STG

BEIJING, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), a leader in China’s adult online education market and China’s adult personal interest learning market, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial and Operational Snapshots Net revenues were RMB406.4 million (US$59.9 million), compared to RMB539.0 million in the second quarter of 2025. Gross billings (non-GAAP) were RMB286.2 million (US$42.2 million), compared to RMB400.3 million in the second quarter of 2025. Gross profit was RMB349.2 million (US$51.5 million), compared to RMB469.4 million in the second quarter of 2025. Net income was RMB83.5 million (US$12.3 million), compared to RMB126.6 million in the second quarter of 2025. Net income margin1 was 20.5%, compared to 23.5% in the second quarter of 2025. New student enrollments2 were 95,280, compared to 159,154 in the second quarter of 2025. As of June 30, 2026, the Company’s deferred revenue balance was RMB433.5 million (US$63.9 million), compared to RMB585.3 million as of December 31, 2025. ___________________________ 1 Net income margin is defined as net income as a percentage of net revenues. 2 New student enrollments for a given period refer to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses, such as “mini courses” and “RMB1 courses”, which we offer in the form of recorded videos or short live streaming, to strengthen our competitiveness and improve customer experience. Mr. Tongbo Liu, Chief Executive Officer of Sunlands, commented, “During the second quarter of 2026, we continued to refine our course offerings and customer acquisition activities in response to evolving learner needs. Our focus remained on strengthening the quality and sustainability of the business while continuing to improve operating efficiency. In May 2026, we announced a new share repurchase program, reflecting our confidence in the Company’s long-term prospects and intrinsic value. Looking ahead, we will continue to improve our products and services and pursue new opportunities at a measured pace.” Mr. Hangyu Li, Finance Director of Sunlands, added, “In the second quarter of 2026, net revenues were RMB406.4 million and net income was RMB83.5 million, representing a net income margin of 20.5%. We delivered our 21st consecutive profitable quarter, supported by disciplined cost management, while gross billings per new student enrollment increased by 19.4% year-over-year. With a solid liquidity position, we retain the flexibility to invest selectively in courses, services and technology, advance our share repurchase program, and maintain prudent capital allocation.” Financial Results for the Second Quarter of 2026 Net Revenues In the second quarter of 2026, net revenues decreased by 24.6% to RMB406.4 million (US$59.9 million) from RMB539.0 million in the second quarter of 2025. The decrease was primarily due to the year-over-year decline in gross billings. Cost of Revenues Cost of revenues decreased by 17.9% to RMB57.2 million (US$8.4 million) in the second quarter of 2026 from RMB69.6 million in the second quarter of 2025. The decrease was mainly due to declined service fees paid to educational institutions. Gross Profit Gross profit decreased by 25.6% to RMB349.2 million (US$51.5 million) in the second quarter of 2026 from RMB469.4 million in the second quarter of 2025. Operating Expenses In the second quarter of 2026, operating expenses were RMB265.7 million (US$39.2 million), representing a 22.5% decrease from RMB342.6 million in the second quarter of 2025. Sales and marketing expenses decreased by 24.5% to RMB228.4 million (US$33.7 million) in the second quarter of 2026 from RMB302.5 million in the second quarter of 2025. The decrease was mainly due to the decreases of compensation for sales personnel and the spending on branding and marketing activities focused on interest courses offerings. General and administrative expenses decreased by 4.0% to RMB31.8 million (US$4.7 million) in the second quarter of 2026 from RMB33.2 million in the second quarter of 2025. Product development expenses decreased by 20.8% to RMB5.5 million (US$0.8 million) in the second quarter of 2026 from RMB6.9 million in the second quarter of 2025. The decrease was mainly due to declined compensation expenses related to the Company’s product development personnel. Net Income Net income for the second quarter of 2026 was RMB83.5 million (US$12.3 million), as compared to RMB126.6 million in the second quarter of 2025. Basic and Diluted Net Income Per Share Basic and diluted net income per share was RMB12.58 (US$1.85) in the second quarter of 2026, as compared to RMB18.75 in the second quarter of 2025. Cash, Cash Equivalents and Short-term Investments As of June 30, 2026, the Company had RMB520.6 million (US$76.7 million) of cash, cash equivalents and RMB336.9 million (US$49.6 million) of short-term investments, as compared to RMB576.8 million of cash, cash equivalents and restricted cash and RMB235.9 million of short-term investments as of December 31, 2025. Deferred Revenue As of June 30, 2026, the Company had a deferred revenue balance of RMB433.5 million (US$63.9 million), as compared to RMB585.3 million as of December 31, 2025. Share Repurchase On May 29, 2026, the Company’s board of directors authorized a share repurchase program, under which the Company may repurchase up to US$50.0 million of Class A ordinary shares in the form of ADSs over the next 36 months. As of August 17, 2026, the Company had repurchased an aggregate of 680,353 ADSs for approximately US$2.3 million under the share repurchase program. Financial Results for the First Six Months of 2026 Net Revenues In the first six months of 2026, net revenues decreased by 17.5% to RMB847.0 million (US$124.8 million) from RMB1,026.6 million in the first six months of 2025. The decrease was primarily due to the year-over-year decline in gross billings. Cost of Revenues Cost of revenues decreased by 17.8% to RMB116.7 million (US$17.2 million) in the first six months of 2026 from RMB142.0 million in the first six months of 2025. The decrease was mainly due to declined cost of revenues from sales of goods such as learning materials and books and decreased service fees paid to educational institutions. Gross Profit Gross profit decreased by 17.5% to RMB730.3 million (US$107.6 million) from RMB884.7 million in the first six months of 2025. Operating Expenses In the first six months of 2026, operating expenses were RMB550.0 million (US$81.1 million), representing a 19.6% decrease from RMB683.8 million in the first six months of 2025. Sales and marketing expenses decreased by 22.0% to