Detailed financial statements for Youdao, Inc. (DAO): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.

Youdao, Inc. is a Chinese internet technology company that delivers online services focused on content, community engagement, communication platforms, and e-commerce. Its operations are structured into three core divisions: Learning Services, Smart Devices, and Online Marketing Services.

Analysis Summary

Youdao, Inc. reported revenue of 5.91B CNY in the most recent fiscal year, growing at a 5-year CAGR of 18.5%.

Trailing-twelve-month margins: gross margin 45.1%, operating margin 4.4%, net margin 2.7%.

At $19.30 (closing price, October 29, 2026), DAO trades at a P/E of 95.18 and an ROE of -8.24%. Market capitalisation stands at $2.3B.

Balance sheet quality for DAO: current ratio of 0.6, net debt of 1.11B CNY. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Income Statement (10y)

Year	2017	2018	2019	2020	2021	2022	2023	2024	2025
Revenue	455.7M CNY	731.6M CNY	1.21B CNY	2.53B CNY	4.02B CNY	5.01B CNY	5.39B CNY	5.63B CNY	5.91B CNY
Cost of Revenue	293.8M CNY	515.1M CNY	872.4M CNY	1.42B CNY	2.03B CNY	2.43B CNY	2.62B CNY	2.88B CNY	3.29B CNY
Gross Profit	161.9M CNY	216.5M CNY	335.0M CNY	1.11B CNY	1.99B CNY	2.59B CNY	2.77B CNY	2.75B CNY	2.62B CNY
Research & Development	133.1M CNY	184.0M CNY	269.9M CNY	372.2M CNY	607.4M CNY	803.8M CNY	743.4M CNY	540.0M CNY	514.2M CNY
Selling, General & Admin	158.9M CNY	251.6M CNY	525.0M CNY	1.59B CNY	2.27B CNY	2.56B CNY	2.49B CNY	2.06B CNY	1.88B CNY
Operating Expenses	292.0M CNY	435.6M CNY	794.9M CNY	1.96B CNY	2.84B CNY	3.27B CNY	3.20B CNY	2.59B CNY	2.39B CNY
Operating Income	-130.0M CNY	-219.1M CNY	-459.8M CNY	-851.5M CNY	-849.6M CNY	-687.2M CNY	-433.5M CNY	160.9M CNY	227.8M CNY
EBITDA	-126.7M CNY	-159.8M CNY	-417.2M CNY	-749.4M CNY	-857.7M CNY	-638.1M CNY	-439.9M CNY	183.3M CNY	200.0M CNY
Interest Expense	28.8M CNY	38.0M CNY	30.2M CNY	29.5M CNY	31.2M CNY	46.4M CNY	69.5M CNY	74.1M CNY	61.3M CNY
Pre-tax Income	-158.8M CNY	-198.0M CNY	-457.9M CNY	-796.1M CNY	-919.4M CNY	-725.9M CNY	-539.0M CNY	81.2M CNY	113.6M CNY
Income Tax	5.2M CNY	11.3M CNY	2.4M CNY	2.9M CNY	6.6M CNY	13.8M CNY	11.1M CNY	6.0M CNY	16.6M CNY
Net Income	-133.6M CNY	-208.9M CNY	-601.5M CNY	-1.75B CNY	-995.7M CNY	-727.0M CNY	-549.9M CNY	82.2M CNY	107.3M CNY
EPS	$-1.35	$-2.12	$-6.30	$-15.54	$-7.36	$-6.55	$-4.53	$0.70	$0.91
EPS (Diluted)	$-1.35	$-2.12	$-6.30	$-15.54	$-7.36	$-6.55	$-4.53	$0.70	$0.90
Shares Outstanding (Diluted)	98.8 M	98.8 M	95.4 M	112.9 M	121.7 M	112.9 M	121.4 M	118.2 M	119.9 M

Income Statement (Quarterly)

Year	2025-Q3	2025-Q4	2026-Q1	2026-Q2
Revenue	1.63B CNY	1.56B CNY	1.35B CNY	1.46B CNY
Gross Profit	687.9M CNY	705.4M CNY	602.3M CNY	714.9M CNY
Operating Income	28.3M CNY	66.7M CNY	57.5M CNY	111.5M CNY
EBITDA	22.3M CNY	50.4M CNY	61.9M CNY	101.1M CNY
Net Income	120,000 CNY	48.2M CNY	38.6M CNY	73.6M CNY
EPS	$0.00	$0.40	$0.33	$0.62
EPS (Diluted)	$0.00	$0.40	$0.32	$0.61

Balance Sheet (10y)

