Description

How TAL Education Is Structuring Its Next Phase of Growth – Core Services First, Optionality Later!

The recent quarterly eanings reflects a period of solid operational execution for TAL Education Group, alongside clearer visibility into the trade-offs the company is making between near-term financial performance and longer-term capability building. Revenue growth remained strong on a year-over-year basis, supported by continued momentum in learning services and contributions from newer initiatives, most notably learning devices. This performance indicates that core demand for enrichment education remains resilient, particularly in offline Peiyou programs and online enrichment offerings, where enrollment growth, retention metrics, and user engagement were cited as stable and supportive of topline expansion. Profitability improved materially compared with the prior year, driven by higher gross margins and disciplined control of operating expenses. Cost of revenue growth lagged revenue expansion, while selling and marketing expenses declined both in absolute terms and as a percentage of revenue.