Company Reports

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic after-school tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education's first-quarter fiscal 2027 (ending February) revenue grew 32% year on year, while adjusted operating margin expanded 15.6 percentage points to 18.1%, driven primarily by a lower expense ratio.

TAL Education's fourth-quarter fiscal 2026 (ended February) revenue grew 31% year on year, with adjusted operating margin expanding 10.5 percentage points to 10.2%, driven primarily by a lower selling and marketing expense ratio.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education's fiscal third-quarter revenue (ending February) grew 27% year on year, with operating margin improving to 12.1% from negative 2.9% a year ago.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education's second-quarter fiscal 2026 (ending February) revenue grew 39% year on year, with operating profit more than doubling.

TAL Education's revenue for the first quarter of fiscal 2026 (ending February) grew by 39% year on year, while its operating margin improved by 6.7 percentage points to 2.5%.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education's revenue in the fourth quarter of fiscal 2025 (ended February) grew by 42% year on year. However, operating loss rose to USD 16 million from USD 11 million a year ago. For fiscal 2025, it made USD 3 million operating loss, but USD 85 million net profit, supported by interest income.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education’s third-quarter fiscal 2025 (ending February) results exceeded our expectations. Revenue increased by 62% year on year, accelerating from the 50% growth observed in the first half. The adjusted operating margin improved by 2.4 percentage points to negative 0.3%, surpassing our projection of negative 0.8%. Given the strong growth momentum, we have raised our revenue and margin forecasts, resulting in a 39% increase in our fiscal 2025 earnings estimate to USD 67 million and a 35%-68% increase for fiscal 2026-29. Consequently, we raise our fair value estimate by 13% to USD 11.50 per share. We believe the shares are fairly valued after the 28% gain following its results announcement.

TAL Education’s fiscal 2025 second-quarter results, ending August, beat our expectations. Revenue grew 50% year on year and was 8% ahead of our forecast. Most notably, adjusted operating margin of 10.4% significantly exceeded our 3.3% forecast due to lower-than-expected general and administrative expenses. We increase our revenue forecasts by 3% for fiscal 2025-29 to reflect the upbeat momentum. While we raise our fiscal 2025 adjusted operating margin forecast to 3.1% from 1.3%, our fiscal 2026-29 forecasts are largely unchanged as we think TAL needs to invest more in its products, research & development, and marketing to drive long-term growth. We increase our fair value estimate to USD 10.20 per share from USD 9.70 and think the shares are currently fairly valued.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education's shares fell 9% as its solid fiscal 2025 first-quarter (ending May) result was overshadowed by a less-favorable margin outlook. Revenue grew 50% year on year in the quarter, and non-GAAP operating margin turned positive, a significant improvement from negative 11.7% a year ago. We anticipate the growth momentum to continue in the near term, but we think its margin will be affected as the company invests for the future. As such, we increase our revenue projections by 5%-13% but reduce our operating margin forecasts by 69 basis points-175 basis points for fiscal 2025-29. This leads to 61% and 15% decrease in our earnings estimate for fiscal 2025 and 2026, respectively, while our earnings estimates for 2027-29 are unchanged. We still expect TAL to turn profitable in fiscal 2025, albeit with a slim 0.9% net profit margin, down from the previously forecast 2.3%. We keep our fair value estimate at USD 9.7 per share. Given limited upside to our fair value estimate, we recommend that investors wait for more attractive entry points.

We raise our fair value estimate for TAL Education to USD 9.70 from USD 7.70 following its fiscal 2024 (ending February 2024) results that beat our expectation as the content solutions segment revenue tripled in the February quarter. Overall, TAL remained loss-making in fiscal 2024, but its net loss narrowed to USD 4 million, and we expect the company to be profitable going forward. We increase our revenue assumption by 14%-29% for fiscal 2025 through 2028 to reflect the strong momentum, but we are less optimistic than the market. We think TAL’s current valuation has priced in a 25% revenue CAGR over the next five years with a 15% adjusted operating margin by fiscal 2029, much higher than our forecast of a 19% revenue CAGR and a 10% adjusted operating margin. For fiscal 2025, we project 33% revenue growth and 3.5% adjusted operating margin.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.

TAL Education's, or TAL’s, fiscal 2024 third-quarter (ending November 2023) result beat our expectation. Revenue in the quarter increased by 61% year on year and was 16% higher than our forecast. We believe this was mainly driven by the exponential shipment growth of its learning tablet. We increase our revenue growth assumption to 40% from 30% for 2024 to reflect the strong momentum. We also raise our gross margin assumption by 100-110 basis points through fiscal 2028 for positive operating leverage. Accordingly, we revise our net loss estimate to USD 52 million from USD 73 million in fiscal 2024, and we increase our net income estimate by 20%-39% from 2025 to 2028. We increase our fair value estimate by 10% to USD 7.70.

TAL Education, or TAL, repositioned itself as a smart learning solutions provider after regulatory changes in 2021 decimated the K-9 academic afterschool tutoring industry. It currently focuses on enrichment learning and content solutions. Enrichment learning offers nonacademic programs to students aged between two and 18 years. Content solutions offer learning content in both paper and digital formats to students.