Sunlands Technology Group (NYSE:STG) stock plunged nearly 25% on Monday after investors focused on the online education provider's weakening revenue outlook and sharp declines in student enrollment, overshadowing its latest profitable quarter and a newly announced $50 million share repurchase program.
Recently, the company forecast second-quarter 2026 revenue of between 410 million Chinese yuan and 430 million Chinese yuan, representing a year-over-year decline of 20.2% to 23.9%.
Enrollment And Billings Continue To Decline The weak guidance added to concerns about Sunlands' shrinking student base.
New student enrollments fell to 102,127 in the first quarter of 2026 from 169,083 a year earlier, while gross billings declined to 304.8 million yuan from 412.3 million yuan.
The company reported first-quarter revenue of 440.7 million yuan, down 9.6% from the prior year.
