Hello Group (MOMO) investor relations material

Executive summary

• Q2 2026 revenue was RMB 2.49 billion, down 5% year-over-year but up 4% quarter-over-quarter, with overseas revenue growth offsetting domestic declines.

• Overseas revenues grew 52% year-over-year to RMB 673 million, driven by new MENA products and dating brands outside MENA.

• Domestic business faced headwinds from tax scrutiny and weak consumer sentiment, while overseas operations showed strong growth and diversification.

• Adjusted operating income was RMB 276 million (11% margin); non-GAAP net income was RMB 273.9 million, reversing a loss from the prior year.

• Net income attributable to shareholders was RMB 237.4 million in Q2 2026, compared to a net loss of RMB 140.2 million in Q2 2025.

Financial highlights

• Domestic revenue was RMB 1.81 billion, down 17% year-over-year but up 1% sequentially; overseas revenue reached RMB 673 million, up 52% year-over-year and 13% quarter-over-quarter.

• Non-GAAP gross margin was 35.8%, down from 38.8% a year ago, mainly due to higher payment channel costs and a shift toward international operations.

• Excluding film production expenses, gross margin would have been 38.1%.

• Non-GAAP operating income margin was 11.1%, or 13.4% excluding film-related costs.

• Cash, cash equivalents, and investments totaled RMB 8.54 billion as of June 30, 2026.

Outlook and guidance

• Q3 2026 revenue is expected to be RMB 2.4–2.5 billion, a year-over-year decline of 5.7%–9.4%.

• Domestic revenue is projected to decline by high teens percentage, while overseas revenue is expected to grow by high 30s percentage.

• Full-year group revenue is now expected to decline mid-single digits, with margin targets still achievable if cost controls succeed.

• Overseas revenue target for 2026 revised down from RMB 3 billion to RMB 2.8–2.9 billion.

• Guidance reflects current market and operational conditions and is subject to change.