New Oriental Education & Technology Group Inc. (EDU): Business Model Canvas [Dec-2025 Updated]

You're digging into a company that successfully navigated a massive regulatory shift by completely reinventing itself, and honestly, the resulting structure is one of the most interesting pivots I've seen in a decade. As an analyst who has watched this sector closely, New Oriental Education & Technology Group Inc. (EDU) is no longer just about test prep; it's a diversified giant whose FY2025 net revenues reached $4,900.3 million, supported by a rock-solid balance sheet showing $1,906.7 million in deferred revenue as of August 31, 2025. The core question now is how they sustain this hybrid model, blending trusted overseas consulting with their knowledge-based livestreaming commerce through East Buy. Look closely at the Business Model Canvas below to see the precise mechanics-from their key activities in OMO learning to the customer segments driving their new e-commerce sales-that define their post-regulation strategy.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Key Partnerships

You're looking at the structure of New Oriental Education & Technology Group Inc.'s (EDU) operations as of late 2025, specifically focusing on the external relationships that make the business run. These alliances are crucial, especially as the company balances its core education services with its significant e-commerce venture.

Global educational institutions for overseas study consulting

New Oriental Education & Technology Group Inc. maintains deep ties with international institutions to facilitate student placements. This segment remains a key growth driver; for instance, in the third fiscal quarter of 2025, overseas study consulting revenue grew by +21.4% year-over-year. The company's own research, such as the 2025 Report on Chinese Students' Overseas Study, is based on surveys involving 8,014 respondents, indicating a strong, data-driven relationship with the prospective student body and, by extension, the institutions they aim to attend. Destinations like the UK and the US continue to be top choices for their students. This consulting direction accounted for 10.19% of total revenue in the fiscal year 2024.

Logistics and supply chain partners for East Buy's private label products

The e-commerce arm, East Buy, where New Oriental Education & Technology Group Inc. holds a 57% ownership stake, relies heavily on external logistics providers to manage the movement of its private label goods. While specific logistics partners aren't disclosed in recent filings, the scale of the operation is evident in the financial reporting: revenues generated from East Buy private label products and livestreaming were substantial enough that they were separately itemized when reporting core educational revenue growth. For the fourth fiscal quarter of 2025, New Oriental Education & Technology Group Inc.'s total net revenues were US$1,243.2 million, with core education services (excluding East Buy) growing 18.7% year-over-year to US$1,088.5 million.

Domestic universities for study tours and research camps

New Oriental Education & Technology Group Inc. plans to accelerate growth by developing educational tours, which are gaining popularity. This requires partnerships with domestic universities and potentially other educational bodies to host these study tours and research camps, leveraging existing academic infrastructure and credibility. The company's overall network, which supports these activities, included over 41,800 teachers across 69 cities as of August 31, 2025.

Technology firms for AI-driven learning system development (implied)

The development of intelligent learning systems and devices implies necessary technological partnerships, though specific 2025 vendor contracts aren't public. The Chairman, Yu Minhong, noted in late 2025 that the organization is using AI to personalize learning and recognize emotional states, suggesting ongoing collaboration with AI/ML specialists. Historically, New Oriental Education & Technology Group Inc. has established cooperation deals with institutions like the Chinese Academy of Sciences' Institute of Automation and the University of Illinois to build AI labs and explore technology integration.

Major livestreaming platforms like Douyin for e-commerce operations

The success of the East Buy e-commerce business is intrinsically linked to major livestreaming platforms, such as Douyin, for customer reach and transaction volume. These platforms act as essential distribution channels for the private label products. The scale of the overall business is reflected in the full fiscal year 2025 total net revenues reaching US$4.90 billion.

The following table summarizes the financial scale associated with the business segments relying on these key partnerships as of the latest reported periods in 2025.

