Four Seasons Education (NYSE:FEDU) posted a sharp upswing in profitability for the first half of fiscal 2026, reporting a more than 313% year-over-year jump in net income to RMB12.4 million ($1.7 million), driven by expanding enrichment learning programs and meaningful margin improvement.

Shares gained 5.11% in premarket trading after the results were released.

Revenue for the six months ended August 31, 2025, rose 7.9% to RMB145.3 million ($20.4 million), supported by continued demand for the company’s enrichment-focused offerings. Gross profit climbed 30.9% to RMB38.8 million ($5.4 million), while gross margin widened from 22.0% to 26.7%, helped by a more profitable product mix and operational efficiencies.

Adjusted diluted earnings per ADS came in at RMB5.05 ($0.71), up sharply from RMB0.54 a year earlier, underscoring the company’s improved bottom-line performance.

“We sustained our solid growth momentum for the six months ended August 31, 2025,” said Yi (Joanne) Zuo, Chief Executive Officer and Director of Four Seasons Education.
“Our relentless focus on operational efficiency, strategic execution, and diverse service and product portfolios positions us well to drive profitable growth.”

Operating income reached RMB9.2 million ($1.3 million), reversing a prior-year operating loss of RMB5.7 million. The group also benefited from lower operating expenses: general and administrative costs fell 10.7% to RMB24.3 million ($3.4 million), while sales and marketing spending slid 34.3% to RMB5.3 million ($0.7 million).

The company ended the period with a solid liquidity profile, holding RMB213.1 million ($29.9 million) in cash, cash equivalents, short-term investments, and fair-value short-term instruments as of August 31, 2025.

Four Seasons Education stock price

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