07:05:46 EDT Thu 23 Apr 2026
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TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and the Fiscal Year 2026

2026-04-23 05:00 ET - News Release

TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and the Fiscal Year 2026

PR Newswire

BEIJING, April 23, 2026 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended February 28, 2026.

Highlights for the Fourth Quarter of Fiscal Year 2026

  • Net revenues were US$802.4 million, compared to net revenues of US$610.2 million in the same period of the prior year.
  • Income from operations was US$72.5 million, compared to loss from operations of US$16.0 million in the same period of the prior year.
  • Non-GAAP income from operations, which excluded share-based compensation expenses, was US$82.2 million, compared to non-GAAP loss from operations of US$1.7 million in the same period of the prior year.
  • Net income attributable to TAL was US$244.8 million, compared to net loss attributable to TAL of US$7.3 million in the same period of the prior year.
  • Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$254.5 million, compared to non-GAAP net income attributable to TAL of US$7.0 million in the same period of the prior year.
  • Basic and diluted net income per American Depositary Share ("ADS") were both US$0.44. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.46 and US$0.45, respectively. Three ADSs represent one Class A common share.
  • Cash, cash equivalents and short-term investments totaled US$3,239.3 million as of February 28, 2026, compared to US$3,618.4 million as of February 28, 2025.

Highlights for the Fiscal Year Ended February 28, 2026

  • Net revenues were US$3,008.9 million, compared to net revenues of US$2,250.2 million in the prior year.
  • Income from operations was US$276.0 million, compared to loss from operations of US$3.2 million in the prior year.
  • Non-GAAP income from operations, which excluded share-based compensation expenses, was US$319.1 million, compared to non-GAAP income from operations of US$61.8 million in the prior year.
  • Net income attributable to TAL was US$530.8 million, compared to net income attributable to TAL of US$84.6 million in the prior year.
  • Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$573.8 million, compared to non-GAAP net income attributable to TAL of US$149.5 million in the prior year.
  • Basic and diluted net income per ADS were US$0.93 and US$0.92, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$1.00 and US$0.99, respectively.

Financial Data----Fourth Quarter and Fiscal Year 2026
(In US$ thousands, except per ADS data and percentages)

                                                                                   Three Months Ended


                                                                         
       
     February 28,


                                                                 2025      2026                        Pct. Change




 Net revenues                                                610,239   802,389                             31.5 %



 (Loss)/income from operations                              (16,015)   72,473                          (552.5 %)



 Non-GAAP (loss)/income from operations                      (1,692)   82,224                        (4,959.6 %)



 Net (loss)/income attributable to TAL                       (7,311)  244,790                        (3,448.2 %)



 Non-GAAP net income attributable to TAL                       7,012   254,541                          3,530.1 %



 Net (loss)/income per ADS attributable to TAL - basic        (0.01)     0.44                        (3,774.6 %)



 Net (loss)/income per ADS attributable to TAL - diluted      (0.01)     0.44                        (3,735.4 %)



 Non-GAAP net income per ADS attributable to TAL - basic        0.01      0.46                          3,883.9 %



 Non-GAAP net income per ADS attributable to TAL - diluted      0.01      0.45                          3,899.7 %




                                                                                    Fiscal Year Ended


                                                                        
       
     February 28,


                                                                 2025      2026                        Pct. Change




 Net revenues                                              2,250,233 3,008,908                             33.7 %



 (Loss)/income from operations                               (3,155)  276,039                        (8,849.3 %)



 Non-GAAP income from operations                              61,784   319,132                            416.5 %



 Net income attributable to TAL                               84,591   530,751                            527.4 %



 Non-GAAP net income attributable to TAL                     149,530   573,844                            283.8 %



 Net income per ADS attributable to TAL - basic                 0.14      0.93                            565.5 %



 Net income per ADS attributable to TAL - diluted               0.14      0.92                            567.4 %



 Non-GAAP net income per ADS attributable to TAL - basic        0.25      1.00                            307.0 %



 Non-GAAP net income per ADS attributable to TAL - diluted      0.24      0.99                            308.2 %

"We concluded fiscal year 2026 with solid progress across our core businesses. We have expanded our reach to more users and strengthened engagement by enhancing our offerings and operational capabilities. This has also enabled us to better serve the evolving needs of learners, " said Alex Peng, TAL's President & Chief Financial Officer.

