Sunlands Technology Group ADR Q1 2025 Earnings | May 22, 2025

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Inside Ticker

Earnings Calls

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Sunlands Technology Group (NYSE: STG) reported its Q1 2025 results on May 22, 2025, highlighting its sixteenth consecutive profitable quarter amid a challenging market for adult online education in China. Net revenues for the quarter were RMB 487.6 million (US$67.2 million), down 6.8% year-over-year, primarily due to lower gross billings from post-secondary courses. Net income declined to RMB 75.2 million (US$10.4 million), compared to RMB 112.7 million in Q1 2024, with a profit margin of 15% (down from 22% a year ago). Despite the revenue decrease, Sunlands maintained a robust gross profit margin of 85.2% and positive operating cash flow, supported by disciplined cost management and ongoing operational efficiency. The company enrolled 169,083 new students in Q1, with interest-based and professional certification courses continuing to drive growth. CEO Pengbo Liu emphasized Sunlands’ focus on diversifying its course portfolio, expanding into lifelong learning and senior education, and leveraging AI tools to enhance personalization and efficiency. Looking ahead, Sunlands expects Q2 2025 revenues between RMB 500 million and RMB 520 million, signaling a return to modest growth and ongoing profitability. Management remains confident in the company’s strategy of concentrating on high-potential areas and sustaining long-term resilience through technology and innovation. Outlook: Q2 2025: Revenue guidance of RMB 500–520 million, reflecting expected sequential growth Continued investment in AI-driven personalization, course diversification, and operational efficiency Focus on capturing opportunities in China’s evolving lifelong learning market About Inside Ticker: For more expert analysis and real-time updates on Sunlands Technology Group (NYSE: STG) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Sunlands #STG #Q12025 #EarningsCall #OnlineEducation #China #LifelongLearning #FinancialResults #EdTech #InsideTicker

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