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6-K 1 tm264327d1_6k.htm FORM 6-K

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of January 2026 

 

Commission File Number: 001-34900

 

 

TAL EDUCATION GROUP

 

 

TAL Building No.1

Courtyard No. 9, Qixin Middle Street, Changping District

Beijing 102200

People’s Republic of China

 

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

 

Form 20-F x Form 40-F ¨

 

 

 

 

 

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.

 

  TAL Education Group  
       
  By: /s/ Alex Zhuangzhuang Peng  
    Name: Alex Zhuangzhuang Peng  
    Title: President and Chief Financial Officer  

 

Date: January 29, 2026

 

 

 

Exhibit Index

 

Exhibit 99.1 - Press Release - TAL Education Group Announces Unaudited Financial Results for the Third Fiscal Quarter Ended November 30, 2025

 

 

 

EX-99.1 2 tm264327d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

TAL Education Group Announces Unaudited Financial Results for the

Third Fiscal Quarter Ended November 30, 2025

 

(Beijing–January 29, 2026)—TAL Education Group (NYSE: TAL) (“TAL” or the “Company”), a smart learning solutions provider in China, today announced its unaudited financial results for the third quarter of fiscal year 2026 ended November 30, 2025.

 

Highlights for the Third Quarter of Fiscal Year 2026

 

- Net revenues were US$770.2 million, compared to net revenues of US$606.4 million in the same period of the prior year.

 

- Income from operations was US$93.1 million, compared to loss from operations of US$17.4 million in the same period of the prior year.

 

- Non-GAAP income from operations, which excluded share-based compensation expenses, was US$104.0 million, compared to non-GAAP loss from operations of US$1.9 million in the same period of the prior year.

 

- Net income attributable to TAL was US$130.6 million, compared to net income attributable to TAL of US$23.1 million in the same period of the prior year.

 

- Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$141.4 million, compared to non-GAAP net income attributable to TAL of US$38.6 million in the same period of the prior year.

 

- Basic and diluted net income per American Depositary Share (“ADS”) were US$0.24 and US$0.23, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.25. Three ADSs represent one Class A common share.

 

- Cash, cash equivalents and short-term investments totaled US$3,617.4 million as of November 30, 2025, compared to US$3,618.4 million as of February 28, 2025.

 

Highlights for the Nine Months Ended November 30, 2025

 

- Net revenues were US$2,206.5 million, compared to net revenues of US$1,640.0 million in the same period of the prior year.

 

- Income from operations was US$203.6 million, compared to income from operations of US$12.9 million in the same period of the prior year.

 

- Non-GAAP income from operations, which excluded share-based compensation expenses, was US$236.9 million, compared to non-GAAP income from operations of US$63.5 million in the same period of the prior year.

 

- Net income attributable to TAL was US$286.0 million, compared to net income attributable to TAL of US$91.9 million in the same period of the prior year.

 

- Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$319.3 million, compared to non-GAAP net income attributable to TAL of US$142.5 million in the same period of the prior year.

 

- Basic and diluted net income per ADS were US$0.50 and US$0.49, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.55.

 

 


 

Financial Data——Third Quarter and First Nine Months of Fiscal Year 2026

(In US$ thousands, except per ADS data and percentages)

 

    Three Months Ended  
    November 30,  
    2024     2025     Pct. Change  
Net revenues     606,446       770,167       27.0 %
(Loss)/Income from operations     (17,432 )     93,123       (634.2 )%
Non-GAAP (loss)/income from operations     (1,920 )     103,950       (5,514.1 %)
Net income attributable to TAL     23,069       130,595       466.1 %
Non-GAAP net income attributable to TAL     38,581       141,422       266.6 %
Net income per ADS attributable to TAL – basic     0.04       0.24       517.6 %
Net income per ADS attributable to TAL – diluted     0.04       0.23       518.7 %
Non-GAAP net income per ADS attributable to TAL – basic     0.06       0.25       299.9 %
Non-GAAP net income per ADS attributable to TAL – diluted     0.06       0.25       300.6 %

 

    Nine Months Ended  
    November 30,  
    2024     2025     Pct. Change  
Net revenues     1,639,994       2,206,519       34.5 %
Income from operations     12,860       203,566       1,482.9 %
Non-GAAP income from operations     63,476       236,908       273.2 %
Net income attributable to TAL     91,902       285,961       211.2 %
Non-GAAP net income attributable to TAL     142,518       319,303       124.0 %
Net income per ADS attributable to TAL – basic     0.15       0.50       226.4 %
Net income per ADS attributable to TAL – diluted     0.15       0.49       227.3 %
Non-GAAP net income per ADS attributable to TAL – basic     0.24       0.55       135.0 %
Non-GAAP net income per ADS attributable to TAL – diluted     0.23       0.55       135.7 %

 

"In the third quarter of fiscal year 2026, our net revenues continued their steady growth trajectory. We remain focused on integrating technology into learning experiences and are dedicated to enhancing our content, products, and services to support students’ holistic development." said Alex Peng, TAL's President and Chief Financial Officer.

