BEIJING,Oct. 24,2024 -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"),a smart learning solutions provider in China,today announced its unaudited financial results for the second quarter of fiscal year 2025 ended August 31,2024 and issued notice of Annual General Meeting.

Highlights for the Second Quarter of Fiscal Year 2025

Net revenues were US$619.4 million,compared to net revenues of US$411.9 million in the same period of the prior year.

Income from operations was US$47.6 million,compared to income from operations of US$31.8 million in the same period of the prior year.

Non-GAAP income from operations,which excluded share-based compensation expenses,was US$64.5 million,compared to non-GAAP income from operations of US$52.7 million in the same period of the prior year.

Net income attributable to TAL was US$57.4 million,compared to net incomeattributable to TAL of US$37.9million in the same period of the prior year.

Non-GAAP net income attributable toTAL,was US$74.3 million,compared tonon-GAAP net income attributable to TAL of US$58.8million in the same period of the prior year.

Basic and diluted net income per American Depositary Share ("ADS") were both US$0.09. Non-GAAP basic and diluted net income per ADS,were both US$0.12. ThreeADSs represent one Class A common share.

Cash,cash equivalents and short-term investments totaled US$3,454.3 million as of August 31,2024,compared to US$3,303.3 million as of February 29,2024.

Highlights for the Six Months Ended August 31,2024

Net revenues were US$1,033.5 million,compared to net revenues of US$687.4 million in the same period of the prior year.

Income from operations was US$30.3 million,compared to loss from operations of US$26.0 million in the same period of the prior year.

Non-GAAP income from operations,was US$65.4 million,compared to non-GAAP income from operations of US$20.4 million in the same period of the prior year.

Net income attributable toTAL was US$68.8 million,compared to net loss attributable to TAL of US$7.1 million in the same period of the prior year.

Non-GAAP net income attributable toTAL,was US$103.9 million,compared to non-GAAP net income attributable to TAL of US$39.3 million in the same period of the prior year.

Basic and diluted net income per ADS were both US$0.11. Non-GAAP basic and diluted net income per ADS,were both US$0.17.

Financial Data——SecondQuarter and First Six Months of Fiscal Year 2025

(In US$ thousands,except per ADS data and percentages)

Three Months Ended

August 31,

2023

2024

Pct. Change

Net revenues

411,931

619,361

50.4%

Income from operations

31,790

47,622

49.8%

Non-GAAP income from operations

52,673

64,520

22.5%

Net income attributable to TAL

37,902

57,431

51.5%

Non-GAAP net income attributable to TAL

58,785

74,329

26.4%

Net income per ADS attributable to TAL – basic

0.06

0.09

50.6%

Net income per ADS attributable to TAL – diluted

0.06

0.09

50.7%

Non-GAAP net income per ADS attributable to

TAL – basic

0.10

0.12

25.7%

Non-GAAP net income per ADS attributable to

TAL – diluted

0.10

0.12

25.8%

Six Months Ended

August 31,

2023

2024

Pct. Change

Net revenues

687,371

1,033,548

50.4%

(Loss)/Income from operations

(25,983)

30,292

(216.6%)

Non-GAAP income from operations

20,413

65,396

220.4%

Net (loss)/income attributable to TAL

(7,135)

68,833

(1,064.7%)

Non-GAAP net income attributable to TAL

39,261

103,937

164.7%

Net (loss)/income per ADS attributable to TAL –

basic

(0.01)

0.11

(1,085.2%)

Net (loss)/income per ADS attributable to TAL –

diluted

(0.01)

0.11

(1,068.4%)

Non-GAAP net income per ADS attributable to

TAL – basic

0.06

0.17

170.3%

Non-GAAP net income per ADS attributable to

TAL – diluted

0.06

0.17

169.9%

"In this quarter we achieved year-on-year revenue growth of 50.4%. AI learning device was one of the faster growing business lines. We are excited about the opportunity to provide for our customers more accessibility to quality learning contents through these AI-power devices," said Alex Peng,TAL's President & Chief Financial Officer.

Mr. Peng added: "As for learning services,we will prudently manage our learning center network,balancing operating efficiency and growth rate. Our primary objective for learning service is to offer quality learning experience to our learners both online and offline."

Financial Results for the Second Quarter of Fiscal Year 2025

Net Revenues

In the second quarter of fiscal year 2025,TAL reported net revenues of US$619.4 million,representing a 50.4% increase from US$411.9 million in the second quarter of fiscal year 2024.

