17 Education Technology Group reported second-quarter 2026 net revenues of RMB 90.1 million, or $13.3 million, up 254.6% from RMB 25.4 million in the same quarter a year earlier. First-half net revenues were RMB 189.5 million, up 302.6% from RMB 47.1 million in the first half of 2025. The company described Yiqi Aixue as its consumer-facing AI membership and personalized learning product.
Cost of revenues increased 157.2% to RMB 27.8 million from RMB 10.8 million, while gross profit rose to RMB 62.3 million from RMB 14.6 million. Gross margin improved to 69.2%, up 11.7 percentage points from 57.5% in the second quarter of 2025 and above 61.9% in the first quarter of 2026. InvestingPro's trailing twelve-month gross margin was cited at 57%.
Total operating expenses rose 46.2% to RMB 63.0 million, including RMB 3.6 million of share-based compensation, from RMB 43.1 million. Sales and marketing expenses increased 92.2% to RMB 26.9 million, including RMB 1.1 million of share-based compensation, from RMB 14.0 million. Research and development expenses rose 66.8% to RMB 20.0 million, including RMB 0.9 million of share-based compensation, from RMB 12 million. General and administrative expenses fell 6.1% to RMB 16.0 million, including RMB 1.5 million of share-based compensation, from RMB 17.1 million.
The company recorded an operating loss of RMB 0.6 million, or negative 0.7% of net revenues, compared with an operating loss of RMB 28.5 million, or negative 112.0% of net revenues, in the second quarter of 2025. GAAP net income was RMB 1.1 million, or 1.2% of net revenues, marking the first quarterly GAAP profit, compared with a net loss of RMB 26.0 million, or negative 102.1% of net revenues, a year earlier. Adjusted net income was RMB 4.7 million, or 5.2% of net revenues, versus an adjusted net loss of RMB 18.9 million, or negative 74.3% of net revenues, in the prior-year quarter.
Cash, cash equivalents, restricted cash and term deposits were RMB 456.9 million as of June 30, 2026, compared with RMB 407.0 million at December 31, 2025. The current ratio was 2.03. The board authorized a share repurchase program of up to $10 million of ordinary shares, including American Depositary Shares, over 12 months beginning September 3, 2026, funded from existing cash.
Shares rose 29.79% in regular trading to close at $3.79 from a previous close of $2.92. In after-hours trading, the stock climbed another 19.53% to $4.53, a gain of about 55.5% above the prior day's close. The 52-week range was $1.68 to $6.45.
Operationally, the company said its project in Shanghai's Minhang District had been deployed across more than 3,000 classes, with 97.8% teacher and student coverage. Chief Financial Officer Sishi Zhou said the collaboration had evolved from SaaS-based services toward agentic services, giving teachers more personalized AI capabilities. She also said Yiqi Aixue had become an important growth engine faster than expected and was showing increasingly encouraging economics as the business scales. Zhou said the results provided further validation of the company's strategic transformation into an AI-powered application service provider and of improving economics and scalability.
