17EdTech Posts First Quarterly Profit as Revenue Rises 254.6%

Key Facts

Nasdaq-listed 17EdTech, trading under YQ, reported net income of 1,100,000 yuan for the second quarter of 2026, compared with a net loss of 26,000,000 yuan in the same period of 2025. The company said this was its first quarterly profit under generally accepted accounting principles.

Net revenue rose 254.6% year over year to 90,100,000 yuan from 25,400,000 yuan. Gross margin increased to 69.2% from 57.5%, helped by a larger contribution from Yiqi Aixue and an improved revenue mix.

Core operations remained just below break-even, with the company recording an operating loss of 600,000 yuan, compared with a loss of 28,500,000 yuan in 2025. The quarterly net profit therefore did not yet coincide with an operating profit.

Non-GAAP adjusted net income was 4,700,000 yuan, compared with an adjusted loss of 18,900,000 yuan. Operating expenses rose 46.2% to 63,000,000 yuan from 43,100,000 yuan, showing that investment continued alongside the improvement in profitability.

The company attributed revenue growth to the expansion of Yiqi Aixue, its consumer-facing AI application, and contributions from district- and school-level projects. In the first half of 2026, revenue reached 189,500,000 yuan versus 47,100,000 yuan in 2025, while the net loss narrowed to 18,300,000 yuan from 56,900,000 yuan.

Reported liquidity, comprising cash and cash equivalents, restricted cash and term deposits, stood at 456,900,000 yuan on June 30, 2026, compared with 407,000,000 yuan on December 31, 2025. The next test is whether revenue growth and the improving mix can offset higher spending and turn the small operating loss into sustainable profit.