# EDGAR Filing Document

**Accession Number:** 0001781753
**File Stem:** 0000950103-26-001940
**Filing Date:** 2026-2
**Character Count:** 37058
**Document Hash:** 653a77428389577e14ee7511ebd511f1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950103-26-001940.hdr.sgml**: 20260211

**ACCESSION NUMBER**: 0000950103-26-001940

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20260211

**FILED AS OF DATE**: 20260211

**DATE AS OF CHANGE**: 20260211

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Youdao, Inc.
- **CENTRAL INDEX KEY:** 0001781753
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39087
- **FILM NUMBER:** 26618290

**BUSINESS ADDRESS:**
- **STREET 1:** NO. 399, WANGSHANG ROAD
- **CITY:** BINJIANG DISTRICT, HANGZHOU
- **STATE:** F4
- **ZIP:** 310051
- **BUSINESS PHONE:** 86 0571-8985-2163

**MAIL ADDRESS:**
- **STREET 1:** 8/F, CHUANG'S TOWER
- **STREET 2:** 30-32 CONNAUGHT ROAD CENTRAL
- **CITY:** HONG KONG
- **STATE:** K3
- **ZIP:** 00000

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

Washington, D.C. 20549

**FORM 6-K**

**REPORT OF FOREIGN ISSUER<br> PURSUANT TO RULE 13a-16 OR 15d-16 OF<br> THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of February 2026**

**Commission file number: 001-39087**

**Youdao, Inc.** 

(Exact Name of Registrant as Specified in Its Charter)

**No. 399, Wangshang Road, Binjiang District<br> Hangzhou 310051, People's Republic of China<br> +86 0571-8985-2163**

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.**  | **Description**  |
| [99.1](dp241380_ex9901.htm) | [Press Release](dp241380_ex9901.htm) |

---

**Signature**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Youdao, Inc.** | **Youdao, Inc.** | **Youdao, Inc.** |
| Date: | February 11, 2026 | By: | /s/ Feng Zhou | /s/ Feng Zhou |
|  |  |  | Name: | Feng Zhou |
|  |  |  | Title: | Chief Executive Officer, Director |

---

## Exhibit 99.1

**Exhibit 99.1**

![](image_001.jpg)

**For investor and media inquiries, please contact:** 

In China:

Jeffrey Wang

Youdao, Inc.

Tel: +86-10-8255-8163 ext. 89980

E-mail: IR@rd.netease.com

Piacente Financial Communications

Helen Wu

Tel: +86-10-6508-0677

E-mail: youdao@thepiacentegroup.com

In the United States:

Piacente Financial Communications

Brandi Piacente

Tel: +1-212-481-2050

E-mail: youdao@thepiacentegroup.com

**Youdao Reports Fourth Quarter and Fiscal Year 2025 Unaudited Financial Results**

Hangzhou, China – February 11, 2026 – Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI-powered solutions provider specializing in artificial intelligence applications for the learning and advertising verticals, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025.

**<u>Fourth Quarter 2025 Financial Highlights</u>**

· **Total net revenues** were RMB1.6 billion (US$223.7 million), representing
a 16.8% increase from the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;o **Net revenues from learning services** were RMB727.2 million (US$104.0
million), representing a 17.7% increase from the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;o **Net revenues from smart devices** were RMB176.5 million (US$25.2 million),
representing a 26.6% decrease from the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;o **Net revenues from online marketing services** were RMB660.9 million
(US$94.5 million), representing a 37.2% increase from the same period in 2024.

· **Gross margin** was 45.1%, compared with 47.8% for the same period in
2024. · **Income from operations** was RMB60.2 million (US$8.6 million), representing
a 28.5% decrease from the same period in 2024.

· **Basic and diluted net income per American depositary share ("ADS")** attributable to ordinary shareholders were RMB0.41 (US$0.06) and RMB0.40 (US$0.06), respectively, compared with RMB0.71 and RMB0.70 for
the same period of 2024. Non-GAAP basic and diluted net income per ADS attributable to ordinary shareholders were RMB0.50 (US$0.07) and
RMB0.49 (US$0.07), compared with RMB0.78 and RMB0.77 for the same period of 2024.

**<u>Fiscal Year 2025 Financial Highlights</u>**

· **Total net revenues** were RMB5.9 billion (US$845.0 million), representing
a 5.0% increase from 2024.