RMB470.2 million (US$69.3 million) in the first six months of 2026 from RMB603.0 million in the first six months of 2025. The decrease was mainly due to the decreases of compensation for sales personnel and the spending on branding and marketing activities focused on interest courses offerings. General and administrative expenses increased by 0.1% to RMB67.7 million (US$10.0 million) in the first six months of 2026 from RMB67.6 million in the first six months of 2025. Product development expenses decreased by 8.3% to RMB12.1 million (US$1.8 million) in the first six months of 2026 from RMB13.2 million in the first six months of 2025. Net Income Net income for the first six months of 2026 was RMB160.3 million (US$23.6 million), compared with RMB201.8 million in the first six months of 2025. Basic and Diluted Net Income Per Share Basic and diluted net income per share was RMB24.05 (US$3.54) in the first six months of 2026, compared with RMB29.87 in the first six months of 2025. Outlook For the third quarter of 2026, Sunlands currently expects net revenues to be between RMB330 million to RMB350 million, which would represent a decrease of between 33.1% to 36.9% year-over-year. The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty. Exchange Rate The Company’s business is primarily conducted in China and all revenues are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.7851 to US$1.00, the effective noon buying rate for June 30, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2026, or at any other rate. About Sunlands Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), formerly known as Sunlands Online Education Group, is a leader in China’s adult online education market and China’s adult personal interest learning market. With a one to many live streaming platform, Sunlands offers various degree- or diploma-oriented post-secondary courses as well as professional certification preparation, professional skills and interest courses. Students can access the Company's services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals. About Non-GAAP Financial Measures We use gross billings, EBITDA, non-GAAP operating cost and expenses, non-GAAP income from operations and non-GAAP net income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. Adjusted EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, income tax expenses and impairment loss on long-lived assets. We believe that gross billings, EBITDA and adjusted EBITDA provide valuable insight into the sales of our course packages and the performance of our business. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measures prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, adjusted EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, income from operations excluding share-based compensation expenses, and basic and diluted net income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings, EBITDA and adjusted EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.Safe Harbor Statement This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students’ learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands’ corporate structure, business and industry; and general economic and business condition in China. Further information regarding these and other risks, uncertainties or factors is included in Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law. For investor and media enquiries, please contact: Sunlands Technology GroupInvestor Relations Email: [email protected]: Sunlands Technology Group

This article first appeared on GuruFocus. Release Date: May 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sunlands Technology Group (NYSE:STG) reported a net income of RMB76.8 million, marking their 20th consecutive profitable quarter. The company achieved a net income margin of 17.4%, indicating strong profitability. Selling expenses declined by 19.5% year-over-year, marking the largest single-quarter reduction in recent years. Gross profit margin expanded to 86.5%, up from 85.2% in the prior year period. The company is investing in AI capabilities, which are expected to enhance long-term operating efficiency. Net revenues decreased by 9.6% year-over-year, reflecting challenges in top-line growth. The revenue decline is attributed to structural subsidies in degree programs and recalibration of customer acquisition standards. R&D expenses rose by 5.6% year-over-year, indicating increased costs in technology investments. The company expects a further decrease in net revenues for the second quarter of 2026, projecting a decline of 20.2% to 23.9% year-over-year. Deferred revenue balance decreased from $585.3 million as of December 31, 2025, to $500.5 million as of March 31, 2026, indicating potential future revenue challenges. Warning! GuruFocus has detected 2 Warning Signs with STG. Is STG fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of Sunlands Technology Group's financial performance for the first quarter of 2026? A: CEO Tongbo Liu reported that Sunlands achieved a revenue of RMB414.7 million and a net income of RMB76.8 million, marking the 20th consecutive profitable quarter. The net income margin was 17.4%, and selling expenses decreased by 19.5% year-over-year. R&D expenses increased by 5.6%, reflecting ongoing investment in technology. Despite a 9.6% revenue decline, profitability improved due to cost structure optimization and technology-enabled efficiency. Q: What are the main contributors to Sunlands' revenue, and how is the company managing its course offerings? A: CEO Tongbo Liu stated that degree and diploma-oriented programs contributed 17.9% of net revenues, while interest-based programs, professional skills, and certification preparation accounted for 67.9%. The company is focusing on diversifying its revenue mix and expanding its course catalog, including new offerings in arts and language learning, to meet learner demand. Q: How is Sunlands leveraging AI to enhance its operations? A: CEO Tongbo Liu explained that Sunlands is integrating AI into customer acquisition workflows, using AI assistants to support decision-making and improve conversion efficiency. The intelligent voice system has reduced the time to first contact for new leads, allowing human teams to focus on high-value interactions. AI capabilities are expected to further enhance operating efficiency and service quality. Q: What are the key financial metrics for Sunlands in the first quarter of 2026? A: Finance Director Hongyu Li reported a gross margin of 86.5% and a net income margin of 17.4%. Operating expenses decreased by 16.7%, with a significant reduction in sales and marketing expenses. The company maintained a strong liquidity position with RMB547.2 million in cash equivalents and RMB236 million in short-term investments. Q: What is Sunlands' outlook for the second quarter of 2026? A: Finance Director Hongyu Li provided guidance for net revenues to be between RMB410 million to RMB430 million, representing a year-over-year decrease of 20.2% to 23.9%. This outlook considers current market dynamics and learner demand patterns, which are subject to uncertainty. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BEIJING, May 26, 2026 (GLOBE NEWSWIRE) -- Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), a leader in China’s adult online education market and China’s adult personal interest learning market, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial and Operational Snapshots Net revenues were RMB440.7 million (US$63.9 million), compared to RMB487.6 million in the first quarter of 2025. Gross billings (non-GAAP) were RMB304.8 million (US$44.2 million), compared to RMB412.3 million in the first quarter of 2025. Gross profit was RMB381.1 million (US$55.3 million), compared to RMB415.3 million in the first quarter of 2025. Net income was RMB76.8 million (US$11.1 million), compared to RMB75.2 million in the first quarter of 2025. Net income margin1 was 17.4%, compared to 15.4% in the first quarter of 2025. New student enrollments2 were 102,127, compared to 169,083 in the first quarter of 2025. As of March 31, 2026, the Company’s deferred revenue balance was RMB500.5 million (US$72.6 million), compared to RMB585.3 million as of December 31, 2025. _____________________________1 Net income margin is defined as net income as a percentage of net revenues.2 New student enrollments for a given period refer to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses, such as “mini courses” and “RMB1 courses”, which we offer in the form of recorded videos or short live streaming, to strengthen our competitiveness and improve customer experience. “We opened 2026 with net revenues of RMB440.7 million and net income of RMB76.8 million, our 20th consecutive profitable quarter. Net income margin remained stable at 17.4%, and selling expenses declined 19.5% — the largest single-quarter reduction we have recorded in recent years. These results reflect choices we have been making consistently: raising the bar on learner quality, letting AI compound across the acquisition and delivery workflow, and improving retention in our senior-learning business. The operating platform we have built positions us well for when market conditions turn more supportive. We are building with that horizon in mind.”said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. Mr. Hangyu Li, Finance Director of Sunlands, commented, “The first quarter continued the profitability trajectory we have been building toward, driven by deliberate choices made over several years rather than short-term tactical adjustments. Net income reached RMB76.8 million, while net income margin expanded to 17.4%. A key operational driver of this bottom-line resilience was our disciplined cost management, highlighted by a 19.5% year-over-year decline in selling expenses, the largest single-quarter reduction we have recorded in recent years. Our balance sheet remains in a stable position, which gives us flexibility in how we operate. We concluded the quarter with RMB545.7 million of cash and cash equivalents, alongside RMB236.0 million of short-term investments. This liquidity buffer gives us the flexibility to invest in technology and new business directions without being constrained by near-term financial pressure. Looking ahead, we continue to execute our operational plan with financial discipline, while actively monitoring the market environment to adjust our business activities as needed.” Financial Results for the First Quarter of 2026 Net Revenues In the first quarter of 2026, net revenues decreased by 9.6% to RMB440.7 million (US$63.9 million) from RMB487.6 million in the first quarter of 2025. The decrease was primarily driven by the year-over-year decline in gross billings. Cost of Revenues Cost of revenues decreased by 17.7% to RMB59.5 million (US$8.6 million) in the first quarter of 2026 from RMB72.3 million in the first quarter of 2025. The decrease was mainly due to declined cost of revenues from sales of goods such as learning materials and books and service fees paid to educational institutions. Gross Profit Gross profit decreased by 8.2% to RMB381.1 million (US$55.3 million) in the first quarter of 2026 from RMB415.3 million in the first quarter of 2025. Operating Expenses In the first quarter of 2026, operating expenses were RMB284.3 million (US$41.2 million), representing a 16.7% decrease from RMB341.1 million in the first quarter of 2025. Sales and marketing expenses decreased by 19.5% to RMB241.9 million (US$35.1 million) in the first quarter of 2026 from RMB300.4 million in the first quarter of 2025. The decrease was mainly due to the decrease of compensation for sales personnel and the spending on branding and marketing activities focused on interest courses offerings. General and administrative expenses increased by 4.1% to RMB35.9 million (US$5.2 million) in the first quarter of 2026 from RMB34.5 million in the first quarter of 2025. Product development expenses increased by 5.6% to RMB6.6 million (US$1.0 million) in the first quarter of 2026 from RMB6.2 million in the first quarter of 2025. Net Income Net income for the first quarter of 2026 was RMB76.8 million (US$11.1 million), as compared to RMB75.2 million in the first quarter of 2025. Basic and Diluted Net Income Per Share Basic and diluted net income per share was RMB11.48 (US$1.66) in the first quarter of 2026, as compared to RMB11.12 in the first quarter of 2025. Cash, Cash Equivalents and Short-term Investments As of March 31, 2026, the Company had RMB547.2 million (US$79.3 million) of cash, cash equivalents and restricted cash and RMB236.0 million (US$34.2 million) of short-term investments, as compared to RMB576.8 million of cash, cash equivalents and restricted cash and RMB235.9 million of short-term investments as of December 31, 2025. Deferred Revenue As of March 31, 2026, the Company had a deferred revenue balance of RMB500.5 million (US$72.6 million), as compared to RMB585.3 million as of December 31, 2025. Outlook For the second quarter of 2026, Sunlands currently expects net revenues to be between RMB410 million to RMB430 million, which would represent a decrease of between 20.2% to 23.9% year-over-year. The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty. Exchange