Hello Group Inc. (MOMO) Q2 2025 Earnings Call Transcript
Total Group Revenue RMB 2.62 billion, down 3% year-over-year. The decline was attributed to soft consumer sentiment and macroeconomic factors.
Domestic Revenue RMB 2.18 billion, down 11% year-over-year. The decline was due to weak spending sentiment among high-paying users and a challenging macro environment.
Overseas Revenue RMB 442 million, up 73% year-over-year. The increase was driven by rapid growth in audio and video-based social products in the MENA region and optimized acquisition strategies.
Adjusted Operating Income RMB 448 million, down 6% year-over-year with a margin of 17%. The decline was due to structural revenue shifts and increased costs in overseas markets.
Momo Value-Added Service Revenue RMB 1.85 billion, down 11% year-over-year. The decline was attributed to reduced spending by high-paying users in live streaming amid a weak macro environment.
Tantan Revenue (Onshore Business) RMB 160 million, down 18% year-over-year. The decline was due to a decrease in paying users, although ARPU increased 18% year-over-year.
Overseas Revenue Contribution 17% of group revenue, up from 10% in the same period last year. The increase was driven by growth in social entertainment and dating brands.
Non-GAAP Net Income (Excluding Special Tax Item) RMB 451.9 million, up 1% year-over-year. The increase was due to improved operational efficiency and cost control.
Non-GAAP Gross Margin 38.8%, down 2 percentage points year-over-year. The decline was due to higher payout ratios in overseas markets and one-off severance payments.
Non-GAAP R&D Expenses RMB 172 million, down 4% year-over-year. The decrease was attributed to personnel optimization.
Non-GAAP Sales and Marketing Expenses RMB 339.7 million, down 6% year-over-year. The decrease was due to cost control strategies in domestic businesses.
Non-GAAP G&A Expenses RMB 67.5 million, down 25% year-over-year. The decrease was due to ongoing cost control measures.
Net Cash Provided by Operating Activities RMB 250.1 million. This reflects the company's operational cash flow for the quarter.
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Hello Group to Release Q4 and FY 2025 Financial Results on March 18, 2026
- Earnings Release Schedule: Hello Group will announce its unaudited financial results for the fiscal year ending December 31, 2025, before U.S. markets open on March 18, 2026, reflecting the company's commitment to transparency and investor communication.
- Conference Call Timing: Management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time) on the same day, aiming to share financial performance and future outlook, thereby enhancing market confidence.
- Registration Details: Participants can register for the conference call via a designated link, and upon registration, they will receive dial-in numbers and a conference passcode, ensuring investors can smoothly participate and access the latest information.
- Replay Service: A telephone replay of the call will be available until March 27, 2026, providing access to those unable to attend live, further enhancing information accessibility and transparency.
Hello Group Announces Q4 and FY 2025 Earnings Release Schedule
- Earnings Release Schedule: Hello Group will release its unaudited financial results for the fiscal year ended December 31, 2025, before U.S. markets open on March 18, 2026, demonstrating the company's commitment to financial transparency.
- Conference Call Timing: Management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on the same day, expected to discuss financial performance and future outlook, thereby enhancing investor confidence.
- Registration Information: Participants are required to preregister to receive dial-in details, ensuring a smooth conference call, which reflects the company's emphasis on investor relations.
- Replay Service: A telephone replay of the call will be available until March 27, 2026, providing a convenient channel for follow-up information access, further increasing investor engagement.
Ideal Stock Portfolio: December 2025 Update
Global Market Trends: Investors are currently favoring narratives over financial fundamentals, leading to many companies trading below their book value despite strong balance sheets and financial health, particularly in the U.S., Europe, Japan, and China.
U.S. Market Insights: In the U.S., many asset-intensive businesses, especially in the financial sector, are undervalued despite solid capital positions and liquidity, reflecting a market mindset of crisis rather than current financial realities.
European Financial Strength: European banks and industrial companies are well-capitalized and generating profits, yet they are trading below tangible book value due to market perceptions of impending downturns, creating investment opportunities.
