Earnings release
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Four Seasons Education Investor Room Four Seasons Education Reports First Half of Fiscal Year 2026 Unaudited Financial Results SHANGHAI , Dec. 2, 2025 / PRNewswire / -- Four Seasons Education (Cayman) Inc. ("Four Seasons Education" or the "Company") (NYSE: FEDU), a tourism and education-related service provider in China , today announced its unaudited financial results for the first half of fiscal year 2026, ended August 31, 2025 . Financial and Operational Highlights for the First Half of Fiscal Year 2026 Revenue increased by 7.9% to RMB145.3 million ( US$20.4 million ), compared with RMB134.7 million in the same period of last year. Gross profit increased by 30.9% to RMB38.8 million ( US$5.4 million ) from RMB29.7 million in the same period of last year. Operating income was RMB9.2 million ( US$1.3 million ), compared with an operating loss of RMB5.7 million in the same period of last year. Adjusted operating income (1) (non-GAAP) was RMB9.8 million ( US$1.4 million ), compared with an adjusted operating loss of RMB1.6 million in the same period of last year. Net income was RMB12.4 million ( US$1.7 million ), compared with RMB3.0 million in the same period of last year. Adjusted net income (2) (non-GAAP) was RMB13.7 million ( US$1.9 million ), compared with RMB2.1 million in the same period of last year. Basic and diluted net income per American Depositary Share ("ADS") were RMB4.53 (US$0.63) and RMB4.48 (US$0.63) , respectively, compared with both RMB0.98 in the same period of last year. Each ADS represents ten ordinary shares. Adjusted basic and diluted net income per ADS (3) (non-GAAP) were RMB5.11 (US$0.71) and RMB5.05 (US$0.71) , respectively, compared with both RMB0.54 in the same period of last year. (1) Adjusted operating income is defined as operating income/loss excluding share-based compensation expenses. (2) Adjusted net income is defined as net income excluding share-based compensation expenses and unrealized holding gain (loss) in investments. (3) Adjusted basic/diluted net income per ADS is defined as basic/diluted net income per ADS excluding share-based compensation expenses per ADS and unrealized holding gain (loss) in investments per ADS. For more information on these adjusted financial measures, please see the section captioned under "About Non-GAAP Financial Measures" and the tables captioned "Reconciliation of GAAP and non-GAAP Results" set forth at the end of this release. Ms. Yi ( Joanne) Zuo , Chief Executive Officer and Director of Four Seasons Education, said, "We sustained our solid growth momentum for the six months ended August 31, 2025 , with total revenue reaching RMB145.3 million , up 7.9% year-over-year. Owing to a healthy product mix and ongoing efficiency gains, we also maintained our strong upward profitability trajectory, including a significant improvement in gross profit margin from 22.0% in the first half of fiscal year 2025 to 26.7% in the first half of fiscal year 2026 and a significant improve in gross profit from RMB29.7 million in the first half of fiscal year 2025 to RMB38.8 million in the first half of fiscal year 2026. This contributed to our net income climbing to RMB12.4 million , a 313.9% increase year-over-year." "Our enrichment learning programs continued to progress steadily as we prioritized high-quality learning experiences for learners of all ages, recording significant revenue growth for the six months ended August 31, 2025 . Moving forward, we will prudently expand the enrichment learning business, strategically scaling our capacity in lockstep with market demand to ensure sustainable growth. Meanwhile, we are tilting our tourism product portfolio towards higher-margin, value-added offerings, to establish a more resilient and sustainable business model for this segment. " "Our relentless focus on operational efficiency, strategic execution, and diverse service and product portfolios positions us well to drive profitable growth. We are confident our profitable premium services and disciplined expansion into new, compliant markets will boost our long-term competitiveness and create lasting value for all stakeholders." First Half Fiscal Year 2026 Financial Results Revenue increased by 7.9% to RMB145.3 million ( US$20.4 million ) in the first half of fiscal year 2026, from RMB134.7 million in the same period of last year, mainly driven by the growth in the Company's enrichment learning business due to the business expansion effort. Cost of revenue was RMB106.5 million ( US$14.9 million ) in the first half of fiscal year 2026, compared with RMB105.0 million in the same period of last year, mainly due to the increase in staff cost of the Company's enrichment learning business.
