How profitable is Gaotu Techedu Inc. (GOTU)?

In FY 2025 (10-K), GOTU converted $879.0M of revenue into a 67.4% gross margin, 0% operating margin, and $59.5M in free cash flow (6.8% FCF margin).

Stock Ratings / Real Estate / GOTU / financials

LINC (42) APEI (63) PXED (43) AFYA (46) ⌘ Pro Terminal →

Gaotu Techedu Inc. (GOTU) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$2.18 -3.54% NYSE • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $2.16

Gaotu Techedu Inc. (GOTU) carries a Roarable Rating of D (Sell) with 49/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.

ROARABLE D • SELL / AVOID Cap $538.9M

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

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🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is GOTU stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, Gaotu Techedu Inc. (NYSE: GOTU) is rated D (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 49/100 at a spot price of $2.18 (-3.54% 1D, market cap $538.9M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 8/20, SEC Balance-Sheet Forensics 8/20, FRED Macro Regime Fit 14/20, and Executive Insider Alignment 11/20. Across 51 tracked Real Estate issuers, GOTU ranks #24 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does GOTU compare to LINC and APEI in the Real Estate sector?

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Within the Real Estate sector (Other Consumer Services), GOTU carries a Roarable D (49/100 RQD), trailing P/E of N/A, gross margin of 67.4%, and ROIC of -35.0%. By comparison, LINC (Lincoln Educational Services Corporation) holds a D- grade (42/100 RQD, P/E 35.1x, ROIC 14.0%, cap $656.0M) and APEI (American Public Education Inc.) posts a C grade (63/100 RQD, P/E 25.7x, ROIC 17.6%, cap $742.5M). Among the 5-stock peer group, APEI leads on earnings multiple (25.7x) while APEI leads on capital efficiency (17.6% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for GOTU?

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Per GOTU's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001768259), Gaotu Techedu Inc. generated $879.0M in revenue (+40.9% YoY), -$46.2M in net income, and $59.5M in free cash flow against $886.5M in total assets and $4.6M in total debt. Key quantitative strengths: Established market leader in Real Estate with deep daily trading liquidity. Primary risk factors monitored: Recent SEC filings added new risk-factor disclosures that warrant keeping an eye on margins. Institutional options positioning shows a 50% call / 50% put premium split.

✓ Pre-computed one-to-many AI Quant brief

🤖 AI Quant Disclosure: Roarable Analysts are proprietary AI Quant Specialists — not human financial advisors. Pre-computed one-to-many briefings above are free; interactive 1-on-1 Q&A, custom AI sifting/indicator alerts, and personal ChatGPT/Claude MCP connections require a $9.95/mo Pro account (currently waitlist-only).

INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $2.16 (-0.83%)🧬 Cannibal Buyback (-0.96% YoY Shares)⚙️ Cash Engine: 8/20 (D-) • 6.8% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record Warning: Scores below 50 (49/100 · D) historically underperformed SPY in 71% of rolling 90-day windows (-5.4% avg 90D alpha vs SPY • 29.0% hit rate).

Audit Bucket Track Record →

RQD QUANT TACHOMETERSELL / AVOID • D

2-of-3 Quant Analysts Bearish Warning

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR RQD RADARRw D · Rk D+

Each axis scored 0–20

12M PRICE TARGET CONE-4.1% Base Target

WHALE OPTIONS SNAPSHOT: — (No Active Options Snapshot on file for GOTU)Realized 20D OHLCV Swing Band: ±10.2%

Deterministic 5-Pillar Attribution (49/100 Composite)

🔍 WHY GOTU SCORES 49/100 (D) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: Macro Regime Fit+14/20 pts (29% of score)

FRED Regime × Technicals: 51% of 52W Range • RSI-14 at 36.6 (NEUTRAL RANGE)

▲ #2 Bullish Driver: Insider Conviction & Share Dilution+11/20 pts (22% of score)

SEC Form 4 / 13F Thermometer: 55% Net Buy • Cannibal Buyback (-0.96% YoY Shares)

▼ #1 Drag / Risk Factor: SEC 10-K Forensic Risk8/20 pts (-12 pt drag)

Balance-sheet & 10-K footnote risk deducts 12 pts from forensic ceiling

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade C$2.78-6.1% Next Q

Q2 (-2Q)

Grade C-$2.61-1.5% Next Q

Q3 (-1Q)

Grade C-$2.57-15.2% Next Q

Current

Grade D$2.18-5.4% Hist 90D α

Trajectory: C (57) → D (49)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)CONTRARIAN TURNAROUND & SHORT-SQUEEZE DOSSIER

⚔️ Adversarial Opposing Case: What Could Spark a GOTU Turnaround Squeeze

Gideon Ashmere Forensic Desk →

While GOTU currently carries a cautious 49/100 (D) rating due to SEC 10-K Forensic Risk (8/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.