Mr. Peng added, "As we enter fiscal year 2027, we remain focused on driving quality growth across our business lines. We will also continue to strengthen our operational execution to support long-term efficiency improvements."

Financial Results for the Fourth Quarter of Fiscal Year 2026

Net Revenues

In the fourth quarter of fiscal year 2026, TAL reported net revenues of US$802.4 million, representing a 31.5% increase from US$610.2 million in the fourth quarter of fiscal year 2025.

Operating Costs and Expenses

In the fourth quarter of fiscal year 2026, operating costs and expenses were US$729.9 million, representing a 16.6% increase from US$626.3 million in the fourth quarter of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$720.2 million, representing a 17.7% increase from US$611.9 million in the fourth quarter of fiscal year 2025.

Cost of revenues increased by 28.2% to US$375.2 million from US$292.6 million in the fourth quarter of fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.5% to US$374.8 million, from US$291.7 million in the fourth quarter of fiscal year 2025.

Selling and marketing expenses increased by 1.4% to US$220.9 million from US$218.0 million in the fourth quarter of fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 2.0% to US$218.5 million, from US$214.3 million in the fourth quarter of fiscal year 2025.

General and administrative expenses increased by 15.7% to US$133.8 million from US$115.6 million in the fourth quarter of fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 19.7% to US$126.8 million, from US$106.0 million in the fourth quarter of fiscal year 2025.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 31.9% to US$9.8 million in the fourth quarter of fiscal year 2026 from US$14.3 million in the same period of fiscal year 2025.

Gross Profit

Gross profit increased by 34.5% to US$427.2 million from US$317.6 million in the fourth quarter of fiscal year 2025. The gross margin for the fourth quarter of fiscal year 2026 was 53.2%, compared to 52.0% in the same period of the prior year.

(Loss)/Income from Operations

Income from operations was US$72.5 million in the fourth quarter of fiscal year 2026, compared to loss from operations of US$16.0 million in the fourth quarter of fiscal year 2025. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$82.2 million, compared to Non-GAAP loss from operations of US$1.7 million in the same period of the prior year.

Other Income

Other income was US$275.0 million for the fourth quarter of fiscal year 2026, compared to other income of US$13.0 million in the fourth quarter of fiscal year 2025. The change in other income for the fourth quarter was mainly driven by fluctuations in the fair value of certain investments.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$41.4 million in the fourth quarter of fiscal year 2026, compared to US$4.2 million in the fourth quarter of fiscal year 2025.

Income Tax Expense

Income tax expense was US$77.0 million in the fourth quarter of fiscal year 2026, compared to income tax expense of US$14.0 million in the fourth quarter of fiscal year 2025.

Net (Loss)/Income Attributable to TAL Education Group

Net income attributable to TAL was US$244.8 million in the fourth quarter of fiscal year 2026, compared to net loss attributable to TAL of US$7.3 million in the fourth quarter of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$254.5 million, compared to Non-GAAP net income attributable to TAL of US$7.0 million in the fourth quarter of fiscal year 2025.

Basic and Diluted Net (Loss)/Income per ADS

Basic and diluted net income per ADS were both US$0.44, in the fourth quarter of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.46 and US$0.45, respectively, in the fourth quarter of fiscal year 2026.

Cash Flow

Net cash used in operating activities for the fourth quarter of fiscal year 2026 was US$215.0 million.

Cash, Cash Equivalents, and Short-Term Investments

As of February 28, 2026, the Company had US$1,523.9 million of cash and cash equivalents and US$1,715.4 million of short-term investments, compared to US$1,771.3 million of cash and cash equivalents and US$1,847.1 million of short-term investments as of February 28, 2025.