Rate The Company’s business is primarily conducted in China and all revenues are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.8980 to US$1.00, the effective noon buying rate for March 31, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on March 31, 2026, or at any other rate. Conference Call and Webcast Sunlands’ management team will host a conference call at 6:30 AM U.S. Eastern Time, (6:30 PM Beijing/Hong Kong time) on May 26, 2026, following the quarterly results announcement. For participants who wish to join the call, please access the link provided below to complete online registration 15 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Registration Link:https://register-conf.media-server.com/register/BI195d2f2c80dc47428cd4e4d9f1981291 Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands' website at https://ir.sunlands.com/. About Sunlands Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), formerly known as Sunlands Online Education Group, is a leader in China’s adult online education market and China’s adult personal interest learning market. With a one to many live streaming platform, Sunlands offers various degree- or diploma-oriented post-secondary courses as well as professional certification preparation, professional skills and interest courses. Students can access the Company's services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals. About Non-GAAP Financial Measures We use gross billings, EBITDA, non-GAAP operating cost and expenses, non-GAAP income from operations and non-GAAP net income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. Adjusted EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, income tax expenses and impairment loss on long-lived assets. We believe that gross billings, EBITDA and adjusted EBITDA provide valuable insight into the sales of our course packages and the performance of our business. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measures prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, adjusted EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, income from operations excluding share-based compensation expenses, and basic and diluted net income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings, EBITDA and adjusted EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.Safe Harbor Statement This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students’ learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands’ corporate structure, business and industry; and general economic and business condition in China. Further information regarding these and other risks, uncertainties or factors is included in Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law. For investor and media enquiries, please contact: Sunlands Technology GroupInvestor Relations Email: [email protected]: Sunlands Technology Group

Earnings Call Scheduled for 6:30 a.m. ET on May 26, 2026 BEIJING, May 11, 2026 (GLOBE NEWSWIRE) -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's adult online education market and China's adult personal interest learning market, today announced that it will report its first quarter 2026 unaudited financial results on Tuesday, May 26, 2026, before the open of U.S. markets. Sunlands' management team will host a conference call at 6:30 a.m. U.S. Eastern Time, (6:30 p.m. Beijing/Hong Kong time) on May 26, 2026, following the quarterly results announcement. For participants who wish to join the call, please access the link provided below to complete online registration 30 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Registration Link: https://register-conf.media-server.com/register/BI195d2f2c80dc47428cd4e4d9f1981291 Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands' website at https://ir.sunlands.com/. About Sunlands Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), formerly known as Sunlands Online Education Group, is a leader in China's adult online education market and China's adult personal interest learning market. With a one to many, live streaming platform, Sunlands offers online professional courses and educational content, including various interest courses, aimed at preparing students for professional certification exams, enhancing their professional skills, and catering to their personal interests, as well as various degree- or diploma-oriented post-secondary courses. Students can access its services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals. For investor and media inquiries, please contact: Sunlands Technology Group Investor Relations Email: [email protected] SOURCE: Sunlands Technology Group

Despite posting some strong earnings, the market for STINAG Stuttgart Invest AG's (FRA:STG) stock hasn't moved much. We did some digging, and we found some concerning factors in the details. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. At most companies, some revenue streams, such as government grants, are accounted for as non-operating revenue, while the core business is said to produce operating revenue. Generally speaking, operating revenue is a more reliable guide to the sustainable revenue generating capacity of the business. Importantly, the non-operating revenue often comes without associated ongoing costs, so it can boost profit by letting it fall straight to the bottom line, making the operating business seem better than it really is. It's worth noting that STINAG Stuttgart Invest saw a big increase in non-operating revenue over the last year. In fact, our data indicates that non-operating revenue increased from -€306 to €2.14m. If that non-operating revenue fails to manifest in the current year, then there's a real risk the bottom line profit result will be impacted negatively. Sometimes, you can get a better idea of the underlying earnings potential of a company by excluding unusual boosts to non-operating revenue. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Since STINAG Stuttgart Invest saw a big increase in its non-operating revenue over the last twelve months, we'd be very cautious about relying too heavily on the statutory profit number, which would have benefitted from this potentially unsustainable change. For this reason, we think that STINAG Stuttgart Invest's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. Nonetheless, it's still worth noting that its earnings per share have grown at 33% over the last three years. