UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2025

Commission file number: 001-39087

Youdao, Inc. 

(Exact Name of Registrant as Specified in Its Charter)

No. 399, WangshangRoad, Binjiang District
Hangzhou 310051, People’s Republic of China
+86 0571-8985-2163

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annualreports under cover Form 20-F or Form 40-F.     Form 20-F  ☒          Form40-F  ☐

EXHIBIT INDEX

Signature

Pursuant to the requirements of the SecuritiesExchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Exhibit 99.1

For investor and media inquiries, please contact:

In China: 

Jeffrey Wang 

Youdao, Inc. 

Tel: +86-10-8255-8163 ext. 89980 

E-mail: IR@rd.netease.com

Piacente Financial Communications 

Helen Wu 

Tel: +86-10-6508-0677 

E-mail: youdao@thepiacentegroup.com

In the United States: 

Piacente Financial Communications   

Brandi Piacente 

Tel: +1-212-481-2050 

E-mail: youdao@thepiacentegroup.com

Youdao Reports Second Quarter 2025 UnauditedFinancial Results

Hangzhou, China – August 14, 2025 –Youdao, Inc. (“Youdao” or the “Company”) (NYSE: DAO), an AI-powered solutions provider specializing in artificialintelligence applications for the learning and advertising verticals, today announced its unaudited financial results for the second quarterended June 30, 2025.

Second Quarter 2025 Financial Highlights

“Strong execution of our AI Native Strategydrove robust financial results in the second quarter, highlighted by our first-ever profitable second quarter. We released our latestLarge Language Model (LLM) Confucius 3 in the second quarter, and open-sourced our Confucius 3-Math. Product wise, we launched the AIEssay Grading function in Youdao Lingshi, leading to a historical high of the retention rate. We also released AI Ad Placement Optimizerenabling end-to-end AI decision-making for our online marketing services. In addition, we deepened the exploration of new AI applicationscenarios, driving total sales of AI-driven subscription services to approximately 30% year-over-year growth,” said Dr. Feng Zhou,Chief Executive Officer and Director of Youdao.

“Looking ahead, we will continue advancingour AI Native Strategy through scenario-driven optimization of our LLMs and accelerated technological innovation and implementationacross learning and advertising, aiming to further boost learners’ productivity and elevate advertising return oninvestment. We remain committed to sustainably creating customer value while strengthening our financial metrics,” Dr. Zhouconcluded.

Second Quarter 2025 Financial Results

Net Revenues

Net revenues for the second quarter of 2025 wereRMB1.4 billion (US$197.9 million), representing a 7.2% increase from RMB1.3 billion for the same period of 2024.

Net revenues from learning services were RMB657.8million (US$91.8 million) for the second quarter of 2025, representing a 2.2% increase from RMB643.8 million for the same period of 2024.

Net revenues from smart devices were RMB126.8million (US$17.7 million) for the second quarter of 2025, representing a 23.9% decrease from RMB166.7 million for the same period of 2024,primarily due to the declined demands of consumer electronics in the second quarter of 2025.

Net revenues from online marketing services wereRMB632.9 million (US$88.3 million) for the second quarter of 2025, representing a 23.8% increase from RMB511.2 million for the same periodof 2024. The year-over-year increase was mainly attributable to the increased demands from gaming industry and overseas markets, whichwas driven by our continued investments in AI technology.

Gross Profit and Gross Margin

Gross profit for the second quarter of 2025 wasRMB609.4 million (US$85.1 million), representing a 4.3% decrease from RMB636.8 million for the same period of 2024. Gross margin was 43.0%for the second quarter of 2025, compared with 48.2% for the same period of 2024.

Gross margin for learning services was 59.8% forthe second quarter of 2025, kept flat the same period of 2024.

Gross margin for smart devices increased to 41.5%for the second quarter of 2025 from 30.3% for the same period of 2024. The improvement was mainly attributableto the higher gross margin arising from the newly launched Youdao Dictionary Pen since the second half of 2024.