&nbsp;&nbsp;&nbsp;&nbsp;o **Net revenues from learning services** were RMB2.6 billion (US$376.2
million), representing a 4.2% decrease from 2024.

&nbsp;&nbsp;&nbsp;&nbsp;o **Net revenues from smart devices** were RMB739.6 million (US$105.8 million),
representing an 18.2% decrease from 2024.

&nbsp;&nbsp;&nbsp;&nbsp;o **Net revenues from online marketing services** were RMB2.5 billion (US$363.0
million), representing a 28.5% increase from 2024.

· **Gross margin** was 44.3%, compared with 48.9% for 2024.

· **Income from operations** was RMB221.3 million (US$31.6 million), representing
a 48.7% increase from 2024.

· **Basic and diluted net income per ADS** attributable to ordinary shareholders
were RMB0.91 (US$0.13) and RMB0.90 (US$0.13), respectively, compared with RMB0.70 for 2024. Non-GAAP basic and diluted net income per
ADS attributable to ordinary shareholders were RMB1.37 (US$0.20) and RMB1.35 (US$0.19), respectively, compared with RMB0.89 for 2024.

"Our fourth-quarter results reflect strong operational momentum, marking our sixth consecutive quarter of operating profitability and continued improvement in revenue and cash flow. For the full year 2025, we achieved our first full year of positive operating cash flow, alongside solid growth in Youdao Lingshi, online marketing, and AI-driven subscription products, demonstrating the increasing resilience of our business," said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao.

"Looking ahead, we remain committed to our AI-Native strategy, focusing on learning services and advertising. By advancing vertical large language models and expanding AI-driven applications and agents, we aim to deliver differentiated user experiences and drive sustainable long-term growth," Dr. Zhou concluded.

**<u>Fourth Quarter 2025 Financial Results</u>**

**Net Revenues**

Net revenues for the fourth quarter of 2025 were RMB1.6 billion (US$223.7 million), representing a 16.8% increase from RMB1.3 billion for the same period of 2024.

Net revenues from learning services were RMB727.2 million (US$104.0 million) for the fourth quarter of 2025, representing a 17.7% increase from RMB617.7 million for the same period of 2024. The year-over-year increase was primarily driven by the strong sales performance of AI-driven subscription services compared with the same period of 2024.

Net revenues from smart devices were RMB176.5 million (US$25.2 million) for the fourth quarter of 2025, representing a 26.6% decrease from RMB240.4 million for the same period of 2024, primarily due to the declined demands of smart learning devices in the fourth quarter of 2025.

Net revenues from online marketing services were RMB660.9 million (US$94.5 million) for the fourth quarter of 2025, representing a 37.2% increase from RMB481.7 million for the same period of 2024. The year-over-year increase was mainly attributable to the increased demands from the NetEase group and overseas markets, which was driven by our continued investments in AI technology.

**Gross Profit and Gross Margin**

Gross profit for the fourth quarter of 2025 was RMB705.4 million (US$100.9 million), representing a 10.1% increase from RMB640.8 million for the same period of 2024. Gross margin was 45.1% for the fourth quarter of 2025, compared with 47.8% for the same period of 2024. The decrease was mainly due to the declined gross profit margin of online marketing services.

Gross margin for learning services was 62.5% for the fourth quarter of 2025, compared with 60.0% for the same period of 2024. The improvement was primarily attributable to the improved economies of scale as a result of the increased revenues from learning services.

Gross margin for smart devices decreased to 38.1% for the fourth quarter of 2025 from 43.9% for the same period of 2024. The decrease was mainly attributable to the increased bill of materials cost for smart devices.

Gross margin for online marketing services was 27.8% for the fourth quarter of 2025, compared with 34.2% for the same period of 2024. The decrease was mainly attributable to our strategic expansion of our client base for advertising services. As the collaboration with new clients remains in its nascent stage, the gross margin for these clients holds potential for future improvement.

**Operating Expenses**

Total operating expenses for the fourth quarter of 2025 were RMB645.2 million (US$92.3 million), compared with RMB556.6 million for the same period of last year.

Sales and marketing expenses for the fourth quarter of 2025 were RMB437.1 million (US$62.5 million), representing an increase of 14.5% from RMB381.8 million for the same period of 2024. This increase was primarily driven by increasing sales and marketing efforts associated with learning services in the fourth quarter of 2025.