Operating Costs and Expenses

In the second quarter of fiscal year 2025,operating costs and expenses were US$572.0 million,representing a 49.5% increase from US$382.8 million in the second quarter of fiscal year 2024. Non-GAAP operating costs and expenses,were US$555.1 million,representing a 53.4% increase from US$361.9 million in the second quarter of fiscal year 2024.

Cost of revenues increased by 59.8% to US$270.6 million from US$169.4 million in the second quarter of fiscal year 2024. Non-GAAP cost of revenues,increased by 60.7% to US$268.8 million,from US$167.3 million in the second quarter of fiscal year 2024.

Selling and marketing expenses increased by 56.4% to US$181.9 million from US$116.3 million in the second quarter of fiscal year 2024. Non-GAAP selling and marketing expenses,increased by 61.6% to US$177.9 million,from US$110.1 million in the second quarter of fiscal year 2024.

General and administrative expenses increased by 23.1% to US$119.5 million from US$97.1 million in the second quarter of fiscal year 2024. Non-GAAP general and administrative expenses,increased by 28.3% to US$108.3 million,from US$84.4 million in the second quarter of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 19.1% to US$16.9 million in the second quarter of fiscal year 2025 from US$20.9 million in the same period of fiscal year 2024.

Gross Profit

Gross profit increased by 43.8% to US$348.7 million from US$242.5 million in the second quarter of fiscal year 2024.

Income/(Loss) from Operations

Income from operations was US$47.6 million in the second quarter of fiscal year 2025,compared to income from operations of US$31.8 million in the second quarter of fiscal year 2024. Non-GAAP income from operations,compared to Non-GAAP income from operations of US$52.7 million in the same period of the prior year.

Other Income/(Expense)

Other income was US$20.5 million for the second quarter of fiscal year 2025,compared to other income of US$5.0 million in the second quarter of fiscal year 2024.

Impairment Loss on Long-term Investments

Impairment loss on Long-term investment was US$4.9 million for the second quarter of fiscal year 2025,compared to US$30.8 million for the same period of fiscal year 2024.

Income Tax Benefit/(Expense)

Income tax expense was US$25.6 million in the second quarter of fiscal year 2025,compared to US$10.0 million of income tax benefit in the second quarter of fiscal year 2024.

Net Income/(Loss) attributable to TAL Education Group

Net income attributable to TAL was US$57.4 million in the second quarter of fiscal year 2025,compared to net income attributable to TAL of US$37.9 million in the second quarter of fiscal year 2024. Non-GAAP net income attributable to TAL,compared to Non-GAAP net income attributable to TAL of US$58.8 million in the second quarter of fiscal year 2024.

Basic and Diluted Net Income/(Loss) per ADS

Basic and diluted net income per ADS were both US$0.09 in the second quarter of fiscal year 2025. Non-GAAP basic and diluted net income per ADS,were both US$0.12 in the second quarter of fiscal year 2025.

Cash Flow

Net cash used in operating activities for the second quarter of fiscal year 2025 was US$0.6 million.

Cash,Cash Equivalents,and Short-Term Investments

As of August 31,the Company had US$2,085.9 million of cash and cash equivalents and US$1,368.4 million of short-term investments,compared to US$2,208.7 million of cash and cash equivalents and US$1,094.6 million of short-term investments as of February 29,2024.

Deferred Revenue

As of August 31,the Company's deferred revenue balance was US$517.6 million,compared to US$428.3 million as of February 29,2024.

Financial Results for the First Six Months of Fiscal Year 2025

Net Revenues

For the first six months of fiscal year 2025,TAL reported net revenues of US$1,representing a 50.4% increase from US$687.4 million in the first six months of fiscal year 2024.

Operating Costs and Expenses

In the first six months of fiscal year 2025,operating costs and expenses were US$1,004.1 million,representing a 38.5% increase from US$724.8 million in the first six months of fiscal year 2024. Non-GAAP operating costs and expenses,were US$969.0 million,representing a 42.8% increase from US$678.5 million in the first six months of fiscal year 2024.

Cost of revenues increased by 52.4% to US$470.6 million from US$308.9 million in the first six months of fiscal year 2024. Non-GAAP cost of revenues,increased by 53.2% to US$466.5 million from US$304.4 million in the first six months of fiscal year 2024 .

