Cheetah Mobile (CMCM) investor relations material

Executive summary

• Achieved first quarterly operating profit in six years, ahead of expectations for Q3 2025, signaling progress in turnaround efforts.

• Q3 revenue rose 50% year-over-year to RMB287.4 million, with AI and others segment up 151% and now comprising over half of total revenue.

• AI robot business saw strong demand, especially for voice-enabled wheel robots and robotic arms, with contract backlog for wheel robots in China doubling sequentially.

• Internet business remained stable, with user subscription revenue now over 60% of segment revenue.

• Focus remains on scaling AI robots and AI tools as new growth engines through continued investment.

Financial highlights

• Q3 2025 total revenue: RMB287.4 million (US$40.4 million), up 50% year-over-year.

• Gross profit increased 64% year-over-year to RMB214.4 million (US$30.1 million); gross margin improved to 75% from 68% a year ago.

• Operating profit: RMB4 million (first positive in six years); non-GAAP operating profit: RMB15.1 million, versus a loss of RMB60 million last year.

• Cash and cash equivalents: $224 million (RMB1,597.3 million) as of September 30, 2025; long-term investments: $107 million (RMB761.4 million).

• Net loss attributable to shareholders narrowed to RMB11 million; non-GAAP net income was RMB0.2 million.

Outlook and guidance

• Expect to approach break-even for full year 2025.

• Q4 2025 internet business revenue and profit expected to remain stable sequentially, but with a year-over-year decline due to advertising weakness; user-paid revenue to grow over 10% year-over-year.

• AI and other businesses expected to continue strong growth, offsetting traditional business volatility; management remains focused on driving growth through continued investment in AI robots and AI tools.