Key F1Q25 takeaways include: 1) ongoing progress against QSG's transition to providing high-demand products and services to middle-aged and elderly individuals 2) despite our forecasts for ongoing revenue declines, we look for continued profitability reflecting management's ongoing focus on optimizing expenses, more efficient customer acquisition, more targeted marketing initiatives, and more integrated online/offline distribution 3) QSG maintains ample liquidity to continue to invest in the company's strategic transition while maintaining profitability, and returning capital to shareholders and 4) the legacy online education business remains well positioned to continue to gain share across skills upgrading and recreation and leisure platforms reflecting QSG's scale, first-mover advantages, infrastructure, strong brands, and diversified suite of high-quality and in-demand courses.
