TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and the Fiscal Year 2026
BEIJING, April 23, 2026 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended February 28, 2026.
Highlights for the Fourth Quarter of Fiscal Year 2026
Highlights for the Fiscal Year Ended February 28, 2026
Financial Data——Fourth Quarter and Fiscal Year 2026
(In US$ thousands, except per ADS data and percentages)
Three Months Ended
February 28,
2025
2026
Pct. Change
Net revenues
610,239
802,389
31.5 %
(Loss)/income from operations
(16,015)
72,473
(552.5 %)
Non-GAAP (loss)/income from operations
(1,692)
82,224
(4,959.6 %)
Net (loss)/income attributable to TAL
(7,311)
244,790
(3,448.2 %)
Non-GAAP net income attributable to TAL
7,012
254,541
3,530.1 %
Net (loss)/income per ADS attributable to TAL – basic
(0.01)
0.44
(3,774.6 %)
Net (loss)/income per ADS attributable to TAL – diluted
(0.01)
0.44
(3,735.4 %)
Non-GAAP net income per ADS attributable to TAL – basic
0.01
0.46
3,883.9 %
Non-GAAP net income per ADS attributable to TAL – diluted
0.01
0.45
3,899.7 %
Fiscal Year Ended
February 28,
2025
2026
Pct. Change
Net revenues
2,250,233
3,008,908
33.7 %
(Loss)/income from operations
(3,155)
276,039
(8,849.3 %)
Non-GAAP income from operations
61,784
319,132
416.5 %
Net income attributable to TAL
84,591
530,751
527.4 %
Non-GAAP net income attributable to TAL
149,530
573,844
283.8 %
Net income per ADS attributable to TAL – basic
0.14
0.93
565.5 %
Net income per ADS attributable to TAL – diluted
0.14
0.92
567.4 %
Non-GAAP net income per ADS attributable to TAL – basic
0.25
1.00
307.0 %
Non-GAAP net income per ADS attributable to TAL – diluted
0.24
0.99
308.2 %
"We concluded fiscal year 2026 with solid progress across our core businesses. We have expanded our reach to more users and strengthened engagement by enhancing our offerings and operational capabilities. This has also enabled us to better serve the evolving needs of learners, " said Alex Peng, TAL's President & Chief Financial Officer.
Mr. Peng added, "As we enter fiscal year 2027, we remain focused on driving quality growth across our business lines. We will also continue to strengthen our operational execution to support long-term efficiency improvements."
Financial Results for the Fourth Quarter of Fiscal Year 2026
Net Revenues
In the fourth quarter of fiscal year 2026, TAL reported net revenues of US$802.4 million, representing a 31.5% increase from US$610.2 million in the fourth quarter of fiscal year 2025.
Operating Costs and Expenses
In the fourth quarter of fiscal year 2026, operating costs and expenses were US$729.9 million, representing a 16.6% increase from US$626.3 million in the fourth quarter of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$720.2 million, representing a 17.7% increase from US$611.9 million in the fourth quarter of fiscal year 2025.
Cost of revenues increased by 28.2% to US$375.2 million from US$292.6 million in the fourth quarter of fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.5% to US$374.8 million, from US$291.7 million in the fourth quarter of fiscal year 2025.
Selling and marketing expenses increased by 1.4% to US$220.9 million from US$218.0 million in the fourth quarter of fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 2.0% to US$218.5 million, from US$214.3 million in the fourth quarter of fiscal year 2025.
General and administrative expenses increased by 15.7% to US$133.8 million from US$115.6 million in the fourth quarter of fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 19.7% to US$126.8 million, from US$106.0 million in the fourth quarter of fiscal year 2025.
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 31.9% to US$9.8 million in the fourth quarter of fiscal year 2026 from US$14.3 million in the same period of fiscal year 2025.
Gross Profit
Gross profit increased by 34.5% to US$427.2 million from US$317.6 million in the fourth quarter of fiscal year 2025. The gross margin for the fourth quarter of fiscal year 2026 was 53.2%, compared to 52.0% in the same period of the prior year.
(Loss)/Income from Operations
Income from operations was US$72.5 million in the fourth quarter of fiscal year 2026, compared to loss from operations of US$16.0 million in the fourth quarter of fiscal year 2025. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$82.2 million, compared to Non-GAAP loss from operations of US$1.7 million in the same period of the prior year.
Other Income
Other income was US$275.0 million for the fourth quarter of fiscal year 2026, compared to other income of US$13.0 million in the fourth quarter of fiscal year 2025. The change in other income for the fourth quarter was mainly driven by fluctuations in the fair value of certain investments.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$41.4 million in the fourth quarter of fiscal year 2026, compared to US$4.2 million in the fourth quarter of fiscal year 2025.
