NetEase Youdao has announced its unaudited financial results for the second quarter of 2026, revealing a net revenue of 1.47 billion yuan for the period, marking a 3.5% increase compared to the same quarter in the previous year. The company has also maintained positive operating profit for eight consecutive quarters. For the first half of the year, cumulative net revenue reached 2.81 billion yuan, up 3.6% year-over-year. Propelled by the AI Agent matrix, all business segments have experienced growth: net revenue from learning services reached 800 million yuan in Q2, a 20.9% year-over-year increase. Sales of AI subscription services amounted to approximately 100 million yuan, also up over 20% year-over-year, with significant growth observed across various product metrics. Net revenue from online marketing services stood at 580 million yuan, with an improved gross margin, thanks to increased advertising revenue from sectors such as AI applications, and the launch of the AI Ad Placement Optimizer 2.0. The smart hardware business continued to show signs of improvement, with the Youdao Dictionary Pen X8 series receiving a strong market response, and related products achieving outstanding results and accolades. Currently, the AI Agent has entered a phase of scaled growth, with the number of LobsterAI users exceeding 1 million, and several products, including the Simultaneous Interpretation Agent, being successfully launched. Additionally, NetEase Youdao unveiled the AI earbuds Youdao OpenPods, pioneering a new segment in AI-native hardware. Meanwhile, the company is continuously enhancing its underlying model capabilities, with upgrades to Ziyue 4 and Ziyue 4-TTS.