17 Education & Technology Group Inc.

Net revenues were CNY 99.5 million in Q1 2026, up 359.0% year over year from CNY 21.7 million. Gross profit was CNY 61.6 million, up about 686.2% year over year, and gross margin was 61.9%, versus 36.2% a year ago, an improvement of 25.7 percentage points. Operating loss was CNY 21.3 million, compared with CNY 33.9 million last year; net loss was CNY 19.4 million, compared with CNY 30.9 million last year; and adjusted net loss was CNY 15.1 million, compared with CNY 22.4 million last year. Cash and cash equivalents, restricted cash, and term deposits totaled CNY 352.4 million at March 31, 2026, versus CNY 407.0 million at December 31, 2025. Management did not provide next-quarter or full-year numeric guidance, but said it expects strong year-over-year revenue growth and continued improvement in operating performance throughout 2026.

Sishi Zhou framed the quarter as evidence that the company’s transition toward an AI-powered application services model is working. She emphasized that Yiqi Aixue is becoming a key growth driver and argued that the company’s edge comes from combining long-standing educational insights, user engagement, and AI capabilities. Her tone was constructive and confident, while still cautioning that quarterly results may vary as the business scales.

Lara Zhao detailed the improvement in the P&L, noting revenue of CNY 99.5 million, gross profit of CNY 61.6 million, gross margin of 61.9%, operating loss of CNY 21.3 million, and net loss of CNY 19.4 million. She said sales and marketing expense rose to CNY 43.2 million to support user acquisition and expansion, while R&D was CNY 16.2 million and G&A was CNY 23.5 million. She also highlighted a cash balance of CNY 352.4 million and said the company remains focused on disciplined execution and prudent capital allocation.

There were no analyst questions; the operator noted no questions from the phone line. As a result, no management clarifications or additional color were provided beyond the prepared remarks. The only forward-looking commentary reiterated was confidence in strong year-over-year revenue growth, improved operating performance, and continued investment in product innovation and AI capabilities.