Shares fell 6.11% in pre‑market trading after the earnings release.
Q1 2026 adjusted earnings per share (EPS) were RMB11.48; revenue was RMB440.7 million, down 9.6% YoY from RMB487.6 million in Q1 2025.
Net income reached RMB76.8 million, up from RMB75.2 million YoY, expanding the net‑income margin to 17.4% from 15.4% previously.
Operating expenses declined 16.7% to RMB284.3 million; sales and marketing expenses fell 19.5% to RMB241.9 million, the largest quarterly reduction in recent years.
Gross billings dropped to RMB304.8 million from RMB412.3 million YoY.
New student enrollments were 102,127, down from 169,083 in the first quarter of 2025.
As of 31 Mar 2026, cash and cash equivalents totaled RMB545.7 million, with short‑term investments of RMB236.0 million.
Deferred revenue stood at RMB500.5 million, down from RMB585.3 million at year‑end 2025.
For Q2 2026, Sunlands guided net revenues between RMB410 million and RMB430 million, indicating a YoY decline of 20.2%‑23.9%; the midpoint of RMB420 million signals continued revenue pressure.
CEO Tongbo Liu said the results reflect ongoing focus on learner quality, AI integration across acquisition and delivery, and improved retention in the senior‑learning business.