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Gross profit was RMB38.8 million ( US$5.4 million ) in the first half of fiscal year 2026, compared with RMB29.7 million in the same period of last year. The increase of gross profit is mainly driven by the growth in the Company's enrichment learning business which has higher gross profit ratio. General and administrative expenses decreased by 10.7% to RMB24.3 million ( US$3.4 million ) in the first half of fiscal year 2026 from RMB27.2 million in the same period of last year, mainly attributable to the decrease in share-based compensation expenses primarily caused by the repricing of share options in prior year. Sales and marketing expenses decreased by 34.3% to RMB5.3 million ( US$0.7 million ) in the first half of fiscal year 2026 from RMB8.1 million in the same period of last year, mainly due to the decrease in advertising activities. Operating income was RMB9.2 million ( US$1.3 million ) in the first half of fiscal year 2026, compared with an operating loss of RMB5.7 million in the same period of last year. Adjusted operating income (1) (non-GAAP), which is calculated as operating income/loss excluding share-based compensation expenses, was RMB9.8 million ( US$1.4 million ) in the first half of fiscal year 2026, compared with an adjusted operating loss of RMB1.6 million in the same period of last year. Interest income, net was RMB3.1 million ( US$0.4 million ) in the first half of fiscal year 2026, compared with RMB7.5 million in the same period of last year, mainly due to interest expenses are no longer capitalized but expensed since the construction in progress of study camps in Wuyuan, Jiangxi are completed in the fiscal year 2025. Income tax expense was RMB1.0 million ( US$0.1 million ) in the first half of fiscal year 2026, compared with RMB3.5 million in the same period of last year, primarily attributable to an increase in the income which is not subject to taxation, resulting in a decrease in income tax compared to the same period last year. Net income was RMB12.4 million ( US$1.7 million ) in the first half of fiscal year 2026, compared with RMB3.0 million in the same period of last year. Adjusted net income (2) (non-GAAP), which is calculated as net income excluding share-based compensation expenses and unrealized holding gain (loss) in investments, was RMB13.7 million ( US$1.9 million ), compared with RMB2.1 million in the same period of last year. Basic and diluted net income per ADS in the first half of fiscal year 2026 were RMB4.53 (US$0.63) and RMB4.48 (US$0.63) , respectively, compared with both RMB0.98 in the same period of last year. Adjusted basic and diluted net income per ADS (3) (non-GAAP) in the first half of fiscal year 2026 were RMB5.11 (US$0.71) and RMB5.05 (US$0.71) , respectively, compared with both RMB0.54 in the same period of last year. Cash and cash equivalents, short-term investments, and short-term investments under fair value. As of August 31, 2025 , the Company had cash and cash equivalents, short-term investments, and short-term investments under fair value of RMB213.1 million ( US$29.9 million ), compared with RMB262.6 million as of February 28, 2025 . Long-term investment under fair value (including current portion). As of August 31, 2025 , the Company had long-term investment under fair value (including current portion) of RMB157.9 million ( US$22.1 million ), compared with RMB103.2 million as of February 28, 2025 . Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on December 2, 2025 ( 9:00 PM Beijing/Hong Kong time on December 2, 2025 ) Dial-in details for the earnings conference call are as follows: United States (toll free): 1-888-346-8982 International: 1-412-902-4272 Hong Kong, China (toll free): 800-905-945 Hong Kong, China: 852-3018-4992 Mainland China (toll free): 400-120-1203 Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "Four Seasons Education." Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.sijiedu.com .
