Youdao Inc., an AI-powered solutions provider specializing in learning and advertising applications, announced its unaudited financial results for the second quarter of 2025. The company reported total net revenues of RMB1.4 billion (US$197.9 million), marking a 7.2% increase from the same period in 2024. Net revenues from learning services rose by 2.2% to RMB657.8 million (US$91.8 million), while revenues from smart devices saw a decline of 23.9% to RMB126.8 million (US$17.7 million). However, net revenues from online marketing services increased by 23.8% to RMB632.9 million (US$88.3 million). The net loss attributable to ordinary shareholders for the quarter was RMB17.8 million (US$2.5 million), a significant improvement from a net loss of RMB99.5 million in the previous year. On a non-GAAP basis, the company achieved net income of RMB12.5 million (US$1.7 million), compared to a non-GAAP net loss of RMB96.0 million in the same period last year. Youdao's income from operations was RMB28.8 million (US$4.0 million), contrasting with a loss from operations of RMB72.6 million in the second quarter of 2024. The company's gross margin for the period was 43.0%, down from 48.2% a year earlier. As of June 30, 2025, Youdao held cash, cash equivalents, current and non-current restricted cash, and short-term investments totaling RMB617.0 million (US$86.1 million), a decrease from RMB662.6 million as of December 31, 2024. Net cash provided by operating activities for the second quarter of 2025 was RMB185.0 million (US$25.8 million).