Selling and marketing expenses increased by 42.3% to US$304.3 million from US$213.9 million in the first six months of fiscal year 2024. Non-GAAP selling and marketing expenses,increased by 47.7% to US$296.0 million from US$200.4 million in the first six months of fiscal year 2024.

General and administrative expenses increased by 13.4% to US$229.2 million from US$202.0 million in the first six months of fiscal year 2024. Non-GAAP general and administrative expenses,increased by 18.9% to US$206.6 million from US$173.7 million in the first six months of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 24.3% to US$35.1 million in the first six months of fiscal year 2025 from US$46.4 million in the same period of fiscal year 2024.

Gross Profit

Gross profit increased by 48.7% to US$562.9 million from US$378.5 million in the first six months of fiscal year 2024.

Income/(Loss) from Operations

Income from operations was US$30.3 million in the first six months of fiscal year 2025,compared to loss from operations of US$26.0 million in the same period of the prior year. Non-GAAP income from operations,compared to US$20.4 million Non-GAAP income from operations in the same period of the prior year.

Other Income/(Expense)

Other income was US$33.6 million for the first six months of fiscal year 2025,compared to other expense of US$1.8 million in the same period of the prior year.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$8.7 million for the first six months of fiscal year 2025,compared to US$30.8 million for the first six months of fiscal year 2024.

Income Tax Benefit/(Expense)

Income tax expense was US$27.9 million in the first six months of fiscal year 2025,compared to US$6.5 million of income tax benefit in the first six months of fiscal year 2024.

Net Income/(Loss) Attributable toTAL Education Group

Net income attributable to TAL wasUS$68.8 millionin the first six months of fiscal year 2025,compared to net loss attributable to TAL ofUS$7.1 millionin the first six months of fiscal year 2024. Non-GAAP net income attributable to TAL,compared toUS$39.3 million Non-GAAP income attributable to TAL in the same period of the prior year.

Cash Flow

Net cash provided by operating activities for the first six months of fiscal year 2025 was US$246.2 million.

Basic and Diluted Net Income/(Loss) per ADS

Basic and diluted net income per ADS were both US$0.11 in the first six months of fiscal year 2025. Non-GAAP basic and diluted net income per ADS,were both US$0.17 in the first six months of fiscal year 2025.

Share Repurchase

In April 2024,the Company's board of directors authorized to extend its share repurchase program launched in April 2021 by 12 months. Pursuant to the extended share repurchase program,the Company may repurchase up to approximately US$503.8 million of its common shares through April 30,2025. As of August 31,the Company has repurchased 499,933 common shares at an aggregate consideration of approximately US$13.1 million under the share repurchase program.

TAL to Hold Annual General Meeting on November 15,2024

The Company announced that it will hold its annual general meeting of shareholders (the "AGM") at TAL Building No.1,Courtyard No. 9,Qixin Middle Street,Changping District,Beijing,China,onNovember 15,2024at3:00PM(Beijingtime). No proposal will be submitted to shareholders for approval at the AGM. Instead,the AGM will serve as an open forum for shareholders and beneficial owners of the Company's ADSs to discuss Company's affairs with management.

The board of directors of the Company has fixed the close of business on November 4,2024 (Eastern Standard Time) as the record date (the "Record Date"). Holders of record of the Company's common shares at the close of business on the Record Date are entitled to notice of the AGM and any adjournment or postponement thereof. Beneficial owners of the Company's ADSs are welcome to attend the AGM in person.

The notice of the AGM is available on the Investor Relations section of the Company's website at https://ir.100tal.com/. The Company has filed its annual report on Form 20-F (the "Annual Report"),which includes the Company's audited financial statements for the fiscal year ended February 29,with the U.S. Securities and Exchange Commission (the "SEC"). The Company's Annual Report can be accessed on the Investor Relations section of its website at https://ir.100tal.com,as well as on the SEC's website athttp://www.sec.gov.

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the second fiscal quarter of fiscal year 2025 ended August 31,2024 at 8:00 a.m. Eastern Time on October 24,2024 (8:00 p.m. Beijing time on October 24,2024).

Please note that you will need to pre-register for conference call participation at

https://register.vevent.com/register/BIb77ca114970c4bd1bfe7d1770af84eac.

Upon registration,you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time,including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things,TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with,or furnished to,the U.S. Securities and Exchange Commission,in its annual reports to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit,train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with,or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release,and TAL Education Group undertakes no duty to update such information or any forward-looking statement,except as required under applicable law.

