New Oriental Education & Technology Group Inc.

Operating Cost and Expenses . Our total operating cost and expenses increased by 12.2% from US$4,472.0 million in the fiscal year ended May 31, 2025 to US$5,018.0 million in the fiscal year ended May 31, 2026. This increase resulted from increases in each of our cost of revenues, selling and marketing expenses and general and administrative expenses. We track the number of teachers, schools and learning centers as a key indicator for our operating cost and expenses and manage our expenditures and budget on educational businesses accordingly. Our total numbers of schools and learning centers were 75 and 1,459, respectively, as of May 31, 2026, compared to 77 and 1,241, respectively, as of May 31, 2025. We employed approximately 41,000 and 44,200 teachers as of May 31, 2025 and 2026, respectively.

Cost of Revenues . Our cost of revenues increased by 17.6% from US$2,183.3 million in the fiscal year ended May 31, 2025 to US$2,568.2 million in the fiscal year ended May 31, 2026. This increase was in line with the increase in revenues and primarily due to the increase in the cost of revenues for the accelerated capacity expansion for educational businesses in the fiscal year ended May 31, 2026.

Other Income, net . Our net other income decreased by 19.3% from US$108.1 million in the fiscal year ended May 31, 2025 to US$87.3 million in the fiscal year ended May 31, 2026, primarily due to the decrease of the US$42.7 million of interest income.

Provision for Income Tax . Our income tax expense increased by 34.1% from US$146.3 million in the fiscal year ended May 31, 2025 to US$196.1 million in the fiscal year ended May 31, 2026. The increase was primarily due to the increase in current income tax expenses.

Fiscal Year Ended May 31, 2025 Compared to Fiscal Year Ended May 31, 2024 Net Revenues . Our total net revenues increased by 13.6% from US$4,313.6 million for the fiscal year ended May 31, 2024 to US$4,900.3 million for the fiscal year ended May 31, 2025. This increase was due to the increase in net revenues from our new educational business initiatives.

Net Service Revenues . Our net service revenues increased by 23.8% from US$3,501.0 million for the fiscal year ended May 31, 2024 to US$4,334.1 million for the fiscal year ended May 31, 2025. This increase was primarily due to the increase in net revenues from our new educational business initiatives, such as our non-academic tutoring courses.