The reliance on these external entities-from universities to logistics providers and digital platforms-is a defining feature of New Oriental Education & Technology Group Inc.'s current operational structure. Finance: draft 13-week cash view by Friday.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Key Activities

Developing and delivering non-academic tutoring courses is a major focus, especially within the segment targeting adults and university students, which saw a year-over-year revenue increase of approximately 30.4% in the first fiscal quarter of 2025 and a 35% increase in the second fiscal quarter of 2025. New educational initiatives, which include these non-academic offerings, fueled growth in Q1 FY2025.

Operating the East Buy livestreaming e-commerce platform is a significant activity, with revenues growing from $3 million in FY2022 to $0.90 billion in FY2024. For the first six months of fiscal year 2025, East Buy expanded its private label offerings to 600 SKUs, and these private label products contributed approximately 37% of the total Gross Merchandise Volume (GMV). The East Buy division remains unprofitable for now.

Research and development of AI-powered learning devices and OMO systems (Online-Merge-Offline) involves continuous efforts to revamp the online-merge-offline teaching system and apply new technologies, as noted for the first six months of fiscal year 2025.

Providing overseas test preparation and study consulting services shows strong momentum. The overseas study consulting business increased revenue by about 31% year over year in Q2 FY2025, and the overseas test prep business grew revenue by 21% year over year in the same quarter. Management expected overseas exam preparation revenue to grow by 20% in FY2025.

Managing a nationwide network of physical learning centers is foundational. As of August 31, 2025, New Oriental Education & Technology Group Inc. operated a network of 1,347 learning centers and 76 schools across 69 cities. The company planned to increase the number of its educational centers by 20% to 25% during FY2025. The total employee count, including over 41,800 highly qualified teachers, stood at over 86,000 as of August 31, 2025.

Here are some key financial and operational metrics related to these activities for the fiscal year 2025 and recent quarters:

The company's operational scale is also reflected in its employee base:

• Total Employees (As of August 31, 2025): Over 86,000
• Highly Qualified Teachers (As of August 31, 2025): Over 41,800

Financial performance highlights for the fiscal year 2025 include:

• FY2025 Net Revenues: $4,900.3 million, a 13.6% increase year over year.
• FY2025 Non-GAAP Operating Income: US$554.2 million, a 15.8% increase year over year.
• FY2025 Operating Margin: 8.7%.
• FY2025 Net Income Attributable to New Oriental: US$371.7 million, a 20.1% increase year over year.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Key Resources

The Key Resources for New Oriental Education & Technology Group Inc. are centered on its financial stability, physical footprint, intellectual property, and market standing as of late 2025.

Financially, New Oriental Education & Technology Group Inc. held a significant balance of unearned revenue, which represents cash collected upfront for services yet to be delivered. This figure stood at US$1,906.7 million as of August 31, 2025.

The company maintained a strong liquidity position. As of the end of the first fiscal quarter of 2026 (1Q FY2026), New Oriental Education & Technology Group Inc. reported cash and cash equivalents of US$1,282.3 million. This was supplemented by US$1,570.2 million in term deposits and US$2,178.1 million in short-term investment as of the same date.

The physical infrastructure and human capital form critical tangible and human resources. As of August 31, 2025, the network included:

• 76 schools
• 1,347 learning centers
• Access to a nationwide network of online and offline bookstores through 262 third-party distributors

The human resource component is substantial, with over 41,800 teachers operating across 69 cities as of August 31, 2025. This base supports the proprietary educational content and instruction methods.

The established brand reputation is a non-physical asset, with New Oriental Education & Technology Group Inc. being described as the most recognized brand in Chinese private education.

Here is a snapshot of key financial and operational metrics from the first fiscal quarter of 2026 (1Q FY2026) ending August 31, 2025:

The company also noted that its total net revenues for the fiscal year 2026 were forecasted to be in the range of US$5,145.3 million to US$5,390.3 million.

Finance: draft 13-week cash view by Friday.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Value Propositions

You're looking at the value propositions New Oriental Education & Technology Group Inc. (EDU) is delivering now that the business model has fundamentally shifted. It's about stability through diversification, honestly, and leaning hard into what the market still needs.

