Xueda (Xiamen) Education Technology (000526 CH): Rev. Grew Robustly; Optimized Expenses Boosted Profit

Xueda Education announced 3Q26 results: revenue was RMB757mn (+8.59% YoY), attributable net profit (NP) was RMB20.02mn (+1,297.04% YoY), and recurring NP was RMB16.82mn (+830.97% YoY). For 9M26, revenue was RMB2,919mn and attributable NP was RMB321mn, accounting for 79.6% and 89.8% of our previous full-year forecasts, respectively, in line with our expectations. 3Q is a traditional off-season. Revenue maintained steady growth, while expense ratio optimization drove a YoY improvement in the quarterly operating margin. Revenue grew for 15 consecutive quarters YoY; 3Q26 gross profit reached RMB202mn (+6.84% YoY) with gross margin at 26.73% (-0.44pp YoY), roughly flat. Operating profit was RMB24.91mn with an operating margin of 3.29% (+3.26pp YoY);