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 1 warning sign for STINAG Stuttgart Invest you should know about. This note has only looked at a single factor that sheds light on the nature of STINAG Stuttgart Invest's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Company Announcement No. 4/2026 Copenhagen, 15 April 2026 Results of the Annual General Meeting of Scandinavian Tobacco Group A/S Scandinavian Tobacco Group A/S (the "Company") held its annual general meeting today. The outcome of the general meeting was as follows: The audited annual report was adopted by the general meeting. The general meeting approved the Board of Directors’ proposal that for the financial year 2025 the Company pays a dividend of DKK 4.50 per share of DKK 1. The remuneration report was approved by the general meeting. The general meeting approved the Board of Directors’ proposal for compensation to the Board of Directors for the financial year 2026 as follows (unchanged from 2025): Ordinary members of the Board of Directors shall be paid a base annual fee of DKK 440,000 The chairman of the Board of Directors shall receive three times the base annual fee The vice-chairman of the Board of Directors shall receive two times the base annual fee The chair of the Audit Committee shall receive a fee corresponding to 75 percent of the base annual fee Other members of the Audit Committee shall receive a fee corresponding to 37.5 percent of the base annual fee The chair of each of the Remuneration Committee and Nomination Committee shall receive a fee corresponding to 50 percent of the base annual fee Other members of the Remuneration Committee and Nomination Committee, respectively, shall receive a fee corresponding to 25 percent of the base annual fee The fees for the chair and members of the committees are in addition to their fee as chairman, vice-chairman or member of the Board of Directors. In addition to the above, the Company may, in accordance with the Company’s Remuneration Policy, also pay social contributions and similar fees that may be charged by foreign authorities in relation to the fees paid to members of the Board of Directors. Further, the Company may pay travel expenses and other expenses related to the work as a member of the Board of Directors. The Board of Directors had not received any proposals from the shareholders. The general meeting re-elected Henrik Brandt, Dianne Blixt, Marlene Forsell, Anders Obel and Ricardo Oberlander and elected Lars Dahlgren as members of the Board of Directors. Jörg Biebernick had decided not to stand for re-election. PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab was re-elected as auditor of the Company. Further, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab was elected to provide a statement of assurance on the contents of the sustainability reporting in the management’s statement in the annual report for the financial year 2026. -- Employee-elected members of the Board of Directors as of today are Karsten Dam Larsen, Hanne Malling and Thomas Thomsen who were all elected in 2023 for a period of four years. The Board of Directors has appointed Henrik Brandt as chairman of the Board of Directors. Members of the Audit Committee are Marlene Forsell (chair), Dianne Blixt and Lars Dahlgren. Members of the Nomination Committee as well as the Remuneration Committee are Henrik Brandt (chair), Anders Obel, Ricardo Oberlander and Dianne Blixt. For further information, please contact: Torben Sand, Director of Investor Relations and Communications Phone: +45 5084 7222 Email: [email protected] Attachment Company Announcement - no 4 Results of the AGM 2026

This article first appeared on GuruFocus. Release Date: March 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sunlands Technology Group (NYSE:STG) achieved its 19th consecutive quarter of profitability, demonstrating consistent financial performance. The company reported a full-year net revenue increase of 1.5% year over year, reaching 2.02 billion RMB. Gross margin expanded by 2.9 percentage points to 86.9%, indicating improved operational efficiency. Interest-based learning programs contributed significantly to revenue, highlighting a strategic focus on long-term growth areas. The company is leveraging AI technology to enhance personalized instruction and adaptive content delivery, positioning itself for future growth. Net revenues for the fourth quarter of 2025 decreased by 2.7% compared to the same period in 2024. The company experienced a significant decrease in net income for the fourth quarter of 2025, dropping to 38.4 million RMB from 457.8 million RMB in the fourth quarter of 2024. There was a notable decline in cash equivalents and short-term investments as of December 31, 2025, compared to the previous year. Deferred revenue balance decreased significantly from 916.5 million RMB in 2024 to 585.3 million RMB in 2025, indicating potential challenges in future revenue recognition. The company expects a decrease in net revenues for the first quarter of 2026, projecting a decline of 9.8% to 13.9% year over year. Warning! GuruFocus has detected 2 Warning Signs with STG. Is STG fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of Sunlands Technology Group's financial performance for the fourth quarter and full year 2025? A: CEO Tong W Liu reported that Sunlands achieved net revenue of 417.2 million RMB in Q4 2025, with a net income of 38.4 million RMB. For the full year, net revenue reached 2.02 billion RMB, a 1.5% increase year-over-year, and net income rose by 6.9% to 365.6 million RMB. The gross margin expanded by 2.9 percentage points to 86.9%. These results reflect the company's strategic focus on precision over scale, enhancing customer acquisition, delivery consistency, and organizational efficiency. Q: How did Sunlands' different course categories perform in 2025? A: CEO Tong W Liu explained that degree and diploma-oriented programs contributed 13.5% of full-year net revenues, while interest, professional skills, and certification preparation programs accounted for 173.9%. The company has been reallocating resources towards areas with greater long-term potential, such as interest-based learning, which remains a primary strategic direction. Q: What is Sunlands' approach to the senior interest education market? A: CEO Tong W Liu highlighted that Sunlands is focusing on the growing senior interest education market in China, which is projected to reach 86 million users by 2025. The company is expanding its portfolio of online courses and emphasizing offline activities to enhance learning experiences for senior learners, aiming to build brand loyalty and lifetime participation. Q: How is Sunlands integrating AI into its operations? A: CEO Tong W Liu stated that AI is becoming a significant driver across the online education value