Sunlands (STG) Q1 2026 Earnings Transcript

Sunlands Technology Group reported Q1 2026 net revenues of RMB 440.7 million, down 9.6% year-over-year, but maintained profitability with net income of RMB 76.8 million marking the 20th consecutive profitable quarter. The company achieved a 17.4% net income margin through aggressive cost discipline, with selling expenses declining 19.5% year-over-year. Management is prioritizing revenue quality over scale, expanding AI capabilities for customer acquisition, and diversifying into senior interest-based programs. However, Q2 2026 guidance projects revenues of RMB 410-430 million, representing a 20.2-23.9% year-over-year decline, citing macro uncertainties and shifting learner demand patterns.