Youdao, Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 7 fiscal years, taken from the XBRL data Youdao, Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	187	485	630	727	759	771	845
Cost of revenue	134	263	318	352	369	394	471
Gross profit	53.2	223	312	375	390	377	374
Research and development	39.6	65.1	95.3	117	105	74	73.5
Selling and marketing	89.5	413	326	338	320	257	241
General and administrative	10.5	21.2	29.9	33.2	31.3	25.6	28.2
Operating expenses	140	500	460	487	455	356	343
Operating income	-86.3	-277	-148	-112	-65.7	20.4	31.6
Interest expense		4.78	4.97	6.61	9.79	10	9.01
Interest income		3.91	2.95	1.87	1.18	0.54	0.35
Other non-operating income	2.88	9.36	5.76	11.8	-1.63	0.22	-6.74
Pre-tax income		-268	-144	-105	-75.9	11.1	16.2
Income tax	0.35	0.45	1.04	2.01	1.56	0.82	2.37
Net income to minority interests	0.01	-0.09	-4.82	-2.73	-0.03	-0.96	-1.47
Net income	-86.4	-269	-156	-105	-77.5	11.3	15.4
EBITDA	-84.8	-274	-143	-106	-61.5	24.4	35
EPS, basic	-0.96	-2.38	-1.28	-0.85	-0.64	0.10	0.13
EPS, diluted	-0.96	-2.38	-1.28	-0.85	-0.64	0.10	0.13
Shares, basic (weighted)	95.4	113	122	124	121	117	118
Shares, diluted (weighted)	95.4	113	122	124	121	118	120

Balance sheet

	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	24.9	93.4	50.7	114	64	81.2	62.9
Short-term investments	17.4	89.7	79.1	33.7	10.1	8.64	42.7
Receivables	28.8	41.2	39	58.7	49.9	57.4	54.5
Inventory	10.5	22.8	40.1	33.7	30.6	23.9	20.1
Other current assets	17.4	36.1	28.7	30.1	24.7	21.1	19.9
Total current assets	292	284	356	271	183	204	246
Property, plant and equipment	3.53	6.99
Lease right-of-use assets	3.43	16.2	18.5	11.4	12.5	9.38	6.71
Goodwill			17.3	15.9	15.5	15.1	15.7
Long-term investments		6.51	5.1	13.2	7.24	9.92	2.83
Other non-current assets	1.17	3.79	3.52	5.08	6.34	4.12	4.47
Total assets	300	317	413	330	235	249	282
Accounts payable	9	21.7	25.3	40.9	22.4	19.9	15.7
Accrued liabilities	13.6	32.1	43.5	38.6	39.8	36.2	42.2
Deferred revenue	65.6	221	167	155	148	132	121
Total current liabilities	253	520	476	461	437	404	420
Lease liabilities	3.05	12.2	11.5	6.33	6.95	3.5	2.69
Other non-current liabilities	0.79	0.62	0.38	1.28	2.3	2.49	4.12
Total liabilities	256	533	528	544	535	535	559
Paid-in capital	321	354	614	579	568	554	580
Treasury stock				-6.14	-24.2	-28.9	-25.2
Other comprehensive income		-7.21	-8.53	-13.4	-14.2	-15.3	-14.3
Minority interests	0.13	0.15	-0.3	-0.98	2.77	6.94	5.71
Total equity	43.2	-216	-127	-224	-305	-286	-277
Total liabilities and equity	300	317	413	330	235	249	282
Shares outstanding	112	115	123	123	119	118	119

Cash flow statement

	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	-86.4	-269	-161	-108	-77.5	10.3	13.9
Depreciation and amortization	1.52	2.47	4.72	6.12	4.18	3.97	3.35
Stock-based compensation	3.6	6.37	11.3	10.3	4.34	3.1	4.96
Deferred income tax			-1.41
Change in receivables	-17.5	-12.3	3.9	-23.7	6.2	-9.38	2.91
Change in inventory	-7.55	-11.1	-23	2.9	1.23	3.4	2.61
Change in payables	4.04	12.1	1.95	17.6	-17.4	-1.9	-5.04
Cash from operations	-53.5	-49.3	-211	-87.4	-61.7	-9.3	7.89
Capital expenditures	-2.61	-5.65	-9.96	-9.95	-2.51	-1.62	-3.66
Acquisitions		-0.98	6.78		-0.59
Purchases of investments	-31	-258	-122	-182	-15.5	-3.43	-48.2
Cash from investing	-156	117	7.39	18.2	17.7	-1.86	-36.2
Share buybacks				-7.35	-18	-8.54
Cash from financing	228	4.07	280	26.8	-2.67	31.3	6.53
Net change in cash	18.9	66.8	72.7	-41.8	-46.4	19.8	-22.1
Free cash flow	-56.1	-54.9	-221	-97.4	-64.2	-10.9	4.23
Interest paid	4.28	4.38	4.48	5.71	8.92	12.9	8.86
Income taxes paid	0.7	1.28	1.52	1.37	1.79	1.6	2.49