Research and development expenses for the fourth quarter of 2025 were RMB142.6 million (US$20.4 million), representing an increase of 18.2% from RMB120.7 million for the same period of 2024. The increase was primarily due to the increased payroll-related expenses including share-based compensation expenses for research and development employees in learning services in the fourth quarter of 2025.

General and administrative expenses for the fourth quarter of 2025 were RMB65.4 million (US$9.4 million), representing an increase of 20.9% from RMB54.1 million for the same period of 2024. The increase was mainly attributable to an increase in expected credit losses on our accounts receivables in the fourth quarter of 2025.

**Income from Operations**

As a result of the foregoing, income from operations for the fourth quarter of 2025 was RMB60.2 million (US$8.6 million), compared with RMB84.2 million for the same period in 2024. The margin of income from operations was 3.8%, compared with 6.3% for the same period of last year.

**Net Income Attributable to Youdao's Ordinary Shareholders**

Net income attributable to Youdao's ordinary shareholders for the fourth quarter of 2025 was RMB48.2 million (US$6.9 million), compared with RMB83.0 million for the same period of last year. Non-GAAP net income attributable to Youdao's ordinary shareholders for the fourth quarter of 2025 was RMB58.7 million (US$8.4 million), compared with RMB91.8 million for the same period of last year.

Basic and diluted net income per ADS attributable to ordinary shareholders for the fourth quarter of 2025 were RMB0.41 (US$0.06) and RMB0.40 (US$0.06), respectively, compared with RMB0.71 and RMB0.70 for the same period of 2024. Non-GAAP basic and diluted net income per ADS attributable to ordinary shareholders were RMB0.50 (US$0.07) and RMB0.49 (US$0.07), compared with RMB0.78 and RMB0.77 for the same period of 2024.

**Other Information**

As of December 31, 2025, Youdao's cash, cash equivalents, current and non-current restricted cash, and short-term investments totaled RMB743.2 million (US$106.3 million), compared with RMB662.6 million as of December 31, 2024. For the fourth quarter of 2025, net cash provided by operating activities was RMB184.2 million (US$26.3 million). Youdao's ability to continue as a going concern is dependent on management's ability to implement an effective business plan amid a changing regulatory environment, generate operating cash flows, and secure external financing for future development. To support Youdao's future business, NetEase Group has agreed to provide financial support for ongoing operations in the next thirty-six months starting from May 2024. As of December 31, 2025, Youdao has received various forms of financial support from the NetEase Group, including, among others, RMB878.0 million in short-term loan, and US$132.1 million in long-term loans maturing on March 31, 2027 drawn from the US$300.0 million revolving loan facility.

As of December 31, 2025, the Company's contract liabilities, which mainly consisted of deferred revenues generated from Youdao's learning services, were RMB847.7 million (US$121.2 million), compared with RMB961.0 million as of December 31, 2024.

**<u>Fiscal Year 2025 Financial Results</u>**

**Net Revenues**

Net revenues for 2025 were RMB5.9 billion (US$845.0 million), representing a 5.0% increase from RMB5.6 billion for 2024.

Net revenues from learning services were RMB2.6 billion (US$376.2 million) for 2025, representing a 4.2% decrease from RMB2.7 billion for 2024. The decrease was mainly due to the decreased revenue from tutoring services, partially offset by the strong sales performance of AI-driven subscription services. In 2025, we continued to take a disciplined, strategic approach to customer acquisition, which places greater emphasis on higher ROI (return on investment) engagements. We believe this strategy has enhanced the overall resilience and operational efficiency of our business.

Net revenues from smart devices were RMB739.6 million (US$105.8 million) for 2025, representing an 18.2% decrease from RMB903.7 million for 2024. The decrease was primarily due to the declined demands of smart learning devices in 2025.

Net revenues from online marketing services were RMB2.5 billion (US$363.0 million) for 2025, representing a 28.5% increase from RMB2.0 billion for 2024. The increase was mainly attributable to the increased demands from the NetEase group and overseas markets, which was driven by our continued investments in AI technology.

**Gross Profit and Gross Margin**

Gross profit for 2025 was RMB2.6 billion (US$374.2 million), representing a 4.8% decrease from RMB2.7 billion for 2024. Gross margin for 2025 was 44.3%, compared with 48.9% for 2024. The decrease was mainly due to the declined gross profit margin of online marketing services.