Diversified, post-regulation business model stability

The value here is in the successful pivot away from the heavily regulated K-12 academic tutoring sector, showing resilience in the core and growth in the new areas. You can see this clearly when you look at the revenue breakdown from the end of fiscal year 2025.

For the fourth fiscal quarter of fiscal year 2025, total net revenues hit US$1,243.2 million. But the real story is the core business growth: net revenues, excluding the East Buy private label products and livestreaming business, still grew by 18.7% year-over-year to US$1,088.5 million for that quarter. That's the stability you're looking for in the legacy educational services.

Here's a quick look at the most recent reported quarter's top line, which is Q1 FY2026:

The company is guiding for fiscal year 2026 total net revenues to be in the range of US$5,145.3 million to US$5,390.3 million, which represents a year-over-year increase in the range of 5% to 10%.

High-quality, trusted overseas study and test preparation services

New Oriental Education & Technology Group Inc. (EDU) maintains its value proposition through deep expertise and market research in the overseas study segment. They are the trusted source for understanding the complex landscape of international education for Chinese families.

The company's own 2025 Report on Chinese Students' Overseas Study provides concrete data points on demand:

• Individuals at the undergraduate level and above planning to study abroad comprise 75% of those aspiring to go overseas in 2025.
• Students from 'Double First-Class' universities account for 33% of those planning to study abroad, a 7% increase from the previous year.
• Engineering students are the largest group considering overseas study at 22%.
• Management and economics students follow at 16% and 11%, respectively.
• The average annual income for families intending to study abroad was 483,000 yuan (about $67,247), with a budget of 544,000 yuan.
• The percentage of parents with an overseas education background reached 25% in 2025, marking 11 straight years of increase.

Segment growth in Q2 FY2025 also reflects this strength:

• Overseas test preparation grew by 21.1% year-over-year.
• Overseas study consulting grew by 31.0% year-over-year.

Unique, knowledge-based livestreaming e-commerce content

The value proposition here is the integration of trusted educational personalities and knowledge into the retail experience, moving beyond simple product pushing. While specific revenue for East Buy is often bundled or excluded in core reporting, the segment's existence is a key value driver post-regulation.

For context on the sector they operate in, the global livestream e-commerce market size was predicted to be US$19.86 billion in 2025. New Oriental Education & Technology Group Inc. (EDU)'s strategy is to differentiate its private label products and livestreaming by leveraging its established brand trust, which is a different value proposition than pure-play e-commerce platforms.

The core educational business growth in Q2 FY2025 (up 31.3% to US$894.2 million) shows the success of shifting focus, but the non-core business remains a significant, albeit less transparent, revenue stream. For Q4 FY2025, revenues excluding this segment were US$1,088.5 million.

Integrated Online-Merge-Offline (OMO) learning experience

New Oriental Education & Technology Group Inc. (EDU) offers a seamless learning journey using both physical presence and digital tools. This OMO approach supports the growth in their non-academic and adult/university test prep offerings.

The company's investment in this is clear from their guidance and operational scale:

• Management planned to increase the number of training centers by 20% to 25% during fiscal year 2025.
• The company is making significant investment in AI and OMO platforms, as noted in Q1 2025 commentary.

Non-academic and comprehensive quality-oriented student development

This value proposition targets the broader development needs of students beyond traditional academic testing, which is crucial in the current educational climate. The numbers from Q2 FY2025 demonstrate the scale of this non-academic push:

Non-academic tutoring courses reached approximately 994,000 student enrollments across 60 cities by the end of November 2024.

The domestic test preparation for adults and university students segment showed strong growth, increasing by 34.9% year-over-year in Q2 FY2025.

The company maintains a strong financial foundation to support these new ventures, holding US$4.8 billion in cash, cash equivalents, term deposits, and short-term investments as of November 30, 2024.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Customer Relationships

You're thinking about how New Oriental Education & Technology Group Inc. (EDU) keeps its customers engaged across its diverse offerings. It's not just one relationship; it's a portfolio of touchpoints, from high-touch consulting to massive digital communities. Here's a breakdown of the key relationship strategies based on the latest figures.

