BEIJING,Jan. 23,2025 -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"),a smart learning solutions provider in China,today announced its unaudited financial results for the third quarter of fiscal year 2025 ended November 30,2024.

Highlights for the Third Quarter of Fiscal Year 2025

Net revenues wereUS$606.4 million,compared to net revenues of US$373.5 million in the same period of the prior year.

Loss from operations was US$17.4 million,compared to loss from operations of US$32.2 million in the same period of the prior year.

Non-GAAP lossfrom operations,which excluded share-based compensation expenses,was US$1.9million,compared tonon-GAAP loss from operationsof US$10.2 million in the same period of the prior year.

Net income attributable to TAL was US$23.1 million,compared to net loss attributable to TAL of US$23.9million in the same period of the prior year.

Non-GAAP net income attributable to TAL,was US$38.6 million,compared tonon-GAAP net loss attributable to TAL of US$1.9million in the same period of the prior year.

Basic and diluted net incomeper American Depositary Share ("ADS") wereboth US$0.04.Non-GAAP basic and dilutednet income per ADS,were both US$0.06.Three ADSs represent one Class A common share.

Cash,cash equivalents and short-term investments totaled US$3,835.8 million as of November 30,2024,compared to US$3,303.3 million as of February 29,2024.

Highlights for the Nine Months Ended November 30,2024

Net revenues wereUS$1,640.0 million,compared to net revenues of US$1,060.9million in the same period of the prior year.

Income from operations was US$12.9 million,compared to loss from operations of US$58.2 million in the same period of the prior year.

Non-GAAP income from operations,was US$63.5 million,compared to non-GAAP incomefrom operations of US$10.2 million in the same period of the prior year.

Net income attributable to TAL was US$91.9 million,compared to net loss attributable to TAL of US$31.1 million in the same period of the prior year.

Non-GAAP net incomeattributable to TAL,was US$142.5 million,compared to non-GAAP net incomeattributable to TAL of US$37.3 million in the same period of the prior year.

Basic and diluted net income per ADS were both US$0.15. Non-GAAP basic net income per ADS,was US$0.24,and Non-GAAP diluted net income per ADS,was US$0.23.

Financial Data——Third Quarter and First NineMonths of Fiscal Year 2025

(In US$ thousands,except per ADS data and percentages)

Three Months Ended

November 30,

2023

2024

Pct. Change

Net revenues

373,506

606,446

62.4%

Loss from operations

(32,185)

(17,432)

(45.8%)

Non-GAAP loss from operations

(10,184)

(1,920)

(81.1%)

Net (loss)/income attributable to TAL

(23,946)

23,069

(196.3%)

Non-GAAP net (loss)/income attributable to TAL

(1,945)

38,581

(2,083.6%)

Net (loss)/income per ADS attributable to TAL –

basic

(0.04)

0.04

(195.5%)

Net (loss)/income per ADS attributable to TAL –

diluted

(0.04)

0.04

(194.1%)

Non-GAAP net (loss)/income per ADS attributable

to TAL – basic

(0.00)

0.06

(2,066.2%)

Non-GAAP net (loss)/income per ADS attributable

to TAL – diluted

(0.00)

0.06

(2,037.0%)

Nine Months Ended

November 30,

2023

2024

Pct. Change

Net revenues

1,060,877

1,639,994

54.6%

(Loss)/income from operations

(58,168)

12,860

(122.1%)

Non-GAAP income from operations

10,229

63,476

520.5%

Net (loss)/income attributable to TAL

(31,081)

91,902

(395.7%)

Non-GAAP net income attributable to TAL

37,316

142,518

281.9%

Net (loss)/income per ADS attributable to TAL –

basic

(0.05)

0.15

(399.0%)

Net (loss)/income per ADS attributable to TAL –

diluted

(0.05)

0.15

(394.1%)

Non-GAAP net income per ADS attributable to

TAL – basic

0.06

0.24

286.2%

Non-GAAP net income per ADS attributable to

TAL – diluted

0.06

0.23

286.3%

"We achieved healthy year-on-year revenue growth this quarter. Our AI learning devices remained one of our faster-growing business lines and received encouraging user feedback and market recognition," said Alex Peng,TAL's President & Chief Financial Officer.

