Sunlands Technology Group (STG) Earnings Call Transcripts
Sunlands Technology Group's Latest Earnings Call - Q1 FY2026
In the first quarter of 2026, Sunlands Technology Group reported net revenues of RMB 440.7 million, a 9.6% decline year-over-year, while net income rose to RMB 76.8 million, marking the 20th consecutive profitable quarter. The company achieved a net income margin of 17.4%, supported by a significant reduction in selling expenses, which fell 19.5% year-over-year. Looking ahead, management expects second-quarter revenues to decline further to between RMB 410 million and RMB 430 million, indicating ongoing challenges in the market.
Reported metrics
| Metric | Value |
|---|---|
| Net Revenues | RMB 440.7 million (miss) |
| Net Income | RMB 76.8 million (beat) |
| Net Income Margin | 17.4% (positive) |
| Gross Margin | 86.5% (positive) |
| Selling Expenses | RMB 241.9 million (positive) |
| Product Development Expenses | RMB 6.6 million (negative) |
Guidance from management
For Q2 2026, Sunlands expects net revenues to be between RMB 410 million and RMB 430 million, reflecting a decrease of 20.2% to 23.9% year-over-year. This guidance indicates management's cautious outlook amid ongoing market challenges.
What analysts pressed on
Analysts expressed concerns regarding the ongoing structural softness in degree and diploma-oriented programs, which may continue to impact revenue. There are also worries about the effectiveness of the company's strategic pivot towards higher-quality learner cohorts and the potential risks associated with macroeconomic conditions affecting demand.
Main topics on the call
- Profitability Amid Revenue Decline — Despite a 9.6% decline in net revenues, Sunlands maintained strong profitability with a net income margin of 17.4%. CEO Tongbo Liu stated, "Our profitability reflected the progress we have made in cost structure optimiza...
- Cost Management Success — Selling expenses decreased by 19.5% year-over-year, marking the largest reduction in recent years. Hangyu Li noted, "This marks the largest single quarter reduction we have recorded in recent years and our third consecut...
- Revenue Mix Diversification — The company is focusing on diversifying its revenue mix, with degree and diploma-oriented programs contributing only 17.9% of net revenues. Liu emphasized the importance of interest-based programs, which accounted for 67...
- AI Capabilities Development — Sunlands is increasingly embedding AI into its operations to enhance efficiency. Liu mentioned, "We expect AI-driven capabilities to continue to be embedded more broadly across both acquisition and service workflows, sup...
Read the full Sunlands Technology Group transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Sunlands Technology Group
Sunlands Technology Group (STG) is a publicly listed company in the Diversified Consumer Services industry, within the Consumer Discretionary sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 57 calls on record spanning February 27, 2020 to May 26, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 57 Sunlands Technology Group earnings call transcripts on record, spanning February 27, 2020 to May 26, 2026. Based on this history, Sunlands Technology Group reports quarterly. The most recent call on file is dated May 26, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- STG
- Exchange
- NYSE
- Country
- US
- Sector
- Consumer Discretionary
- Industry
- Diversified Consumer Services
- Calls on record
- 57
- First call
- February 27, 2020
- Most recent
- May 26, 2026
- Reporting cadence
- quarterly