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GOTU

Gaotu TecheduF
NYSE / Consumer Services
Last Price
Quote time unavailable
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Current thesis
The Q2 print showed strong top-line and billings growth, higher gross margin, materially narrower operating and net losses, stronger quarterly cash generation, and continued share repurchases. Q3 guidance still implies mid-to-high-teens growth.
Posture
Defensive
Lead driver
Value
What changed
Value remains the lead driver in the composite, 7D delta -0.1.
What can break
Execution risks include student enrollment, teacher recruitment and retention, course development, brand maintenance, teaching outcomes, and competition.
Momentum
21
Value
42
Sentiment
23
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $1.85 · Bull $2.25 · Bear $1.30Analysis 2026-08-27; returns require an exact persisted reference.
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-10-26 • Vendor: Data Vendor v1
Scores
As of 2026-10-26 • Model: HYBRID_IC_RP
AI Memo
As of 2026-08-27 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-10-26

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-10-26. Definitions

Supporting evidence
What
Grade F · Defensive
Confidence Medium · Net Neutral
Target $3.71
Why
Momentum21 · Δ7d -
Value42 · Δ7d -0.1
Sentiment23 · Δ7d -
So what
Weak posture (Net Neutral). Prioritize risk control and patience.

Confirming evidence

  • • Value remains the lead driver in the composite, 7D delta -0.1.

Contradictions & invalidation

  • • Execution risks include student enrollment, teacher recruitment and retention, course development, brand maintenance, teaching outcomes, and competition.
  • • First-half 2026 cash generation and profitability weakened year over year despite a strong Q2 cash-flow quarter.
  • • Gaotu remains loss-making, while first-half net loss increased 10.1%, non-GAAP net loss increased 26.1%, and first-half operating cash inflow declined 70.6%.

Catalyst clock

2026-08-27

Q2 2026 growth with narrower losses

Lead driver: Value · See fundamentals
Momentum
21
8% active weight
Current posture
7d trendTrend unavailable
Trend unavailable
Δ7d
-
Δ21d
-
Value
42
47% active weight
Current posture
7d trendFlat
Δ7d
-0.1
Δ21d
-0.3
Sentiment
23
45% active weight
Current posture
7d trendTrend unavailable
Trend unavailable
Δ7d
-
Δ21d
-
Why this grade

Composite grade F. Momentum 21.0 / Value 42.1 / Sentiment 22.6

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-08-27. Scenario method

B+
Bull case
0%
Probability
Target price
$2.25
Analysis reference price unavailable
Analysis 2026-08-27 · RankAlpha Sentiment Codex
Most likely
B
Base case
1%
Probability
Target price
$1.85
Analysis reference price unavailable
Analysis 2026-08-27 · RankAlpha Sentiment Codex
B-
Bear case
0%
Probability
Target price
$1.30
Analysis reference price unavailable
Analysis 2026-08-27 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-10-26
Market Cap
$613.49M
Beta
0.44
Shares Out
125.1M
P/E (TTM) · Derived
-26.7
P/S (TTM)
0.75
P/FCF (TTM)
55.88
Rev YoY
+18.9%
EPS YoY
-69.3%
Gross Margin
+67.5%
Op Margin
-8.3%
Net Debt
-$405.76M
Current Ratio
0.91
As of 2026-10-26 • Updated nightlySource: Internal modelMethods & Data