Japanese and Chinese Opportunities: Japan's companies often have strong balance sheets with net cash positions, while in China, a distinction exists between companies with solid financials and those facing real risks, presenting a selective investment landscape focused on financial strength.
Hello Group Reports Q3 Net Revenue of RMB 2.65 Billion, Significant Growth in Overseas Business
- Revenue Decline: In Q3 2025, total net revenue was RMB 2.65 billion (USD 372.3 million), a 0.9% decrease from RMB 2.67 billion in Q3 2024, primarily due to weak consumer sentiment in the domestic market, indicating intensified competitive pressures.
- Overseas Growth: Despite the overall revenue decline, overseas revenue surged from RMB 316.4 million to RMB 534.8 million (USD 75.1 million) year-over-year, highlighting significant success in expanding social entertainment brands in the MENA region.
- Rising Operating Costs: Total costs and expenses reached RMB 2.31 billion (USD 324.4 million) in Q3, up 1.0% year-over-year, mainly driven by increased revenue sharing with overseas app partners, reflecting the company's heightened investment in international markets.
- Profit Decline: Q3 2025 net income was RMB 349.6 million (USD 49.1 million), down 22.1% from RMB 449.4 million in Q3 2024, indicating challenges in profitability that necessitate improved cost control and strategic market adjustments.
Hello Group Reports Q3 Net Income of RMB 349.6 Million, Down 22.3% YoY
- Revenue Decline: Hello Group reported total net revenues of RMB 2.65 billion (approximately $372.3 million) in Q3 2025, a 0.9% year-over-year decrease primarily due to challenges in the domestic Chinese market, indicating significant operational hurdles.
- Overseas Market Growth: Despite the overall revenue decline, net revenues from overseas surged by 69.0% year-over-year to RMB 534.8 million (approximately $75.1 million), suggesting that Hello Group's international expansion strategy is beginning to yield positive results.
- Net Income Drop: The net income attributable to Hello Group was RMB 349.6 million (approximately $49.1 million) in Q3 2025, down 22.3% from RMB 449.4 million in the same period of 2024, reflecting pressure on the company's profitability.
- Decline in Paying Users: The number of paying users for the Momo app decreased from 6.9 million last year to 3.7 million, indicating a slowdown in user growth that could impact future revenue potential.
Key Stocks Reporting Earnings This Week: GameStop, Broadcom, Oracle, and Others
Earnings Reports Overview: Retail investors are gearing up for a week of earnings reports, with notable companies like Toll Brothers, GameStop, and Oracle set to release their financial results.
Toll Brothers Expectations: Analysts anticipate Toll Brothers will report Q4 earnings of approximately $4.89 per share, focusing on the impact of luxury demand amidst housing affordability challenges.
Oracle's Key Focus: Oracle's upcoming earnings report is highly anticipated, with expectations of $1.64 per share and $16.22 billion in revenue, as investors look for insights on its AI investments and cloud revenue growth.
Broadcom and Other Reports: Broadcom is expected to be a highlight on Thursday, with analysts predicting earnings of $1.86 per share, alongside other companies like Costco and Lululemon also reporting their results.
Hello Group to Release Q4 and FY 2025 Financial Results on March 18, 2026
- Earnings Release Schedule: Hello Group will announce its unaudited financial results for the fiscal year ending December 31, 2025, before U.S. markets open on March 18, 2026, reflecting the company's commitment to transparency and investor communication.
- Conference Call Timing: Management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time) on the same day, aiming to share financial performance and future outlook, thereby enhancing market confidence.
- Registration Details: Participants can register for the conference call via a designated link, and upon registration, they will receive dial-in numbers and a conference passcode, ensuring investors can smoothly participate and access the latest information.
- Replay Service: A telephone replay of the call will be available until March 27, 2026, providing access to those unable to attend live, further enhancing information accessibility and transparency.
Hello Group Announces Q4 and FY 2025 Earnings Release Schedule
- Earnings Release Schedule: Hello Group will release its unaudited financial results for the fiscal year ended December 31, 2025, before U.S. markets open on March 18, 2026, demonstrating the company's commitment to financial transparency.
