Following the regulatory overhaul that shuttered its traditional academic tutoring, Youdao shifted focus to intelligent learning through digital content and STEAM courses, alongside smart device innovation. Although tutoring revenues have contracted since 2023, growth in online marketing services has significantly offset declines, contributing to improved profitability and positive operating cash flow by 2025. The company maintains a working capital deficit and reliance on NetEase loans but plans to capitalize on AI-driven offerings and increasing acceptance of technology-integrated learning.