Weibo (WB) investor relations material

Executive summary

• Q2 2026 revenue grew 2% year-over-year to $453.8 million, driven by value-added services growth and stable advertising revenues.

• Net income attributable to shareholders was $102.7 million (non-GAAP) and $67.4 million (GAAP); diluted EPS was $0.38 (non-GAAP) and $0.26 (GAAP).

• Average MAUs reached 561 million and DAUs 254 million in June 2026, with strong user engagement.

• AI integration enhanced content distribution, monetization, and ad performance, supporting improved video consumption and creator ecosystem growth.

• Focus shifted from user acquisition to improving conversion and engagement, with ongoing product and AI-driven feed optimizations.

Financial highlights

• Total revenue: $453.8 million (+2% YoY); ad revenue: $381 million (-1% YoY); value-added service revenue: $72.9 million (+19% YoY), driven by offline ticket sales and membership growth.

• Non-GAAP operating income: $125.4 million (28% margin); GAAP operating income: $118.9 million (26% margin); net margin: 23%.

• Cash, equivalents, and short-term investments: $2.64 billion as of June 30, 2026.

• Operating cash flow: $50.5 million; capital expenditures: $3.1 million.

• Adjusted EBITDA for Q2 2026 was $133.2 million.

Outlook and guidance

• Management expects continued pressure on ad revenue in H2 2026 due to subdued consumer demand and intense competition.

• Automobile and internet services ad revenue expected to remain stable or slightly increase; handset, e-commerce, and food delivery sectors face headwinds.

• Focus on AI-driven ad efficiency, content marketing, and KOL/celebrity campaigns to attract mid-tier advertiser budgets.