Dedicated one-on-one consulting for overseas study services

This segment relies on deep, personalized guidance. New Oriental Vision Overseas Consulting Co., Ltd (NOVO), a subsidiary, is structured to deliver this high-touch service. They deploy a significant team to manage the end-to-end process for students dreaming of international study.

• Counselor headcount providing one-stop service is approximately 2,000+.
• NOVO operates over 60 offices across China to maintain local presence.
• The total number of Chinese students trained by New Oriental for overseas study has reached 1 to 2 million.
• Revenues from overseas study consulting increased by approximately 8.2% year over year for the fourth fiscal quarter ended May 31, 2025.

Community-driven engagement via livestreaming e-commerce (East Buy)

The engagement here is driven by the personality-led content and the community built around the East Buy platform. While direct customer relationship metrics for East Buy aren't fully detailed in the core financial statements, its scale is evident when looking at the overall revenue structure for fiscal year 2025.

For the fiscal year ended May 31, 2025, New Oriental Education & Technology Group reported total net revenues of US$4,900.3 million. The revenues generated from East Buy private label products and the livestreaming business were significant enough that when excluded, the core educational revenues still showed a strong increase.

Personalized learning paths through AI-driven smart study solutions

This area focuses on scaling personalization using technology. The intelligent learning system and devices are deployed across the country, creating a measurable base of active digital learners who expect tailored experiences.

• The intelligent learning system and devices were adopted in around 60 cities as of the fourth fiscal quarter of 2025.
• The number of active paid users for this smart study solution reached approximately 255,000 in that same fiscal quarter.

High-touch, in-person service at physical learning centers

The commitment to physical interaction remains strong, supported by a large employee base and expansion plans for its learning centers. This physical footprint is crucial for delivering high-touch service, especially in the non-academic tutoring and test preparation segments.

The total number of employees for New Oriental Education & Technology Group in 2025 was 84,111. Furthermore, management had planned to increase the number of educational centers by 20% to 25% during fiscal year 2025, signaling continued investment in in-person customer access.

Digital self-service and support via online learning platforms

The new educational business initiatives, which include non-academic tutoring courses delivered digitally or in a hybrid model, show substantial customer volume. This represents a large cohort engaging with New Oriental Education & Technology Group's digital offerings.

For the fourth fiscal quarter of 2025, non-academic tutoring courses attracted approximately 918,000 student enrollments across around 60 cities. This massive enrollment volume in new initiatives, which saw revenue growth of 32.5% year over year in that quarter, underscores the scale of digital and new-format customer relationships.

Here's a quick look at the scale of these relationship-driven metrics as of the latest reported figures for FY2025:

Finance: draft the Q2 FY2026 customer acquisition cost breakdown by Friday.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Channels

You're looking at how New Oriental Education & Technology Group Inc. gets its offerings to the customer base as of late 2025. It's a mix of physical presence, digital storefronts, and specialized consulting offices.

Nationwide network of physical learning centers in China

The physical footprint remains a core channel, though evolving toward an OMO (Online-Merge-Offline) approach.

The total number of schools and learning centers as of August 31, 2025, was the result of growth plans for FY2025.

Livestreaming e-commerce platforms (e.g., Douyin) for East Buy

The East Buy segment utilizes major social commerce platforms alongside its proprietary digital channels. The fiscal year 2025 data shows a shift in channel contribution.

The EAST BUY App's share of GMV increased from 8.4% in fiscal year 2024.

Proprietary OMO teaching system and online learning apps

The digital delivery channel is supported by technology integration across the business.

• Intelligent learning system and device business tested in around 60 existing cities.
• Top 10 cities contribute over 50% of the intelligent learning system business.
• Deferred revenue balance as of August 31, 2025, was $1,906.7 million.