Gross margin for learning services was 60.2% for 2025, compared with 61.4% for 2024.

Gross margin for smart devices was 46.4% for 2025, compared with 38.7% for 2024. The improvement was mainly attributable to the higher gross margin arising from the newly launched Youdao Dictionary Pen in 2025.

Gross margin for online marketing services decreased to 27.1% for 2025 from 36.0% for 2024. The decrease was mainly attributable to our strategic expansion of our client base for advertising services. As the collaboration with new clients remains in its nascent stage, the gross margin for these clients holds potential for future improvement.

**Operating Expenses**

Total operating expenses for 2025 were RMB2.4 billion (US$342.6 million), representing a decrease of 7.9% from RMB2.6 billion for 2024.

Sales and marketing expenses for 2025 were RMB1.7 billion (US$240.9 million), representing a decrease of 10.1% from RMB1.9 billion for 2024. This decrease was primarily attributable to the reduced marketing expenditures in learning services in 2025.

Research and development expenses for 2025 were RMB514.2 million (US$73.5 million), representing a decrease of 4.8% from RMB540.0 million for 2024. The decrease was primarily due to the decreased headcount for research and development employees, leading to payroll savings in 2025.

General and administrative expenses for 2025 were RMB197.0 million (US$28.2 million), representing an increase of 5.3% from RMB187.1 million for 2024. The increase was primarily due to an increase in expected credit losses on our accounts receivables in 2025.

**Income from Operations**

Income from operations for 2025 was RMB221.3 million (US$31.6 million), representing an increase of 48.7% from RMB148.8 million for 2024. The margin of income from operations was 3.7%, compared with 2.6% for 2024.

**Others, Net**

Others, net for 2025 was RMB47.1 million (US$6.7 million) net loss, compared with RMB1.6 million net gain for 2024. Others, net for 2025 mainly included RMB25.7 million (US$3.7 million) impairment loss arising from certain long-term investments.

**Net Income Attributable to Youdao's Ordinary Shareholders**

Net income attributable to Youdao's ordinary shareholders for 2025 was RMB107.3 million (US$15.4 million), representing an increase of 30.6% from RMB82.2 million for 2024. Non-GAAP net income attributable to Youdao's ordinary shareholders for 2025 was RMB162.1 million (US$23.2 million), representing an increase of 54.7% from RMB104.8 million for 2024.

Basic and diluted net income per ADS attributable to ordinary shareholders for 2025 were RMB0.91 (US$0.13) and RMB0.90 (US$0.13), respectively, compared with RMB0.70 for 2024. Non-GAAP basic and diluted net income per ADS attributable to ordinary shareholders were RMB1.37 (US$0.20) and RMB1.35 (US$0.19), respectively, compared with RMB0.89 for 2024.

**Operating Cash Flow**

For 2025, net cash provided by operating activities was RMB55.2 million (US$7.9 million), compared with net cash used in operating activities of RMB67.9 million for 2024.

**Share Repurchase Program**

On November 17, 2022, the Company announced that its board of directors had authorized the Company to adopt a share repurchase program in accordance with applicable laws and regulations for up to US$20.0 million of its Class A ordinary shares (including in the form of ADSs) during a period of up to 36 months beginning on November 18, 2022. This amount was subsequently increased to US$40.0 million in August 2023. In November 2025, the Board approved an amendment to this Program to extend its original expiration date by one year to November 17, 2026. As of December 31, 2025, the Company had repurchased a total of approximately 7.5 million ADSs for a total consideration of approximately US$33.8 million in the open market under the share repurchase program.

**Conference Call**

Youdao's management team will host a teleconference call with simultaneous webcast at 5:00 a.m. Eastern Time on Wednesday, February 11, 2026 (Beijing/Hong Kong Time: 6:00 p.m., Wednesday, February 11, 2026). Youdao's management will be on the call to discuss the financial results and answer questions.

Dial-in details for the earnings conference call are as follows:

---

| | |
|:---|:---|
| United States (toll free): | +1-888-346-8982 |
| International: | +1-412-902-4272 |
| Mainland China (toll free): | 400-120-1203 |
| Hong Kong (toll free): | 800-905-945 |
| Hong Kong: | +852-3018-4992 |
| Conference ID: | 4547760 |

---

A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.youdao.com.