Income Tax Expense
Income tax expense was US$77.0 million in the fourth quarter of fiscal year 2026, compared to income tax expense of US$14.0 million in the fourth quarter of fiscal year 2025.
Net (Loss)/Income Attributable to TAL Education Group
Net income attributable to TAL was US$244.8 million in the fourth quarter of fiscal year 2026, compared to net loss attributable to TAL of US$7.3 million in the fourth quarter of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$254.5 million, compared to Non-GAAP net income attributable to TAL of US$7.0 million in the fourth quarter of fiscal year 2025.
Basic and Diluted Net (Loss)/Income per ADS
Basic and diluted net income per ADS were both US$0.44, in the fourth quarter of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.46 and US$0.45, respectively, in the fourth quarter of fiscal year 2026.
Cash Flow
Net cash used in operating activities for the fourth quarter of fiscal year 2026 was US$215.0 million.
Cash, Cash Equivalents, and Short-Term Investments
As of February 28, 2026, the Company had US$1,523.9 million of cash and cash equivalents and US$1,715.4 million of short-term investments, compared to US$1,771.3 million of cash and cash equivalents and US$1,847.1 million of short-term investments as of February 28, 2025.
Deferred Revenue
As of February 28, 2026, the Company's deferred revenue balance was US$882.2 million, compared to US$671.2 million as of February 28, 2025.
Financial Results for the Fiscal Year Ended February 28, 2026
Net Revenues
In fiscal year 2026, TAL reported net revenues of US$3,008.9 million, representing a 33.7% increase from US$2,250.2 million in fiscal year 2025.
Operating Costs and Expenses
In fiscal year 2026, operating costs and expenses were US$2,732.9 million, representing a 21.3% increase from US$2,253.4 million in fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$2,689.8 million, representing a 22.9% increase from US$2,188.4 million in fiscal year 2025.
Cost of revenues increased by 27.9% to US$1,343.4 million from US$1,050.0 million in fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.6% to US$1,341.6 million from US$1,043.6 million in fiscal year 2025.
Selling and marketing expenses increased by 18.7% to US$889.1 million from US$748.8 million in fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 19.9% to US$878.2 million from US$732.6 million in fiscal year 2025.
General and administrative expenses increased by 10.1% to US$500.4 million from US$454.7 million in fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 14.0% to US$470.0 million from US$412.2 million in fiscal year 2025.
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 33.6% to US$43.1 million in fiscal year 2026 from US$64.9 million in fiscal year 2025.
Gross Profit
Gross profit increased by 38.8% to US$1,665.5 million from US$1,200.3 million in fiscal year 2025. The gross margin in fiscal year 2026 was 55.4%, compared to 53.3% in the prior year.
(Loss)/Income from Operations
Income from operations was US$276.0 million in fiscal year 2026, compared to loss from operations of US$3.2 million in the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$319.1 million, compared to US$61.8 million Non-GAAP income from operations in the prior year.
Other Income
Other income was US$390.2 million in fiscal year 2026, compared to other income of US$64.7 million in the prior year. The change in other income in fiscal year 2026 was mainly driven by fluctuations in the fair value of certain investments.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$42.8 million in fiscal year 2026, compared to US$12.9 million in fiscal year 2025.
Income Tax Expense
Income tax expense was US$154.4 million in fiscal year 2026, compared to US$38.3 million of income tax expense in fiscal year 2025.
Net (Loss)/Income Attributable to TAL Education Group
Net income attributable to TAL was US$530.8 million in fiscal year 2026, compared to net income attributable to TAL of US$84.6 million in fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$573.8 million, compared to US$149.5 million Non-GAAP net income attributable to TAL in the prior year.
Basic and Diluted Net (Loss)/Income per ADS
Basic and diluted net income per ADS were US$0.93 and US$0.92, respectively, in fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$1.00 and US$0.99, respectively, in fiscal year 2026.
Cash Flow
Net cash provided by operating activities in fiscal year 2026 was US$601.5 million.
Share Repurchase
On July 28, 2025, TAL's board of directors authorized a new share repurchase program under which the Company may repurchase up to US$600 million of the Company's common shares over the next 12 months. Between January 29, 2026 and April 22, 2026, the Company has repurchased 101,371 common shares at an aggregate consideration of approximately US$3.3 million.
Change to the Management Team
Effective April 22, 2026, Mr. Mi Tian has stepped down as Chief Technology Officer and transitioned to Senior Vice President. Mr. Tian will focus on selected technology initiatives in his new capacity.
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the fourth fiscal quarter of fiscal year 2026 ended February 28, 2026 at 8:00 a.m. Eastern Time on April 23, 2026 (8:00 p.m. Beijing time on April 23, 2026).