 

Mr. Peng added, "We will continue to drive forward our strategic initiatives and dynamically allocate resources to build competitive advantages and generate value for our users and society." In the third quarter of fiscal year 2026, TAL reported net revenues of US$770.2 million, representing a 27.0% increase from US$606.4 million in the third quarter of fiscal year 2025.

 

 


 

Financial Results for the Third Quarter of Fiscal Year 2026

 

Net Revenues

 

 

Operating Costs and Expenses

 

In the third quarter of fiscal year 2026, operating costs and expenses were US$677.0 million, representing an 8.5% increase from US$623.9 million in the third quarter of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$666.2 million, representing a 9.5% increase from US$608.4 million in the third quarter of fiscal year 2025.

 

Cost of revenues increased by 18.0% to US$338.4 million from US$286.7 million in the third quarter of fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 18.4% to US$338.0 million, from US$285.4 million in the third quarter of fiscal year 2025.

 

Selling and marketing expenses decreased by 2.8% to US$220.1 million from US$226.4 million in the third quarter of fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 2.1% to US$217.6 million, from US$222.4 million in the third quarter of fiscal year 2025.

 

General and administrative expenses increased by 7.1% to US$118.6 million from US$110.7 million in the third quarter of fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 10.0% to US$110.7 million, from US$100.6 million in the third quarter of fiscal year 2025.

 

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 30.2% to US$10.8 million in the third quarter of fiscal year 2026 from US$15.5 million in the same period of fiscal year 2025.

 

Gross Profit

 

Gross profit increased by 35.0% to US$431.8 million from US$319.8 million in the third quarter of fiscal year 2025. The gross margin for the third quarter of fiscal year 2026 was 56.1%, compared to 52.7% in the same period of the prior year.

 

(Loss)/Income from Operations

 

Income from operations was US$93.1 million in the third quarter of fiscal year 2026, compared to loss from operations of US$17.4 million in the third quarter of fiscal year 2025. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$104.0 million, compared to Non-GAAP loss from operations of US$1.9 million in the same period of the prior year.

 

 


 

Other Income

 

Other income was US$38.6 million for the third quarter of fiscal year 2026, compared to other income of US$18.2 million in the third quarter of fiscal year 2025.

 

Income Tax Benefit/(Expense)

 

Income tax expense was US$15.3 million in the third quarter of fiscal year 2026, compared to US$3.6 million of income tax benefit in the third quarter of fiscal year 2025.

 

Net Income attributable to TAL Education Group

 

Net income attributable to TAL was US$130.6 million in the third quarter of fiscal year 2026, compared to net income attributable to TAL of US$23.1 million in the third quarter of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$141.4 million, compared to Non-GAAP net income attributable to TAL of US$38.6 million in the third quarter of fiscal year 2025.

 

Basic and Diluted Net Income per ADS

 

Basic and diluted net income per ADS were US$0.24 and US$0.23, respectively, in the third quarter of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.25 in the third quarter of fiscal year 2026.

 

Cash Flow

 

Net cash provided by operating activities for the third quarter of fiscal year 2026 was US$526.7 million.

 

Cash, Cash Equivalents, and Short-Term Investments

 

As of November 30, 2025, the Company had US$2,146.3 million of cash and cash equivalents and US$1,471.1 million of short-term investments, compared to US$1,771.3 million of cash and cash equivalents and US$1,847.1 million of short-term investments as of February 28, 2025.

 

Deferred Revenue

 

As of November 30, 2025, the Company’s deferred revenue balance was US$1,162.8 million, compared to US$671.2 million as of February 28, 2025.

 

Financial Results for the First Nine Months of Fiscal Year 2026

 

Net Revenues

 

For the first nine months of fiscal year 2026, TAL reported net revenues of US$2,206.5 million, representing a 34.5% increase from US$1,640.0 million in the first nine months of fiscal year 2025.

 

Operating Costs and Expenses

 

In the first nine months of fiscal year 2026, operating costs and expenses were US$2,003.0 million, representing a 23.1% increase from US$1,627.1 million in the first nine months of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$1,969.6 million, representing a 24.9% increase from US$1,576.5 million in the first nine months of fiscal year 2025.

