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youdao For investor and media inquiries , please contact : In China : Jeffrey Wang Youdao , Inc. Tel : + 86-10-8255-8163 ext . 89980 E - mail : IR@rd.netease.com Piacente Financial Communications Helen Wu Tel : + 86-10-6508-0677 E - mail : youdao@thepiacentegroup.com In the United States : Piacente Financial Communications Brandi Piacente Tel : + 1-212-481-2050 E - mail : youdao@thepiacentegroup.com Youdao Reports Second Quarter 2026 Unaudited Financial Results Hangzhou , China – August 20 , 2026 – Youdao , Inc. ( “ Youdao ” or the “ Company ” ) ( NYSE : DAO ) , an AI solutions provider specializing in learning and advertising , today announced its unaudited financial results for the second quarter ended June 30 , 2026 . Second Quarter 2026 Financial Highlights • • • • Total net revenues were RMB1.5 billion ( US $ 216.2 million ) , representing a 3.5 % increase from the same period in 2025 . O Net revenues from learning services were RMB795.6 million ( US $ 117.3 million ) , representing a 20.9 % increase from the same period in 2025 . O O Net revenues from smart devices were RMB86.8 million ( US $ 12.8 million ) , representing a 31.5 % decrease from the same period in 2025 . Net revenues from online marketing services were RMB584.4 million ( US $ 86.1 million ) , representing a 7.7 % decrease from the same period in 2025 . Gross margin was 48.9 % , compared with 43.0 % for the same period in 2025 . Income from operations was RMB111.5 million ( US $ 16.4 million ) , increasing by nearly 2.9 times from the same period in 2025 . Basic and diluted net income per American depositary share ( “ ADS ” ) attributable to ordinary shareholders were RMB0.62 ( US $ 0.09 ) and RMB0.61 ( US $ 0.09 ) , respectively , compared with basic and diluted net loss per ADS attributable to ordinary shareholders of RMB0.15 for the same period of 2025. Non - GAAP basic and diluted net income per ADS attributable to ordinary shareholders were RMB0.76 ( US $ 0.11 ) and RMB0.75 ( US $ 0.11 ) , respectively , compared with RMB0.11 and RMB0.10 for the same period of 2025 . " We delivered another strong quarter , with continued revenue growth , record operating profit and robust operating cash flow , marking our eighth consecutive quarter of operating profitability , ” said Dr. Feng Zhou , Chief Executive Officer and Director of Youdao . “ These results reflect the progress we are making toward healthier and more sustainable growth . " “ AI is increasingly translating into tangible business results across Youdao . Learning services maintained strong growth , supported by Youdao Lingshi and our expanding portfolio of AI - driven subscription products , while our disciplined focus on higher - quality opportunities further improved the profitability of online