- Conference Call Timing: Management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on the same day, expected to discuss financial performance and future outlook, thereby enhancing investor confidence.
- Registration Information: Participants are required to preregister to receive dial-in details, ensuring a smooth conference call, which reflects the company's emphasis on investor relations.
- Replay Service: A telephone replay of the call will be available until March 27, 2026, providing a convenient channel for follow-up information access, further increasing investor engagement.
Ideal Stock Portfolio: December 2025 Update
Global Market Trends: Investors are currently favoring narratives over financial fundamentals, leading to many companies trading below their book value despite strong balance sheets and financial health, particularly in the U.S., Europe, Japan, and China.
U.S. Market Insights: In the U.S., many asset-intensive businesses, especially in the financial sector, are undervalued despite solid capital positions and liquidity, reflecting a market mindset of crisis rather than current financial realities.
European Financial Strength: European banks and industrial companies are well-capitalized and generating profits, yet they are trading below tangible book value due to market perceptions of impending downturns, creating investment opportunities.
Japanese and Chinese Opportunities: Japan's companies often have strong balance sheets with net cash positions, while in China, a distinction exists between companies with solid financials and those facing real risks, presenting a selective investment landscape focused on financial strength.
Hello Group Reports Q3 Net Revenue of RMB 2.65 Billion, Significant Growth in Overseas Business
- Revenue Decline: In Q3 2025, total net revenue was RMB 2.65 billion (USD 372.3 million), a 0.9% decrease from RMB 2.67 billion in Q3 2024, primarily due to weak consumer sentiment in the domestic market, indicating intensified competitive pressures.
- Overseas Growth: Despite the overall revenue decline, overseas revenue surged from RMB 316.4 million to RMB 534.8 million (USD 75.1 million) year-over-year, highlighting significant success in expanding social entertainment brands in the MENA region.
- Rising Operating Costs: Total costs and expenses reached RMB 2.31 billion (USD 324.4 million) in Q3, up 1.0% year-over-year, mainly driven by increased revenue sharing with overseas app partners, reflecting the company's heightened investment in international markets.
- Profit Decline: Q3 2025 net income was RMB 349.6 million (USD 49.1 million), down 22.1% from RMB 449.4 million in Q3 2024, indicating challenges in profitability that necessitate improved cost control and strategic market adjustments.
Hello Group Reports Q3 Net Income of RMB 349.6 Million, Down 22.3% YoY
- Revenue Decline: Hello Group reported total net revenues of RMB 2.65 billion (approximately $372.3 million) in Q3 2025, a 0.9% year-over-year decrease primarily due to challenges in the domestic Chinese market, indicating significant operational hurdles.
- Overseas Market Growth: Despite the overall revenue decline, net revenues from overseas surged by 69.0% year-over-year to RMB 534.8 million (approximately $75.1 million), suggesting that Hello Group's international expansion strategy is beginning to yield positive results.
- Net Income Drop: The net income attributable to Hello Group was RMB 349.6 million (approximately $49.1 million) in Q3 2025, down 22.3% from RMB 449.4 million in the same period of 2024, reflecting pressure on the company's profitability.
- Decline in Paying Users: The number of paying users for the Momo app decreased from 6.9 million last year to 3.7 million, indicating a slowdown in user growth that could impact future revenue potential.
Key Stocks Reporting Earnings This Week: GameStop, Broadcom, Oracle, and Others
Earnings Reports Overview: Retail investors are gearing up for a week of earnings reports, with notable companies like Toll Brothers, GameStop, and Oracle set to release their financial results.
Toll Brothers Expectations: Analysts anticipate Toll Brothers will report Q4 earnings of approximately $4.89 per share, focusing on the impact of luxury demand amidst housing affordability challenges.
Oracle's Key Focus: Oracle's upcoming earnings report is highly anticipated, with expectations of $1.64 per share and $16.22 billion in revenue, as investors look for insights on its AI investments and cloud revenue growth.
Broadcom and Other Reports: Broadcom is expected to be a highlight on Thursday, with analysts predicting earnings of $1.86 per share, alongside other companies like Costco and Lululemon also reporting their results.