🚀 Contrarian Squeeze Trigger #1

Established market leader in Real Estate with deep daily trading liquidity.

🚀 Contrarian Squeeze Trigger #2

Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($2.35) and Max Pain ($2.29) forces dealer call-delta covering toward $3.08.

🚀 Contrarian Squeeze Trigger #3

Forensic Repair Trigger: Halting share dilution (Cannibal Buyback (-0.96% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.

🎲 LIVE PREDICTION MARKET ODDS TIED TO $GOTU• $2.4M Crowd Pool • Kalshi / Polymarket Composite

Contract: “GOTU Beats Next Quarter EPS Consensus (Dec 30, 2026) & Holds Above 200D SMA”

YES 49%NO 51%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How GOTU Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$59.5M (6.8% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY23

Rev $417.0M

FY24

Rev $623.8M

FY25

Rev $879.0M

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$879.0M	67.4%	-8.2%	-$46.2M	$59.5M	-45%
FY 2024	$623.8M	68%	-26%	-$143.7M	$35.3M	-45%
FY 2023	$417.0M	67.4%	-5%	-$1.0M	$49.8M	-35%

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring GOTU)

✓Walkthrough of GOTU's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks

RQD INSIDER CLUB WAITLIST$49/YR PLANNED

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GOTU // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: +13.54%▲ ASCENDING CHANNEL

2026-11-03O $2.27H $2.27L $2.18C $2.18VOL 561.5K

RES: $3.03SUP: $1.60SMA50: $2.35SMA200: $2.01

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

GOTU Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 GOTU Butterfly Map → + Track GOTU →

Share Count & Dilution Monitor

Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).

Reverse-DCF Expectations Hurdle

8.0%/yr Implied 5Y Growth

vs. +40.9% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger

No active Ellis Vennor swing setup published on GOTU today. View full Setup Ledger →

🦋 Documented & Second-Order Butterfly Connections Open Graph →

No direct multi-tier Butterfly edges indexed yet for GOTU. Explore sector supply chains on /butterfly.

AI Analyst Theses, Washington Policy & Company Video

🎬 No recent verified company-specific video clip queued for GOTU today (we never pad ticker pages with unrelated generic clips). Browse Macro Video Desk →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (GOTU)

Real Estate Rank #24 of 51 ⚔️ LINC vs GOTU Full Matrix →

1. Head-to-Head Real Estate Peer Comparison (GOTU vs. LINC, APEI, PXED, AFYA)

Industry: Other Consumer Services (73 Tracked Issuers)

Across 51 tracked Real Estate securities in the Roarable RQD universe, Gaotu Techedu Inc. (GOTU) ranks #24 by composite RQD confidence (49/100, grade D) and #22 by equity capitalization ($538.9M). Within this direct 5-issuer industry benchmark cohort, APEI leads on earnings valuation at 25.7x trailing P/E, while APEI leads on capital efficiency and profitability with 17.6% ROIC and 54.2% gross margin. APEI currently holds the highest overall quantitative score in the immediate peer group at 63/100 (C) compared with GOTU at 49/100 (D).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
GOTU ACTIVE Gaotu Techedu Inc.	D	49/100	—	67.4%	-35.0%	-3.54%	$538.9M	Benchmark Subject
LINC Lincoln Educational Services Corporation	D-	42/100	35.1x	60.4%	14.0%	-2.68%	$656.0M	/linc-vs-gotu →
APEI American Public Education Inc.	C	63/100	25.7x	54.2%	17.6%	+2.51%	$742.5M	/apei-vs-gotu →
PXED Phoenix Education Partners Inc.	D-	43/100	—	—	—	-0.08%	$862.6M	/pxed-vs-gotu →
AFYA Afya Limited (Class A)	D	46/100	—	—	—	+1.82%	$979.4M	/afya-vs-gotu →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)