About TAL Education Group

TAL Education Groupis a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life",which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content,as well as leading edge application of technology in the education experience.TAL Education Groupoffers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on theNew York Stock Exchangeunder the symbol "TAL".

About Non-GAAP Financial Measures

In evaluating its business,TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses,non-GAAP cost of revenues,non-GAAP selling and marketing expenses,non-GAAP general and administrative expenses,non-GAAP income from operations,non-GAAP net income attributable to TAL,non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures,the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures,please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

For further information,please contact:

Jackson Ding

Investor Relations

TAL Education Group

Tel: +86 10 5292 6669-8809

Email: ir@tal.com

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

As of

February 29,

2024

As of

August 31,

2024

ASSETS

Current assets

Cash and cash equivalents

$ 2,208,756

$ 2,085,891

Restricted cash-current

167,656

251,072

Short-term investments

1,094,593

1,368,446

Inventory

68,328

82,372

Amounts due from related parties-current

343

394

Prepaid expenses and other current assets

159,498

167,538

Total current assets

3,699,174

3,955,713

Restricted cash-non-current

81,064

43,991

Property and equipment,net

405,319

463,595

Deferred tax assets

4,620

4,061

Rental deposits

16,947

20,406

Intangible assets,net

1,988

1,848

Land use rights,net

189,049

189,763

Amounts due from related parties-non-current

59

60

Long-term investments

284,266

299,330

Long-term prepayments and other non-current assets

14,359

25,585

Operating lease right-of-use assets

231,104

336,573

Total assets

$ 4,927,949

$ 5,340,925

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

$ 127,321

$ 167,317

Deferred revenue-current

400,286

485,391

Amounts due to related parties-current

96

111

Accrued expenses and other current liabilities

491,911

555,292

Short-term debt

-

6,347

Operating lease liabilities,current portion

62,604

79,584

Total current liabilities

1,082,218

1,294,042

Deferred revenue-non-current

27,993

32,171

Deferred tax liabilities

2,360

3,662

Operating lease liabilities,non-current portion

176,614

262,357

Total liabilities

1,289,185

1,592,232

Equity

Class A common shares

152

153

Class B common shares

49

49

Additional paid-in capital

4,256,957

4,264,582

Statutory reserve

165,138

164,490

Accumulated deficit

(694,270)

(624,789)

Accumulated other comprehensive loss

(65,928)

(46,630)

Total TAL Education Group's equity

3,662,098

3,757,855

Noncontrolling interests

(23,334)

(9,162)

Total equity

3,638,764

3,748,693

Total liabilities and equity

$ 4,925

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars,except share,ADS,per share and per ADS data)

For the Three Months Ended

August 31,

For the Six Months Ended

August 31,

2023

2024

2023

2024

Net revenues

$ 411,931

$ 619,361

$ 687,371

$ 1,548

Cost of revenues (note 1)

169,382

270,632

308,895

470,640

Gross profit

242,549

348,729

378,476

562,908

Operating expenses (note 1)

Selling and marketing

116,268

181,900

213,925

304,328

General and administrative

97,106

119,499

202,029

229,181

Total operating expenses

213,374

301,399

415,954

533,509

Government subsidies

2,615

292

11,495

893

Income/(loss) from operations

31,622

(25,292

Interest income,net

20,976

20,397

43,957

42,919

Other income/(expense)

5,032

20,466

(1,813)

33,617

Impairment loss on long-term

investments

(30,761)

(4,925)

(30,761)

(8,692)

Income/(loss) before income tax

benefit/(expense) and

income/(loss) from equity

method investments

27,037

83,560

(14,600)

98,136

Income tax benefit/(expense)

10,018

(25,635)

6,499

(27,930)

Income/(loss) from equity method

investments

779

(587)

708

(1,572)

Net income/(loss)

37,834

57,338

(7,393)

68,634

Add: Net loss attributable to

noncontrolling interests

68

93

258

199

Total net income/(loss)

attributable to TAL

Education Group

$ 37,902

$ 57,431

$ (7,135)

$ 68,833

Net income/(loss) per common

share

Basic

$ 0.19

$ 0.28

$ (0.03)

$ 0.34

Diluted

0.19

0.28

(0.03)

0.34

Net income/(loss) per ADS (note 2)

Basic

$ 0.06

$ 0.09

$ (0.01)

$ 0.11

Diluted

0.06

0.09

(0.01)

0.11

Weighted average shares used in

calculating net income/(loss)

per common share

Basic

200,565,383

201,768,916

205,942,678

201,668,024

Diluted

203,859,192

204,949,839

205,678

205,166,141

Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:

For the Three Months

Ended August 31,

For the Six Months

Ended August 31,

2023

2024

2023

2024

Cost of revenues

$ 2,081

$ 1,793

$ 4,490

$ 4,155

Selling and marketing expenses

6,134

3,953

13,562

8,328

General and administrative expenses

12,668

11,152

28,344

22,621

Total

$ 20,883

$ 16,898

$ 46,396

$ 35,104

Note 2: Three ADSs represent one Class A common Share.