chain, particularly in personalized instruction and adaptive content delivery. Sunlands increased its R&D expenses by 71.3% year-over-year to invest in AI capabilities, aiming to embed AI across more parts of the business for sustained growth and operational momentum. Q: What are Sunlands' financial expectations for the first quarter of 2026? A: Financial Director Hong Yu Lee provided guidance that Sunlands expects net revenues to be between 420 million and 440 million RMB for Q1 2026, representing a decrease of 9.8% to 13.9% year-over-year. This outlook is based on current market conditions and reflects the company's preliminary estimates of market and operating conditions and customer demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BEIJING, March 19, 2026 (GLOBE NEWSWIRE) -- Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), a leader in China’s adult online education market and China’s adult personal interest learning market, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025. Fourth Quarter 2025 Financial and Operational Snapshots Net revenues were RMB470.2 million (US$67.2 million), compared to RMB483.5 million in the fourth quarter of 2024. Gross billings (non-GAAP) were RMB305.7 million (US$43.7 million), compared to RMB412.4 million in the fourth quarter of 2024. Gross profit was RMB408.1 million (US$58.4 million), compared to RMB401.8 million in the fourth quarter of 2024. Net income was RMB38.4 million (US$5.5 million), compared to RMB57.8 million in the fourth quarter of 2024. Net income margin1 was 8.2% in the fourth quarter of 2025, compared to 12.0% in the fourth quarter of 2024. New student enrollments2 were 114,058, compared to 172,200 in the fourth quarter of 2024. As of December 31, 2025, the Company’s deferred revenue balance was RMB585.3 million (US$83.7 million), compared to RMB916.5 million as of December 31, 2024. _______________________ 1 Net income margin is defined as net income as a percentage of net revenues. 2 New student enrollments for a given period refer to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses, such as “mini courses” and “RMB1 courses”, which we offer in the form of recorded videos or short live streaming, to strengthen our competitiveness and improve customer experience. Full Year 2025 Financial and Operational Snapshots Net revenues were RMB2,019.9 million (US$288.8 million), compared to RMB1,990.2 million in 2024. Gross billings (non-GAAP) were RMB1,467.4 million (US$209.8 million), compared to RMB1,555.4 million in 2024. Gross profit was RMB1,755.5 million (US$251.0 million), compared to RMB1,672.6 million in 2024. Net income was RMB365.6 million (US$52.3 million), compared to RMB342.1 million in 2024. Net income margin was 18.1%, compared to 17.2% in 2024. New student enrollments were 579,788, compared to 674,649 in 2024. “2025 was a year defined by discipline and precision for Sunlands,” said Tongbo Liu, Chief Executive Officer of Sunlands. “We delivered our 19th consecutive quarter of profitability, with solid operating income and positive operating cash flow for the full year. These results reflect the deliberate choices we made throughout the year: becoming more selective in customer acquisition, strengthening delivery consistency, and improving organizational efficiency.” “Looking ahead, we remain focused on the parts of our business where learner value and operating quality can reinforce one another over time,” Liu continued. “Interest-based learning, particularly among senior learners, is becoming an increasingly important growth driver, supported by strong engagement, high repurchase rates, and a long runway for development. At the same time, we are advancing the practical application of AI across curriculum design, service delivery, and user experience. As we enter 2026, we will continue to place greater emphasis on achieving high-quality growth.” “Our 2025 financial performance embodies disciplined growth, operational efficiency and prudent capital allocation. Profitability and gross margin improved steadily, backed by healthy operating cash flow that bolsters our financial flexibility for strategic investments and navigating market uncertainties. We optimized cost structures while increasing R&D spending to build long-term technological capabilities, reflecting a shift from scale-focused to quality-driven operations. With strong liquidity and a robust balance sheet at year-end, we enter 2026 with a proven operational foundation. We are well-positioned to seize core market opportunities and drive sustainable, high-quality growth ahead,” said Mr. Hangyu Li, Finance Director of Sunlands. Financial Results for the fourth quarter of 2025 Net Revenues In the fourth quarter of 2025, net revenues decreased by 2.7% to RMB470.2 million (US$67.2 million) from RMB483.5 million in the fourth quarter of 2024. Cost of Revenues Cost of revenues decreased by 23.9% to RMB62.1 million (US$8.9 million) in the fourth quarter of 2025 from RMB81.7 million in the fourth quarter of 2024. The decrease was mainly due to declined cost of revenues from sales of goods such as learning materials and books. Gross Profit Gross profit increased by 1.6% to RMB408.1 million (US$58.4 million) in the fourth quarter of 2025 from RMB401.8 million in the fourth quarter of 2024. Operating Expenses In the fourth quarter of 2025, operating expenses were RMB302.9 million (US$43.3 million), representing a 13.8% decrease from RMB351.3 million in the fourth quarter of 2024. Sales and marketing expenses decreased by 19.0% to RMB254.9 million (US$36.5 million) in the fourth quarter of 2025 from RMB314.8 million in the fourth quarter of 2024. The decrease was mainly due to the decrease of compensation for sales personnel and the spending on branding and marketing activities focused on interest courses offerings. General and administrative expenses increased by 25.9% to RMB40.2 million (US$5.8 million) in the fourth quarter of 2025 from RMB32.0 million in the fourth quarter of 2024. The increase was mainly due to increased compensation expenses related to the Company’s general and administrative personnel. Product development expenses increased by 71.3% to RMB7.7 million (US$1.1 million) in the fourth quarter of 2025 from RMB4.5 million in the fourth quarter of 2024. The increase was mainly due to increased outsourcing service fee for the Company’s technology development. Net Income Net income for the fourth quarter of 2025 was RMB38.4 million (US$5.5 million), as compared to RMB57.8 million in the fourth quarter of 2024. Basic and Diluted Net Income Per Share Basic and diluted net income per share