"We will continue to enhance our products' capabilities and adaptability across learning services and content solutions. As always,we are committed to helping more users discover learning solutions that meet their unique needs while also contributing positively to society."

Financial Results for the Third Quarter of Fiscal Year 2025

Net Revenues

In the third quarter of fiscal year 2025,TAL reported net revenues of US$606.4 million,representing a 62.4% increase from US$373.5 million in the third quarter of fiscal year 2024.

Operating Costs and Expenses

In the third quarter of fiscal year 2025,operating costs and expenses were US$624.7 million,representing a 53.9% increase from US$405.8 million in the third quarter of fiscal year 2024. Non-GAAP operating costs and expenses,were US$609.2 million,representing a 58.7% increase from US$383.8 million in the third quarter of fiscal year 2024.

Cost of revenues increased by 65.5% to US$286.7 million from US$173.2 million in the third quarter of fiscal year 2024. Non-GAAP cost of revenues,increased by 67.2% to US$285.4 million,from US$170.7 million in the third quarter of fiscal year 2024.

Selling and marketing expenses increased by 85.6% to US$226.4 million from US$122.0 million in the third quarter of fiscal year 2024. Non-GAAP selling and marketing expenses,increased by 91.0% to US$222.4 million,from US$116.4 million in the third quarter of fiscal year 2024.

General and administrative expenses increased by 0.8% to US$111.5 million from US$110.7 million in the third quarter of fiscal year 2024. Non-GAAP general and administrative expenses,increased by 4.8% to US$101.4 million,from US$96.7 million in the third quarter of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 29.5% to US$15.5 million in the third quarter of fiscal year 2025 from US$22.0 million in the same period of fiscal year 2024.

Gross Profit

Loss from operations was US$17.4 million in the third quarter of fiscal year 2025,compared to loss from operations of US$32.2 million in the third quarter of fiscal year 2024. Non-GAAP loss from operations,was US$1.9 million,compared to Non-GAAP loss from operations of US$10.2 million in the same period of the prior year.

Other Income,Net

Other income was US$18.2 million for the third quarter of fiscal year 2025,compared to other income of US$13.3 million in the third quarter of fiscal year 2024.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was nil for the third quarter of fiscal year 2025,compared to US$2.3 million for the third quarter of fiscal year 2024.

Income Tax (Expense)/Benefit

Income tax benefit was US$3.6 million in the third quarter of fiscal year 2025,compared to US$15.4 million of income tax expense in the third quarter of fiscal year 2024.

Net (Loss)/Income attributable to TAL Education Group

Net income attributable toTAL was US$23.1 million in the third quarter of fiscal year 2025,compared to net loss attributable to TAL of US$23.9 million in the third quarter of fiscal year 2024. Non-GAAP net income attributable to TAL,compared to Non-GAAP net loss attributable to TAL of US$1.9 million in the third quarter of fiscal year 2024.

Basic and Diluted Net (Loss)/Income per ADS

Basic and diluted net income per ADS were both US$0.04 in the third quarter of fiscal year 2025. Non-GAAP basic and diluted net income per ADS,were both US$0.06 in the third quarter of fiscal year 2025.

Cash Flow

Net cash provided by operating activities for the third quarter of fiscal year 2025 was US$378.0 million.

Cash,Cash Equivalents,and Short-Term Investments

As of November 30,the Company had US$2,240.8 million of cash and cash equivalents and US$1,595.0 million of short-term investments,compared to US$2,208.7 million of cash and cash equivalents and US$1,094.6 million of short-term investments as of February 29,2024.

Deferred Revenue

As of November 30,the Company's deferred revenue balance was US$825.6 million,compared to US$428.3 million as of February 29,2024.

Financial Results for the First Nine Months of Fiscal Year 2025

Net Revenues

For the first nine months of fiscal year 2025,TAL reported net revenues ofUS$1,representing a 54.6% increase fromUS$1,060.9 millionin the first nine months of fiscal year 2024.

Operating Costs and Expenses

In the first nine months of fiscal year 2025,operating costs and expenses were US$1,628.8 million,representing a 44.1% increase from US$1,130.7 million in the first nine months of fiscal year 2024. Non-GAAP operating costs and expenses,were US$1,578.2 million,representing a 48.6% increase from US$1,062.3 million in the first nine months of fiscal year 2024.

