Gaotu Techedu Inc.

Hello, ladies and gentlemen. Thank you for standing by and welcome to the GAL2 Tech EDU third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I would now like to turn the conference over to your first speaker today, Ms. Catherine Chen, Head of Investor Relations. Please go ahead, Catherine.

Thank you, operator. Good evening, everyone. Thank you for joining GAL2's third quarter 2025 earnings conference call. My name is Catherine, and I'll help host the earnings call today. GAL2's earnings release for the quarter was distributed earlier and is available on the company's IR website at ir.gal2.cn. as well as through PR Newsware services. Joining the call with me tonight from GAL2 Senior Management is Mr. Larry Chen, GAL2's founder, chairman, and chief executive officer, and Ms. Shannon Shen, GAL2's chief financial officer. Larry will first provide the business highlights for the quarter, and then afterwards, Shannon will discuss our financial performance in more detail. Following their prepared remarks, we'll open the floor to questions from analysts. Before we begin, I'd like to remind you that this conference call will contain forward-looking statements made under the safe harbor provision of the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based upon management's current beliefs and expectations, as well as the current market and operating conditions. and they involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict, and many of which are beyond the company's control, and may cause the company's actual results, performance, or achievements to differ materially from those contained in any forward-looking statement. Further information regarding this and other risks is included in the company's public filing with the USFCC. The company does not undertake any obligations to update any forward-looking statement except as required under applicable law. During today's call, management will also discuss certain non-GAAP measures for comparison purpose only. For definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results, please refer to our third quarter earnings release published earlier today. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this conference call will be available on GoTo's IRR website. It is now my pleasure to introduce our founder, chairman, and chief executive officer, Larry. Larry, please.

Good evening and good morning, everyone. Thank you for joining us on GoTo's third quarter of fiscal year 2025 earnings conference call. I would like to take this opportunity to express my gratitude to each of you for your interest in and support for GAL2. Before I start, I would like to remind everyone that all financial figures discussed today are EMB unless stated otherwise. Our user-centric approach continues to drive progress in our high-quality growth strategy. As we continually enrich the product portfolio to support learners of all ages across diverse study scenarios, we are deepening user insights, strengthening the high-quality teacher pipeline, and comprehensively enhancing product quality, delivery, proactive, and operational excellence. At the same time, the full stack integration of AI across our teaching services and operations is driving measurable efficiency gains and smarter resource application. As our power capabilities expand, our differentiated value proposition is becoming increasingly evident, and our trajectory toward profitability is becoming more defined. creating a robust foundation for scalable long-term growth. In the third quarter, we delivered another solid set of financial results. Value grew by 30.7% year-over-year to nearly 1.6 billion. While on a non-GAAP basis, both loss from operations and the net loss narrowed significantly by 64.6% and 69.9% respectively, respecting sustained improvement in growth, quantity, and profitability. Excluding the impact of share repurchases, Our cash position increased year-over-year, strengthening the balance sheet and highlighting our disciplined financial management. We remain committed to creating long-term shareholder value. As of this quarter, we have completed the full amount of the initial share repurchase program approved in November 2022. and expanded to $80 million in 2023. Meanwhile, the new $100 million program approved by our board in May has already commenced. We will continue to execute the Shared Repurchase Program in a prudent and disciplined manner while safeguarding operational and financial health. further reinforcing our commitment to enhancing shareholder value now i'd like to elaborate on our progress this quarter by reviewing our strategic priorities and key developments across five friends first we are solidifying our strategic edge by extending the coverage across the full learner journey and diversifying our service scenarios. Through sustained investment and refinement, we have built a cohesive product and service ecosystem spanning primary school through adult learning. This brings us a deep understanding of users' learning trajectories enabling us to deliver increasingly differentiated and personalized services at every stage and establish a unique user value proposition and brand equity. Building on this foundation, we continually iterate our service models in log step with user demand. We began with online delivery. Gradually expanded our offerings to include online merge, offline models and offline boot camps to meet the user demand for enhanced interactivity and immersive experiences and have ultimately established offline learning centers. Our online model provides broad reach and leverages high caliber teaching resources and flexible learning formats to deliver efficient and highly accessible services. Meanwhile, our offline learning centers enhance localized support and personalized instruction, naturally complementing our core online framework. Notably, for the first time this quarter, the revenue contribution of offline learning services exceeded 10% of our total revenues. We believe our deeply integrated online-offline model not only aligns with users' lifelong development, but also forms a resilient, flexible, and scalable service network. by highlighting the efficient scalability of online learning while incorporating the interactive and immersive value of online education. Kaotou is poised to become a premium lifelong learning platform. Second, we are building a robust pipeline of high-quality educators to strengthen our talent strategy. Exceptional educators are at the heart of our competitiveness. To attract the talent, we have forwarded long-term strategic partnerships with thousands of leading domestic universities and continuously broaden our talent pool through career mentoring program and other initiatives. Applications from our key target universities increased notably during this year's campus recruitment season. In terms of talent development, we have further enhanced our professional training system and integrated an assessment, competition, and evaluation framework augmented by AI tools to systematically elevate employees' professional skills and foster their long-term growth. We have also fine-tuned our incentive system and organizational culture to enhance teachers' sense of belonging and job satisfaction. Together, these efforts are cultivating a sustainable, high-quality, talented ecosystem and lays a solid foundation for our long-term development. Third, both internally and externally, We are leveraging the power of AI to drive innovation and enhance efficiency as a digital native education company. We are committed to integrating AI technology throughout our business operations. Internally, initiatives like AI TechScience encourage business units to identify efficiency improvement opportunities and develop AI-driven solutions and agents, creating a closed-loop process from exploration to implementation. These efforts have improved operational efficiency and embedded AI into daily workflows, boosting employee satisfaction and fostering creativity. Externally, we are partnering with local governments and leading universities to co-establish educational AI R&D centers and labs, advancing the research, development, and application of AI models in the education sector. These collaborations strengthen industry academic academia integration and help make learning more intelligent personalized and effective force we remain focused on strengthening execution improving organizational efficiency and finding profitable growth this year we continued to build our results-driven culture and then made the profitable growth a core objective in the budgeting process we We implemented an operational metric tracking system for each business line using measurable quality and efficiency indicators to ensure that the teams are reaching their goals. At the management level, we are leveraging decision-making and disciplined execution to feel growth. We believe that the future competition will be about more than product services. Organizational efficiency will also be key. Underpinned by an agile organizational framework and technology-powered decision-making systems, we will boost our execution and drive high-quality growth. We remain committed to fulfilling our social responsibilities and creating long-term value for all stakeholders. We firmly believe that the value of our educational company lies not only in its commercial success, but also in its contributions to society. In the third quarter, Baotou Foundation partnered with several leading universities to launch the Zouzhou Teacher Empowerment Program. This initiative provides comprehensive training and practical courses to teachers in central and western China, improving their teaching skills and promoting educational equity. In addition, we collaborated with Jingxin Medical, a mental health care company, to empower a health care plus education service model. Together, we launched an AI-powered training lab that trained counselors in adolescent mental health through practical exercises and help students on leave due to mental health changes reintegrate into school life. From focusing on operational efficiency to expanding our fitness boundaries and from single point breakthroughs to systematic growth, we are steadily shaping a distinctive development path they go to has evolved into a technology-driven and ai-powered ad tech company centered on user needs providing end-to-end solutions across the full learning life cycle thank you very much everyone this concludes my prepared remarks I will now pass the call over to our CFO Shannon to walk you through the quarter's financial and operational details.