Year	2017	2018	2019	2020	2021	2022	2023	2024	2025
Cash & Equivalents	39.8M CNY	41.7M CNY	173.3M CNY	609.2M CNY	322.8M CNY	783.6M CNY	454.5M CNY	592.7M CNY	439.7M CNY
Short-term Investments	250,000 CNY	393.6M CNY	1.45B CNY	585.3M CNY	504.1M CNY	232.4M CNY	72.1M CNY	63.1M CNY	298.3M CNY
Receivables	74.3M CNY	91.8M CNY	215.6M CNY	308.2M CNY	254.5M CNY	413.0M CNY	380.1M CNY	503.4M CNY	702.6M CNY
Inventory	1.5M CNY	23.8M CNY	73.2M CNY	119.0M CNY	255.4M CNY	232.3M CNY	217.1M CNY	174.7M CNY	140.8M CNY
Total Current Assets	145.0M CNY	595.1M CNY	2.03B CNY	1.85B CNY	2.27B CNY	1.87B CNY	1.30B CNY	1.49B CNY	1.72B CNY
Property, Plant & Equipment	13.3M CNY	18.4M CNY	48.4M CNY	151.5M CNY	198.4M CNY	170.5M CNY	159.9M CNY	115.2M CNY	91.5M CNY
Goodwill	0	0	0	6.9M CNY	109.9M CNY	109.9M CNY	109.9M CNY	109.9M CNY	109.9M CNY
Intangible Assets	0	0	0	0	0	0	0	0	0
Total Assets	161.9M CNY	619.6M CNY	2.09B CNY	2.07B CNY	2.63B CNY	2.28B CNY	1.67B CNY	1.81B CNY	1.98B CNY
Accounts Payable	38.2M CNY	71.8M CNY	110.8M CNY	208.5M CNY	244.0M CNY	351.2M CNY	159.0M CNY	145.1M CNY	110.0M CNY
Short-term Debt	878.0M CNY	878.0M CNY	878.0M CNY	878.0M CNY	878.0M CNY	878.0M CNY	878.0M CNY	878.0M CNY	878.0M CNY
Total Current Liabilities	1.12B CNY	1.30B CNY	1.76B CNY	3.39B CNY	3.03B CNY	3.18B CNY	3.10B CNY	2.95B CNY	2.93B CNY
Long-term Debt	0	0	0	0	255.0M CNY	522.3M CNY	630.4M CNY	913.0M CNY	926.6M CNY
Total Liabilities	1.12B CNY	1.76B CNY	1.79B CNY	3.48B CNY	3.36B CNY	3.75B CNY	3.80B CNY	3.90B CNY	3.91B CNY
Retained Earnings	-798.0M CNY	-1.28B CNY	-1.92B CNY	-3.67B CNY	-4.67B CNY	-5.40B CNY	-5.95B CNY	-5.86B CNY	0
Total Equity	-714.9M CNY	-1.14B CNY	300.1M CNY	-1.41B CNY	-807.1M CNY	-1.54B CNY	-2.19B CNY	-2.14B CNY	-1.97B CNY
Total Debt	878.0M CNY	878.0M CNY	899.2M CNY	987.7M CNY	1.25B CNY	1.48B CNY	1.60B CNY	1.85B CNY	1.85B CNY
Net Debt	837.9M CNY	442.6M CNY	-721.0M CNY	-206.7M CNY	425.9M CNY	463.5M CNY	1.07B CNY	1.20B CNY	1.11B CNY
Working Capital	-974.9M CNY	-705.3M CNY	271.2M CNY	-1.54B CNY	-764.3M CNY	-1.31B CNY	-1.80B CNY	-1.46B CNY	-1.21B CNY

Balance Sheet (Quarterly)

Year	2025-Q3	2025-Q4	2026-Q1	2026-Q2
Cash & Equivalents	410.2M CNY	439.7M CNY	315.2M CNY	570.3M CNY
Total Assets	1.74B CNY	1.98B CNY	1.67B CNY	1.96B CNY
Total Liabilities	3.72B CNY	3.91B CNY	3.57B CNY	3.76B CNY
Total Equity	-2.04B CNY	-1.97B CNY	-1.94B CNY	-1.85B CNY
Total Debt	1.82B CNY	1.85B CNY	1.71B CNY	1.71B CNY

Cash Flow (10y)

Year	2017	2018	2019	2020	2021	2022	2023	2024	2025
Net Income	-163.9M CNY	-209.3M CNY	-601.5M CNY	-1.75B CNY	-1.03B CNY	-745.9M CNY	-550.1M CNY	82.2M CNY	107.3M CNY
Depreciation & Amortization	3.3M CNY	6.4M CNY	10.5M CNY	15.5M CNY	30.1M CNY	42.2M CNY	29.6M CNY	29.0M CNY	23.4M CNY
Stock-based Compensation	5.3M CNY	6.2M CNY	25.1M CNY	36.4M CNY	72.2M CNY	70.7M CNY	30.8M CNY	22.6M CNY	0
Change in Working Capital	68.1M CNY	123.3M CNY	190.9M CNY	712.1M CNY	132.2M CNY	70.5M CNY	-14.8M CNY	-231.4M CNY	0
Operating Cash Flow	-87.1M CNY	-100.3M CNY	-372.3M CNY	-321.6M CNY	-1.35B CNY	-603.1M CNY	-438.1M CNY	-67.9M CNY	0
Capital Expenditure	-10.7M CNY	-14.0M CNY	-18.2M CNY	-36.9M CNY	-64.1M CNY	-69.8M CNY	-17.9M CNY	-11.8M CNY	0
Acquisitions	0	276,000 CNY	-2.0M CNY	-46.9M CNY	41.7M CNY	0	-4.2M CNY	0	0
Stock Repurchased	0	0	0	0	0	-50.7M CNY	-127.5M CNY	-62.3M CNY	0
Dividends Paid	0	0	0	0	0	0	0	0	0
Free Cash Flow	-97.8M CNY	-114.3M CNY	-390.4M CNY	-358.4M CNY	-1.41B CNY	-672.9M CNY	-456.0M CNY	-79.7M CNY	0

