Youdao, Inc. Unsponsored ADR
DAO Consumer Defensive Education & Training Services
Youdao, Inc. Unsponsored ADR’s revenue for fiscal 2025 (year ended December 2025) was $845.0 million, up 9.63% from fiscal 2024. In the quarter to June 2026, revenue grew 9.25%, EPS grew 550.0%, free cash flow grew 147.2% and total debt fell 1.93%, each against the same quarter a year earlier. Revenue growth for five consecutive years, operating cash flow growth for three.
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Youdao, Inc. Unsponsored ADR (DAO) Altman Z-score
Youdao, Inc. Unsponsored ADR's Altman Z-score for fiscal 2025 is −0.18, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | −0.18 | 0.96 |
| FY2024 | −1.15 | 2.31 |
| FY2023 | −3.45 | (1.24) |
| FY2022 | −2.21 | (1.41) |
| FY2021 | −0.80 | 0.55 |
| FY2020 | −1.36 | (3.04) |
| FY2019 | 1.69 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.61) | — | −0.74 | |
| Retained earnings / total assets | (2.92) | — | −4.08 | |
| EBIT / total assets | 0.11 | — | 0.37 | |
| Market value of equity / total liabilities | 2.13 | — | 1.28 | |
| Sales / total assets | 2.99 | — | 2.99 | |
| Altman Z-score | Distress zone | −0.18 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −13.30 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| APEI American Public Education, Inc. compare | 3.7× |
| UTI Universal Technical Institute Inc compare | 3.7× |
| LINC Lincoln Educational Services Corporation compare | 3.0× |
| AFYA Afya Limited compare | 2.4× |
| COUR Coursera, Inc. compare | 1.9× |
| KLC KinderCare Learning Companies, Inc. compare | 0.7× |
| DAO Youdao, Inc. Unsponsored ADR | −0.2× |
| GOTU Gaotu Techedu Inc. compare | −0.2× |
| PXED Phoenix Education Partners, Inc. compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets