New Oriental's Fiscal Year 2025 Financial Performance Review
New Oriental Reports Financial Results for FY2025
New Oriental Education & Technology Group Inc. (EDU), a leading provider of private educational services, has recently shared its financial results for the fiscal year ending May 31, 2025. The report outlines significant developments and strategic directions for the company in an evolving education landscape.
Fiscal Year 2025 Financial Highlights
In the fiscal year 2025, total net revenues saw a notable increase to approximately US$4.9 billion, marking a growth of 13.6%. This growth is indicative of the company's ongoing evolution and dedication to providing quality educational services.
Quarterly Performance Insights
The fourth fiscal quarter ended with net revenues reaching US$1.24 billion, reflecting a year-over-year increase of 9.4%. Excluding revenues from East Buy private label products and the livestreaming business, net revenues increased by 18.7% to US$1.09 billion.
Operating Results
Despite the revenue growth, the company experienced an operating loss of US$8.7 million for the fourth quarter, compared to an operating income of US$10.5 million from the previous year. Key driving factors for this change included increased investments in new business initiatives and expansions in educational services.
Key Financial Metrics
Performance Metrics Summary
- Net Income: Total net income attributed to New Oriental decreased to US$7.1 million, reflecting a 73.7% decline year-over-year.
- Operating Costs: Operating costs for the quarter were reported at US$1.25 billion, registering an increase of 11.2% compared to the previous year.
- Operating Margin: The non-GAAP operating margin, excluding certain expenses, improved to 6.5%, an increase of 410 basis points.
Future Growth Projections
New Oriental is optimistic about its growth trajectory moving forward. The company anticipates total net revenues for the first quarter of fiscal year 2026 to be between US$1.46 billion and US$1.51 billion, projecting a year-over-year increase of 2% to 5%.
Strategic Developments
Executive Chairman Michael Yu emphasized the robust growth in overseas test preparation and consulting services, with 14.6% and 8.2% increases respectively. Furthermore, new educational business ventures have seen a remarkable revenue growth of 32.5% year-over-year.
Technological Innovations
This fiscal year, the integration of advanced technologies has been a focal point. The introduction of AI-powered Intelligent Learning Devices and Smart Study Solutions are set to reshape the educational experience for students and enhance operational efficiency.
Commitment to Shareholder Value
The board of directors has committed to an expansive shareholder return plan, where 50% of the company’s net income will be allocated to dividends and share repurchases. This decision reflects the company’s ongoing dedication to enhancing shareholder value.
Contact Information
For more information, please reach out to:
Ms. Rita Fong
FTI Consulting
Tel: +852 3768 4548
Email: rita.fong@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education & Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
Frequently Asked Questions
What is New Oriental's total net revenue for FY2025?
New Oriental reported a total net revenue of approximately US$4.9 billion for fiscal year 2025.
What were the operating losses reported for the fourth quarter?
The operating loss for the fourth quarter of FY2025 was US$8.7 million.
How did New Oriental perform in terms of net income?
The net income attributable to New Oriental was US$7.1 million, a significant decrease from the previous year.
What future revenue projections does New Oriental have for FY2026?
New Oriental expects total net revenues between US$5.14 billion and US$5.39 billion for the fiscal year 2026.
How is New Oriental enhancing its educational offerings?
The company is integrating more advanced technologies and launching new educational initiatives to expand its service offerings.
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