Overseas study consulting branches in 42 cities

New Oriental Vision Overseas Consulting maintains a significant physical presence across China and select international locations to service study abroad demand.

The revenue growth for this specific consulting service was notable in earlier quarters of the 2025 fiscal year:

• Revenue increase of approximately 20.7% year-over-year for Q1 FY2025 (ended August 31, 2024).
• Revenue increase of about 31% year-over-year for Q2 FY2025 (ended November 30, 2024).

The domestic branch network includes:

Educational materials and distribution network

Distribution for physical and digital educational materials relies on a mix of direct and indirect channels.

As of August 31, 2025, New Oriental had access to a nationwide network via 262 third-party distributors for online and offline bookstores. Finance: draft 13-week cash view by Friday.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Customer Segments

You're looking at how New Oriental Education & Technology Group Inc. (EDU) segments its diverse customer base as of late 2025. It's a mix of traditional education, new educational ventures, and significant non-education revenue streams, mainly through e-commerce.

The overall financial context for the fiscal year ended May 31, 2025, shows total net revenues reached $4.90 billion, marking a 13.6% increase year over year. This revenue base supports the various customer groups they target.

Students preparing for international exams (TOEFL, IELTS, SAT, etc.)

This group remains a core component, focused on overseas university admissions. The demand is clearly still there, driven by factors like increasing disposable income and urbanization in China. For the fourth fiscal quarter of 2025, the revenue from overseas test preparation services showed a year-over-year increase of approximately 14.6%.

Domestic adult and university students seeking test preparation

This segment targets preparation for domestic exams, including postgraduate admissions and certification tests like CET 4 and CET 6. This area has shown very strong recent performance. In the fourth fiscal quarter of 2025, the domestic test preparation business grew by about 17.0% compared to the prior year.

K-12 students for non-academic and quality-oriented courses

Following regulatory shifts, New Oriental Education & Technology Group Inc. has heavily invested in non-academic tutoring courses focusing on well-rounded skills. This is a growth engine for their new educational initiatives. For the fourth fiscal quarter of 2025, these non-academic tutoring courses attracted approximately 918,000 student enrollments across around 60 cities. The broader new educational business initiatives saw a revenue growth of 32.5% year over year in that same quarter.

General consumers for agricultural and private label e-commerce products

This segment is served primarily through the East Buy subsidiary, which focuses on livestreaming e-commerce. This business has scaled rapidly since its pivot. Revenues from this e-commerce division reached nearly $1 billion within two years, based on context from late 2024/early 2025. For the fourth fiscal quarter of 2025, total net revenues, excluding the East Buy business, were $1,088.5 million, showing the relative size of the core education business versus the e-commerce contribution in that quarter.

Middle-aged and senior audiences for integrated tourism-related services

New Oriental Education & Technology Group Inc. is actively developing educational tours and research camps, targeting a wide age range including retirees. This is a newer vertical for the company. Management noted plans to accelerate growth in educational tours, which are already gaining popularity in China. The company is organizing these research tours and educational camps in about 55 cities, both domestically and internationally.

Here's a quick look at how these segments stack up based on the latest available metrics:

You can see the clear diversification strategy in action. While overseas study consulting revenue grew by 8.2% year over year in Q4 FY2025, the non-academic segment is capturing significant volume with 918,000 enrollments in the last quarter of FY2025.

The core educational services, when East Buy revenue is excluded, still represented $1,088.5 million in net revenues for the fourth quarter of FY2025.

The company is also focused on expanding its physical footprint to serve these customers, planning to increase the number of its educational centers by 20% to 25% during FY2025.

Finance: draft 13-week cash view by Friday.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving New Oriental Education & Technology Group Inc.'s operations as of late 2025. The cost structure is heavily weighted toward human capital and physical presence, even as technology investment ramps up.

The direct costs associated with delivering services remain a major component. For the fourth fiscal quarter of 2025, which ended May 31, 2025, the Cost of revenues was reported at $569.9 million.