 

Cost of revenues increased by 27.9% to US$968.3 million from US$757.3 million in the first nine months of fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.6% to US$966.8 million from US$751.9 million in the first nine months of fiscal year 2025.

 

 


 

Selling and marketing expenses increased by 25.9% to US$668.1 million from US$530.8 million in the first nine months of fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 27.3% to US$659.7 million from US$518.4 million in the first nine months of fiscal year 2025.

 

General and administrative expenses increased by 8.1% to US$366.6 million from US$339.0 million in the first nine months of fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 12.1% to US$343.2 million from US$306.3 million in the first nine months of fiscal year 2025.

 

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 34.1% to US$33.3 million in the first nine months of fiscal year 2026 from US$50.6 million in the same period of fiscal year 2025.

 

Gross Profit

 

Gross profit increased by 40.3% to US$1,238.2 million from US$882.7 million in the first nine months of fiscal year 2025. The gross margin for the first nine months of fiscal year 2026 was 56.1%, compared to 53.8% in the same period of the prior year.

 

(Loss)/Income from Operations

 

Income from operations was US$203.6 million in the first nine months of fiscal year 2026, compared to income from operations of US$12.9 million in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$236.9 million, compared to US$63.5 million Non-GAAP income from operations in the same period of the prior year.

 

Other Income

 

Other income was US$115.1 million for the first nine months of fiscal year 2026, compared to other income of US$51.8 million in the same period of the prior year.

 

Impairment Loss on Long-term Investments

 

Impairment loss on long-term investments was US$1.4 million for the first nine months of fiscal year 2026, compared to US$8.7 million for the first nine months of fiscal year 2025.

 

Income Tax Benefit/(Expense)

 

Income tax expense was US$77.5 million in the first nine months of fiscal year 2026, compared to US$24.3 million of income tax expense in the first nine months of fiscal year 2025.

 

 


 

Net Income Attributable to TAL Education Group

 

Net income attributable to TAL was US$286.0 million in the first nine months of fiscal year 2026, compared to net income attributable to TAL of US$91.9 million in the first nine months of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$319.3 million, compared to US$142.5 million Non-GAAP net income attributable to TAL in the same period of the prior year.

 

Basic and Diluted Net Income per ADS

 

Basic and diluted net income per ADS were US$0.50 and US$0.49, respectively, in the first nine months of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.55, in the first nine months of fiscal year 2026.

 

Cash Flow

 

Net cash provided by operating activities for the first nine months of fiscal year 2026 was US$816.4 million.

 

Share Repurchase

 

On July 28, 2025, TAL’s board of directors authorized a new share repurchase program under which the Company may repurchase up to US$600 million of the Company’s common shares over the next 12 months. Between October 30, 2025 and January 28, 2026, the Company has repurchased 844,856 common shares at an aggregate consideration of approximately US$27.7 million.

 

Conference Call

 

The Company will host a conference call and live webcast to discuss its financial results for the third fiscal quarter of fiscal year 2026 ended November 30, 2025 at 7:00 a.m. Eastern Time on January 29, 2026 (8:00 p.m. Beijing time on January 29, 2026).

 

Please note that you will need to pre-register for conference call participation at https://dpregister.com/sreg/10205339/102f9a80ea5.

 

Upon registration, you will receive an email containing participant dial-in numbers, passcode, and a unique access PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

 

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.

 

 


 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, TAL Education Group’s strategic and operational plans contain forward-looking statements. 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. 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. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s ability to continue to provide competitive learning services and products; the Company’s ability to continue to recruit, train and retain talents; the Company’s ability to improve the content of current course offerings and develop new courses; the Company’s ability to maintain and enhance its brand; the Company’s ability to maintain and continue to improve its teaching results; and the Company’s ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company’s reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

 

About TAL Education Group

 

TAL Education Group is a smart learning solutions provider in China. The acronym “TAL” stands for “Tomorrow Advancing Life”, which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol “TAL”.

 

About Non-GAAP Financial Measures

 

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these 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 GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this release.

