TAL Education Group

31st, 2025, we had $1,542.2 million in cash and cash equivalents, $1,706.6 million in short-term investments, and $239.2 million in current and non-current restricted cash. Our deferred revenue balance was $822.7 million as of the end of second fiscal quarter. Now, turning to our cash flow statement, net cash used in operating activities for the second quarter of fiscal year 2026 was $58.1 million. Finally, I would like to briefly address our Share Your Purchase program. In July 2025, the company's board of directors authorized a new Share Your Purchase program. Under the program, the company may spend up to approximately $600 million to purchase its common shares over the next 12 months. Between July 31st and October 29th, 2025, the company has repurchased approximately 4.2 million common shares and an aggregate consideration of approximately $134.7 million. That concludes the financial section. I will now hand the call back to Alex to briefly update you on our business outlook and strategic priorities. Alex, please go ahead.

Thanks, Jackson. I'd like to share some thoughts on our outlook for the company's future development. The fiscal third quarter is generally not a peak season for enrichment learning demand. so we may experience fluctuations in our business performance due to seasonal factors. Nevertheless, we remain dedicated to driving sustainable long-term growth across all our business lines. Looking ahead, we'll continue to enhance our products and services to support students' holistic development. Our goal is to serve a broader user base while adhering to the quality standards for both our enrichment learning programs and content solutions. To achieve this, we are making continued investments in content and technology. These investments will fuel innovation and position us to meet the evolving needs of our users in the long term. In addition, we are committed to exploring and building diverse sales channels to drive growth in our core business. In today's highly connected world, integrating online and offline user engagement is more crucial than ever. Offline touchpoints remain essential for fostering meaningful interactions with users. While we have established offline communication in learning services, newer areas such as the learning device business are still in the nascent stages. It is therefore essential that we strengthen our go-to-market capabilities in this area, which will take time and continue investment. Regarding our future financial performance outlook, As we've emphasized in recent quarters, our primary objective remains achieving sustainable long-term growth rather than focusing solely on short-term financial results. Accordingly, we will continue prioritizing resource allocation to critical areas aligned with our long-term strategic goals. We're committed to exploring expansion and innovation opportunities within our core businesses to enhance our competitiveness. To execute these strategies effectively, we will maintain flexibility in resource allocation, carefully considering factors such as business dynamics, product cycles, market conditions, seasonality, and organizational capabilities. These adjustments may result in financial performance fluctuations, with some periods exceeding or falling short of market expectations. Indeed, in recent quarters, we have experienced margin compression as we see the new initiatives and scaled emerging opportunities. Conversely, we've also seen periods of outperformance as these investments matured. This variability underscores our intentional focus on sustainable growth over short-term optimization while also reflecting limited visibility into near-term financial performance. Despite these dynamics, our commitment to long-term growth remains unwavering, particularly in the K-12 learning sector. Our ultimate goal is to deliver transformative learning solutions that empower students in their holistic development. So that concludes my prepared remarks. Operator, I think we're now ready to open the call for questions.

Thank you. We will now begin the question and answer session. To ask a question, please press star one one on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star one one again. We will now take our first question from the line of Timothy Zhao from Goldman Sachs. Please ask your question, Timothy.