NetEase Youdao's operating profit in 2025 increased by 48.7% year-over-year, achieving a net positive cash flow from operating activities for the first time in a year.

This newspaper report (Reporter Yuan Chuanxi) on February 11th, NetEase Youdao (NYSE: DAO) announced its unaudited financial results for Q4 2025 and the full year. The financial report shows that the company’s full-year net revenue reached 5.91 billion yuan, a year-over-year increase of 5.0%; operating profit was 220 million yuan, a year-over-year increase of 48.7%. The company achieved its first full-year operating cash net inflow, totaling 55.2 million yuan.

In Q4 2025, NetEase Youdao continued its steady profitability trend, with net revenue of 1.56 billion yuan, a 16.8% increase year-over-year, marking the sixth consecutive quarter of profitability. Operating profit for the quarter was 60.2 million yuan. During the same period, operating cash net inflow reached 180 million yuan, a 16.4% increase year-over-year.

NetEase Youdao CEO Zhou Feng stated, “Looking at the full year of 2025, the company achieved its first annual operating cash net inflow. At the same time, the company saw steady growth in learning services, online marketing services, and AI subscription services, demonstrating increasing business resilience.”

In terms of learning services, the empowering effect of AI has fully manifested, driving business recovery and inspiring product innovation. In Q4, net revenue from learning services reached 730 million yuan, a 17.7% increase year-over-year. Following the Chinese AI essay grading, the company revealed it will soon launch an English AI essay grading tool supported by the ‘Ziyue’ large model.

In Q4, AI subscription service sales exceeded 100 million yuan, reaching a new record and increasing by over 80% year-over-year; for the entire 2025 fiscal year, the total sales of this segment approached 400 million yuan, with an annual growth rate of over 50%.

As AI applications continue to break through, NetEase Youdao is also expanding AI deployment through its Agent product. On February 11th, Youdao officially launched the desktop-level Agent “LobsterAI” (Chinese name: Youdao Lobster), positioned as a “7×24-hour all-scenario personal assistant Agent that helps you get things done.”

Smart hardware showed significant improvement in business health in 2025, with Q4 net revenue of 180 million yuan. The AI Q&A pen SpaceX achieved innovative breakthroughs in scanning and answering—adding a panoramic puzzle function and a completely upgraded video Q&A feature. The video Q&A functionality marks a new stage where AI learning assistance moves from static answers or preset videos to real-time generation and dynamic demonstration of problem-solving processes. The AI Q&A pen category, launched less than a year ago, surpassed 100 million yuan in sales. Youdao Dictionary Pen has maintained the top sales position on JD and Tmall platforms for six consecutive years during the “Double Eleven” shopping festival.

In Q4, NetEase Youdao’s online marketing services net revenue was 660 million yuan, a 37.2% increase year-over-year. The growth was driven partly by rising overseas market demand and the synergy effects of NetEase Group, and partly by AI-driven intelligent transformation of the entire advertising process, which improved overall business efficiency.

Thanks to AI’s deep empowerment across the entire advertising and marketing chain, NetEase Youdao has achieved significant growth in multiple niche sectors and overseas markets. According to the financial report, the advertising business covers several high-growth verticals. Notably, advertising net revenue in the gaming and AI application sectors both increased by over 50% year-over-year.

“Looking ahead, the company will firmly implement the ‘AI-native’ strategy, focusing on learning and advertising businesses, deepening vertical domain large models, and continuously expanding AI applications and intelligent agents, striving to create differentiated user experiences and drive long-term sustainable growth,” Zhou Feng stated.