Chinese intelligent learning solutions provider TAL Education (TAL, Financial) announced its unaudited financial results for the second quarter of the fiscal year 2025, ending August 31, 2024. The company reported a significant increase in net revenue, reaching $619.4 million, up 50.37% from the previous year's $411.9 million. Gross profit rose by 43.8% to $348.7 million, although the gross margin decreased from 58.9% to 56.3%. Net profit stood at $57.43 million, compared to $37.9 million in the same period last year. Excluding stock-based compensation expenses, non-GAAP net profit was $74.33 million, representing a 26.4% increase from last year’s $58.79 million.
During this quarter, TAL Education's operating income rose to $47.6 million from $31.8 million. Net cash used in operating activities was $600,000. For the first half of fiscal 2025, the company maintained over 50% revenue growth. The net revenue for the first six months reached $1.034 billion, up from $687 million in the prior year. Net profit attributable to TAL was $68.83 million, reversing a net loss of $7.135 million from a year earlier. Basic and diluted net income per ADS was $0.11, with the non-GAAP figures (excluding stock-based compensation) at $0.17.
TAL Education highlighted artificial intelligence (AI) learning devices as a major growth area. Despite rapid sales growth, the AI learning devices segment is currently unprofitable due to high costs in product development, sales expenses, and materials. The company emphasized a strong investment in R&D and proprietary content development.
As of August 31, 2024, TAL held $3.454 billion in cash, cash equivalents, and short-term investments. Of this, short-term investments accounted for $1.368 billion, with $29.51 million in restricted cash. Additionally, the company's board has extended its share repurchase program, allowing up to $503.8 million in buybacks by April 30, 2025. As of August 31, 2024, TAL had repurchased approximately 500,000 shares at a total cost of $13.1 million.