Key metrics

Worked out from the statements above. Latest values use fiscal 2025. Valuation uses the share price of $14.70 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	44.3%	Gross profit / revenue.
Operating margin	3.7%	Operating income / revenue.
EBITDA margin	4.1%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	1.9%	Pre-tax income / revenue.
Net margin	1.8%	Net income / revenue.
FCF margin	0.5%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	0.9%	Cash from operations / revenue.
Effective tax rate	14.6%	Income tax / pre-tax income, when pre-tax income is positive.
Return on assets (ROA)	5.8%	Net income / average total assets.
R&D / revenue	8.7%	Research and development expense / revenue.
Stock-based pay / revenue	0.6%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	0.4%	Capital expenditures / revenue.
D&A / revenue	0.4%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	9.6%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	5.1%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	11.7%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	-0.6%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	-0.1%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	10.9%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	55.2%	Operating income vs the same period a year earlier. Only from a positive base.
EBITDA growth, 1y	43.7%	EBITDA vs the same period a year earlier. Only from a positive base.
Net income growth, 1y	36.3%	Net income vs the same period a year earlier. Only from a positive base.
EPS growth, 1y	30.0%	EPS vs the same period a year earlier. Only from a positive base.
Total assets growth, 1y	13.6%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	-5.1%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	-2.3%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	1.4%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	-1.0%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	1.2%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	0.59x	Current assets / current liabilities.
Quick ratio	0.38x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.25x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	197.9%	Total liabilities / total assets.
Interest coverage	3.51x	Operating income / interest expense.
Working capital	-$173.4M	Current assets - current liabilities.
Goodwill and intangibles / assets	5.6%	(Goodwill + intangible assets) / total assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	3.18x	Revenue / average total assets.
Inventory turnover	21.4x	Cost of revenue / average inventory.
Days inventory	17 days	365 x average inventory / cost of revenue.
Receivables turnover	15.1x	Revenue / average receivables.
Days sales outstanding	24 days	365 x average receivables / revenue.
Days payables	14 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	27 days	Days inventory + days sales outstanding - days payables.
FCF conversion	27.6%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	46.4%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$0.13	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
EPS, basic	$0.13	Net income per basic share, as reported (split-adjusted).
Revenue per share	$7.05	Revenue / diluted weighted shares.
FCF per share	$0.04	Free cash flow / diluted weighted shares.
Operating cash flow per share	$0.07	Cash from operations / diluted weighted shares.
Cash per share	$0.89	(Cash + short-term investments) / shares outstanding.

Valuation

Metric	Value	How it is calculated
Market cap	$1.77B	Share price x shares outstanding.
Enterprise value	$1.67B	Market cap + total debt - cash - short-term investments.
P/E	116x	Market cap / net income. Only when net income is positive.
P/S	2.10x	Market cap / revenue.
P/FCF	419x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	225x	Market cap / cash from operations, when positive.
EV/Sales	1.97x	Enterprise value / revenue.
EV/EBIT	52.7x	Enterprise value / operating income, when both are positive.
EV/EBITDA	47.7x	Enterprise value / EBITDA, when both are positive.
EV/FCF	394x	Enterprise value / free cash flow, when both are positive.
FCF yield	0.2%	Free cash flow / market cap.
Earnings yield	0.9%	Net income / market cap (the inverse of P/E).

What was Youdao, Inc.'s revenue in fiscal 2025?

Youdao, Inc. reported revenue of $845.0M for fiscal 2025, 9.6% higher than the year before.

Was Youdao, Inc. profitable in fiscal 2025?

Yes. Net income was $15.4M, a net margin of 1.8%.

How much free cash flow did Youdao, Inc. generate in fiscal 2025?

Cash from operations of $7.9M minus capital expenditures of $3.7M left free cash flow of $4.2M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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