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Youdao reports Q2 revenue growth and nearly triple operating income, driven by strong learning services.

Company Fundamentals
20 Aug 2026
PRNewsWire
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Bullish
pluang ai news

Youdao, an AI-driven learning and advertising company, reported a 3.5% increase in total net revenues to RMB1.5 billion (US$216.2 million) for Q2 2026, with learning services revenue up 20.9%. Despite declines in smart devices and online marketing revenues, the company achieved a 48.9% gross margin and nearly tripled its operating income to RMB111.5 million (US$16.4 million), marking its eighth consecutive profitable quarter. CEO Feng Zhou highlighted AI's role in driving growth and profitability, with plans to further integrate AI to enhance user experience and efficiency.

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