A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until February 18, 2026:

United States: +1-855-669-9658 <br> International: +1-412-317-0088 <br> Replay Access Code: 4547760

**About Youdao, Inc.** 

For more information, please visit: http://ir.youdao.com.

**Non-GAAP Measures**

Youdao considers and uses non-GAAP financial measures, such as non-GAAP net income/(loss) attributable to the Company's ordinary shareholders and non-GAAP basic and diluted net income/(loss) per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of 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 accounting principles generally accepted in the United States of America ("U.S. GAAP").

Youdao defines non-GAAP net income/(loss) attributable to the Company's ordinary shareholders as net income/(loss) attributable to the Company's ordinary shareholders excluding share-based compensation expenses, impairment of long-term investments, gain from fair value change of long-term investment and adjustment for GAAP to non-GAAP reconciling item for the income/(loss) attributable to noncontrolling interests. Non-GAAP net income/(loss) attributable to the Company's ordinary shareholders enables Youdao's management to assess its operating results without considering the impact of these items, which are non-cash charges in nature. Youdao believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. In addition, the non-GAAP financial measures Youdao uses may differ from the non-GAAP measures uses by other companies, including peer companies, and therefore their comparability may be limited.

For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this release.

The accompanying table has more details on the reconciliation between our GAAP financial measures that are mostly directly comparable to non-GAAP financial measures. Youdao encourages you to review its financial information in its entirety and not rely on a single financial measure.

**Exchange Rate Information**

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.9931 to US$1.00, the exchange rate on December 31, 2025 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

**Safe Harbor Statement**

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. 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. Further information regarding such risks, uncertainties or factors is included in the Company's filings with the SEC. The announced results of the fourth quarter and full year of 2025 are preliminary and subject to adjustments. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

---

| | | | |
|:---|:---|:---|:---|
| **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** |
| **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS** | **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS** | **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS** | **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS** |
| **(RMB and USD in thousands)** | **(RMB and USD in thousands)** | **(RMB and USD in thousands)** | **(RMB and USD in thousands)** |
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD <sup>(1)</sup>** |
| **Assets** |  |  |  |
| **Current assets:** |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | 592721 | 439731 | 62881 |
| &nbsp;&nbsp;Restricted cash | 3567 | 1990 | 285 |
| &nbsp;&nbsp;Short-term investments | 63064 | 298290 | 42655 |
| &nbsp;&nbsp;Accounts receivable, net | 418644 | 381243 | 54517 |
| &nbsp;&nbsp;Inventories | 174741 | 140776 | 20131 |
| &nbsp;&nbsp;Amounts due from NetEase Group | 79700 | 321359 | 45954 |
| &nbsp;&nbsp;Prepayment and other current assets | 154331 | 139117 | 19892 |
| **Total current assets** | **1486768** | **1722506** | **246315** |
| **Non-current assets:** |  |  |  |
| &nbsp;&nbsp;Property, equipment and software, net | 46725 | 44603 | 6378 |
| &nbsp;&nbsp;Operating lease right-of-use assets, net | 68494 | 46943 | 6713 |
| &nbsp;&nbsp;Long-term investments | 72380 | 19811 | 2833 |
| &nbsp;&nbsp;Goodwill | 109944 | 109944 | 15722 |
| &nbsp;&nbsp;Other assets, net | 30084 | 31238 | 4467 |
| **Total non-current assets** | **327627** | **252539** | **36113** |
| **Total assets** | **1814395** | **1975045** | **282428** |
| **Liabilities and Shareholders' Deficit** |  |  |  |
| **Current liabilities:** |  |  |  |
| &nbsp;&nbsp;Accounts payables | 145148 | 110003 | 15730 |
| &nbsp;&nbsp;Payroll payable | 264520 | 294824 | 42159 |
| &nbsp;&nbsp;Amounts due to NetEase Group | 21997 | 22818 | 3263 |
| &nbsp;&nbsp;Contract liabilities | 961024 | 847707 | 121220 |
| &nbsp;&nbsp;Taxes payable | 37603 | 43515 | 6223 |
| &nbsp;&nbsp;Accrued liabilities and other payables | 638660 | 738045 | 105540 |
| &nbsp;&nbsp;Short-term loan from NetEase Group | 878000 | 878000 | 125552 |
| **Total current liabilities** | **2946952** | **2934912** | **419687** |
| **Non-current liabilities:** |  |  |  |
| &nbsp;&nbsp;Long-term lease liabilities | 25566 | 18840 | 2694 |
| &nbsp;&nbsp;Long-term loans from NetEase Group | 913000 | 926588 | 132500 |
| &nbsp;&nbsp;Other non-current liabilities | 18189 | 28802 | 4119 |
| **Total non-current liabilities** | **956755** | **974230** | **139313** |
| **Total liabilities** | **3903707** | **3909142** | **559000** |
| **Shareholders' deficit:** |  |  |  |
| &nbsp;&nbsp;Youdao's shareholders' deficit | (2139958) | (1974058) | (282286) |
| &nbsp;&nbsp;Noncontrolling interests | 50646 | 39961 | 5714 |
| **Total shareholders' deficit** | **(2089312)** | **(1934097)** | **(276572)** |
| **Total liabilities and shareholders' deficit** | **1814395** | **1975045** | **282428** |

