Four Seasons Education Sees Notable Growth in First Half FY26

Four Seasons Education Financial Results Overview

Four Seasons Education (Cayman) Inc. (NYSE: FEDU), a provider of education and tourism-related services, has revealed its unaudited financial results for the first half of the fiscal year 2026, celebrating significant improvements across various metrics.

Key Financial Highlights

The company experienced a strong revenue increase of 7.9%, reaching RMB145.3 million (approximately US$20.4 million). This growth reflects the company's successful efforts in expanding its enrichment learning business, which drove this noteworthy performance.

Gross Profit Growth

Gross profit saw an even more impressive rise, growing by 30.9% to RMB38.8 million (US$5.4 million). The gross profit margin rose from 22.0% to 26.7%, indicating enhanced profitability driven by a favorable product mix and improved operational efficiencies.

Operating and Net Income

Operating income transitioned from a loss of RMB5.7 million in the previous year to a profit of RMB9.2 million (US$1.3 million). Furthermore, net income surged to RMB12.4 million (US$1.7 million), a remarkable increase of over 313.9% year-over-year compared to RMB3.0 million previously.

Operational Highlights

CEO Ms. Yi Joanne Zuo expressed optimistically about the company's ongoing growth trajectory, emphasizing sustained profitable growth. The company plans to expand its enrichment programs while strategically steering its tourism services towards higher-margin offerings. This strategy is designed to build a resilient business model for the future.

Financial Breakdown for the Six Months Ended

For the first half of FY26, significant insights include:

• Cost of Revenue was approximately RMB106.5 million (US$14.9 million), reflecting a slight increase due to rising staffing costs.
• Adjusted Operating Income was RMB9.8 million (US$1.4 million), a significant turnaround from an adjusted loss of RMB1.6 million the previous year.
• Net Income demonstrated robust health with RMB13.7 million (US$1.9 million), marking a substantial improvement from RMB2.1 million previously.
• Basic net income per ADS was RMB4.53 (US$0.63), significantly higher than RMB0.98 from the same period last year.

Looking Forward

Ms. Zuo highlighted the firm’s strong focus on operational efficiency and its diverse array of service offerings. The company is confident that its concentrated efforts on premium services and cautious market expansion will sustainably enhance its competitive position, ultimately benefiting stakeholders.

Conference Call and Future Engagements

The company's management has planned an earnings conference call to discuss these results in greater depth, encouraging participants to dial in ahead of time to engage directly with the team.

About Four Seasons Education (Cayman) Inc.

Four Seasons Education offers a range of educational services including enrichment learning programs and travel agency services targeting various age groups. The firm continues to innovate in the education sector while adapting to market needs and stakeholder preferences.

Frequently Asked Questions

What were Four Seasons Education's revenue and profit highlights for H1 FY26?

Revenue increased by 7.9% to RMB145.3 million, with gross profit rising by 30.9% to RMB38.8 million.

How did the operating income change compared to last year?

Operating income improved from a loss of RMB5.7 million to a profit of RMB9.2 million.

What is the company's strategy moving forward?

The company plans to expand its enrichment programs and enhance its tourism product portfolio towards higher-margin offerings.

Who is the CEO of Four Seasons Education?

Ms. Yi Joanne Zuo is the Chief Executive Officer and Director of Four Seasons Education.

Where can I find more information about Four Seasons Education?

More details about the company's offerings and updates can be found on their investor relations website.

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