Youdao, Inc. Reports First Quarter 2026 Financial Results

Youdao, Inc. announced its unaudited financial results for the first quarter ended March 31, 2026. Total net revenues increased by 3.8% year-over-year to RMB1.3 billion. Net revenues from learning services grew by 4.2% to RMB627.5 million, while net revenues from online marketing services increased by 20.9% to RMB611.1 million. However, net revenues from smart devices decreased by 42.6% to RMB109.4 million. The company reported a gross margin of 44.7%, down from 47.3% in the same period of 2025, primarily due to a decline in the gross profit margin of smart devices. Income from operations decreased by 44.7% to RMB57.5 million. Basic and diluted net income per ADS were RMB0.33 and RMB0.32, respectively. The company highlighted its AI-Native Strategy and the expansion of its AI Agent matrix. As of March 31, 2026, Youdao had cash, cash equivalents, restricted cash, and short-term investments totaling RMB515.2 million. The company received financial support from NetEase Group, including loans totaling RMB878.0 million and US$118.0 million.