Youdao Reports Non-GAAP EPADS of $0.01 and Revenue of $228.8M, Exceeding Expectations by $3.27M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy DAO?
Source: SeekingAlpha
Financial Performance: Youdao reported a Q3 Non-GAAP EPADS of $0.01 and revenue of $228.8 million, which is a 3.6% year-over-year increase, exceeding expectations by $3.27 million.
Revenue Breakdown: Learning services revenue decreased by 16.2%, smart devices revenue fell by 22.1%, while online marketing services revenue increased by 51.1% compared to the same period in 2024.
Gross Margin: The gross margin for the quarter was 42.2%, down from 50.2% in the same period last year.
Future Outlook: Dr. Zhou emphasized the commitment to the AI-Native Strategy and expressed confidence in achieving full-year financial targets, including operating profit improvements and cash-flow breakeven.
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Analyst Views on DAO
About DAO
Youdao Inc is a holding company principally engaged in the intelligent learning business, providing a variety of learning content, applications and solutions. The Company primarily operates its businesses through three segments. Learning Services segment mainly provides digital content services, science, technology, engineering, the arts and mathematics (STEAM) courses, and adult and vocational courses through the Youdao Lingshi, Youdao Literature, Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC and others. Smart Devices segment mainly develops and offers smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. The Company also provides education digitalization solutions, including Youdao Smart Learning Terminal, Youdao Smart Cloud, and Youdao Sports. Online Marketing Services segment mainly offers online marketing services, including performance-based advertising services and brand advertising services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Participation Instructions: Interested investors can join the call by dialing 1-914-202-3258 and providing conference ID: 10052758, ensuring they stay updated on the latest company developments.
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- Conference Call Details: Following the earnings release, Youdao's management will hold a conference call at 5:00 a.m. ET to discuss the financial results and answer investor questions, enhancing transparency.
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- Replay Availability: A replay of the call will be accessible by dialing 1-855-883-1031 and entering PIN: 10052758, available until February 18, 2026, allowing those unable to attend live to catch up on the discussion.
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- Conference Call Details: Following the earnings release, Youdao's management will hold a conference call at 5:00 a.m. ET to discuss the financial results and answer investor questions, enhancing transparency.
- Webcast Availability: The conference call will be available via live and archived webcast on the company's investor relations website, ensuring investors can access relevant information at any time, thereby improving information dissemination efficiency.
- Company Background: Founded in 2006, Youdao specializes in AI applications, primarily offering learning services, online marketing services, and smart devices, demonstrating its strategic positioning in the education and advertising sectors.
See More
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- Consultant Role: Despite his retirement, Ding will continue as a consultant in 2026, a move that helps ensure stability during the transition while leveraging his extensive experience to guide future developments.
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- Live Streaming and Replay: The AGM will be broadcast live on Youdao's investor relations website, with an archived replay available post-meeting to ensure all shareholders can access the information promptly.
- Forward-Looking Statements: The announcement includes forward-looking statements, cautioning investors about potential risks and uncertainties while emphasizing the company's confidence and commitment to future growth.
See More
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