB 544.8 million (USD 79 million)	CFO, prepared
Sales & marketing expense	RMB 382.2 million	CFO, prepared
R&D expense	RMB 115.4 million	CFO, prepared
Operating income margin	4.3%	CFO, prepared
Net income attributable to ordinary shareholders	RMB 38.6 million (USD 5.6 million)	CFO, prepared
Non-GAAP net income	RMB 44.9 million (USD 6.5 million)	CFO, prepared
Basic net income per ADS	RMB 0.33 (USD 0.05)	CFO, prepared
Diluted net income per ADS	RMB 0.32 (USD 0.05)	CFO, prepared
Non-GAAP basic net income per ADS	RMB 0.38 (USD 0.06)	CFO, prepared
Non-GAAP diluted net income per ADS	RMB 0.37 (USD 0.05)	CFO, prepared
Net cash used in operating activities	RMB 93.1 million (USD 13.5 million)	CFO, prepared
Contract liability (deferred revenue)	RMB 667 million (USD 96.7 million)	CFO, prepared
Cash, equivalents, restricted cash & short-term investments	RMB 515.2 million (USD 74.7 million)	CFO, prepared