Sophia Zhang's questions to TAL Education Group (TAL) leadership • Q4 2025
Question
Sophia Zhang requested a top-line growth breakdown by business line, an explanation for the year-over-year decline in operating profit, the reasons for increased sales and marketing spend, and a follow-up on the outlook for profitability.
Answer
Deputy CFO Jackson Ding explained that Peiyou small classes and Learning Devices were the primary growth drivers for their respective business lines. The decline in operating margin was attributed to a significant increase in non-GAAP selling and marketing expenses to 35.1% of revenue, driven by online channel investments for market penetration and brand building. In a follow-up, Ding stated that improving profitability is a key priority, expecting to achieve this through operating leverage from revenue growth and targeted operational refinements across the business.