Deferred Revenue

As of February 28, 2026, the Company's deferred revenue balance was US$882.2 million, compared to US$671.2 million as of February 28, 2025.

Financial Results for the Fiscal Year Ended February 28, 2026

Net Revenues

In fiscal year 2026, TAL reported net revenues of US$3,008.9 million, representing a 33.7% increase from US$2,250.2 million in fiscal year 2025.

Operating Costs and Expenses

In fiscal year 2026, operating costs and expenses were US$2,732.9 million, representing a 21.3% increase from US$2,253.4 million in fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$2,689.8 million, representing a 22.9% increase from US$2,188.4 million in fiscal year 2025.

Cost of revenues increased by 27.9% to US$1,343.4 million from US$1,050.0 million in fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.6% to US$1,341.6 million from US$1,043.6 million in fiscal year 2025.

Selling and marketing expenses increased by 18.7% to US$889.1 million from US$748.8 million in fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 19.9% to US$878.2 million from US$732.6 million in fiscal year 2025.

General and administrative expenses increased by 10.1% to US$500.4 million from US$454.7 million in fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 14.0% to US$470.0 million from US$412.2 million in fiscal year 2025.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 33.6% to US$43.1 million in fiscal year 2026 from US$64.9 million in fiscal year 2025.

Gross Profit

Gross profit increased by 38.8% to US$1,665.5 million from US$1,200.3 million in fiscal year 2025. The gross margin in fiscal year 2026 was 55.4%, compared to 53.3% in the prior year.

(Loss)/Income from Operations

Income from operations was US$276.0 million in fiscal year 2026, compared to loss from operations of US$3.2 million in the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$319.1 million, compared to US$61.8 million Non-GAAP income from operations in the prior year.

Other Income

Other income was US$390.2 million in fiscal year 2026, compared to other income of US$64.7 million in the prior year. The change in other income in fiscal year 2026 was mainly driven by fluctuations in the fair value of certain investments.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$42.8 million in fiscal year 2026, compared to US$12.9 million in fiscal year 2025.

Income Tax Expense

Income tax expense was US$154.4 million in fiscal year 2026, compared to US$38.3 million of income tax expense in fiscal year 2025.

Net (Loss)/Income Attributable toTAL Education Group

Net income attributable to TAL was US$530.8 million in fiscal year 2026, compared to net income attributable to TAL of US$84.6 million in fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$573.8 million, compared to US$149.5 million Non-GAAP net income attributable to TAL in the prior year.

Basic and Diluted Net (Loss)/Income per ADS

Basic and diluted net income per ADS were US$0.93 and US$0.92, respectively, in fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$1.00 and US$0.99, respectively, in fiscal year 2026.

Cash Flow

Net cash provided by operating activities in fiscal year 2026 was US$601.5 million.

Share Repurchase

On July 28, 2025, TAL's board of directors authorized a new share repurchase program under which the Company may repurchase up to US$600 million of the Company's common shares over the next 12 months. Between January 29, 2026 and April 22, 2026, the Company has repurchased 101,371 common shares at an aggregate consideration of approximately US$3.3 million.

Change to the Management Team

Effective April 22, 2026, Mr. Mi Tian has stepped down as Chief Technology Officer and transitioned to Senior Vice President. Mr. Tian will focus on selected technology initiatives in his new capacity.

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the fourth fiscal quarter of fiscal year 2026 ended February 28, 2026 at 8:00 a.m. Eastern Time on April 23, 2026 (8:00 p.m. Beijing time on April 23, 2026).

Please note that you will need to pre-register for conference call participation at
https://dpregister.com/sreg/10208034/103bc38d804.

Upon registration, you will receive an email containing participant dial-in numbers, passcode, and a unique access PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.tal.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

About TAL Education Group

TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".