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A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until December 9, 2025 , by dialing the following telephone numbers: United States (toll free): 1-855-669-9658 International: 1-412-317-0088 Replay Access Code: 9942703 About Four Seasons Education (Cayman) Inc. Four Seasons Education (Cayman) Inc. is a service provider of both tourism and education-related services in China . The Company's program, service and product offerings mainly consist of enrichment learning programs, school-based tutoring product solutions and training programs for teachers, study camps and learning trips for students, and travel agency services for all age groups. For more information, please visit https://ir.sijiedu.com . About Non-GAAP Financial Measures In evaluating the Company's business, the Company considers and uses certain non-GAAP measures, including primarily adjusted operating income/loss, adjusted net income/loss and adjusted basic and diluted net income/loss per ADS, as supplemental measures to review and assess the Company's operating performance. Adjusted operating income/loss is defined as operating income/loss excluding share-based compensation expenses. Adjusted net income/loss is defined as net income/loss excluding share-based compensation expenses and unrealized holding gain/loss in investments (net of tax effect). Adjusted basic/ diluted net income/loss per ADS is defined as basic/diluted net income/loss per ADS excluding share- based compensation expenses per ADS and unrealized holding gain/loss in investments per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses, unrealized holding gain/loss in investments and impairment loss on intangible assets and goodwill (where applicable) that may not be indicative of the Company's operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance and liquidity. The Company also believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in the Company's financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges and unrealized holding gain/loss in investments (where applicable) that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. The Company compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non- GAAP financial measures. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.1304 to US$1.00 , the rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on August 29, 2025 . Safe Harbor Statement This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. Among other things, management's quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to develop new learning products, services or activities, its ability to maintain and enhance the brand or reputation of its learning centers or study camps, PRC regulations and policies relating to the learning and travel services, learning technology and content solutions industries in China , general economic conditions in China , and the Company's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non- compliance with the NYSE's continued listing criteria. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the
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expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. For investor and media inquiries, please contact: In China : Four Seasons Education (Cayman) Inc. Olivia Li Tel: +86 (21) 6317-6177 E-mail: IR@fsesa.com The Piacente Group, Inc. Jenny Cai Tel: +86-10-6508-0677 E-mail: fourseasons@tpg-ir.com In the United States : The Piacente Group, Inc. Brandi Piacente Tel: +1-212-481-2050 E-mail: fourseasons@tpg-ir.com FOUR SEASONS EDUCATION (CAYMAN) INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data and per share data) As of February 28, August 31, August 31, 2025 2025 2025 RMB RMB USD Current assets Cash and cash equivalents 210,771 87,949 12,334 Restricted cash, current 496 - - Accounts receivable, net 2,048 2,854 400 Other receivables, deposits and other assets, net 24,890 29,066 4,076 Amounts due from related parties 3,331 3,681 516 Short-term investments 13,905 54,062 7,582 Short-term investments under fair value 37,953 71,087 9,970 Long-term investments under fair value, current 3,584 7,166 1,005 Total current assets 296,978 255,865 35,883 Non-current assets Restricted cash, non-current 128,028 126,771 17,779 Property and equipment, net 125,228 123,333 17,297 Operating lease right-of-use assets 40,185 36,006 5,050
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Intangible assets, net 1,434 2,586 363 Goodwill 1,125 1,125 158 Long-term investments, net 36,000 45,000 6,311 Long-term investment under fair value, non-current 99,571 150,751 21,142 Other non-current assets 2,593 2,676 375 Total non-current assets 434,164 488,248 68,475 TOTAL ASSETS 731,142 744,113 104,358 Current liabilities Accounts payable 3,746 3,755 527 Amounts due to related parties 5,256 5,256 737 Accrued expenses and other current liabilities 71,888 75,106 10,532 Operating lease liabilities, current 7,895 6,571 922 Income tax payable 18,859 19,735 2,768 Deferred revenue 27,941 30,244 4,242 Long-term borrowings, current - 4,124 578 Total current liabilities 135,585 144,791 20,306 FOUR SEASONS EDUCATION (CAYMAN) INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (in thousands, except share data and per share data) As of February 28, August 31, August 31, 2025 2025 2025 RMB RMB USD Non-current liabilities Long-term borrowings 82,134 78,353 10,989 Operating lease liabilities, non-current 8,270 5,733 804 Total non-current liabilities 90,404 84,086 11,793 TOTAL LIABILITIES 225,989 228,877 32,099 EQUITY Total equity 505,153 515,236 72,259 TOTAL LIABILITIES AND EQUITY 731,142 744,113 104,358 FOUR SEASONS EDUCATION (CAYMAN) INC.