Gross margin for online marketing services was25.8% for the second quarter of 2025, compared with 39.1% for the same period of 2024. The decrease was mainly attributable to our strategicexpansion of our client base for advertising services. As the collaboration with new clients remains in its nascent stage, the gross marginfor these clients holds potential for future improvement.

Operating Expenses

Total operating expenses for the second quarterof 2025 were RMB580.6 million (US$81.0 million), compared with RMB709.3 million for the same period of last year.

Sales and marketing expenses for the second quarterof 2025 were RMB401.8 million (US$56.1 million), representing a decrease of 22.1% from RMB515.7 million for the same period of 2024. Thisdecrease was attributable to the reduced marketing expenditures in learning services in the second quarter of 2025.

Research and development expenses for the secondquarter of 2025 were RMB128.3 million (US$17.9 million), representing a decrease of 16.1% from RMB153.0 million for the same period of2024. The decrease was primarily due to the decreased headcount for research and development employees, leading to payroll savings inthe second quarter of 2025.

General and administrative expenses for the secondquarter of 2025 were RMB50.4 million (US$7.0 million), representing an increase of 24.1% from RMB40.6 million for the same period of 2024.The increase was mainly attributable to an increase in employee related expenses and expected credit losses on our accounts receivablesin the second quarter of 2025.

Income/(Loss) from Operations

Asa result of the foregoing, income from operations for the second quarter of 2025 was RMB28.8 million (US$4.0 million), comparedwith loss from operations of RMB72.6 million for the same period in 2024. The margin of income from operations was 2.0%, compared withmargin of loss from operations of 5.5% for the same period of last year.

Others, Net

Others, net for the second quarter of 2025 wereRMB29.1 million (US$4.1 million) net loss, compared with RMB0.9 million net loss for the same period of 2024. Others, net for the secondquarter of 2025 mainly included RMB25.7 million (US$3.6 million) impairment loss arising from certain long-term investments.

Net (Loss)/Income Attributable to Youdao’sOrdinary Shareholders

Net loss attributable to Youdao’s ordinaryshareholders for the second quarter of 2025 was RMB17.8 million (US$2.5 million), compared with RMB99.5 million for the same period oflast year. Non-GAAP net income attributable to Youdao’s ordinary shareholders for the second quarter of 2025 was RMB12.5 million(US$1.7 million), compared with non-GAAP net loss attributable to Youdao’s ordinary shareholders of RMB96.0 million for the sameperiod of last year.

Basic and diluted net loss per ADS attributableto ordinary shareholders for the second quarter of 2025 was RMB0.15 (US$0.02), compared with RMB0.85 for the same period of 2024. Non-GAAPbasic and diluted net income per ADS attributable to ordinary shareholders was RMB0.11 (US$0.02) and RMB0.10 (US$0.01), respectively,compared with non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders of RMB0.82 for the same period of 2024.

OtherInformation

Asof June 30, 2025, Youdao’s cash, cash equivalents, current and non-current restricted cash, and short-term investments totaled RMB617.0million (US$86.1 million), compared with RMB662.6 million as of December31, 2024. For the second quarter of 2025, net cash provided by operating activities was RMB185.0 million (US$25.8 million). Youdao’sability to continue as a going concern is dependent on management’s ability to implement an effective business plan amid a changingregulatory environment, generate operating cash flows, and secure external financing for future development. To support Youdao’sfuture business, NetEase Group has agreed to provide financial support for ongoing operations in the next thirty-six months starting fromMay 2024. As of June 30, 2025, Youdao has received various forms of financial support from the NetEase Group, including, among others,RMB878.0 million in short-term loan, and US$130.7 million in long-term loans maturing on March 31, 2027 drawn from the US$300.0 millionrevolving loan facility.

As of June 30, 2025, the Company’s contractliabilities, which mainly consisted of deferred revenues generated from Youdao’s learning services, were RMB856.7 million (US$119.6million), compared with RMB961.0 million as of December 31, 2024.