was RMB5.72 (US$0.82) in the fourth quarter of 2025. Cash, Cash Equivalents, Restricted Cash and Short-term Investments As of December 31, 2025, the Company had RMB576.8 million (US$82.5 million) of cash, cash equivalents and restricted cash and RMB235.9 million (US$33.7 million) of short-term investments, as compared to RMB507.2 million of cash and cash equivalents and RMB276.0 million of short-term investments as of December 31, 2024. Deferred Revenue As of December 31, 2025, the Company had a deferred revenue balance of RMB585.3 million (US$83.7 million), as compared to RMB916.5 million as of December 31, 2024. Share Repurchase On December 6, 2021, the Company’s board of directors authorized a share repurchase program, under which the Company may repurchase up to US$15.0 million of Class A ordinary shares in the form of ADSs over the next 24 months. On December 1, 2023, the Company’s board of directors authorized to extend its share repurchase program over the next twenty-four months. As of December 31, 2025, the Company had repurchased an aggregate of 815,399 ADSs for approximately US$4.8 million under the share repurchase program. Financial Results for the Year 2025 Net Revenues In the year of 2025, net revenues increased by 1.5% to RMB2,019.9 million (US$288.8 million) from RMB1,990.2 million in the first year of 2024. Cost of Revenues Cost of revenues decreased by 16.7% to RMB264.4 million (US$37.8 million) in the year of 2025 from RMB317.6 million in the year of 2024. The decrease was mainly due to declined cost of revenues from sales of goods such as learning materials and books, and declined cooperation costs. Gross Profit Gross profit increased by 5.0% to RMB1,755.5 million (US$251.0 million) from RMB1,672.6 million in the year of 2024. Operating Expenses In the year of 2025, operating expenses were RMB1,311.0 million (US$187.5 million), representing a 4.6% decrease from RMB1,374.7 million in the year of 2024. Sales and marketing expenses decreased by 6.5% to RMB1,137.6 million (US$162.7 million) in the year of 2025 from RMB1,216.9 million in the year of 2024. General and administrative expenses increased by 8.3% to RMB143.8 million (US$20.6 million) in the year of 2025 from RMB132.8 million in the year of 2024. Product development expenses increased by 18.2% to RMB29.6 million (US$4.2 million) in the year of 2025 from RMB25.0 million in the year of 2024. The increase was mainly due to increased compensation expenses related to headcount expansion of the Company’s product development personnel. Net Income Net income for 2025 was RMB365.6 million (US$52.3 million), compared with RMB342.1 million in the year of 2024. Basic and Diluted Net Income Per Share Basic and diluted net income per share was RMB54.28 (US$7.76) in the year of 2025, compared with RMB50.12 in the year of 2024. Outlook For the first quarter of 2026, Sunlands currently expects net revenues to be between RMB420 million to RMB440 million, which would represent a decrease of 9.8% to 13.9% year-over-year. The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty. Exchange Rate The Company’s business is primarily conducted in China and all revenues are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.9931 to US$1.00, the effective noon buying rate for December 31, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2025, or at any other rate. Conference Call and Webcast Sunlands’ management team will host a conference call at 6:30 AM U.S. Eastern Time, (6:30 PM Beijing/Hong Kong time) on March 19, 2026, following the quarterly results announcement. For participants who wish to join the call, please access the link provided below to complete online registration 15 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Registration Link: https://register-conf.media-server.com/register/BI88fc6ed315134f59b4b04e27482ea94a Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands’ website at https://ir.sunlands.com/. About Sunlands Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), formerly known as Sunlands Online Education Group, is a leader in China’s adult online education market and China’s adult personal interest learning market. With a one to many live streaming platform, Sunlands offers various degree- or diploma-oriented post-secondary courses as well as professional certification preparation, professional skills and interest courses. Students can access the Company’s services either through PC or mobile applications. The Company’s online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company’s proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals. About Non-GAAP Financial Measures We use gross billings, EBITDA, non-GAAP operating cost and expenses, non-GAAP income from operations and non-GAAP net income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. Adjusted EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, income tax expenses and impairment loss on long-lived assets. We believe that gross billings, EBITDA and adjusted EBITDA provide valuable insight into the sales of our course packages and the performance of our business. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measures prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, adjusted EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, income from operations excluding share-based compensation expenses, and basic and diluted net income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings, EBITDA and adjusted EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. Safe Harbor Statement This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands’ goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students’ learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands’ corporate structure, business and industry; and general economic and business condition in China. Further information regarding these and other risks, uncertainties or factors is included in Sunlands’ filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law. For investor and media enquiries, please contact: Sunlands Technology Group Investor Relations Email: [email protected] SOURCE: Sunlands Technology Group

