17 Education Posts First Quarterly Profit, Revenue Jumps

17 Education & Technology Group reported a sharp improvement in second-quarter 2026 results as it continued shifting toward AI-powered education services. Revenue rose 254.6% year over year to RMB90.1 million, gross margin increased to 69.2%, and the company posted its first quarterly GAAP profit of RMB1.1 million, compared with a RMB26.0 million loss a year earlier. Adjusted net income reached RMB4.7 million, reversing an adjusted loss of RMB18.9 million in the prior-year quarter. For the first half of 2026, revenue climbed to RMB189.5 million while net loss narrowed to RMB18.3 million from RMB56.9 million, and the company ended June with RMB456.9 million in cash and equivalents. Management said it will continue expanding AI applications for schools, teachers, students and consumers while acknowledging potential seasonality and market risks.