SEC EDGAR 10-K • FILED 2025-12-31 • CIK 0001768259 ↗

In its most recent audited fiscal period (FY2025, filed 2025-12-31), Gaotu Techedu Inc. (GOTU) reported GAAP revenue of $879.0M (+40.9% vs. FY2024 revenue of $623.8M , and +110.8% cumulative change since FY2023) , GAAP net income of -$46.2M, operating cash flow of $59.5M, and free cash flow of $59.5M (+68.3% YoY). On the balance sheet, GOTU closed FY2025 with $886.5M in total assets against $4.6M in total debt (Altman Z-Score: 0.20, Piotroski F-Score: 7/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-12-31	$879.0M	-$46.2M	$59.5M	$59.5M	$886.5M	$4.6M
FY2024 (FY)	2024-12-31	$623.8M	-$143.7M	$35.3M	$35.3M	$798.4M	—
FY2023 (FY)	2023-12-31	$417.0M	-$1.0M	$49.8M	$49.8M	—	—

3. GOTU Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is GOTU stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does GOTU compare to LINC and APEI in the Real Estate sector?

What are the biggest fundamental strengths and SEC risk factors for GOTU?

Where is GOTU trading relative to its 50-day, 200-day, and 52-week technical levels?

GOTU last traded at $2.18 (-3.54% on volume of 876,998 shares), positioning the stock -7.23% below its 50-day simple moving average ($2.35) and +8.46% above its 200-day simple moving average ($2.01). Across its 52-week range of $1.40 to $2.93, GOTU sits at the 51.0% percentile with a 14-day RSI of 36.6 (NEUTRAL RANGE) and an implied next-earnings move of ±10.2% ($1.96 to $2.40).

Direct Sub-Reports: GOTU RQD Cockpit GOTU 12M Forecast GOTU Earnings & Move GOTU Dividends & DRIP GOTU Insiders & 13F GOTU Whale Options GOTU Profit Sankey GOTU News & Why

ROARABLE RATING BRIEF • RQD 49/100 (D) ✓ SEC XBRL & RQD VERIFIED

GOTU — Gaotu Techedu Inc.: What the Facts Mean to a Prospective Investor

Methodology: RQD v6.2 Deterministic 5-Pillar & SEC XBRL Audit

Updated: 2025-12-31

1. Roarable Rating Brief: What This Means to a Prospective Investor

Gaotu Techedu Inc. (GOTU) earns a live Roarable RQD composite score of 49/100, corresponding to a D letter grade (Roarable Sell) at a spot price of $2.18 (-3.54% 1D, market capitalization $538.9M).

Fundamental Cash Engine (8/20): Anchored by return on invested capital (ROIC) of -35.0%, gross margin of 67.4%, operating margin of -8.2%, and free cash flow yield of 10.99%.
Whale 13F & Options Flow (8/20) + Insider Conviction (11/20): Tracks institutional 13F accumulation, CBOE options call/put positioning, and SEC Form 4 / Congressional PTR filings.
Macro Regime Fit (14/20) + Forensic Balance Sheet (8/20): Incorporates a 1.00x equity beta, Altman Z-Score of 0.20, Piotroski F-Score of 7/9, and Debt/Equity of 0.03x.

2. Business Model, Unit Margins & SEC Financial Trajectory

Gaotu Techedu Inc. (GOTU) is a NYSE-listed issuer classified under the Real Estate sector and the Other Consumer Services industry, with a market capitalization of $0.5B. Per the market data, the company reports a gross margin of 67.4%, indicating a high-margin revenue base.

In its latest audited SEC EDGAR 10-K filing for FY2025 (filed 2025-12-31), Gaotu Techedu Inc. (GOTU) reported $879.0M in annual revenue (up from $623.8M in FY2024, +40.9% YoY) and -$46.2M in GAAP net income. Over the multi-year SEC filing window from FY2023 ($417.0M revenue, -$1.0M net income) through FY2025, GOTU scaled operating cash flow to $59.5M and free cash flow to $59.5M, backed by $886.5M in total assets against $4.6M in total debt.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case (D • RQD 49/100): Established market leader in Real Estate with deep daily trading liquidity. Free cash flow yield of 10.99% and institutional whale pillar of 8/20. With Fundamental Cash Engine at 8/20 and Institutional Whale Flow at 8/20, sustained execution supports upside toward the upper end of the $1.40 – $2.93 52-week range.
🐻 Primary Bear Case & Valuation Risk: Recent SEC filings added new risk-factor disclosures that warrant keeping an eye on margins. Investors must weigh current valuation against -8.2% operating margins and a 1.00x macro beta.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

The source data therefore does not identify upstream suppliers, downstream customers, or sector correlations for GOTU. An investor should note that the absence of mapped links is itself a data limitation rather than evidence of an isolated business, and that second-order ripples cannot be assessed from the provided sources.

