17 Education & Technology Group Inc. (YQ) AI Stock Analysis
YQ AI stock analysis summary
AI Research17 Education & Technology Group Inc. (NASDAQ: YQ) is a China-based education technology firm delivering educational content subscriptions and SaaS solutions. After annual revenue fell from $2.18B in FY2021 to $103.1M in FY2025, revenue expanded 254.6% year-over-year in the quarter ended June 30, 2026. The company holds $444.9M in net cash against a market cap of $33.9M.
- Market cap
- $33.9M
- Revenue (TTM)
- $248.5M
- P/E
- — fwd 6.8x
- 1Y return
- -42.6% S&P 500 16.8%
- Avg. target
- $10.03 187.0% vs last close
Bull case
- Quarterly revenue grew 254.6% year-over-year in the period ended June 30, 2026.
- The company maintains net cash of $444.9M, which exceeds its total market cap of $33.9M.
- Analyst estimates project EPS will turn positive to $0.08 alongside revenue of $515.4M for next fiscal year.
Bear case
- Revenue experienced a 5-year CAGR of -39.7%, dropping to $103.1M in FY2025.
- The company remained unprofitable in FY2025 with net income of -$150.2M and net margin of -145.6%.
- Share price performance has lagged the broader market, delivering a 1-year return of -42.6% versus 16.8% for SPY.
What 17 Education & Technology does
17 Education & Technology Group Inc., based in Beijing, China, operates as an education technology company delivering learning services and technology solutions across diverse educational sectors. Founded in 2012, the firm offers membership-based educational content subscriptions featuring a la carte workbooks, personalized study plans, and tailored learning services. In addition, its portfolio features SaaS offerings designed for educational informatization services. These tools support education-related government entities, schools, and service providers in improving academic outcomes through digital integration, positioning the firm to meet digital learning platform demand across China and beyond.
Growth and profitability
Annual revenue contracted from $2.18B in FY2021 to $103.1M in FY2025, reflecting a 5-year revenue CAGR of -39.7%. Operating margin was -67.5% in FY2021 and stood at -154.3% in FY2025, while net margin registered at -145.6% with net income of -$150.2M. However, operating cash flow turned positive to $36.3M in FY2025 alongside free cash flow of $29.6M. Over the trailing twelve months, revenue was $248.5M with an operating margin of -0.7% and a net profit margin of -46.6%. For the latest quarter ended June 30, 2026, quarterly revenue grew 254.6% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, 17 Education & Technology Group Inc. maintained $457.0M in cash and short-term investments against total debt of $12.1M, creating a net cash position of $444.9M. Total assets stood at $594.1M and shareholders' equity was $270.3M. The company has a current ratio of 1.77 and a debt-to-equity ratio of 0.04. During FY2025, cash deployment included capital expenditures of $6.7M and share buybacks of $3.4M.
Valuation and performance
With a market cap of $33.9M, 17 Education & Technology Group Inc. trades at an enterprise value of -$32.2M due to its sizable cash reserves. The stock trades at a forward P/E of 6.8x, compared to 14.3x for the median of its US-listed Consumer Defensive peers. Its price-to-sales multiple is 0.1x versus the peer median of 0.7x, while its EV/EBITDA is 0.4x versus 11.7x for peers. Over the past year, YQ stock returned -42.6%, trailing the 16.8% return for SPY.
What analysts expect
One analyst covers 17 Education & Technology Group Inc. with a Strong Buy rating. The mean price target is $10.03, representing an upside of 187.0% from the last close of $3.50 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate revenue of $397.1M and an EPS of -$0.06. For next fiscal year, projected revenue is $515.4M with an EPS of $0.08. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is December 8, 2026.
Key risks and what to watch
- Trailing twelve-month return on equity remains negative at -37.6%.
- Total shares outstanding expanded over time, with a 5-year share count change of 14.5%.
- Institutional ownership is relatively low at 5.1%, which may limit market liquidity.
- The business remains exposed to regional demand trends in China where it employs 1,017 people.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this YQ AI stock analysis
This page is an AI-written research summary of 17 Education & Technology Group Inc. (YQ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: YQ income statement, YQ balance sheet, YQ key metrics, YQ analyst forecast, YQ chart. See the YQ stock overview for the latest quote and news.
YQ AI stock analysis FAQ
What was the revenue growth for YQ in its latest reported quarter?
For the quarter ended June 30, 2026, quarterly revenue grew 254.6% year-over-year, bringing trailing twelve months revenue to $248.5M.
How strong is 17 Education & Technology Group Inc.'s balance sheet?
As of June 30, 2026, the company held $457.0M in cash and short-term investments against $12.1M in total debt, leaving $444.9M in net cash with a current ratio of 1.77.
Does YQ pay a dividend?
YQ does not pay a dividend. In FY2025, the company allocated capital to $6.7M in capital expenditures and $3.4M in share buybacks.
What is the consensus analyst target price for YQ stock?
The single analyst tracking the company has a Strong Buy rating and a mean price target of $10.03, which is 187.0% above its last close of $3.50 on October 16, 2026.