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17 Education & Technology Group

YQ
32
Education & Training Services · Consumer Defensive
Price
$3.76
-0.49 (-11.63%)
Market Cap
$36.4M
Exchange
NASDAQ Global Select
Winston Score
32
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Sep 13, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
Growth
Strong
Cash Flow
Weak
Stability
Data not available
Valuation
Data not available

Share count rising — dilution

+1.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 9.9M (2021) → 10.0M (2025)

§Winston Score History

The full picture

17 Education & Technology Group is a China-based education technology company. It offers digital tools for students, teachers, and parents, including homework-checking apps and online learning services. The company primarily serves K-12 students and schools across China.

17 Education makes money by selling online tutoring services and software subscriptions to students and educational institutions. It operates mainly in mainland China and is a small-cap company listed on the Nasdaq. China's strict regulations on the private tutoring industry, introduced in 2021, significantly disrupted the company's core business model, forcing a pivot toward educational technology services and non-academic offerings. The company's path forward depends on whether it can build a sustainable business under these regulatory constraints, and its deeply negative operating margins highlight the ongoing financial challenge.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+254.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+103.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥55M/ year

Declining (-24% vs prior year)

53.0% of revenue

26.5x the sector average (2%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

2.9%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

¥457M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

17 Education & Technology Group grew revenue 255% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
69.2%
Premium pricing power — 69.2% gross margin
Profit after running costs
Operating Margin
-0.7%
Losing money on operations — -0.7%
Return on the money invested
ROCE
-45.3%
Weak — -45.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+73.1%
Fast-growing sales (+73.1% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
11.9%
Modest free cash flow (11.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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