Youdao NYSE: DAO, a leading provider of intelligent solutions, today announced its unaudited financial results for the third quarter of 2025. The report indicates that, driven by its AI-Native Strategy, the company has maintained profitability for five consecutive quarters, with a continued strengthening of the companys financial position. Notably, AI-powered advertising services delivered exceptional performance and emerged as a new engine of growth for the company.
Q3 Financial and Operational Highlights:
Net revenue was RMB 1.6 billion approx. US200 million.
Operating profit reached RMB 28.3 million approx. US3.93 million, with operating profit for the first three quarters increasing by nearly 150 year-over-year.
Operating cash outflow narrowed by 31.7 year-over-year, reflecting ongoing improvements in operational efficiency.
Advertising Becomes Youdaos Largest Revenue Segment