Cost of revenues increased by 57.1% toUS$757.3 millionfromUS$482.1 millionin the first nine months of fiscal year 2024. Non-GAAP cost of revenues,increased by 58.3% toUS$751.9 millionfromUS$475.1 millionin the first nine months of fiscal year 2024.

Selling and marketing expenses increased by 58.0% toUS$530.8 millionfromUS$335.9 millionin the first nine months of fiscal year 2024. Non-GAAP selling and marketing expenses,increased by 63.6% toUS$518.4 millionfromUS$316.8 millionin the first nine months of fiscal year 2024.

General and administrative expenses increased by 9.0% toUS$340.7 million from US$312.7 millionin the first nine months of fiscal year 2024. Non-GAAP general and administrative expenses,increased by 13.9% toUS$307.9 millionfromUS$270.4 millionin the first nine months of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 26.0% toUS$50.6 millionin the first nine months of fiscal year 2025 fromUS$68.4 millionin the same period of fiscal year 2024.

Gross Profit

Gross profit increased by 52.5% to US$882.7 million from US$578.8 million in the first nine months of fiscal year 2024.

(Loss)/Income from Operations

Income from operations was US$12.9 million in the first nine months of fiscal year 2025,compared to loss from operations of US$58.2 million in the same period of the prior year. Non-GAAP income from operations,compared to US$10.2 million Non-GAAP income from operations in the same period of the prior year.

Other Income,Net

Other income was US$51.8 million for the first nine months of fiscal year 2025,compared to other income of US$11.5 million in the same period of the prior year.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$8.7 million for the first nine months of fiscal year 2025,compared to US$33.0 million for the first nine months of fiscal year 2024.

Income Tax (Expense)/Benefit

Income tax expense was US$24.3 million in the first nine months of fiscal year 2025,compared to US$8.9 million of income tax expense in the first nine months of fiscal year 2024.

Net (Loss)/Income Attributable toTAL Education Group

Net income attributable toTAL wasUS$91.9 millionin the first nine months of fiscal year 2025,compared to net loss attributable to TAL ofUS$31.1 millionin the first nine months of fiscal year 2024. Non-GAAP net income attributable to TAL,compared toUS$37.3 million Non-GAAP net income attributable to TALin the same period of the prior year.

Cash Flow

Net cash provided by operating activities for the first nine months of fiscal year 2025 was US$624.3 million.

Basic and Diluted Net (Loss)/Income per ADS

Basic and diluted net income per ADS were both US$0.15 in the first nine months of fiscal year 2025. Non-GAAP basic net income per ADS,was US$0.23 in the first nine months of fiscal year 2025.

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the third fiscal quarter of fiscal year 2025 ended November 30,2024 at 7:00 a.m. Eastern Time on January 23,2025 (8:00 p.m. Beijing time on January 23,2025).

Please note that you will need to pre-register for conference call participation at https://register.vevent.com/register/BI252a8b58f53a47cebdf55358dda997b1.

Upon registration,you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time,including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things,TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with,or furnished to,the U.S. Securities and Exchange Commission,in its annual reports to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit,train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with,or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release,and TAL Education Group undertakes no duty to update such information or any forward-looking statement,except as required under applicable law.

About TAL Education Group

TAL Education Groupis a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life",which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content,as well as leading edge application of technology in the education experience.TAL Education Groupoffers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on theNew York Stock Exchangeunder the symbol "TAL".

