Youdao, Inc. key statistics and ratios

In fiscal 2025, Youdao, Inc. had an operating margin of 3.7% and a current ratio of 0.59. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Youdao, Inc.: financial ratios, annual
Fiscal year	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025
Gross margin	35.5%	29.6%	27.7%	43.8%	49.5%	51.6%	51.4%	48.9%	44.3%
Operating margin	−28.5%	−30.0%	−38.1%	−33.7%	−23.5%	−15.5%	−8.7%	2.6%	3.7%
Net margin	−29.3%	−28.6%	−49.8%	−69.4%	−24.8%	−14.5%	−10.2%	1.5%	1.8%
Free-cash-flow margin	−21.5%	−15.6%	−32.3%	−13.9%	−35.1%	−13.4%	−8.5%	−1.4%	0.5%
Return on assets	—	−35.1%	−44.7%	−82.4%	−42.3%	−29.1%	−27.5%	4.7%	5.6%
Asset turnover	—	1.23	0.90	1.19	1.70	2.01	2.70	3.24	3.10
Current ratio	—	0.46	1.15	0.55	0.75	0.59	0.42	0.50	0.59
Debt to equity	—	—	0.0%	—	—	—	—	—	—
Interest cover (operating income ÷ interest)	—	n/m	n/m	n/m	n/m	n/m	n/m	2.0x	3.5x
Effective tax rate	—	—	—	—	—	—	—	7.4%	14.6%
R&D as % of revenue	29.2%	25.2%	22.4%	14.7%	15.1%	16.0%	13.8%	9.6%	8.7%
Capital spending as % of revenue	2.3%	1.9%	1.5%	1.2%	1.6%	1.4%	0.3%	0.2%	0.4%
Free cash flow ÷ net income	—	—	—	—	—	—	—	−96.9%	27.6%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

1 of 3 checks passed · December 31, 2025

What it owns · $282m

Short-term assets $246mLonger-term assets $36m

What it owes, and who funded it · $559m

Short-term liabilities $420mLonger-term liabilities $139mShareholders' equity $-277m

Short-term assets cover short-term liabilities $246m of assets due within a year against $420m of liabilities due within a year.
Short-term assets cover long-term liabilities $246m short-term assets against $139m of longer-dated liabilities.
More cash than debt Cash or debt not separately reported. Not assessable.
Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
Operating profit covers interest at least five times over Operating income of $31m against $9m of interest.

From Youdao, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

Not assessed: fewer than five years of comparable figures in the filings. AI disruption exposure for this industry: Medium.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: DAO vs PRDO DAO vs UTI AFYA vs DAO

More: Education Services stocks compared, Consumer Discretionary sector, rankings of US companies

Figures from Youdao, Inc.'s SEC filings (10-K and 10-Q). How we read and check them: methodology and data sources. Not investment advice. Back to Youdao, Inc.