17 Education & Technology Group Inc.
- Open
- 1.91
- Day high
- 2.11
- Day low
- 1.91
- Prev close
- 2.06
- Volume
- 4K
- Mkt cap
- $21M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.5
- P/S
- 0.8
- Yield
- —
- Per share
- —
- ▲Insiders net buying $134K over the last 3 months (11 open-market buys, 0 sales)
17 Education & Technology Group Inc. (YQ) is a Consumer Defensive company listed on NASDAQ. The stock is up 4% over the past year. Over the trailing 3 months, insiders filed 11 open-market buys and 0 sales (SEC Form 4).
17 Education & Technology Group Inc. (YQ) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
YQ earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 17, 2026 | $-8.60 | $-0.23 | +97.3% | $14M | -80.3% |
| Mar 25, 2026 | $-1.23 | $-0.39 | +68.3% | $5M | -47.7% |
| Dec 9, 2025 | — | $-0.41 | — | $3M | — |
| Sep 3, 2025 | — | $-0.39 | — | $4M | — |
| Mar 25, 2025 | — | $-0.63 | — | $5M | — |
| Dec 11, 2024 | — | $-0.28 | — | $8M | — |
| Sep 4, 2024 | — | $-0.77 | — | $9M | — |
| Jun 5, 2024 | — | $-0.76 | — | $4M | — |
| Mar 20, 2024 | — | $-1.23 | — | $7M | — |
| Dec 6, 2023 | — | $-0.70 | — | $6M | — |
| Aug 28, 2023 | — | $-0.20 | — | $10M | — |
| Jun 14, 2023 | — | $-1.05 | — | $1M | — |
YQ insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Sep 1, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 4,001 | $2.11 |
| Aug 28, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 9,216 | $2.16 |
| Aug 24, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 846 | $2.46 |
| Aug 14, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 853 | $2.41 |
| Aug 11, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 3,295 | $2.44 |
| Aug 10, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 1,857 | $2.13 |
| Aug 3, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 5,830 | $1.89 |
| Jul 31, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 500 | $1.86 |
| Jul 22, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 9,287 | $2.17 |
| Jul 20, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 7,633 | $2.08 |
| Jul 6, 2026 | Liu Changdirector, 10 percent owner, officer: Chief Executive Officer | Buy | 18,988 | $2.20 |
Source: YQ SEC Form 4 filings, latest Sep 1, 2026. For informational purposes only — not investment advice.
See the full YQ insider & 13F page →17 Education & Technology Group Inc. company profile
Overview
17 Education & Technology Group Inc. (NASDAQ:YQ) is a Chinese education technology company founded in 2012 and headquartered in Beijing. The company went public on NASDAQ in December 2020. Originally focused on online K-12 tutoring services, 17 Education underwent a significant business transformation following China's regulatory changes in the education sector, pivoting to focus primarily on Software-as-a-Service (SaaS) solutions for schools and educational institutions. Today, the company operates as a B2B education technology provider, offering digital learning platforms, smart classroom solutions, and educational data analytics services to schools across China.
Business
17 Education operates in China's digital education transformation market, providing technology solutions that modernize traditional classroom teaching and learning processes. The company's core business centers around teaching and learning SaaS platforms that integrate hardware and software to create comprehensive digital education ecosystems. The company's primary offering is its smart classroom and precision teaching system, which combines proprietary smart pen technology with cloud-based analytics platforms. Students use intelligent dot matrix pens to complete assignments on special paper, with their work automatically digitized and analyzed. This system captures detailed learning data including writing patterns, time spent on problems, and error analysis, enabling teachers to provide personalized instruction and identify learning gaps in real-time. 17 Education's product portfolio includes several key components: 1. Smart pen hardware that digitizes handwritten work and captures learning behaviors, 2. Homework management platforms that process and analyze student submissions, providing automated grading and performance insights, 3. Teacher dashboard systems that aggregate student data to support instructional decision-making, and 4. Personalized learning modules that adapt content delivery based on individual student performance patterns. The company primarily serves public schools, private schools, and educational districts through both direct sales and a network of over 500 distribution partners across 27 provinces in China. Based on recent earnings reports, the teaching and learning SaaS business represents the overwhelming majority of revenue, with legacy educational services contributing minimal amounts following the regulatory pivot. The platform currently serves approximately 450,000 active students across more than 600 schools, processing over 45 million homework assignments quarterly.