---

**Note 1:**

The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of **USD1.00=RMB6.9931** on the last trading day of December (December 31, 2025) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** |
| **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** |
| **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **September 30,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2025** | **2025** | **2025** | **2024** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD <sup>(1)</sup>** | **RMB** | **RMB** |
| **Net revenues:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Learning services | 617673 | 643086 | 727233 | 103993 | 2747290 | 2630571 |
| &nbsp;&nbsp;Smart devices | 240444 | 245780 | 176545 | 25246 | 903669 | 739644 |
| &nbsp;&nbsp;Online marketing services | 481681 | 739658 | 660914 | 94509 | 1974960 | 2538804 |
| **Total net revenues** | **1339798** | **1628524** | **1564692** | **223748** | **5625919** | **5909019** |
| Cost of revenues <sup>(2)</sup> | (699045) | (940661) | (859314) | (122880) | (2877428) | (3292191) |
| **Gross profit** | **640753** | **687863** | **705378** | **100868** | **2748491** | **2616828** |
| **Operating expenses:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Sales and marketing expenses <sup>(2)</sup> | (381815) | (487713) | (437143) | (62511) | (1872586) | (1684323) |
| &nbsp;&nbsp;Research and development expenses <sup>(2)</sup> | (120694) | (127792) | (142645) | (20398) | (539998) | (514232) |
| &nbsp;&nbsp;General and administrative expenses <sup>(2)</sup> | (54068) | (44092) | (65387) | (9350) | (187086) | (196964) |
| **Total operating expenses** | **(556577)** | **(659597)** | **(645175)** | **(92259)** | **(2599670)** | **(2395519)** |
| **Income from operations** | **84176** | **28266** | **60203** | **8609** | **148821** | **221309** |
| &nbsp;&nbsp;Interest income | 970 | 458 | 825 | 118 | 3919 | 2428 |
| &nbsp;&nbsp;Interest expense | (16828) | (15383) | (14919) | (2133) | (73090) | (62972) |
| &nbsp;&nbsp;Others, net | 1594 | (6391) | (10665) | (1526) | 1585 | (47134) |
| **Income before tax** | **69912** | **6950** | **35444** | **5068** | **81235** | **113631** |
| &nbsp;&nbsp;Income tax benefits/(expenses) | 2386 | (2925) | 510 | 73 | (6009) | (16589) |
| **Net income** | **72298** | **4025** | **35954** | **5141** | **75226** | **97042** |
| &nbsp;&nbsp;Net loss/(income) attributable to noncontrolling<br> interests | 10705 | (3905) | 12292 | 1758 | 6987 | 10304 |
| **Net income attributable to ordinary shareholders <br> of the Company** | **83003** | **120** | **48246** | **6899** | **82213** | **107346** |
| Basic net income per ADS | 0.71 |  | 0.41 | 0.06 | 0.70 | 0.91 |
| Diluted net income per ADS | 0.70 |  | 0.40 | 0.06 | 0.70 | 0.90 |
| Shares used in computing basic net income per ADS | 117259091 | 118259975 | 118601505 | 118601505 | 117426938 | 118084439 |
| Shares used in computing diluted net income per ADS | 118705233 | 119938028 | 120288530 | 120288530 | 118173469 | 119851130 |

---

**Note 1:**

The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of **USD1.00=RMB6.9931** on the last trading day of December (December 31, 2025) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

