This article first appeared on GuruFocus .
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Total Revenue (Q4 2025):RMB2.58 billion, down 2% year-over-year.
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Domestic Revenue (Q4 2025):RMB1.97 billion, down 14% year-over-year.
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Overseas Revenue (Q4 2025):RMB608 million, up 70% year-over-year.
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Adjusted Operating Income (Q4 2025):RMB364 million, up 26% year-over-year, with a margin of 13.7%.
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Total Group Revenue (Fiscal 2025):RMB10.37 billion, a slight decrease of less than 2% year-over-year.
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Domestic Revenue (Fiscal 2025):RMB8.37 billion, down 11% year-over-year.
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Overseas Revenue (Fiscal 2025):RMB2 billion, up 71% year-over-year.
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Adjusted Operating Income (Fiscal 2025):RMB1.55 billion, down 10% year-over-year, with a margin of 15%.
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Non-GAAP Net Income (Q4 2025):RMB281.3 million, compared to RMB230.5 million in Q4 2024.
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Non-GAAP Gross Margin (Q4 2025):37.8%, compared to 34.7% in Q4 2024.
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Non-GAAP R&D Expenses (Q4 2025):RMB203.9 million, a 4% decrease year-over-year.
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Non-GAAP Sales and Marketing Expenses (Q4 2025):RMB339.9 million, representing 13% of total revenue.
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Cash and Cash Equivalents (Dec 31, 2025):RMB8.68 billion, compared to RMB14.73 billion as of Dec 31, 2024.
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Net Cash Provided by Operating Activities (Q4 2025):RMB549.7 million.
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Special Cash Dividend:USD0.28 per ADS, totaling approximately USD42.6 million.
Release Date: March 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Overseas revenue grew by 70% year-over-year in Q4 2025, contributing significantly to the company's overall revenue.
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The company successfully diversified its portfolio through organic product incubation and targeted M&A, enhancing its global presence.
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Hello Group Inc ( NASDAQ:MOMO ) maintained a stable cash cow business domestically despite external headwinds, showcasing resilience.
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The company achieved a 26% year-over-year increase in adjusted operating income for Q4 2025, with a margin of 13.7%.
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The Board approved a special cash dividend of USD0.28 per ADS, reflecting stable operations and commitment to shareholder value.
Negative Points
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Total group revenue for fiscal 2025 decreased by less than 2% year-over-year, with domestic revenue down 11%.
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Domestic revenue faced a 14% year-over-year decline in Q4 2025, primarily due to new tax regulations and macroeconomic pressures.
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Tantan's paying users decreased from 700,000 to 600,000, reflecting challenges in user retention and acquisition.
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The company anticipates a continued decline in domestic revenue for 2026, projecting a low to mid-teens year-over-year decrease.
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Overseas operations remain in the investment phase, with an estimated operating loss of RMB200 million for 2025.
Q & A Highlights
Q: Based on the guidance, Q1 domestic business is expected to decline more than in Q4 last year. Can management provide some color about the trend for domestic revenue this year and measures undertaken on this cash cow business? A: Sichuan Zhang, COO, explained that while 2025 started strong, new tax policies impacted the supply side in the second half. The focus shifted to smaller ticket spenders, and AI tools were enhanced to improve user experience. Despite revenue pressures, the company is committed to maintaining efficiency and expects stable profits in 2026. Cathy Hui Peng, CFO, added that the regulatory environment, macro conditions, and platform fundamentals are key drivers. Assuming no further regulatory tightening, they expect revenue decline to moderate in the second half of 2026.
Q: Could management share more color on the revenue contribution from MENA specifically for audio and video products, new apps, and the growth trend of overseas revenue in 2026? A: Sichuan Zhang, COO, noted that 2025 was a breakout year for overseas revenue, driven by new MENA products Yahalan and Ammar. The focus for 2026 is on deepening market penetration, with dating segments expected to become a significant revenue pillar. Cathy Hui Peng, CFO, mentioned that while precise quantitative outlooks are challenging, they expect overseas revenue to reach around RMB3 billion in 2026, driven by strong growth in non-MENA markets.
Q: We initially expected a sequential decline in gross margin in Q4. However, Q4 gross margin held stable. Should we interpret this as an indication that group gross margin in 2026 could remain at the Q4 2025 level? A: Cathy Hui Peng, CFO, explained that Q4 gross margin outperformed expectations due to better-than-expected recovery among agencies and broadcasters and operating leverage in the MENA region. While Q4 can be a reference point for 2026, macro uncertainties remain, and additional investments may be needed to support content partners.
Q: Management indicated that domestic revenue in 2026 is expected to decline year-over-year while overseas revenue is projected to increase. Does this suggest that overall revenue for 2026 would be roughly flat? A: Cathy Hui Peng, CFO, stated that assuming domestic business declines in the low to mid-teens and overseas revenue increases to RMB3 billion, group-level revenue could be flattish or slightly down compared to 2025. The focus is on balancing profitability with disciplined investments.
Q: Considering the overseas business is still in the investment phase, what's the margin impact in 2026, and when do we expect overseas operations to start contributing meaningful profit? A: Cathy Hui Peng, CFO, noted that overseas operations remain in an investment phase, with an estimated operating loss of around RMB200 million in 2025. While mature apps like Soulchill are profitable, new products like Yahalan and Ammar are scaling rapidly. The company prioritizes scalable growth with defined payback periods and disciplined capital allocation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
