Overview

* QuantaSing ( QSG ) fiscal Q4 revenue falls 38.2% yr/yr, driven by strategic shift

* Net income for fiscal Q4 declines, reflecting reduced online learning revenue

* Pop toy business contributes 10.6% of total revenue post-Letsvan acquisition

Outlook

* QuantaSing ( QSG ) expects Q1 FY 2026 pop toy revenue of RMB100-110 mln

* Company expects FY 2026 pop toy revenue of RMB750-800 mln

* Company to expand pop toy business internationally

* QuantaSing ( QSG ) in talks for potential restructuring of established businesses

Result Drivers

* POP TOY BUSINESS - QuantaSing's ( QSG ) acquisition of Shenzhen Yiqi Culture Co., Ltd. led to RMB65.8 mln in revenue from the pop toy business in Q4 FY 2025

* STRATEGIC TRANSFORMATION - Co's shift from traffic-driven to product-driven growth resulted in a decline in online learning services revenue, partially offset by new pop toy business

* COST MANAGEMENT - Sales and marketing expenses decreased by 49.3% to RMB294.1 mln, reflecting a strategic transformation towards a product-driven model, according to CFO Dong Xie

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 RMB

Revenue 617.84

mln

Q4 RMB

Adjusted 111.20

Net mln

Income

Q4 Net RMB

Income 107.98

mln

Q4 Gross RMB

Profit 467.62

mln

Q4 -RMB

Operatin 344.23

g mln

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous educational service providers peer group is "buy."

* Wall Street's median 12-month price target for QuantaSing Group Ltd ( QSG ) is $15.00, about 32.3% above its September 16 closing price of $10.15

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)