**Note 2:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Share-based compensation in each category: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues | 1025.0 | (342) | 362.0 | 52.0 | 2359.0 | 784.0 |
| &nbsp;&nbsp;&nbsp;Sales and marketing expenses | 1069.0 | 915 | 792.0 | 113.0 | 1183.0 | 3275.0 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 2402.0 | 3790 | 9723.0 | 1390.0 | 8712.0 | 18763.0 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 4285.0 | 4988 | 2647.0 | 379.0 | 10342.0 | 11868.0 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** |
| **UNAUDITED ADDITIONAL INFORMATION** | **UNAUDITED ADDITIONAL INFORMATION** | **UNAUDITED ADDITIONAL INFORMATION** | **UNAUDITED ADDITIONAL INFORMATION** | **UNAUDITED ADDITIONAL INFORMATION** | **UNAUDITED ADDITIONAL INFORMATION** | **UNAUDITED ADDITIONAL INFORMATION** |
| **(RMB and USD in thousands)** | **(RMB and USD in thousands)** | **(RMB and USD in thousands)** | **(RMB and USD in thousands)** | **(RMB and USD in thousands)** | **(RMB and USD in thousands)** | **(RMB and USD in thousands)** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **September 30,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2025** | **2025** | **2025** | **2024** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** | **RMB** | **RMB** |
| **Net revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;Learning services | 617673 | 643086 | 727233 | 103993 | 2747290 | 2630571 |
| &nbsp;&nbsp;Smart devices | 240444 | 245780 | 176545 | 25246 | 903669 | 739644 |
| &nbsp;&nbsp;Online marketing services | 481681 | 739658 | 660914 | 94509 | 1974960 | 2538804 |
| **Total net revenues** | **1339798** | **1628524** | **1564692** | **223748** | **5625919** | **5909019** |
| **Cost of revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;Learning services | 247059 | 266841 | 272528 | 38971 | 1060177 | 1046214 |
| &nbsp;&nbsp;Smart devices | 134896 | 122179 | 109291 | 15628 | 553620 | 396456 |
| &nbsp;&nbsp;Online marketing services | 317090 | 551641 | 477495 | 68281 | 1263631 | 1849521 |
| **Total cost of revenues** | **699045** | **940661** | **859314** | **122880** | **2877428** | **3292191** |
| **Gross margin** |  |  |  |  |  |  |
| &nbsp;&nbsp;Learning services | 60.0% | 58.5% | 62.5% | 62.5% | 61.4% | 60.2% |
| &nbsp;&nbsp;Smart devices | 43.9% | 50.3% | 38.1% | 38.1% | 38.7% | 46.4% |
| &nbsp;&nbsp;Online marketing services | 34.2% | 25.4% | 27.8% | 27.8% | 36.0% | 27.1% |
| **Total gross margin** | **47.8%** | **42.2%** | **45.1%** | **45.1%** | **48.9%** | **44.3%** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** | **YOUDAO, INC.** |
| **UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS** | **UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS** | **UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS** | **UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS** | **UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS** | **UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS** | **UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS** |
| **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** | **(RMB and USD in thousands, except share and per ADS data)** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **September 30,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2025** | **2025** | **2025** | **2024** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** | **RMB** | **RMB** |
| **Net income attributable to ordinary shareholders of the<br> Company** | **83003** | **120** | **48246** | **6899** | **82213** | **107346** |
| Add: share-based compensation | 8781 | 9351 | 13524 | 1934 | 22596 | 34690 |
| impairment of long-term investments |  |  |  |  |  | 25730 |
| Less: gain from fair value change of long-term investment |  |  |  |  |  | (1765) |
| Less: GAAP to non-GAAP reconciling item for the loss/(income) attributable to noncontrolling interests |  | (284) | (3024) | (432) |  | (3877) |
| **Non-GAAP net income attributable to ordinary shareholders of the Company** | **91784** | **9187** | **58746** | **8401** | **104809** | **162124** |
| Non-GAAP basic net income per ADS | 0.78 | 0.08 | 0.50 | 0.07 | 0.89 | 1.37 |
| Non-GAAP diluted net income per ADS | 0.77 | 0.08 | 0.49 | 0.07 | 0.89 | 1.35 |
| Shares used in computing non-GAAP basic net income per ADS | 117259091 | 118259975 | 118601505 | 118601505 | 117426938 | 118084439 |
| Shares used in computing non-GAAP diluted net income per ADS | 118705233 | 119938028 | 120288530 | 120288530 | 118173469 | 119851130 |

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