Cash Flow (Quarterly)

Year	2025-Q3	2025-Q4	2026-Q1
Operating Cash Flow	0	0	0
Capital Expenditure	0	0	0
Free Cash Flow	0	0	0
Dividends Paid	0	0	0
Stock-based Compensation	9.4M CNY	9.4M CNY	8.6M CNY

Growth & Margins (10y)

Year	2017	2018	2019	2020	2021	2022	2023	2024	2025
Revenue Growth (YoY)		+60.5%	+65.0%	+109.3%	+58.9%	+24.8%	+7.5%	+4.4%	+5.0%
Net Income Growth (YoY)		-56.4%	-187.9%	-191.4%	+43.2%	+27.0%	+24.4%	+114.9%	+30.6%
EPS Growth (YoY)		-57.0%	-197.2%	-146.7%	+52.6%	+11.0%	+30.8%	+115.5%	+30.0%
Shares Change (YoY)		+0.0%	-3.4%	+18.2%	+7.8%	-7.2%	+7.5%	-2.6%	+1.4%
FCF Growth (YoY)		-16.9%	-241.6%	+8.2%	-293.5%	+52.3%	+32.2%	+82.5%	+100.0%
Gross Margin	35.5%	29.6%	27.7%	43.8%	49.5%	51.6%	51.4%	48.9%	44.3%
Operating Margin	-28.5%	-30.0%	-38.1%	-33.7%	-21.2%	-13.7%	-8.0%	2.9%	3.9%
EBITDA Margin	-27.8%	-21.8%	-34.6%	-29.7%	-21.4%	-12.7%	-8.2%	3.3%	3.4%
Net Margin	-29.3%	-28.6%	-49.8%	-69.4%	-24.8%	-14.5%	-10.2%	1.5%	1.8%
FCF Margin	-21.5%	-15.6%	-32.3%	-14.2%	-35.1%	-13.4%	-8.5%	-1.4%	0.0%
Effective Tax Rate	-3.3%	-5.7%	-0.5%	-0.4%	-0.7%	-1.9%	-2.1%	7.4%	14.6%

Per-Share Data (10y)

Year	2017	2018	2019	2020	2021	2022	2023	2024	2025
FCF Per Share	$-0.99	$-1.16	$-4.09	$-3.18	$-11.59	$-5.96	$-3.76	$-0.67	$0.00
Dividends Per Share	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Shares Outstanding (Basic)	98.8 M	98.8 M	95.4 M	112.9 M	121.7 M	112.9 M	121.4 M	117.4 M	118.1 M

What to look at in Consumer Defensive companies

Gross margin (stable 5y) (Stable >=35%) — Brand pricing power — Coca-Cola does not drop margins.
ROE / ROIC stable (ROE >=15% stable) — Defensive businesses have high consistent ROEs — Lynch's stalwarts.
FCF / Net Income (>=90%) — Earnings to cash conversion — best names exceed 95%.
Dividend growth 10y (>=6%/year) — Dividend Aristocrats raise 25+ years — moat signal.
Payout Ratio (<75%) — >80% = dividend at risk. <60% comfortable.
Net Debt / EBITDA (<2.5x) — Defensive with high debt loses its essence.

Profitability

Return on Equity	-8.24%
Return on Invested Capital	-363.14%
Return on Assets	8.20%
Gross Margin	45.14%
Operating Margin	4.40%
Net Margin	2.67%

Financial Health

Debt / Equity	-0.93
Current Ratio	0.58
Piotroski F-Score	5
Altman Z-Score	3.91

Key Ratios (10y)

Year	2017	2018	2019	2020	2021	2022	2023	2024	2025
P/E	-60.24	-40.54	-15.56	-11.14	-10.77	-5.67	-6.17	77.16	77.46
P/B	-11.24	-7.43	31.18	-13.88	-11.95	-2.73	-1.55	-2.96	-4.22
P/S	17.63	11.61	7.75	7.73	2.40	0.84	0.63	1.13	1.41
Gross Margin	35.5%	29.6%	27.7%	43.8%	49.5%	51.6%	51.4%	48.9%	44.3%
Operating Margin	-28.5%	-30.0%	-38.1%	-33.7%	-21.2%	-13.7%	-8.0%	2.9%	3.9%
Net Margin	-29.3%	-28.6%	-49.8%	-69.4%	-24.8%	-14.5%	-10.2%	1.5%	1.8%

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Explore sector: Consumer Defensive · Education & Training Services

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