Share Repurchase Program

On November 17, 2022, the Company announced thatits board of directors had authorized the Company to adopt a share repurchase program in accordance with applicable laws and regulationsfor up to US$20 million of its Class A ordinary shares (including in the form of ADSs) during a period of up to 36 months. This amountwas subsequently increased to US$40.0 million in August 2023. As of June30, 2025, the Company had repurchased a total of approximately 7.5 million ADSs for a total consideration of approximately US$33.8 millionin the open market under the share repurchase program.

Conference Call

Youdao’s management team will host a teleconferencecall with simultaneous webcast at 6:00 a.m. Eastern Time on Thursday, August 14, 2025 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, August14, 2025). Youdao’s management will be on the call to discuss the financial results and answer questions.

Dial-in details for the earnings conference callare as follows:

A live and archived webcast of the conferencecall will be available on the Company’s investor relations website at http://ir.youdao.com.

A replay of the conference call will be accessibleby phone one hour after the conclusion of the live call at the following numbers, until August 21, 2025:

About Youdao, Inc.  

Youdao, Inc. (NYSE: DAO) is strategically positionedas an AI-powered solutions provider specializing in artificial intelligence applications for the learning and advertising verticals. Youdaonow mainly offers learning services, online marketing services and smart devices – all powered by advanced technologies. Youdaowas founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), a leading internet technology company in China.

Formore information, please visit: http://ir.youdao.com.

Non-GAAP Measures

Youdao considers and uses non-GAAP financial measures,such as non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders and non-GAAP basic and diluted net income/(loss)per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentationof non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information preparedand presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Youdao defines non-GAAP net income/(loss) attributableto the Company’s ordinary shareholders as net income/(loss) attributable to the Company’s ordinary shareholders excludingshare-based compensation expenses, impairment of long-term investments, gain from fair value change of long-term investment and adjustmentfor GAAP to non-GAAP reconciling item for the income/(loss) attributable to noncontrolling interests. Non-GAAP net income/(loss) attributableto the Company’s ordinary shareholders enables Youdao’s management to assess its operating results without considering theimpact of these items, which are non-cash charges in nature. Youdao believes that these non-GAAP financial measures provide useful informationto investors in understanding and evaluating the Company’s current operating performance and prospects in the same manner as managementdoes, if they so choose.

Non-GAAP financial measures are not defined underU.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, whichpossibly do not reflect all items of expense that affect our operations. In addition, the non-GAAP financial measures Youdao uses maydiffer from the non-GAAP measures uses by other companies, including peer companies, and therefore their comparability may be limited.

For more information on these non-GAAP financialmeasures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of thisrelease.

The accompanying table has more details on thereconciliation between our GAAP financial measures that are mostly directly comparable to non-GAAP financial measures. Youdao encouragesyou to review its financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information

This announcement contains translations of certainRMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated,all translations from RMB to US$ were made at the rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 2025 set forth in theH.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred couldbe converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This press release contains forward-looking statements.These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-lookingstatements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results todiffer materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified bywords or phrases such as “may,” “will,” “expect,” “anticipate,” “target,”“aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,”“is/are likely to” or other similar expressions. The Company may also make written or oral forward-looking statements in itsreports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releasesand other written materials and in oral statements made by its officers, directors or employees to third parties. Further informationregarding such risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in thispress release is as of the date of this press release, and the Company does not undertake any duty to update such information, exceptas required under applicable law.

Note 1: 

The conversion of Renminbi (RMB) into United States dollars (USD) isbased on the noon buying rate of USD1.00=RMB7.1636 on the last trading day of June (June 30, 2025) as set forth in the H.10 statisticalrelease of the U.S. Federal Reserve Board.

Note 1: 

The conversion of Renminbi (RMB) into United States dollars (USD) isbased on the noon buying rate of USD1.00=RMB7.1636 on the last trading day of June (June 30, 2025) as set forth in the H.10 statisticalrelease of the U.S. Federal Reserve Board.