Youdao Inc
NYSE:DAO
Youdao Inc
Youdao, Inc. engages in the provision of learning content, applications, and solutions. The firm operates two business segments. The Learning Services and Products segment offers online courses, including the Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC, as well as learning products such as the Youdao Dictionary and Youdao Cloudnote, sales Youdao Dictionary Pen and Youdao Pocket Translator, and provides learning services to customers. The Online Marketing Services segment is engaged in providing different forms of advertising for marketing.
Youdao, Inc. engages in the provision of learning content, applications, and solutions. The firm operates two business segments. The Learning Services and Products segment offers online courses, including the Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC, as well as learning products such as the Youdao Dictionary and Youdao Cloudnote, sales Youdao Dictionary Pen and Youdao Pocket Translator, and provides learning services to customers. The Online Marketing Services segment is engaged in providing different forms of advertising for marketing.
Revenue Growth: Youdao's Q4 net revenues rose 16.8% year-over-year to RMB 1.6 billion, and full-year 2025 revenues increased 5% to RMB 5.9 billion.
Profitability: Operating profit for 2025 reached RMB 221.3 million, up 48.7% year-over-year, with the company achieving positive full-year net operating cash flow for the first time.
Learning Services Recovery: The Learning Services segment returned to growth after restructuring, with Q4 revenues up 17.7% year-over-year and strong retention rates above 75%.
AI-Driven Expansion: AI subscription services and applications saw robust growth, with 2025 sales approaching RMB 400 million, up over 50% year-over-year.
Online Marketing Surge: Online marketing services revenue jumped 37.2% year-over-year in Q4, benefiting from demand in gaming, AI apps, and overseas markets.
Smart Devices Headwind: Net revenues for smart devices fell 26.6% year-over-year in Q4 due to softer demand.
2026 Outlook: Management expects double-digit growth for Learning Services and continued strength in advertising, with a focus on AI innovation and international expansion.