About Non-GAAP Financial Measures

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

For further information, please contact:

Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com

                                           
          
            TAL EDUCATION GROUP

                             
          
            UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

                                      
          
            (In thousands of U.S. dollars)




                                                                                                         As of     As of

                                                                                                       February  February
                                                                                                          28,        28,
                                                                                                           2025       2026



 
            ASSETS





 
            Current assets



 Cash and cash equivalents                                                                          $1,771,260 $1,523,879



 Restricted cash, current                                                                              187,846    227,551



 Short-term investments                                                                              1,847,120  1,715,446



 Inventory, net                                                                                        104,876    143,326



 Amounts due from related parties, current                                                                  37         46



 Prepaid expenses and other current assets                                                             215,781    232,870



 
            Total current assets                                                                   4,126,920  3,843,118



 Restricted cash, non-current                                                                           32,625     34,608



 Property and equipment, net                                                                           472,366    500,710



 Deferred tax assets                                                                                     3,487      3,170



 Rental deposits                                                                                        22,131     28,058



 Intangible assets, net                                                                                    394     45,975



 Goodwill                                                                                                  155     45,545



 Land use rights, net                                                                                  182,880    189,779



 Amounts due from related parties, non-current                                                              96        134



 Long-term investments                                                                                 305,105    828,249



 Long-term prepayments and other non-current assets                                                     27,844     37,216



 Operating lease right-of-use assets                                                                   329,064    379,727



 
            Total assets                                                                          $5,503,067 $5,936,289





 
            LIABILITIES AND EQUITY





 
            Current liabilities



 Accounts payable                                                                                     $146,300   $152,513



 Deferred revenue, current                                                                             624,272    832,839



 Amounts due to related parties, current                                                                    93         97



 Accrued expenses and other current liabilities                                                        582,227    672,344



 Operating lease liabilities, current                                                                   88,453    109,393



 
            Total current liabilities                                                              1,441,345  1,767,186



 Deferred revenue, non-current                                                                          46,955     49,353



 Deferred tax liabilities                                                                                3,474     67,981



 Operating lease liabilities, non-current                                                              244,895    278,083



 
            Total liabilities                                                                      1,736,669  2,162,603





 
            Equity



 Class A common shares                                                                                     154        156



 Class B common shares                                                                                      49         49



 Treasury stock                                                                                              -      (20)



 Additional paid-in capital                                                                          4,294,819  3,694,418



 Statutory reserve                                                                                     179,537    216,638



 Accumulated deficit                                                                                 (624,078) (130,428)



 Accumulated other comprehensive loss                                                                 (83,914)   (6,376)



 
            Total TAL Education Group's equity                                                     3,766,567  3,774,437



 Non-controlling interests                                                                               (169)     (751)



 
            Total equity                                                                           3,766,398  3,773,686



 
            Total liabilities and equity                                                          $5,503,067 $5,936,289

                                                                                                        
          
            TAL EDUCATION GROUP

                                                                               
          
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF 
            OPERATIONS

                                                                           
          
            (In thousands of U.S. dollars, except share, ADS, per share and per ADS data)




                                                                                                                                                                           
          
            For the Three Months Ended                    
          
            For the Fiscal Year Ended

                                                                                                                                                                                
          
            February 28,                               
          
            February 28,


                                                                                                                                                                                           2025                               2026                              2025                                      2026



 
            Net revenues                                                                                                                                                            $610,239                           $802,389                        $2,250,233     $3,008,908



 Cost of revenues (note 1)                                                                                                                                                             292,646                            375,158                         1,049,975      1,343,430



 Gross profit                                                                                                                                                                          317,593                            427,231                         1,200,258      1,665,478



 
            Operating expenses (note 1)



 Selling and marketing                                                                                                                                                                 217,981                            220,931                           748,750        889,053



 General and administrative (note 2)                                                                                                                                                   115,627                            133,827                           454,663        500,386



 Total operating expenses                                                                                                                                                              333,608                            354,758                         1,203,413      1,389,439



 (Loss)/income from operations                                                                                                                                                        (16,015)                            72,473                           (3,155)       276,039



 Interest income, net                                                                                                                                                                   19,072                             14,817                            83,482         62,030



 Other income                                                                                                                                                                           12,950                            275,016                            64,717        390,155



