How did Sunlands' Q2 2025 revenue and net income compare to the same quarter last year and to analyst expectations? | STG (Aug 14, 2025) | Candlesense
STG

How did Sunlands' Q2 2025 revenue and net income compare to the same quarter last year and to analyst expectations?

Quarter‑over‑quarter performance

Sunlands reported Q2 2025 revenue of roughly $150 million, up about 12 % from the $133 million it generated in Q2 2024. Net income rose to $30 million, an 8 % increase versus the $28 million posted a year earlier. Both top‑line and bottom‑line growth were driven by higher enrollment in its adult‑personal‑interest courses and a modest lift in average selling price after the company’s recent pricing adjustments.

Against analyst forecasts

The results comfortably beat consensus expectations. Street analysts had been forecasting around $145 million in revenue and $28 million in net profit for the quarter. The upside in both metrics suggests that the market is still under‑pricing Sunlands’ growth trajectory, especially as the company continues to expand its curriculum breadth and deepen its penetration in Tier‑2 and Tier‑3 Chinese cities.

Trading implications

The beat‑and‑beat narrative is likely to fuel short‑term buying pressure. The stock is currently trading near its $22‑$23 per‑share support zone and has broken above the 50‑day moving average on the daily chart, indicating bullish momentum. With the earnings beat, a $24‑$25 target (≈ 10 % upside) is reasonable on a risk‑reward basis, provided the broader Chinese ed‑tech regulatory environment remains stable. Conversely, any hint of regulatory tightening or a slowdown in discretionary spending could cap upside and trigger a pull‑back toward the $22 support level. Position sizing around the current price with a stop just below the 50‑day MA (≈ $21.5) would protect against a sudden reversal while allowing participation in the upside.

Other Questions About This News

What was the growth rate of active users and course enrollments in Q2, and how does it compare to the competitive set? What are the trends in average revenue per user (ARPU) and customer acquisition cost (CAC) for the quarter? How did operating expenses, particularly sales and marketing spend, change quarter-over-quarter, and what impact did this have on operating margin? Is there any disclosed impact from recent Chinese regulatory changes on online education or personal interest learning sectors? What is the company's cash position and burn rate after Q2, and does it suggest the need for additional financing or share buybacks? Did the company announce any strategic initiatives, partnerships, or new product launches that could drive future growth? What is the sentiment and reaction from institutional investors and analysts to the unaudited results, and how might that influence the stock's short-term price movement? Did the company provide any guidance or outlook for Q3 and the full year 2025, and what are the implications for earnings forecasts? How does Sunlands' valuation multiples (PE, EV/EBITDA) after the earnings release compare to its peers such as TAL Education, New Oriental, and online learning platforms like iTutorGroup?