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data and per share data) Six Months Ended August 31, 2024 2025 2025 RMB RMB USD Revenue -- Revenue from third parties 134,376 145,285 20,375 -- Revenue from related parties 303 14 2 Total revenue 134,679 145,299 20,377 Cost of revenue -- Cost of revenue from third parties (101,240) (106,466) (14,931) -- Cost of revenue from related parties (3,783) - - Gross profit 29,656 38,833 5,446 General and administrative expenses (27,187) (24,275) (3,404) Sales and marketing expenses (8,130) (5,342) (749) Operating (loss) income (5,661) 9,216 1,293 Subsidy income 596 170 24 Interest income, net 7,484 3,060 429 Realized holding (loss) gain in investments (635) 3,312 464 Unrealized holding gain (loss) in investments 5,017 (760) (107) Investment income - 1,064 149 Other expense, net (343) (2,572) (361) Income before income taxes 6,458 13,490 1,891 Income tax expense (3,451) (1,043) (146) Net income 3,007 12,447 1,745 Less: Net income attributable to non-controlling interest 928 2,212 310 Net income attributable to Four Seasons Education (Cayman) Inc. 2,079 10,235 1,435 Net income per ordinary share: Basic 0.10 0.45 0.06 Diluted 0.10 0.45 0.06 Weighted average shares used in calculating net income per ordinary share: Basic 21,189,440 22,603,604 22,603,604 Diluted 21,234,983 22,832,293 22,832,293
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FOUR SEASONS EDUCATION (CAYMAN) INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except share data and per share data) Six Months Ended August 31, 2024 2025 2025 RMB RMB USD Net income 3,007 12,447 1,745 Other comprehensive income (loss), net of tax of nil Foreign currency translation adjustments 508 (3,785) (531) Comprehensive income 3,515 8,662 1,214 Less: Comprehensive income attributable to non-controlling interest 928 2,212 310 Comprehensive income attributable to Four Seasons Education (Cayman) Inc. 2,587 6,450 904 FOUR SEASONS EDUCATION (CAYMAN) INC. RECONCILIATION OF GAAP AND NON-GAAP RESULTS (in thousands, except share data and per share data) Six Months Ended August 31, 2024 2025 2025 RMB RMB USD Operating (loss) income (5,661) 9,216 1,293 Add: share-based compensation expenses 4,086 542 76 Adjusted operating (loss) income (non-GAAP) (1,575) 9,758 1,369 Net income 3,007 12,447 1,745 Add: share-based compensation expenses (net of tax effect of nil) 4,086 542 76 Add: unrealized holding (gain) loss in investments (net of tax effect of nil) (5,017) 760 107 Adjusted net income (non-GAAP) 2,076 13,749 1,928 Basic net income per ADS 0.98 4.53 0.63 Add: share-based compensation expenses per ADS 1.93 0.24 0.03 Add: unrealized holding (gain) loss in investments per ADS (2.37) 0.34 0.05 Adjusted basic net income per ADS (non-GAAP) 0.54 5.11 0.71 Diluted net income per ADS 0.98 4.48 0.63 Add: share-based compensation expenses per ADS 1.92 0.24 0.03
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Add: unrealized holding (gain) loss in investments per ADS (2.36) 0.33 0.05 Adjusted diluted net income per ADS (non-GAAP) 0.54 5.05 0.71 Weighted average ADSs used in calculating earnings per ADS Basic 2,118,944 2,260,360 2,260,360 Diluted 2,123,498 2,283,229 2,283,229 SOURCE Four Seasons Education Inc. https://ir.sijiedu.com/2025-12-02-Four-Seasons-Education-Reports-First-Half-of-Fiscal-Year-2026-Unaudited-Financial-Results