Nineteenth consecutive profitable quarter: Full-year 2025 net revenue was RMB 2.02 billion (+1.5% YoY) with net income of RMB 365.6 million (+6.9%), gross margin expanding to 86.9% and operating cash inflow of RMB 147 million, reflecting management’s “precision over scale” discipline. Q4 results showed a revenue dip to RMB 470.2 million (‑2.7% YoY) but improved profitability driven by a 23.9% fall in cost of revenues and a 13.8% decline in operating expenses, while R&D jumped 71.3% as the company invests in AI and product development. Strategic shift and cautious outlook: Interest‑based and senior‑learning programs accounted for the bulk of revenue (73.9% FY), with expanded offline engagement and AI initiatives targeting long‑term growth, but guidance for Q1 2026 of RMB 420–440 million implies a ~9.8%–13.9% YoY decline and deferred revenue has fallen materially year‑over‑year. Interested in Sunlands Technology Group Sponsored ADR? Here are five stocks we like better. Sunlands Technology Group (NYSE:STG) reported fourth quarter and full-year 2025 results that management said reflected a yearlong emphasis on “precision over scale,” citing disciplined customer acquisition, improved delivery consistency, and organizational efficiency as key drivers of margin expansion and continued profitability. Chief Executive Officer Tongbo Liu said the company recorded its “nineteenth consecutive quarter of profitability.” For the full year, Sunlands posted net revenue of RMB 2.02 billion, up 1.5% year-over-year, and net income that management said increased 6.9% to RMB 365.6 million. Gross margin expanded by 2.9 percentage points to 86.9%, according to the prepared remarks. → Why Credo and Astera Soared After Oracle and Broadcom's Earnings Financial Director Hangyu Li echoed the theme of operating discipline, stating the results were the product of multi-year decisions about where to invest and where to pull back. Li said net margin for 2025 reached 18.1% and added that operating cash flow remained positive, with operating net inflow totaling RMB 147 million for the year. In the fourth quarter of 2025, net revenues decreased 2.7% year-over-year to RMB 470.2 million from RMB 483.5 million. Despite the revenue decline, gross profit increased 1.6% to RMB 408.1 million, supported by a sharp reduction in cost of revenues. → Forget Chipmakers: Walmart and Target Are the Real AI Plays Li said cost of revenues fell 23.9% to RMB 62.1 million, primarily due to lower costs related to sales of goods such as learning materials and books. Total operating expenses declined 13.8% to RMB 302.9 million. Sales and marketing expenses: Down 19% to RMB 254.9 million, which Li attributed mainly to lower compensation for sales personnel and reduced spending on branding and marketing activities focused on interest-course offerings. General and administrative expenses: Up 25.9% to RMB 40.2 million, driven mainly by higher compensation expenses for G&A personnel. Product development expenses: Up 71.3% to RMB 7.7 million, which Li said was mainly due to higher outsourcing service fees for technology development. Net income in the fourth quarter was RMB 38.4 million, compared with RMB 47.8 million a year earlier. Basic and diluted net income per share was RMB 5.72 for the quarter. → Members of Congress Bought These 5 Stocks—Should You? Management discussed shifts in revenue contribution across its program categories. Liu said degree- and diploma-oriented post-secondary programs accounted for 13.5% of full-year net revenues and 18.2% in the fourth quarter. He described the change in mix as “not intentional,” stating that demand in the segment remained stable, but Sunlands had been moderating investment and reallocating resources toward areas with greater long-term potential. Interest, professional skills, and certification preparation programs together contributed 73.9% of full-year net revenue and 66.8% in the fourth quarter, according to Liu. He said the company continued to view interest-based learning as a primary strategic direction, with senior learners at the core of that opportunity. In discussing the senior-learning market, Liu cited Frost & Sullivan projections that the user base for senior interest education in China would reach approximately 86 million in 2025 and exceed 100 million by 2027. He characterized the market as still in an early stage of development, suggesting a long runway for growth. During the fourth quarter, Sunlands expanded offline activities alongside its online course portfolio for senior learners. Liu said the company organized multiple calligraphy and painting exhibitions, including one in collaboration with Rongbaozhai, which he described as one of China’s most established cultural institutions. He also said senior students participated in the recording of a Spring Festival Gala program broadcast by China Education Television in January. Liu said these activities were designed to extend learning beyond the classroom and support expression, social connection, and participation for senior learners. He added that, for this cohort, the company looks beyond a single repurchase cycle and places greater emphasis on brand loyalty and “lifetime participation.” Management also highlighted the “meaningful step forward” in applying AI to adult education, with Liu pointing to large language models as enabling more personalized instruction and adaptive content delivery at scale. He said Sunlands intends to advance AI adoption in a “deliberate and disciplined way,” and noted that fourth quarter R&D expenses rose significantly year-over-year while selling expenses moved in the opposite direction. As of December 31, 2025, Sunlands had RMB 576.8 million in cash, cash equivalents, and restricted cash, and RMB 235.9 million in short-term investments, compared with RMB 507.2 million and RMB 276.0 million, respectively, at the end of 2024. Deferred revenue was RMB 585.3 million as of December 31, 2025, down from RMB 916.5 million a year earlier. For the first quarter of 2026, the company expects net revenues of RMB 420 million to RMB 440 million, which would represent a year-over-year decrease of 9.8% to 13.9%. Li said the outlook was based on current market conditions and the company’s preliminary estimates, and noted that it is subject to substantial uncertainty. The call concluded without any analyst questions during the Q&A session. Sunlands Technology Group (NYSE: STG) is a provider of online education services in China, specializing in live and on-demand classes for students across a range of age groups and exam preparations. Through its digital platform, the company delivers interactive lessons, practice exercises and progress tracking to support K-12 after-school courses, national college entrance exam (Gaokao) prep and professional qualification tests. The company's offerings include live streaming lectures led by qualified instructors, recorded course content, AI-driven diagnostic tools and personalized study plans. The article "Sunlands Technology Group Q4 Earnings Call Highlights" was originally published by MarketBeat.