Four Seasons Education (Cayman) (FEDU) investor relations material

Executive summary

• Revenue grew to RMB254.4 million (US$37.1 million) in FY2026, up 1.3% from FY2025, driven by learning services expansion, while tourism services declined.

• Net income rebounded to RMB29.1 million (US$4.2 million) in FY2026 from a net loss of RMB0.6 million in FY2025, reflecting improved gross margin and lower operating expenses.

• Adjusted net income (non-GAAP) was RMB28.3 million (US$4.1 million) in FY2026, up from RMB2.4 million in FY2025, excluding share-based compensation, unrealized investment gains, and impairment losses.

Financial highlights

• Gross profit increased to RMB65.7 million (US$9.6 million) in FY2026, with gross margin rising to 25.8% from 18.8% in FY2025.

• General and administrative expenses decreased slightly to RMB48.4 million (US$7.1 million) in FY2026; sales and marketing expenses fell 25.2% to RMB10.5 million (US$1.5 million).

• Non-operating income rose 45.2% to RMB23.0 million (US$3.4 million) in FY2026, mainly from gains on deregistration of subsidiaries and investment returns.

• Cash and cash equivalents at year-end FY2026 were RMB136.2 million (US$19.9 million).

• Declared a cash dividend of US$0.23 per ordinary share (US$2.30 per ADS) in August 2024, totaling US$5.1 million.

Outlook and guidance

• Management expects continued focus on enrichment learning, tourism, and technology/content solutions, with ongoing investment in new offerings and geographic expansion.

• Sufficient liquidity is anticipated for the next twelve months, with additional financing options available if needed.