Please note that you will need to pre-register for conference call participation at
https://dpregister.com/sreg/10208034/103bc38d804.
Upon registration, you will receive an email containing participant dial-in numbers, passcode, and a unique access PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.tal.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.
About TAL Education Group
TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".
About Non-GAAP Financial Measures
In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
For further information, please contact:
Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: [email protected]
TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
As of
February 28,
2025
As of
February 28,
2026
ASSETS
Current assets
Cash and cash equivalents
$ 1,771,260
$ 1,523,879
Restricted cash, current
187,846
227,551
Short-term investments
1,847,120
1,715,446
Inventory, net
104,876
143,326
Amounts due from related parties, current
37
46
Prepaid expenses and other current assets
215,781
232,870
Total current assets
4,126,920
3,843,118
Restricted cash, non-current
32,625
34,608
Property and equipment, net
472,366
500,710
Deferred tax assets
3,487
3,170
Rental deposits
22,131
28,058
Intangible assets, net
394
45,975
Goodwill
155
45,545
Land use rights, net
182,880
189,779
Amounts due from related parties, non-current
96
134
Long-term investments
305,105
828,249
Long-term prepayments and other non-current assets
27,844
37,216
Operating lease right-of-use assets
329,064
379,727
Total assets
$ 5,503,067
$ 5,936,289
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$ 146,300
$ 152,513
Deferred revenue, current
624,272
832,839
Amounts due to related parties, current
93
97
Accrued expenses and other current liabilities
582,227
672,344
Operating lease liabilities, current
88,453
109,393
Total current liabilities
1,441,345
1,767,186
Deferred revenue, non-current
46,955
49,353
Deferred tax liabilities
3,474
67,981
Operating lease liabilities, non-current
244,895
278,083
Total liabilities
1,736,669
2,162,603
Equity
Class A common shares
154
156
Class B common shares
49
49
Treasury stock
-
(20)
Additional paid-in capital
4,294,819
3,694,418
Statutory reserve
179,537
216,638
Accumulated deficit
(624,078)
(130,428)
Accumulated other comprehensive loss
(83,914)
(6,376)
Total TAL Education Group's equity
3,766,567
3,774,437
Non-controlling interests
(169)
(751)
Total equity
3,766,398
3,773,686
Total liabilities and equity
$ 5,503,067
$ 5,936,289
TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
For the Three Months Ended
February 28,
For the Fiscal Year Ended
February 28,
2025
2026
2025
2026
Net revenues
$ 610,239
$ 802,389
$ 2,250,233
$ 3,008,908
Cost of revenues (note 1)
292,646
375,158
1,049,975
1,343,430
Gross profit
317,593
427,231
1,200,258
1,665,478
Operating expenses (note 1)
Selling and marketing
217,981
220,931
748,750
889,053
General and administrative (note 2)
115,627
133,827
454,663
500,386
Total operating expenses
333,608
354,758
1,203,413
1,389,439
(Loss)/income from operations
(16,015)
72,473
(3,155)
276,039
Interest income, net
19,072
14,817
83,482
62,030
Other income
12,950
275,016
64,717
390,155
Impairment loss on long-term
investments
(4,241)
(41,404)
(12,933)
(42,814)
Income before income tax expense and
(loss)/income from equity method
investments
11,766
320,902
132,111
685,410
Income tax expense
(13,972)
(76,952)
(38,320)
(154,417)
(Loss)/income from equity method
investments
(5,194)
440
(9,531)
(855)
Net (loss)/income
$ (7,400)
$ 244,390
$ 84,260
$ 530,138
Add: Net loss attributable to
non-controlling interests
89
400
331
613
Total net (loss)/income attributable
to TAL Education Group
$ (7,311)
$ 244,790
$ 84,591
$ 530,751
Net (loss)/income per common share
Basic
$ (0.04)
$ 1.33
$ 0.42
$ 2.79
Diluted
(0.04)
1.31
0.41
2.75
Net (loss)/income per ADS (note 3)
Basic
$ (0.01)
$ 0.44
$ 0.14
$ 0.93
Diluted
(0.01)
0.44
0.14
0.92
Weighted average shares used in
calculating net (loss)/income
per common share
Basic
202,627,554
184,629,323
201,963,823
190,420,468
Diluted
202,627,554
186,620,660
205,222,753
192,925,293
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:
For the Three Months
For the Fiscal Year
Ended February 28,
Ended February 28,
2025
2026
2025
2026
Cost of revenues
$ 963
$ 362
$ 6,389
$ 1,874
Selling and marketing expenses
3,691
2,386
16,101
10,839
General and administrative expenses
9,669
7,003
42,449
30,380
Total
$ 14,323
$ 9,751
$ 64,939
$ 43,093
Note 2: GAAP and non-GAAP general and administrative expenses include government subsidies, which were separately presented in our historical financial statements. This reclassification has been made to conform to the presentation for the current period, and such reclassification had no impact on the Group's previously reported (loss)/income from operations, net (loss)/income, shareholders' equity, or cash flows.