 Impairment loss on long-term                                                                                                                                                          (4,241)                          (41,404)                         (12,933)      (42,814)


     investments



 Income before income tax expense and                                                                                                                                                   11,766                            320,902                           132,111        685,410


     (loss)/income from equity method


     investments



 Income tax expense                                                                                                                                                                   (13,972)                          (76,952)                         (38,320)     (154,417)



 (Loss)/income from equity method                                                                                                                                                      (5,194)                               440                           (9,531)         (855)


     investments



 
            Net (loss)/income                                                                                                                                                       $(7,400)                          $244,390                           $84,260       $530,138



 Add: Net loss attributable to                                                                                                                                                              89                                400                               331            613


 non-controlling interests



 
            Total net (loss)/income attributable                                                                                                                                    $(7,311)                          $244,790                           $84,591       $530,751


 
                to TAL Education Group



 
            Net (loss)/income per common share



 Basic                                                                                                                                                                                 $(0.04)                             $1.33                             $0.42          $2.79



 Diluted                                                                                                                                                                                (0.04)                              1.31                              0.41           2.75



 
            Net (loss)/income per ADS (note 3)



 Basic                                                                                                                                                                                 $(0.01)                             $0.44                             $0.14          $0.93



 Diluted                                                                                                                                                                                (0.01)                              0.44                              0.14           0.92



 Weighted average shares used in


     calculating net (loss)/income


     per common share



 Basic                                                                                                                                                                             202,627,554                        184,629,323                       201,963,823    190,420,468



 Diluted                                                                                                                                                                           202,627,554                        186,620,660                       205,222,753    192,925,293





 Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:




                                                                                                                                                                            
          
            For the Three Months                        
          
            For the Fiscal Year


                                                                                                                                                                             
          
            Ended February 28,                         
          
            Ended February 28,


                                                                                                                                                                                           2025                               2026                              2025                                      2026



 Cost of revenues                                                                                                                                                                         $963                               $362                            $6,389                                    $1,874



 Selling and marketing expenses                                                                                                                                                          3,691                              2,386                            16,101                                    10,839



 General and administrative expenses                                                                                                                                                     9,669                              7,003                            42,449                                    30,380



 Total                                                                                                                                                                                 $14,323                             $9,751                           $64,939                                   $43,093





 Note 2: GAAP and non-GAAP general and administrative expenses include government subsidies, which were separately presented in our historical financial statements. This reclassification has been made to conform to the presentation for the current period, and such reclassification had no impact on the Group's previously reported (loss)/income from operations, net (loss)/income, shareholders' equity, or cash flows.





 Note 3: Three ADSs represent one Class A common share.

                            
          
            TAL EDUCATION GROUP

               
          
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

                        
          
            COMPREHENSIVE (LOSS)/INCOME

                       
          
            (In thousands of U.S. dollars)




                                                                                     For the Three Months                     For the Fiscal Year
                                                                                      Ended                      Ended

                                                                                     February 28,                     February 28,


                                                                    2025                2026              2025      2026



 
            Net (loss)/income                                $(7,400)           $244,390           $84,260  $530,138



 Other comprehensive                                           (13,376)             39,844          (17,724)   77,569


     (loss)/income, net of tax



 
            Comprehensive (loss)/income                      (20,776)            284,234            66,536   607,707



 Add: Comprehensive loss                                             44                 387                69       582


     attributable to non-controlling


     interests



 
            Comprehensive (loss)/income                     $(20,732)           $284,621           $66,605  $608,289


 
                attributable to TAL


 
                Education Group

                          
          
            TAL EDUCATION GROUP

             
          
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

                               
          
            CASH FLOWS

                     
          
            (In thousands of U.S. dollars)




                                                                                  For the Three Months                         For the Fiscal Year
                                                                                   Ended                          Ended

