Youdao Reports Q3 2025 Profit Growth as AI-Driven Advertising Becomes Top Revenue Source
Youdao Inc. reported a significant profit growth in Q3 2025, with net revenue of RMB 1.6 billion and an operating profit of RMB 28.3 million. Advertising revenue, driven by AI technology, surged by 51.1% year-over-year, becoming the largest income source. The company improved operational efficiency, reducing operating cash outflow by 31.7% year-over-year. This growth is attributed to AI-driven advertising enhancements.
Youdao Inc. announced its unaudited financial results for the third quarter of 2025, reporting net revenue of RMB 1.6 billion (approximately US$200 million). Operating profit for the quarter reached RMB 28.3 million (approximately US$3.93 million), with operating profit for the first three quarters increasing by nearly 150% year-over-year. Operating cash outflow narrowed by 31.7% year-over-year, indicating improved operational efficiency. Advertising revenue surged to RMB 0.74 billion (approximately US$101 million), marking a year-over-year growth of 51.1%. For the first time, advertising became Youdao’s largest source of income. The company attributed this growth to the expanded use of its proprietary AI technology in advertising, including AI-driven and self-service enhancements to influencer marketing and real-time campaign performance tracking. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Youdao Inc. published the original content used to generate this news brief via PR Newswire (Ref. ID: CN29843) on November 21, 2025, and is solely responsible for the information contained therein. © Copyright 2025 - Public Technologies (PUBT)