About Non-GAAP Financial Measures

In evaluating its business,TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses,non-GAAP cost of revenues,non-GAAP selling and marketing expenses,non-GAAP general and administrative expenses,non-GAAP income/(loss) from operations,non-GAAP net income/(loss) attributable to TAL,non-GAAP basic and non-GAAP diluted net income/(loss) per ADS. To present each of these non-GAAP measures,the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures,please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

For further information,please contact:

Jackson Ding

Investor Relations

TAL Education Group

Tel: +86 10 5292 6669-8809

Email: ir@tal.com

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

As of

February 29,

2024

As of

November 30,

2024

ASSETS

Current assets

Cash and cash equivalents

$ 2,208,756

$ 2,240,827

Restricted cash-current

167,656

306,549

Short-term investments

1,094,593

1,595,027

Inventory

68,328

98,021

Amounts due from related parties-current

343

387

Prepaid expenses and other current assets

159,498

207,943

Total current assets

3,699,174

4,448,754

Restricted cash-non-current

81,064

41,078

Property and equipment,net

405,319

460,566

Deferred tax assets

4,620

5,165

Rental deposits

16,947

20,669

Intangible assets,net

1,988

964

Land use right,net

189,049

184,937

Amounts due from related parties-non-current

59

59

Long-term investments

284,266

276,254

Long-term prepayments and other non-current assets

14,359

28,055

Operating lease right-of-use assets

231,104

322,563

Total assets

$ 4,927,949

$ 5,789,064

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

$ 127,321

$ 189,271

Deferred revenue-current

400,286

780,909

Amounts due to related parties-current

96

107

Accrued expenses and other current liabilities

491,911

625,274

Short-term debt

-

55,231

Operating lease liabilities,current portion

62,604

82,513

Total current liabilities

1,082,218

1,733,305

Deferred revenue-non-current

27,993

44,710

Deferred tax liabilities

2,360

4,040

Operating lease liabilities,non-current portion

176,614

243,346

Total liabilities

1,289,185

2,025,401

Equity

Class A common shares

152

154

Class B common shares

49

49

Additional paid-in capital

4,256,957

4,280,212

Statutory reserve

165,138

164,370

Accumulated deficit

(694,270)

(601,600)

Accumulated other comprehensive loss

(65,928)

(70,493)

Total TAL Education Group's equity

3,662,098

3,772,692

Noncontrolling interests

(23,334)

(9,029)

Total equity

3,638,764

3,763,663

Total liabilities and equity

$ 4,064

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars,except share,ADS,per share and per ADS data)

For the Three Months Ended

November 30,

For the Nine Months Ended

November 30,

2023

2024

2023

2024

Net revenues

$ 373,506

$ 606,446

$ 1,877

$ 1,994

Cost of revenues (note 1)

173,180

286,689

482,075

757,329

Gross profit

200,326

319,757

578,802

882,665

Operating expenses (note 1)

Selling and marketing

121,977

226,441

335,902

530,769

General and administrative

110,678

111,537

312,707

340,718

Total operating expenses

232,655

337,978

648,609

871,487

Government subsidies

144

789

11,639

1,682

(Loss)/income from operations

(32,432)

(58,860

Interest income,net

20,076

21,491

64,033

64,410

Other income,net

13,324

18,150

11,511

51,767

Impairment loss on long-term

investments

(2,270)

-

(33,031)

(8,692)

(Loss)/income before income tax

(expense)/benefit and loss from

equity method investments

(1,055)

22,209

(15,655)

120,345

Income tax (expense)/benefit

(15,374)

3,582

(8,875)

(24,348)

Loss from equity method

investments

(7,644)

(2,765)

(6,936)

(4,337)

Net (loss)/income

(24,073)

23,026

(31,466)

91,660

Add: Net loss attributable to

noncontrolling interests

127

43

385

242

Total net(loss)/income

attributable to TAL

Education Group

$ (23,946)

$ 23,069

$ (31,081)

$ 91,902

Net (loss)/incomeper common

share

Basic

$ (0.12)

$ 0.11

$ (0.15)

$ 0.46

Diluted

(0.12)

0.11

(0.15)

0.45

Net(loss)/incomeper ADS (note

2)

Basic

$ (0.04)

$ 0.04

$ (0.05)

$ 0.15

Diluted

(0.04)

0.04

(0.05)

0.15

Weighted average shares used in

calculating net (loss)/income

per common share

Basic

200,134,875

201,905,486

204,020,823

201,746,602

Diluted

200,875

204,949,612

204,823

205,093,389

Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:

For the Three Months

For the NineMonths

Ended November 30,

Ended November 30,

2023

2024

2023

2024

Cost of revenues

$ 2,499

$ 1,271

$ 6,989

$ 5,426

Selling and marketing expenses

5,558

4,082

19,120

12,410

General and administrative expenses

13,944

10,159

42,288

32,780

Total

$ 22,001

$ 15,512

$ 68,397

$ 50,616

Note 2: Three ADSs represent one Class A common Share.