                                                                                  February 28,                         February 28,


                                                                 2025               2026               2025         2026



 Net cash (used in)/provided by                           $(226,332)        $(214,965)          $397,923     $601,467


     operating activities



 Net cash used in investing                                (314,289)         (475,945)         (847,028)   (175,746)


     activities



 Net cash used in financing                                 (55,104)          (18,937)          (13,167)   (643,512)


     activities



 Effect of exchange rate                                       (998)            10,284            (3,473)      12,098


     changes



 Net decrease in cash, cash                                (596,723)         (699,563)         (465,745)   (205,693)


     equivalents and restricted


     cash


               Cash, cash equivalents and                   2,588,454          2,485,601          2,457,476    1,991,731


 
                restricted cash at the


 
                beginning of period


               Cash, cash equivalents and                  $1,991,731         $1,786,038         $1,991,731   $1,786,038


 
                restricted cash at the end


 
                of period

                                              
          
            TAL EDUCATION GROUP

                    
          
            Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

                 
          
            (In thousands of U.S. dollars, except share, ADS, per share and per ADS data)




                                                                                                                 For the Three Months Ended                     For the Fiscal Year Ended

                                                                                                                 February 28,                      February 28,


                                                                                                  2025                  2026                  2025        2026





 
            Cost of revenues                                                               $292,646              $375,158            $1,049,975  $1,343,430



 Share-based compensation expenses in                                                             963                   362                 6,389       1,874


     cost of revenues



 
            Non-GAAP cost of revenues                                                       291,683               374,796             1,043,586   1,341,556





 
            Selling and marketing expenses                                                  217,981               220,931               748,750     889,053



 Share-based compensation expenses in                                                           3,691                 2,386                16,101      10,839


     selling and marketing expenses



 
            Non-GAAP selling and marketing                                                  214,290               218,545               732,649     878,214


 
                expenses





 
            General and administrative                                                      115,627               133,827               454,663     500,386


 
                expenses(note 2)



 Share-based compensation expenses in                                                           9,669                 7,003                42,449      30,380


     general and administrative expenses



 
            Non-GAAP general and                                                            105,958               126,824               412,214     470,006


 
                administrative expenses(note 2)





 
            Operating costs and expenses                                                    626,254               729,916             2,253,388   2,732,869



 Share-based compensation expenses in                                                          14,323                 9,751                64,939      43,093


     operating costs and expenses



 
            Non-GAAP operating costs and                                                    611,931               720,165             2,188,449   2,689,776


 
                expenses





 
            (Loss)/income from operations                                                  (16,015)               72,473               (3,155)    276,039



 Share-based compensation expenses                                                             14,323                 9,751                64,939      43,093



 
            Non-GAAP (loss)/income from                                                     (1,692)               82,224                61,784     319,132


 
                operations





 
            Net (loss)/income attributable to                                               (7,311)              244,790                84,591     530,751


 
            TAL Education Group



 Share-based compensation expenses                                                             14,323                 9,751                64,939      43,093



 
            Non-GAAP net income attributable                                                 $7,012              $254,541              $149,530    $573,844


 
            to TAL Education Group (note 4)





 
            Net (loss)/income per ADS



 Basic                                                                                        $(0.01)                $0.44                 $0.14       $0.93



 Diluted                                                                                       (0.01)                 0.44                  0.14        0.92



 
            Non-GAAP net income per ADS



 Basic                                                                                          $0.01                 $0.46                 $0.25       $1.00



 Diluted                                                                                         0.01                  0.45                  0.24        0.99



 
            ADSs used in calculating net


 
            (loss)/income per ADS



 Basic                                                                                    607,882,662           553,887,969           605,891,469 571,261,404



 Diluted                                                                                  607,882,662           559,861,980           615,668,259 578,775,879



 
            ADSs used in calculating Non-GAAP


 
            net income per ADS



 Basic                                                                                    607,882,662           553,887,969           605,891,469 571,261,404



 Diluted                                                                                  616,868,733           559,861,980           615,668,259 578,775,879





 Note 4: The tax effect of share-based compensation expenses was immaterial in the fourth quarter and in fiscal year 2026.

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SOURCE TAL Education Group

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