Personnel is undeniably a significant cost driver. New Oriental Education & Technology Group Inc. supported its operations, as of August 31, 2025, with a teaching staff of over 41,800 teachers across its network. This human element is critical, and related costs are substantial, including general compensation and specific incentive structures for roles like e-commerce hosts supporting the growing livestreaming segment.

The company maintains a broad physical footprint, which translates to high fixed costs. As of August 31, 2025, New Oriental Education & Technology Group Inc. operated a network that included 1,347 learning centers. Maintaining this scale of physical facilities represents a considerable fixed cost base that must be covered regardless of short-term enrollment fluctuations.

Marketing and sales efforts are also notable expenditures. For the first fiscal quarter of 2026, the Selling and marketing expenses totaled $200.6 million. This spend supports the push into new educational initiatives and the promotion of their evolving service mix.

Investment in the future is clearly visible in the capital expenditures, particularly around technology integration. For the first fiscal quarter of 2026, total capital expenditures were $55.4 million. A specific allocation within this was directed toward modernizing the teaching infrastructure; for instance, an investment of $28.5 million was made in the OMO (online-merge-offline) system during Q1 FY2026 alone. This shows a clear commitment to embedding AI technology across the education ecosystem.

Here's a quick look at some of the key expense line items from recent quarters:

The personnel cost base also includes non-cash components that are material. Total share-based compensation expenses allocated to operating costs in Q1 FY2026 were $23.3 million. This figure saw a substantial year-over-year increase of 239.8% in that quarter.

The physical network scale necessitates significant overhead, which you see reflected in the General and Administrative expenses, which were $373.8 million in Q1 FY2026. This covers the fixed costs of the 1,347 learning centers and associated administrative staff.

The cost structure is clearly balancing the legacy, high-fixed-cost physical model with necessary, high-growth technology spending. Finance: draft 13-week cash view by Friday.

New Oriental Education & Technology Group Inc. (EDU) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive New Oriental Education & Technology Group Inc.'s top line as of late 2025. It's a mix of legacy strength and aggressive diversification.

Total net revenues for FY2025 were $4,900.3 million, representing a 13.6% increase year over year for the fiscal year ended May 31, 2025.

The revenue streams are clearly segmented, showing where the growth is coming from, especially when you look at the fourth quarter of fiscal year 2025 (4Q FY2025) performance:

• Educational Services and Test Preparation Courses (core business)
• Private Label Products and Livestreaming E-Commerce (East Buy)
• Overseas Study Consulting Services, which grew 8.2% in Q4 FY2025
• Non-academic tutoring and intelligent learning system fees

The core educational services, when separated from the East Buy business, showed significant strength. For the fourth fiscal quarter of 2025, net revenues excluding East Buy increased by 18.7% year over year to $1,088.5 million.

Here's a look at the key components of the educational services and new initiatives from the Q4 FY2025 results:

The Private Label Products and Livestreaming E-Commerce segment, East Buy, is a distinct revenue stream. While its specific Q4 FY2025 revenue isn't isolated, we know that in Q1 FY2025, this business generated revenue of approximately $90 million and achieved profitability. Revenues from this e-commerce business reached nearly $1 billion in two years (as of late 2024/early 2025 projections).

For the Non-academic tutoring and intelligent learning system fees, which fall under the New Educational Business Initiatives, you see concrete expansion metrics:

• The non-academic tutoring business has been rolled out to around 60 cities.
• In Q3 FY2025, non-academic tutoring courses attracted 408,000 student enrollments across 60 cities.
• The overall New Educational Business Initiatives reported a revenue increase of 33% year-over-year for the full fiscal year 2025.

The company's deferred revenue, which is cash collected upfront for services not yet delivered, stood at $1,954.5 million as of May 31, 2025. That's a 9.8% increase compared to the end of the fourth quarter of fiscal year 2024. Finance: draft 13-week cash view by Friday.