Four Seasons Education (Cayman) (FEDU) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of fiscal year 2026 rose 7.9% year-over-year to RMB145.3 million, driven by expansion in enrichment learning programs and tourism services.

• Net income surged 314% year-over-year to RMB12.4 million, reflecting improved profitability and operational efficiency.

• Gross profit margin increased from 22.0% to 26.7% year-over-year, supported by a healthier product mix and cost controls.

• Business model transformation since 2022 has integrated tourism and education-related services, supporting diversified growth.

• Strategic focus remains on scaling enrichment learning and shifting tourism offerings toward higher-margin products.

Financial highlights

• Gross profit rose 30.9% to RMB38.8 million, mainly from higher-margin enrichment learning business.

• Operating income reached RMB9.2 million, reversing an operating loss of RMB5.7 million in the prior year.

• Adjusted operating income (non-GAAP) was RMB9.8 million, up from an adjusted loss of RMB1.6 million.

• Adjusted net income (non-GAAP) was RMB13.7 million, up from RMB2.1 million year-over-year.

• Basic and diluted net income per ADS were RMB4.53 and RMB4.48, up from RMB0.98 year-over-year.

Outlook and guidance

• Focus remains on operational improvement and organic growth through premium, innovative services and disciplined expansion into compliant markets.

• Expansion into new compliant markets and high-margin services expected to drive long-term competitiveness and sustainable growth.

• Plans to prudently expand enrichment learning and further develop high-margin tourism offerings.