FEDU Four Seasons Education (Cayman) Inc.

Overview and Growth

In fiscal 2026, Four Seasons Education (Cayman) Inc. recorded $37.10M of revenue, net income of $4.49M, and an operating cash inflow of $4.38M. At $37.10M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 7.6% from $34.48M in fiscal 2025, increasing the company’s operating scale. On a per-share basis, diluted EPS was $0.20, which connects the reported earnings outcome with the company’s diluted share count. The revenue-to-assets relationship was 0.34x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $9.57M as gross profit before recognizing operating expenses and other items. Gross profit represented 25.8% of revenue, showing how much of the top line remained after direct costs. Operating income was $983.00K, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 2.6%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $4.49M, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 12.1% margin after operating costs and the remaining recognized items. The earnings statement records $4.33M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 11.7% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $93.00K, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 2.1%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $107.83M asset base was financed through $32.77M of liabilities and $75.06M of equity. The near-term balance sheet paired $36.80M of current assets with $19.90M of current liabilities at the reporting date. Current assets covered current liabilities by 1.85x, leaving a positive buffer for near-term obligations. The company held $19.86M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 99.8% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $13.12M, adding a fixed financing obligation alongside the company’s equity capital. Against book equity, debt measured 0.17x, placing the company’s financial leverage in clear balance-sheet terms. Debt represented 12.2% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 30.4% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 18.4% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 7.4% from $100.39M in fiscal 2025, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $4.38M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 0.98x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $912.00K, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 20.8%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $3.47M, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 9.3%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 3.2%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Feb 28, 2026. Analysis generated Sep 24, 2026.