$DAO

Youdao, Inc.

CIK:0001781753|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025 CNY (¥) ¥ / shares shares	Dec. 31, 2025 USD ($) $ / shares shares	Dec. 31, 2024 CNY (¥) ¥ / shares shares	Dec. 31, 2023 CNY (¥) ¥ / shares shares
Net revenues: (include transactions with related parties of RMB67,844, RMB182,586 and RMB920,917 for the years ended December 31, 2023, 2024 and 2025, respectively)
Net revenues	¥ 5,909,019	$ 844,979	¥ 5,625,919	¥ 5,389,208
Cost of revenues: (include transactions with related parties of RMB111,332, RMB86,275 and RMB45,069 for the years ended December 31, 2023, 2024 and 2025, respectively)
Cost of revenues	(3,292,191)	(470,777)	(2,877,428)	(2,621,746)
Gross profit	2,616,828	374,202	2,748,491	2,767,462
Operating expenses:
Sales and marketing expenses (include transactions with related parties of RMB15,060, RMB10,411 and RMB18,428 for the years ended December 31, 2023, 2024 and 2025, respectively)	(1,684,323)	(240,855)	(1,872,586)	(2,268,428)
Research and development expenses (include transactions with related parties of RMB44,906, RMB25,380 and RMB19,241 for the years ended December 31, 2023, 2024 and 2025, respectively)	(514,232)	(73,535)	(539,998)	(743,364)
General and administrative expenses (include transactions with related parties of RMB9,009, RMB9,096 and RMB7,534 for the years ended December 31, 2023, 2024 and 2025, respectively)	(196,964)	(28,165)	(187,086)	(221,996)
Total operating expenses	(2,395,519)	(342,555)	(2,599,670)	(3,233,788)
(Loss)/Income from operations	221,309	31,647	148,821	(466,326)
Interest income	2,428	347	3,919	8,348
Interest expense (include interest expense charged by related parties of RMB69,472, RMB73,090 and RMB62,972 for the years ended December 31, 2023, 2024 and 2025, respectively)	(62,972)	(9,005)	(73,090)	(69,472)
Others, net (Note 14)	(47,134)	(6,740)	1,585	(11,578)
(Loss)/Income before tax	113,631	16,249	81,235	(539,028)
Income tax expenses	(16,589)	(2,372)	(6,009)	(11,089)
Net (loss)/income	97,042	13,877	75,226	(550,117)
Net loss attributable to noncontrolling interests	10,304	1,473	6,987	182
Net (loss)/income attributable to ordinary shareholders of the Company	107,346	15,350	82,213	(549,935)
Net (loss)/income	97,042	13,877	75,226	(550,117)
Other comprehensive (loss)/income:
Foreign currency translation adjustment	11,590	1,657	(10,997)	(8,448)
Total other comprehensive (loss)/income	11,590	1,657	(10,997)	(8,448)
Total comprehensive (loss)/income	108,632	15,534	64,229	(558,565)
Comprehensive loss attributable to noncontrolling interests	10,304	1,473	6,987	182
Comprehensive (loss)/income attributable to ordinary shareholders of the Company	¥ 118,936	$ 17,007	¥ 71,216	¥ (558,383)
Net (loss)/income per ordinary share/ADS
Basic \| (per share)	¥ 0.91	$ 0.13	¥ 0.7	¥ (4.53)
Diluted \| (per share)	¥ 0.9	$ 0.13	¥ 0.7	¥ (4.53)
Weighted average number of ordinary shares/ADSs
Weighted average number of ordinary shares/ADSs outstanding, basic \| shares	118,084,439	118,084,439	117,426,938	121,381,857
Diluted \| shares	119,851,130	119,851,130	118,173,469	121,381,857
Learning services [Member]
Net revenues: (include transactions with related parties of RMB67,844, RMB182,586 and RMB920,917 for the years ended December 31, 2023, 2024 and 2025, respectively)
Net revenues	¥ 2,630,571	$ 376,167	¥ 2,747,290	¥ 3,148,114
Cost of revenues: (include transactions with related parties of RMB111,332, RMB86,275 and RMB45,069 for the years ended December 31, 2023, 2024 and 2025, respectively)
Cost of revenues	(1,046,214)	(149,607)	(1,060,177)	(1,159,357)
Gross profit	1,584,357		1,687,113	1,988,757
Smart devices [Member]
Net revenues: (include transactions with related parties of RMB67,844, RMB182,586 and RMB920,917 for the years ended December 31, 2023, 2024 and 2025, respectively)
Net revenues	739,644	105,768	903,669	909,192
Cost of revenues: (include transactions with related parties of RMB111,332, RMB86,275 and RMB45,069 for the years ended December 31, 2023, 2024 and 2025, respectively)
Cost of revenues	(396,456)	(56,692)	(553,620)	(552,810)
Gross profit	343,188		350,049	356,382
Online marketing services [Member]
Net revenues: (include transactions with related parties of RMB67,844, RMB182,586 and RMB920,917 for the years ended December 31, 2023, 2024 and 2025, respectively)
Net revenues	2,538,804	363,044	1,974,960	1,331,902
Cost of revenues: (include transactions with related parties of RMB111,332, RMB86,275 and RMB45,069 for the years ended December 31, 2023, 2024 and 2025, respectively)
Cost of revenues	(1,849,521)	$ (264,478)	(1,263,631)	(909,579)
Gross profit	¥ 689,283		¥ 711,329	¥ 422,323

CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands

12 Months Ended

Dec. 31, 2025

CNY (¥)

Dec. 31, 2025

USD ($)

Dec. 31, 2024

CNY (¥)

Dec. 31, 2023

CNY (¥)

Cash flows from operating activities:

Net (loss)/income

¥ 97,042,000

$ 13,877

¥ 75,226,000

¥ (550,117,000)

Depreciation and amortization

23,407,000

3,347

28,952,000

29,641,000

Share-based compensation (Note 15)

34,690,000

4,961

22,596,000

30,797,000

Write-downs of inventories

15,688,000

2,243

17,504,000

6,488,000

Loss from long-term investments (Note 14)

19,391,000

2,774

11,170,000

3,130,000

Allowance for expected credit losses

15,999,000

2,288

3,814,000

9,103,000

Impairment of long-term investments (Note 14)

25,730,000

3,679

43,740,000

Unrealized exchange (gains)/losses

6,718,000

961

167,000

(1,683,000)

Fair value changes of short-term investments

(1,472,000)

(210)

(1,171,000)

109,000

Others

975,000

139

5,197,000

5,418,000

Changes in operating assets and liabilities:

Accounts receivable

20,335,000

2,908

(68,452,000)

44,030,000

Inventories

18,277,000

2,614

24,822,000

8,705,000

Prepayment and other current assets

11,485,000

1,642

2,127,000

18,263,000

Amounts due from NetEase Group

(244,399,000)

(34,949)

(53,394,000)

(18,229,000)

Operating lease right-of-use assets

34,362,000

4,914

38,222,000

39,439,000

Other assets

(786,000)

(112)

6,927,000

551,000

Contract liabilities

(113,317,000)

(16,204)

(91,598,000)

(14,663,000)

Accounts payables

(35,254,000)

(5,041)

(13,851,000)

(123,355,000)

Payroll payable

30,304,000

4,333

(18,159,000)

16,339,000

Taxes payable

5,912,000

845

(15,178,000)

1,536,000

Accrued liabilities and other payables

98,252,000

14,048

57,190,000

35,864,000

Amounts due to NetEase Group

771,000

110

(60,433,000)

13,621,000

Long-term lease liabilities

(19,537,000)

(2,794)

(41,465,000)

(44,354,000)

Other non-current liabilities

10,613,000

1,518

1,875,000

7,482,000

Net cash (used in)/provided by operating activities

55,186,000

7,891

(67,912,000)

(438,145,000)

Cash flows from investing activities:

Purchases of short-term investments

(337,000,000)

(48,190)

(25,000,000)

(110,000,000)

Proceeds of maturities of short-term investments

103,246,000

14,764

34,955,000

270,195,000

Placements of time deposits

(282,000)

(277,000)

Proceeds from maturities of time deposits

559,000

273,000

Cash paid for business combinations, net of cash acquired

(4,218,000)

Loans to third parties and other related parties

(1,200,000)

(171)

(13,100,000)

(31,405,000)

Repayment of loans from third parties and other related parties

5,000,000

715

19,607,000

25,000,000

Purchases of property, equipment and software

(25,593,000)

(3,660)

(11,789,000)

(17,850,000)

Proceeds from disposal of property, equipment and software

2,184,000

312

659,000

1,355,000

Payment for long-term investments

(19,194,000)

(7,500,000)

Net cash provided by/(used in) investing activities

(253,363,000)

(36,230)

(13,585,000)

125,573,000

Cash flows from financing activities:

Proceeds from long-term loans from NetEase Group

25,150,000

3,596

487,971,000

99,289,000

Repayment of long-term loans from NetEase Group

(214,038,000)

Repurchase of ADSs

(62,300,000)

(127,543,000)

Purchase of noncontrolling interest

(381,000)

(54)

