• Youdao discussed first-quarter 2026 results on an earnings conference call attended by CEO Feng Zhou, President Lei Jin, Senior VP Peng Su, VP of Finance Wayne Li, Investor Relations Director Jeffrey Wang, and the operator.
• Net revenue rose 3.8% to RMB 1.3 billion; operating profit was RMB 57.5 million for a seventh straight profitable quarter, while operating margin eased to 4.3% from 8% a year earlier as the company stepped up AI investment and lapped a restructuring-related comparison.
• Learning services revenue increased 4.2% to RMB 627.5 million, with management citing over 20% gross billings growth at Youdao Lingshi and AI-driven subscription sales above RMB 100 million, up more than 70% year over year.
• Online marketing services revenue climbed 20.9% to RMB 611.1 million, supported by performance-based advertising demand; gross margin was 29.6%, up 1.8 percentage points sequentially.
• Smart devices revenue fell 42.6% to RMB 109.4 million as management prioritized SKU health, inventory control, and profitability; operating cash outflow narrowed 63.6% to RMB 93.1 million, with cash and short-term investments at RMB 515.2 million at quarter-end.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Youdao Inc. published the original content used to generate this news brief on May 21, 2026, and is solely responsible for the information contained therein.