Youdao shares rise as Q2 earnings beat offsets revenue shortfall

Youdao (NYSE: DAO) reported Q2 2026 revenue of RMB1.5B (US$216.2M), up 3.5% YoY. Learning services revenue grew 20.9%, while smart devices and online marketing services declined 31.5% and 7.7%, respectively. Gross margin improved to 48.9% from 43.0%. Net income was RMB73.8M (US$10.9M), a turnaround from a loss in Q2 2025. CEO Dr. Feng Zhou highlighted sustainable growth and AI-driven progress.

BitFuFu (FUFU) reported a 63% revenue decline to $42.8M in Q2, with net loss of $20.5M, despite a 47% increase in self-mining hashrate and 34% more Bitcoin produced. Cloud mining revenue dropped 73.6%, and self-mining revenue fell slightly. Shares fell 11% post-earnings.

Zim reported Q2 revenue of $1.78 billion and reaffirmed its 2026 guidance for adjusted EBITDA of $2 billion to $2.4 billion and adjusted EBIT of $700 million to $1.1 billion. The company expects to pay a dividend based on 2026 results. The proposed merger with Hapag-Lloyd is pending regulatory approvals, despite opposition from Israeli agencies.

Ondas (ONDS) reported Q2 revenue of $83.8M, up 67% sequentially and 85% YoY organically. The company raised full-year guidance to $525M-$550M and expects a $1B annualized run rate by year-end. However, it also posted a $51M adjusted EBITDA loss and warned of margin pressure. The stock is polarizing, with high institutional ownership and significant short interest.

Ascendis Pharma (ASND) reported Q2 revenue of €315M, up from a year earlier, with all three TransCon therapies contributing. YORVIPATH reached blockbuster status, SKYTROFA had 20,000 patient enrollments, and YUVIWEL launched with €8M in sales. Costs rose, with SG&A and R&D expenses increasing. Operating profit included a one-time gain. The company has €812M in cash and no debt.

H World Group (HTHT) shares rose 11.3% after Q2 results showed 13.2% hotel turnover growth and 10.8% revenue increase. The company raised 2026 revenue growth forecast to 4%-8% and approved a $2.5B return plan. It operates 13,539 hotels with 1.34M rooms and has 3,089 hotels in pipeline. Cash reserves were RMB14.2B against RMB4.2B debt. The board declared a $275M dividend.