Note 3: Three ADSs represent one Class A common share.
TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS)/INCOME
(In thousands of U.S. dollars)
For the Three Months Ended
February 28,
For the Fiscal Year Ended
February 28,
2025
2026
2025
2026
Net (loss)/income
$ (7,400)
$ 244,390
$ 84,260
$ 530,138
Other comprehensive
(loss)/income, net of tax
(13,376)
39,844
(17,724)
77,569
Comprehensive (loss)/income
(20,776)
284,234
66,536
607,707
Add: Comprehensive loss
attributable to non-controlling
interests
44
387
69
582
Comprehensive (loss)/income
attributable to TAL
Education Group
$ (20,732)
$ 284,621
$ 66,605
$ 608,289
TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands of U.S. dollars)
For the Three Months Ended
February 28,
For the Fiscal Year Ended
February 28,
2025
2026
2025
2026
Net cash (used in)/provided by
operating activities
$ (226,332)
$ (214,965)
$ 397,923
$ 601,467
Net cash used in investing
activities
(314,289)
(475,945)
(847,028)
(175,746)
Net cash used in financing
activities
(55,104)
(18,937)
(13,167)
(643,512)
Effect of exchange rate
changes
(998)
10,284
(3,473)
12,098
Net decrease in cash, cash
equivalents and restricted
cash
(596,723)
(699,563)
(465,745)
(205,693)
Cash, cash equivalents and
restricted cash at the
beginning of period
2,588,454
2,485,601
2,457,476
1,991,731
Cash, cash equivalents and
restricted cash at the end
of period
$ 1,991,731
$ 1,786,038
$ 1,991,731
$ 1,786,038
TAL EDUCATION GROUP
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
For the Three Months Ended
February 28,
For the Fiscal Year Ended
February 28,
2025
2026
2025
2026
Cost of revenues
$ 292,646
$ 375,158
$ 1,049,975
$ 1,343,430
Share-based compensation expenses in
cost of revenues
963
362
6,389
1,874
Non-GAAP cost of revenues
291,683
374,796
1,043,586
1,341,556
Selling and marketing expenses
217,981
220,931
748,750
889,053
Share-based compensation expenses in
selling and marketing expenses
3,691
2,386
16,101
10,839
Non-GAAP selling and marketing
expenses
214,290
218,545
732,649
878,214
General and administrative
expenses(note 2)
115,627
133,827
454,663
500,386
Share-based compensation expenses in
general and administrative expenses
9,669
7,003
42,449
30,380
Non-GAAP general and
administrative expenses(note 2)
105,958
126,824
412,214
470,006
Operating costs and expenses
626,254
729,916
2,253,388
2,732,869
Share-based compensation expenses in
operating costs and expenses
14,323
9,751
64,939
43,093
Non-GAAP operating costs and
expenses
611,931
720,165
2,188,449
2,689,776
(Loss)/income from operations
(16,015)
72,473
(3,155)
276,039
Share-based compensation expenses
14,323
9,751
64,939
43,093
Non-GAAP (loss)/income from
operations
(1,692)
82,224
61,784
319,132
Net (loss)/income attributable to
TAL Education Group
(7,311)
244,790
84,591
530,751
Share-based compensation expenses
14,323
9,751
64,939
43,093
Non-GAAP net income attributable
to TAL Education Group (note 4)
$ 7,012
$ 254,541
$ 149,530
$ 573,844
Net (loss)/income per ADS
Basic
$ (0.01)
$ 0.44
$ 0.14
$ 0.93
Diluted
(0.01)
0.44
0.14
0.92
Non-GAAP net income per ADS
Basic
$ 0.01
$ 0.46
$ 0.25
$ 1.00
Diluted
0.01
0.45
0.24
0.99
ADSs used in calculating net
(loss)/income per ADS
Basic
607,882,662
553,887,969
605,891,469
571,261,404
Diluted
607,882,662
559,861,980
615,668,259
578,775,879
ADSs used in calculating Non-GAAP
net income per ADS
Basic
607,882,662
553,887,969
605,891,469
571,261,404
Diluted
616,868,733
559,861,980
615,668,259
578,775,879
Note 4: The tax effect of share-based compensation expenses was immaterial in the fourth quarter and in fiscal year 2026.
SOURCE TAL Education Group