What are the trends in average revenue per user (ARPU) and customer acquisition cost (CAC) for the quarter?

Trend Summary (Based on Available Disclosure)

The press release for Sunlands Technology Group’s Q2‑2025 earnings does not disclose specific figures for average revenue per user (ARPU) or customer acquisition cost (CAC). In the absence of explicit data in the announcement, we must treat the ARPU and CAC trends as “undisclosed” for this quarter, meaning that analysts and investors will need to await the full earnings release (or a supplemental investor presentation) for the exact numbers. Historically, Sunlands has reported modest ARPU growth year‑over‑year as it upsells premium courses and expands its “personal interest learning” portfolio, while CAC has been pressured by intensified competition among Chinese ed‑tech firms and rising digital marketing spend. If the company’s typical pattern holds, the quarter likely saw a modest rise in ARPU (driven by higher‑margin corporate and professional‑skill offerings) and a modest increase in CAC (reflecting heavier spend on performance‑based acquisition channels).

Trading Implications

- If ARPU is up: Higher ARPU would reinforce the company’s margin expansion narrative and could justify a short‑term bullish stance on STG, especially if the increase outpaces the growth in CAC. Investors could look for bullish price action on any disclosed incremental ARPU, potentially targeting a 3–5% rally in the next 5‑10 trading days on the earnings release.

- If CAC is rising faster than ARPU: A widening gap between ARPU and CAC would pressure margins and could trigger a short‑term downside pressure. Traders might consider a small‑cap defensive posture (e.g., tightening stops or reducing exposure) until the company clarifies how it intends to optimize acquisition spend (e.g., through better channel mix or higher conversion rates).

- Actionable step: Monitor the detailed earnings slide deck (usually posted within 24 hours of the press release) for the actual ARPU and CAC numbers. A “beat‑and‑raise” in ARPU with a stable or declining CAC will likely trigger a buying opportunity, whereas a “miss‑and‑raise” on CAC could prompt a short or hedge with options. Keep an eye on the subsequent 30‑day moving average of STG’s price; a break above the 20‑day SMA with rising volume would confirm bullish momentum, while a break below with rising volume may signal a trend reversal.