Revenue model
17 Education generates revenue primarily through SaaS subscription models and project-based contracts with educational institutions. Schools and districts pay for multi-year licensing agreements to access the company's digital learning platforms, with typical contracts ranging from individual school deployments to district-wide implementations worth millions of RMB. The company's revenue model operates on several tiers: 1. Hardware sales of smart pens and related devices to schools, 2. Software licensing fees for platform access and ongoing updates, 3. Implementation and training services for system deployment, and 4. Ongoing support and maintenance contracts. The business model benefits from high switching costs once schools integrate the platform into their daily operations, as evidenced by the company's 89% contract renewal rate and 120% revenue retention rate from existing customers. The company's paying customers are primarily public school districts, private school groups, and individual educational institutions. Government procurement processes represent a significant portion of business, with notable contracts including district-wide deployments in Shanghai, Beijing, and other major Chinese cities. The sales cycle typically involves lengthy procurement processes, particularly for government contracts, but results in multi-year agreements with predictable revenue streams. Factors that could increase margins include: economies of scale as the platform serves more students without proportional cost increases, higher-value service offerings such as advanced analytics and AI-powered features, and expansion into premium market segments. Margin pressures could arise from: intense competition in the education technology sector, government budget constraints affecting procurement spending, pricing pressure from alternative solutions, and the need for continuous product development and innovation to maintain competitive positioning. The company's gross margins have shown volatility, ranging from 16% to 74% across recent quarters, reflecting the mix between lower-margin hardware sales and higher-margin software services.
Competitive moat
17 Education's competitive moat appears moderate but fragile, primarily built on early-mover advantages in China's digital education transformation rather than insurmountable barriers. The company's strongest defensive position comes from its integration depth within school systems - once implemented, the platform becomes embedded in daily teaching workflows, creating switching costs for educators and administrators who have adapted their practices around the system. The company benefits from network effects as more students and teachers use the platform, generating richer data sets that improve the AI-powered personalization features. The proprietary smart pen technology and dot matrix paper system create some technical differentiation, though hardware advantages can typically be replicated by well-funded competitors. The company's data advantage grows stronger over time as it accumulates learning behavior patterns from hundreds of thousands of students. However, the moat faces significant vulnerabilities. The education technology sector in China is highly competitive with numerous well-funded players including Tencent, Alibaba, and other tech giants who could rapidly develop competing solutions. The company's dependence on government procurement creates regulatory risk, as policy changes could dramatically alter market dynamics. Additionally, the core technology concepts - digital homework processing and learning analytics - are not proprietary innovations that competitors cannot replicate. The most significant competitive threat comes from platform consolidation, where larger technology companies integrate similar functionality into broader educational ecosystems. Companies with deeper resources could offer more comprehensive solutions at competitive prices, potentially commoditizing 17 Education's current offerings. The company's relatively small scale compared to major Chinese tech companies limits its ability to invest in cutting-edge AI and machine learning capabilities that could strengthen its competitive position.
Risks & safety
The company presents a moderate to high risk profile with concerning cash burn patterns but adequate liquidity buffers. • Liquidity position: Strong with RMB 319 million in cash and short-term investments as of Q3 2024, providing substantial runway given current burn rates • Cash burn: Significant negative operating cash flow of RMB 190 million for FY 2024, though showing some improvement from previous periods • Debt levels: Minimal debt with debt-to-equity ratio of only 2.8%, indicating low financial leverage risk • Current ratio: Healthy at 3.36x, demonstrating strong short-term liquidity coverage • Solvency risk: Low in near-term given cash reserves, but ongoing losses create long-term sustainability concerns Valuation metrics: • Trading at 0.24x price-to-book ratio, suggesting potential undervaluation relative to net assets • Negative earnings make P/E ratios meaningless, but EV/EBITDA of -22x reflects ongoing losses • Graham net-net ratio of 0.63 indicates trading below liquidation value Other considerations: The company's financial runway provides 1-2 years at current burn rates, but path to profitability remains unclear. Revenue growth has been inconsistent, and the business model's scalability is still being proven in practice.
Recent development
Over the past few years, 17 Education has undergone a fundamental business transformation driven by China's regulatory crackdown on private tutoring services. The company completely exited its original online K-12 tutoring business and pivoted to focus exclusively on B2B SaaS solutions for educational institutions. The strategic transformation involved several key developments: 1. Product portfolio restructuring around smart classroom technologies, with heavy investment in proprietary smart pen hardware and cloud-based analytics platforms, 2. Sales model evolution from direct-to-consumer tutoring services to enterprise sales targeting schools and districts, 3. Geographic expansion of distribution networks, growing from limited coverage to over 500 partners across 27 provinces, and 4. Technology advancement with enhanced AI integration for personalized learning and improved data analytics capabilities. Recent operational milestones include securing major district-wide contracts in Shanghai and Beijing, achieving 89% contract renewal rates, and expanding service scope by 37% among existing customers. The company has also focused on operational efficiency improvements, successfully narrowing losses by over 75% year-over-year while maintaining revenue growth. Platform metrics show strong engagement with 450,000 active students completing 45 million homework assignments quarterly. The company has emphasized product innovation with continuous enhancements to examination and grading products, teacher performance analysis tools, and personalized learning data integration. Strategic partnerships with local distributors have accelerated market penetration, while the development of comprehensive SaaS solutions has positioned the company to capture recurring revenue from the digital education transformation trend in China.
YQ company profile · for informational purposes only — not investment advice.
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