Four Seasons Education (Cayman) Inc.

What they do

The company operates PRC education businesses through variable interest entities Shanghai Luoliang Network Technology Co., Ltd. (formerly Shanghai Four Seasons Education and Training Co., Ltd.) and Shanghai Four Seasons Education Investment Management Co., Ltd., which it consolidates under U.S. GAAP despite holding no equity interests. Its offerings include K-9 Academic AST Services, academic subjects for students from kindergarten through grade nine, and it plans study camps for immersive enrichment activities open to learners of all ages. Learning centers are physical facilities directly owned and operated by a VIE. The parent has 22,614,376 ordinary shares outstanding as of February 28, 2026, with American Depositary Shares listed on the NYSE.

Revenue drivers

• K-9 Academic AST Services — The company offers academic subjects to students from kindergarten through grade nine; this is the only named service line in the excerpt, and no segment-level revenue breakdown is shown.
• Learning centers — Physical learning facilities are directly owned and operated by the VIEs; the excerpt does not disclose center count, location or per-center economics.
• Study camps (planned) — The company describes study camps as a planned physical facility for immersive enrichment activities open to group or individual learners at all ages; no revenue is reported for this in the excerpt.

Recent performance

Annual revenue was $39.7M in fiscal 2022, $4.9M in fiscal 2023, $17.4M in fiscal 2024, $34.5M in fiscal 2025 and $37.1M in fiscal 2026. Net income moved from a $18.0M loss in fiscal 2022 and a $4.3M loss in fiscal 2023 to $690,000 in fiscal 2024, $111,000 in fiscal 2025 and $4.5M in fiscal 2026. Diluted EPS was negative $0.8 in fiscal 2022 and negative $0.2 in fiscal 2023, then $0.03, $0.01 and $0.2 in fiscal 2024 through 2026. Operating cash flow was negative $14.5M in fiscal 2022 and negative $3.7M in fiscal 2023, turning positive at $2.3M, $2.7M and $4.4M in fiscal 2024 through 2026. At February 28, 2026, total assets were $107.8M, total liabilities $32.8M, shareholders' equity $69.1M, cash and equivalents $19.9M, and long-term debt $11.8M.

Strategy

The filing excerpt identifies the company as a holding company that operates through consolidated VIEs in the PRC. Its named service offering is K-9 Academic AST Services delivered through learning centers owned and operated by the VIEs. The company also states a plan to establish study camps, physical facilities for immersive enrichment activities open to group or individual learners at all ages. No other specific investments, capital commitments or growth targets are described in the excerpt.

Risks

• VIE structure — The company holds no equity interests in its VIEs and consolidates them only because it meets U.S. GAAP control and primary-beneficiary conditions, so changes to those arrangements could affect consolidation.
• Revenue volatility — Annual revenue fell from $39.7M in fiscal 2022 to $4.9M in fiscal 2023 before recovering to $37.1M in fiscal 2026, showing sharp swings in the business.
• Thin profitability — Net income was $690,000 in fiscal 2024 and $111,000 in fiscal 2025 before reaching $4.5M in fiscal 2026, so margins have been narrow and inconsistent.
• Leverage and cash use — Long-term debt stood at $11.8M against $19.9M of cash and equivalents at February 28, 2026, and the filing does not describe the terms of that debt.

Outlook

The excerpt does not contain management's guidance, forecasts or outlook statements. The only forward-looking operational item described is the planned establishment of study camps. No revenue, margin, enrollment or capital-expenditure targets are provided in the source material.