DAO
Youdao, Inc.
DAO's fundamentals are mixed: revenue grew 6.7%, but earnings per share fell 31%. Its PE isn't a useful guide right now because of how its recent earnings were reported.
DAO Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Stable | |
| Stable | |
| Weak |
DAO's revenue, profitability and cash flow are currently stable, but its balance sheet is weak.
DAO PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 51x | $10.16 | -47% |
| Fair | 80x | $16.08 | -16% |
| Current | 96x | $19.18 | — |
| Expensive | 153x | $30.69 | +60% |
Historical ranges are pointers, not guarantees.
DAO's PE is 96x, but its earnings don't support one, so it isn't a reliable read right now.
DAO Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for DAO, with profitability improving.
DAO Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | $0.20 | -31% |
| Q1 2026 | $0.09 | -50% |
| Q4 2025 | $0.13 | +30% |
| Q3 2025 | $0.18 | +157% |
| Q2 2025 | $0.29 | +$0.46 |
| Q1 2025 | $0.18 | +$0.59 |
| Q4 2024 | $0.10 | +$0.78 |
| Q3 2024 | $0.07 | +$0.82 |
DAO's earnings per share have fallen from their peak: $0.20 over the past year, against $0.29 in mid-2025.
DAO Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $219.5M | +3.2% |
| Q1 2026 | $202.3M | +3.8% |
| Q4 2025 | $234.8M | +17% |
| Q3 2025 | $244.4M | +3.6% |
| Q2 2025 | $212.7M | +7.2% |
| Q1 2025 | $194.8M | -6.7% |
| Q4 2024 | $201.1M | -9.5% |
| Q3 2024 | $236M | +2.2% |
DAO's revenue has grown year over year for five quarters in a row: $220M last quarter, up 3.2% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 7.6% | +5.6 points |
| Q1 2026 | 4.3% | -3.7 points |
| Q4 2025 | 4.3% | -2.9 points |
| Q3 2025 | 1.7% | -5.1 points |
| Q2 2025 | 2% | +7.5 points |
| Q1 2025 | 8% | +5.9 points |
| Q4 2024 | 7.2% | +2 points |
| Q3 2024 | 6.8% | +11 points |
DAO's operating margin was 7.6% last quarter, up 5.6 points from the same quarter a year ago, near the top of its range since 2019.
DAO Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $0 | $0 |
| Q1 2026 | $0 | $0 |
| Q4 2025 | $0 | $0 |
| Q3 2025 | $0 | $0 |
| Q2 2025 | $0 | $0 |
| Q1 2025 | $0 | $0 |
| Q4 2024 | $0 | $0 |
| Q3 2024 | $0 | $0 |
DAO's free cash flow was $0 over the past year, against $0 the year before.
DAO Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +182K shares |
| 1 year | +2.3% | +2.8M shares |
| 3 years | -1.3% | -1.6M shares |
| 5 years | +2% | +2.3M shares |
| Available history | +7.7% | +8.6M shares |
DAO has 121M diluted shares, up 2.3% from a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
| Q3 2024 | — |
DAO hasn't bought back shares in the past year.
DAO Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | 4.9x | High |
| Q1 2026 | 10.4x | High |
| Q4 2025 | 8.0x | High |
| Q3 2025 | 6.6x | High |
| Q2 2025 | 4.4x | High |
| Q1 2025 | 6.6x | High |
| Q4 2024 | 8.2x | High |
| Q3 2024 | 9.7x | High |
DAO's net debt is about 4.8 years of its operating earnings (EBITDA), up from 4.3 years a year ago.
DAO Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 66.7 | Neutral |
| Stochastic | 84.5 | Overbought |
DAO's weekly RSI is 67 (neutral) and its Stochastic is 84 (overbought).
DAO PE vs Consumer Defensive Sector
| Metric | DAO | Sector median | Relative |
|---|---|---|---|
| PE | 96x | 19x | 393% above |
| PE % | 62 | 18 | 44 pts above |
DAO is trading at 96x earnings, a 393% premium to the Consumer Defensive sector's median of 19x, though its earnings don't support one.
DAO Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $17.9 | 7% above |
| 20 week MA | $16.6 | 16% above |
| 50 week MA | $13.1 | 47% above |
| 100 week MA | $10.9 | 76% above |
| 200 week MA | $7.82 | 145% above |
DAO is in an uptrend: it's above all five of its weekly moving averages, and 145% above its 200-week average.
DAO Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $13.9 | $27.1 | +94% |
| 2021 | $27.1 | $11.5 | -58% |
| 2022 | $11.5 | $6.39 | -44% |
| 2023 | $6.39 | $3.94 | -38% |
| 2024 | $3.94 | $6.90 | +75% |
| 2025 | $6.90 | $9.48 | +37% |
| 2026 YTD | $9.48 | $19.2 | +102% |
DAO is up 102% so far in 2026, after finishing lower in three of the previous six years.