 

 


 

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to TAL’s historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

 

For further information, please contact:

 

Jackson Ding

Investor Relations 

TAL Education Group

Tel: +86 10 5292 6669-8809

Email: ir@tal.com

 

 


 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

    As of
February 28,
2025
    As of
November 30,
2025
 
ASSETS            
             
Current assets                
Cash and cash equivalents   $ 1,771,260     $ 2,146,309  
Restricted cash, current     187,846       305,144  
Short-term investments     1,847,120       1,471,116  
Inventory, net     104,876       136,952  
Amounts due from related parties, current     37       25  
Prepaid expenses and other current assets     215,781       252,069  
Total current assets     4,126,920       4,311,615  
Restricted cash, non-current     32,625       34,148  
Property and equipment, net     472,366       495,202  
Deferred tax assets     3,487       1,469  
Rental deposits     22,131       25,668  
Intangible assets, net     394       47,169  
Goodwill     155       45,705  
Land use rights, net     182,880       185,012  
Amounts due from related parties, non-current     96       99  
Long-term investments     305,105       371,948  
Long-term prepayments and other non-current assets     27,844       30,744  
Operating lease right-of-use assets     329,064       370,809  
Total assets   $ 5,503,067     $ 5,919,588  
                 
LIABILITIES AND EQUITY                
                 
Current liabilities                
Accounts payable   $ 146,300     $ 161,086  
Deferred revenue, current     624,272       1,110,709  
Amounts due to related parties, current     93       89  
Accrued expenses and other current liabilities     582,227       705,754  
Operating lease liabilities, current     88,453       104,318  
Total current liabilities     1,441,345       2,081,956  
Deferred revenue, non-current     46,955       52,051  
Deferred tax liabilities     3,474       13,907  
Operating lease liabilities, non-current     244,895       273,036  
Total liabilities     1,736,669       2,420,950  
                 
Equity                
Class A common shares     154       156  
Class B common shares     49       49  
Treasury stock     -       (20 )
Additional paid-in capital     4,294,819       3,703,604  
Statutory reserve     179,537       175,957  
Accumulated deficit     (624,078 )     (334,537 )
Accumulated other comprehensive loss     (83,914 )     (46,207 )
Total TAL Education Group's equity     3,766,567       3,499,002  
Non-controlling interests     (169 )     (364 )
Total equity     3,766,398       3,498,638  
Total liabilities and equity   $ 5,503,067     $ 5,919,588  

 

 


 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)

 

    For the Three Months Ended
November 30,
    For the Nine Months Ended
November 30,
 
    2024     2025     2024     2025  
Net revenues   $ 606,446     $ 770,167     $ 1,639,994     $ 2,206,519  
Cost of revenues (note 1)     286,689       338,361       757,329       968,272  
Gross profit     319,757       431,806       882,665       1,238,247  
Operating expenses (note 1)                                
Selling and marketing     226,441       220,063       530,769       668,122  
General and administrative(note 2)     110,748       118,620       339,036       366,559  
Total operating expenses     337,189       338,683       869,805       1,034,681  
(Loss)/income from operations     (17,432 )     93,123       12,860       203,566  
Interest income, net     21,491       14,330       64,410       47,213  
Other income     18,150       38,591       51,767       115,139  
Impairment loss on long-term investments     -       -       (8,692 )     (1,410 )
Income before income tax benefit/(expense) and loss from equity method investments     22,209       146,044       120,345       364,508  
Income tax benefit/(expense)     3,582       (15,307 )     (24,348 )     (77,465 )
Loss from equity method investments     (2,765 )     (221 )     (4,337 )     (1,295 )
Net income     23,026       130,516       91,660       285,748  
Add: Net loss attributable to noncontrolling interests     43       79       242       213  
Total net income attributable to TAL Education Group   $ 23,069     $ 130,595     $ 91,902     $ 285,961  
Net income per common share                                
Basic   $ 0.11     $ 0.71     $ 0.46     $ 1.49  
Diluted     0.11       0.70       0.45       1.47  
Net income per ADS (note 3)                                
Basic   $ 0.04     $ 0.24     $ 0.15     $ 0.50  
Diluted     0.04       0.23       0.15       0.49  
                                 
Weighted average shares used in calculating net income per common share                                
Basic     201,905,486       185,057,275       201,746,602       192,315,752  
Diluted     204,949,612       187,521,021       205,093,389       194,991,739  

 

Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:

 

    For the Three Months Ended     For the Nine Months Ended  
    November 30,     November 30,  
    2024     2025     2024     2025  
Cost of revenues   $ 1,271     $ 387     $ 5,426     $ 1,512  
Selling and marketing expenses     4,082       2,477       12,410       8,453  
General and administrative expenses     10,159       7,963       32,780       23,377  
Total   $ 15,512     $ 10,827     $ 50,616     $ 33,342  

 

Note 2: GAAP and non-GAAP general and administrative expenses include government subsidies, which were separately presented in our historical financial statements. This reclassification has been made to conform to the presentation for the current period, and such reclassification had no impact on the Group’s previously reported (loss)/income from operations, net income, shareholders’ equity, or cash flows.

 

Note 3: Three ADSs represent one Class A common Share.

 

 


 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE (LOSS)/INCOME

(In thousands of U.S. dollars)

 

    For the Three Months Ended
November 30,
    For the Nine Months Ended
November 30,
 
    2024     2025     2024     2025  
Net income   $ 23,026     $ 130,516     $ 91,660     $ 285,748  
Other comprehensive (loss)/income, net of tax     (21,512 )     10,383       (4,348 )     37,725  
Comprehensive income     1,514       140,899       87,312       323,473  
Add: Comprehensive (income)/loss attributable to noncontrolling interests     (2,308 )     75       25       195  
Comprehensive (loss)/income attributable to TAL Education Group   $ (794 )   $ 140,974     $ 87,337     $ 323,668  

 

 


 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

CASH FLOWS

(In thousands of U.S. dollars)

 

    For the Three Months Ended
November 30,
    For the Nine Months Ended
November 30,
 
    2024     2025     2024     2025  
Net cash provided by operating activities   $ 378,038     $ 526,742     $ 624,255     $ 816,432  
Net cash (used in)/provided by investing activities     (214,435 )     264,177       (532,739 )     300,199  
Net cash provided by/(used in) financing activities     48,731       (88,586 )     41,937       (624,575 )
Effect of exchange rate changes     (4,834 )     1,859       (2,475 )     1,814  
Net increase in cash, cash equivalents and restricted cash     207,500       704,192       130,978       493,870  
Cash, cash equivalents and restricted cash at the beginning of period     2,380,954       1,781,409       2,457,476       1,991,731  
Cash, cash equivalents and restricted cash at the end of period   $ 2,588,454     $ 2,485,601     $ 2,588,454     $ 2,485,601  

 

 


 

TAL EDUCATION GROUP

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)

 

    For the Three Months Ended
November 30,
    For the Nine Months Ended
November 30,
 
    2024     2025     2024     2025  
Cost of revenues   $ 286,689     $ 338,361     $ 757,329     $ 968,272  
Share-based compensation expense in cost of revenues     1,271       387       5,426       1,512  
Non-GAAP cost of revenues     285,418       337,974       751,903       966,760  
                                 
Selling and marketing expenses     226,441       220,063       530,769       668,122  
Share-based compensation expense in selling and marketing expenses     4,082       2,477       12,410       8,453  
Non-GAAP selling and marketing expenses     222,359       217,586       518,359       659,669  
                                 
General and administrative expenses(note 2)     110,748       118,620       339,036       366,559  
Share-based compensation expense in general and administrative expenses     10,159       7,963       32,780       23,377  
Non-GAAP general and administrative expenses(note 2)     100,589       110,657       306,256       343,182  
                                 
Operating costs and expenses     623,878       677,044       1,627,134       2,002,953  
Share-based compensation expense in operating costs and expenses     15,512       10,827       50,616       33,342  
Non-GAAP operating costs and expenses     608,366       666,217       1,576,518       1,969,611  
                                 
(Loss)/income from operations     (17,432 )     93,123       12,860       203,566  
Share based compensation expenses     15,512       10,827       50,616       33,342  
Non-GAAP (loss)/income from operations     (1,920 )     103,950       63,476       236,908  
                                 
Net income attributable to TAL Education Group     23,069       130,595       91,902       285,961  
Share based compensation expenses     15,512       10,827       50,616       33,342  
Non-GAAP net income attributable to TAL Education Group (note 4)   $ 38,581     $ 141,422     $ 142,518     $ 319,303  
                                 
Net income per ADS                                
Basic   $ 0.04     $ 0.24     $ 0.15     $ 0.50  
Diluted     0.04       0.23       0.15       0.49  
Non-GAAP net income per ADS                                
Basic   $ 0.06     $ 0.25     $ 0.24     $ 0.55  
Diluted     0.06       0.25       0.23       0.55  
ADSs used in calculating net income per ADS                                
Basic     605,716,458       555,171,825       605,239,806       576,947,256  
Diluted     614,848,836       562,563,063       615,280,167       584,975,217  
ADSs used in calculating Non-GAAP net income per ADS                                
Basic     605,716,458       555,171,825       605,239,806       576,947,256  
Diluted     614,848,836       562,563,063       615,280,167       584,975,217  

 

Note 4: The tax effect of share-based compensation expenses was immaterial in the third quarter and in the first nine months of fiscal year 2026.