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATEDSTATEMENTS OF

COMPREHENSIVE INCOME/(LOSS)

(In thousands of U.S. dollars)

For the Three Months Ended

August31,

For the Six Months Ended

August31,

2023

2024

2023

2024

Net income/(loss)

$ 37,834

$ 57,338

$ (7,393)

$ 68,634

Other comprehensive

(loss)/income,net of tax

(20,782)

24,744

(44,595)

17,164

Comprehensive income/(loss)

17,052

82,082

(51,988)

85,798

Add: Comprehensive

(income)/loss attributable to

noncontrolling interests

(452)

2,378

(913)

2,333

Comprehensive income/(loss)

attributable to TAL

Education Group

$ 16,600

$ 84,460

$ (52,901)

$ 88,131

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATEDSTATEMENTS OF

CASH FLOWS

(In thousands of U.S. dollars)

For the Three Months Ended

August31,

2023

2024

2023

2024

Net cash (used in)/provided by

operating activities

$ (42,721)

$ (576)

$ 82,795

$ 246,217

Net cash provided by/(used in)

investing activities

181,887

(193,669)

342,802

(318,304)

Net cash used in financing

activities

(82,271)

(6,799)

(233,508)

(6,794)

Effect of exchange rate

changes

(5,406)

3,576

(9,916)

2,359

Net increase/(decrease) in

cash,cash equivalents and

restricted cash

51,489

(197,468)

182,173

(76,522)

Cash,cash equivalents and

restricted cash at the

beginning of period

$ 2,425,591

$ 2,578,422

$ 2,907

$ 2,457,476

Cash,cash equivalents and

restricted cash at the end

of period

$ 2,477,080

$ 2,380,954

$ 2,954

TAL EDUCATION GROUP

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(In thousands of U.S. dollars,per share and per ADS data)

For the Three Months

Ended August 31,

2023

2024

2023

2024

Cost of revenues

$ 169,382

$270,632

$ 308,895

$ 470,640

Share-based compensation expense

in cost of revenues

2,081

1,793

4,490

4,155

Non-GAAP cost of revenues

167,301

268,839

304,405

466,485

Selling and marketing expenses

116,328

Share-based compensation expense

in selling and marketing expenses

6,328

Non-GAAP selling and marketing

expenses

110,134

177,947

200,363

296,000

General and administrative

expenses

97,181

Share-based compensation expense

in general and administrative expenses

12,621

Non-GAAP general and

administrative expenses

84,438

108,347

173,685

206,560

Operating costs and expenses

382,756

572,031

724,849

1,004,149

Share-based compensation expense

in operating costs and expenses

20,883

16,898

46,396

35,104

Non-GAAP operating costs and

expenses

361,873

555,133

678,453

969,045

Income/(loss) from operations

31,292

Share based compensation expenses

20,104

Non-GAAP income from

operations (note 3)

52,520

20,396

Net income/(loss) attributable to

TAL Education Group

37,431

(7,833

Share based compensation expenses

20,104

Non-GAAP net income

attributable to TAL Education

Group (note 3)

$ 58,785

$74,329

$ 39,261

$ 103,937

Net income/(loss) per ADS

Basic

$ 0.06

$ 0.09

$ (0.01)

$ 0.11

Diluted

0.06

0.09

(0.01)

0.11

Non-GAAP Net income per ADS

Basic

$ 0.10

$ 0.12

$ 0.06

$ 0.17

Diluted

0.10

0.12

0.06

0.17

ADSs used in calculating net

income/(loss) per ADS

Basic

601,696,149

605,306,748

617,828,034

605,072

Diluted

611,577,576

614,849,517

617,034

615,498,423

ADSs used in calculating Non-

GAAP net income per ADS

Basic

601,517

627,500,331

615,423

Note 3: The tax effect of share-based compensation expenses was immaterial in the second quarter and

in the first six months of fiscal year 2025.