Gaotu Techedu

GOTU

Education & Training Services · Consumer Defensive

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Weak

Stability

Mixed

Valuation

Data not available

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Winston Score History

The full picture

Gaotu Techedu is a Chinese online education company that teaches students through live-streamed and recorded classes. Its main customers are K-12 students and adults in China looking to improve academic skills or learn new subjects like math, science, and languages. The company was formerly known as GSX Techedu and operates entirely within China's large but heavily regulated education market.

Gaotu earns money by charging tuition fees for its online courses, selling access to classes on a per-course or subscription basis. After China's government banned for-profit tutoring in core school subjects for minors in 2021, Gaotu had to rebuild its business around adult education and vocational training, which significantly shrank its revenue. The company still runs at an operating loss, and its ability to return to profitability depends on whether it can grow its adult learning and non-academic course offerings fast enough to replace what it lost from the regulatory crackdown.

Growth Profile

For growth stock investors

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

Revenue Growth

+12.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-71.7% YoY

YoY Growth Rate

Earnings declining

Insider Activity

27.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$3.2B cash & investments

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

Growth + cash flow

Gaotu Techedu is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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

69.5%

Premium pricing power — 69.5% gross margin

Profit after running costs

Operating Margin

0.4%

Thin — 0.4% operating margin

Return on the money invested

ROCE

-32.3%

Weak — -32.3% 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

+24.2%

Fast-growing sales (+24.2% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

3.9%

Thin free cash flow (3.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.34

Conservative — low debt load (0.34)

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

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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