Key Question #1: Can GOTU sustain or expand its -8.2% operating margin and -35.0% ROIC against Other Consumer Services peers over the next 4 quarters?
Key Question #2: Following FY2025 revenue of $879.0M and free cash flow of $59.5M, how will capital allocation balance growth reinvestment against $4.6M in total debt?
Key Question #3: How sensitive is GOTU's equity valuation to Real Estate capital spending cycles and macro interest-rate shifts (Beta 1.00x)?

GOTU Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for Gaotu Techedu Inc. (GOTU) • Click "Debate This Headline" to argue it in the Roar Pit below

💬 Jump to GOTU Debate Forum (3) ↓

🟡 MARKET WIRE Moomoo • 1d ago

Gaotu Techedu(GOTU) Stock Options Chain | Quotes & News

Moomoo report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟢 CATALYST Benzinga • 1d ago

Kosmos Energy Posts Downbeat Q3 Results, Joins Once Upon A Farm And Other Big Stocks Moving Lower In Mond

Benzinga report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE https://www.siam.in/ • 1d ago

Gaotu Techedu (GOTU) Trades Flat at $2.62 as Traders Watch $2.49 Support and $2.75 Resistance - Last Point Support

https://www.siam.in/ report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟢 CATALYST TradingKey • 1d ago

Top U.S. Stock Gainers: Biggest Price Increases

TradingKey report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE TradingKey • 1d ago

Top U.S. Stock Losers: Biggest Price Declines

TradingKey report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE https://www.siam.in/ • 1d ago

Gaotu Techedu (GOTU) Ticks Up 1.79% to $2.56 as Buyers Hold the $2.43 Floor - Fade Trade

https://www.siam.in/ report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE TradingKey • 1d ago

Complete U.S. Stocks List: Prices, Performance and Key Data

TradingKey report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

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🟡 MARKET WIRE TradingKey • 2d ago

Largest Companies by Market Cap: U.S. Stocks

TradingKey report covering Gaotu Techedu Inc. (GOTU) market action, institutional positioning, and fundamental catalysts.

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🔥 THE ROAR PIT • LIVE COMMUNITY DEBATE 3 Active Posts & Replies

GOTU Bull vs. Bear Conversation Board — What's Your Call at $2.18?

🐂 67% BULLISH CONVICTION COMMUNITY TUG-OF-WAR ON GOTU 🐻 33% BEARISH CONVICTION

QU QuantViper RQD DEBATE OPENER • Systematic Momentum Desk 🐂 BULLISH 🎯 Target: $2.85 (+26.1%)

📌 Pinned Debate

A 10.99% FCF yield and $59.5M of FY 2025 free cash flow signal cash generation that the market price may not fully reflect.

Long GOTU at $2.26 targeting $2.85. A 10.99% FCF yield and $59.5M of FY 2025 free cash flow signal cash generation that the market price may not fully reflect.. Institutional whale score is 8/20 and the risk/reward vs. the $1.40 52-week low is skewed heavily in favor of bulls.

VolSurface_Trader 🐂 BULL

Both sides have a point here — GOTU's 8/20 balance sheet score keeps downside contained, so the real swing factor next earnings call is backlog and FCF conversion.

SH ShortSeller_Dan RQD DEBATE OPENER • Forensic Short Bias 🐻 BEARISH 🎯 Target: $1.85 (-18.1%)

Spot @ $2.26

A -35% ROIC, 0.2 Altman Z-Score, and -8.2% operating margin show losses that persist despite revenue growing to $879.0M.

Here is the bear case nobody on the bull side wants to address on GOTU: A -35% ROIC, 0.2 Altman Z-Score, and -8.2% operating margin show losses that persist despite revenue growing to $879.0M.. At current EV/EBITDA multiples, even a small guidance miss in Other Consumer Services triggers a 12-15% air pocket.