Proceeds from issuance of ordinary shares pursuant to incentive plan

20,869,000

2,984

16,879,000

9,312,000

Net cash (used in)/provided by financing activities

45,638,000

6,526

228,512,000

(18,942,000)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(2,024,000)

(289)

(2,457,000)

1,961,000

Net (decrease)/increase in cash, cash equivalents and restricted cash

(154,563,000)

(22,102)

144,558,000

(329,553,000)

Cash, cash equivalents and restricted cash at the beginning of the year

599,489,000

85,726

454,931,000

784,484,000

Total cash, cash equivalents and restricted cash shown in the statements of cash flows

444,926,000

63,624

599,489,000

454,931,000

Supplemental disclosures of cash flow information:

Cash paid for income tax expenses

17,439,000

2,494

11,674,000

12,723,000

Cash paid for interest expense

61,981,000

8,863

94,197,000

63,358,000

Non-cash investing and financing activities:

Changes in accrued liabilities and other payables related to property, equipment and software addition

2,896,000

414

692,000

2,556,000

Receivable from agent for issuance of ordinary shares pursuant to incentive plan

71,000

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents

439,731,000

62,881

592,721,000

454,536,000

Restricted cash

1,990,000

285

3,567,000

395,000

Non-current restricted cash

^[1]

3,205,000

458

3,201,000

Total cash, cash equivalents and restricted cash shown in the statements of cash flows

¥ 444,926,000

$ 63,624

¥ 599,489,000

¥ 454,931,000

[1]	Non-current restricted cash is included in other assets, net in the consolidated balance sheets.

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2025 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 439,731	$ 62,881	¥ 592,721
Restricted cash	1,990	285	3,567
Short-term investments	298,290	42,655	63,064
Accounts receivable, net	381,243	54,517	418,644
Inventories	140,776	20,131	174,741
Prepayment and other current assets	139,117	19,892	154,331
Total current assets	1,722,506	246,315	1,486,768
Non-current assets:
Property, equipment and software, net	44,603	6,378	46,725
Operating lease right-of-use assets, net	46,943	6,713	68,494
Long-term investments	19,811	2,833	72,380
Goodwill	109,944	15,722	109,944
Other assets, net	31,238	4,467	30,084
Total non-current assets	252,539	36,113	327,627
Total assets	1,975,045	282,428	1,814,395
Current liabilities:
Accounts payables (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB45,358 and RMB45,085 as of December 31, 2024 and 2025, respectively)	110,003	15,730	145,148
Payroll payable (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB28,009 and RMB27,824 as of December 31, 2024 and 2025, respectively)	294,824	42,159	264,520
Contract liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB856,003 and RMB748,455 as of December 31, 2024 and 2025, respectively)	847,707	121,220	961,024
Taxes payable (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB16,491 and RMB19,048 as of December 31, 2024 and 2025, respectively)	43,515	6,223	37,603
Accrued liabilities and other payables (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB210,531 and RMB331,137 as of December 31, 2024 and 2025, respectively)	738,045	105,540	638,660
Total current liabilities	2,934,912	419,687	2,946,952
Non-current liabilities:
Long-term lease liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB14,555 and RMB16,320 as of December 31, 2024 and 2025, respectively)	18,840	2,694	25,566
Other non-current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB13,907 and RMB15,127 as of December 31, 2024 and 2025, respectively)	28,802	4,119	18,189
Total non-current liabilities	974,230	139,313	956,755
Total liabilities	3,909,142	559,000	3,903,707
Commitments and contingencies (Note 18)
Shareholders' deficit:
Additional paid-in capital	4,055,956	579,994	4,043,781
Treasury stock (Note 13)	(175,998)	(25,167)	(210,787)
Accumulated deficit	(5,761,700)	(823,914)	(5,867,042)
Accumulated other comprehensive loss	(99,949)	(14,293)	(111,539)
Statutory reserves	7,576	1,083	5,549
Noncontrolling interests	39,961	5,714	50,646
Total shareholders' deficit	(1,934,097)	(276,572)	(2,089,312)
Total liabilities and shareholders' deficit	1,975,045	282,428	1,814,395
NetEase Group [Member]
Current assets:
Amounts due from NetEase Group	321,359	45,954	79,700
Current liabilities:
Amounts due to NetEase Group (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB3,959 and RMB3,352 as of December 31, 2024 and 2025, respectively)	22,818	3,263	21,997
Short-term loan from NetEase Group	878,000	125,552	878,000
Non-current liabilities:
Long-term loans from NetEase Group	926,588	132,500	913,000
Class A ordinary shares [Member]
Shareholders' deficit:
Ordinary shares	24	3	24
Class B ordinary shares [Member]
Shareholders' deficit:
Ordinary shares	¥ 56	$ 8	¥ 56