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATEDSTATEMENTS OF

COMPREHENSIVE (LOSS)/INCOME

(In thousands of U.S. dollars)

For the Three Months Ended

November 30,

For the Nine Months Ended

November 30,

2023

2024

2023

2024

Net (loss)/income

$ (24,073)

$ 23,026

$ (31,466)

$ 91,660

Other comprehensive income/

(loss),net of tax

18,356

(21,512)

(26,239)

(4,348)

Comprehensive(loss)/income

(5,717)

1,514

(57,705)

87,312

Add: Comprehensive

loss/(income) attributable to

noncontrolling interests

557

(2,308)

(356)

25

Comprehensive (loss)/income

attributable to TAL

Education Group

$ (5,160)

$ (794)

$ (58,061)

$ 87,337

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATEDSTATEMENTS OF

CASH FLOWS

(In thousands of U.S. dollars)

For the Three Months Ended

November 30,

2023

2024

2023

2024

Net cash provided by operating

activities

$ 247,123

$ 378,038

$ 329,918

$ 624,255

Net cash (used in)/provided by

investing activities

(208,847)

(214,435)

133,955

(532,739)

Net cash provided by/(used in)

financing activities

207

48,731

(233,301)

41,937

Effect of exchange rate

changes

6,805

(4,834)

(3,111)

(2,475)

Net increase in cash,cash

equivalents and restricted

cash

45,288

207,500

227,461

130,978

Cash,cash equivalents and

restricted cash at the

beginning of period

2,477,080

2,380,954

2,294,907

2,457,476

Cash,cash equivalents and

restricted cash at the end

of period

$ 2,522,368

$ 2,588,454

$ 2,454

TAL EDUCATION GROUP

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(In thousands of U.S. dollars,per share and per ADS data)

For the Three Months

Ended November 30,

For the Nine Months

Ended November 30,

2023

2024

2023

2024

Cost of revenues

$ 173,180

$ 286,689

$ 482,075

$ 757,329

Share-based compensation expense in

cost of revenues

2,499

1,271

6,989

5,426

Non-GAAP cost of revenues

170,681

285,418

475,086

751,903

Selling and marketing expenses

121,769

Share-based compensation expense in

selling and marketing expenses

5,410

Non-GAAP selling and marketing

expenses

116,419

222,359

316,782

518,359

General and administrative expenses

110,718

Share-based compensation expense in

general and administrative expenses

13,780

Non-GAAP general and

administrative expenses

96,734

101,378

270,419

307,938

Operating costs and expenses

405,835

624,667

1,130,684

1,628,816

Share-based compensation expense in

operating costs and expenses

22,001

15,512

68,397

50,616

Non-GAAP operating costs and

expenses

383,834

609,155

1,062,287

1,578,200

(Loss)/income from operations

(32,860

Share based compensation expenses

22,616

Non-GAAP (loss)/income from

operations

(10,920)

10,476

Net (loss)/income attributable to

TAL Education Group

(23,069

(31,902

Share based compensation expenses

22,616

Non-GAAP net (loss)/income

attributable to TAL Education

Group (note 3)

$ (1,945)

$ 38,581

$ 37,316

$ 142,518

Net (loss)/income per ADS

Basic

$ (0.04)

$ 0.04

$ (0.05)

$ 0.15

Diluted

(0.04)

0.04

(0.05)

0.15

Non-GAAP net (loss)/income per ADS

Basic

$ (0.00)

$ 0.06

$ 0.06

$ 0.24

Diluted

(0.00)

0.06

0.06

0.23

ADSs used in calculating net (loss)/income per ADS

Basic

600,404,625

605,716,458

612,469

605,239,806

Diluted

600,625

614,848,836

612,469

615,167

ADSs used in calculating Non-GAAP net (loss)/income per ADS

Basic

600,836

622,332,267

615,167

Note 3: The tax effect of share-based compensation expenses was immaterial in the third quarter and in the first nine months of fiscal year 2025.