Yalla Group (YALA) investor relations material

Executive summary

• Q1 2026 revenues reached $79.0 million, down from $83.9 million in Q1 2025, mainly due to a decrease in paying users linked to regional geopolitical events.

• Net income for Q1 2026 was $28.4 million, with a net margin of 35.9%, compared to $36.4 million in Q1 2025.

• Average monthly active users (MAUs) grew 7.7% year-over-year to 48.0 million, reflecting strong user engagement.

• The company reinforced its gaming business with new mid-core and hard-core game launches, positive early feedback, and strategic partnerships, including esports initiatives.

• Strategic partnerships, notably with Blaze Entertainment and the Saudi Esports Federation, expanded market reach and promoted esports and female gaming initiatives.

Financial highlights

• Q1 2026 revenues were $79.0 million, down from $83.9 million year-over-year, with gaming services contributing $30.3 million (38.3% of total revenues) and chatting services $48.1 million.

• Non-GAAP net income was $33.3 million (net margin 42.1%), compared to $39.1 million last year.

• Operating income was $23.5 million, down from $31.2 million year-over-year.

• Cash and equivalents stood at $806.7 million as of March 31, 2026, up from $754.6 million at year-end 2025.

• Quarterly paying users declined to 10.5 million from 11.8 million year-over-year.

Outlook and guidance

• Q2 2026 revenue guidance is $75–82 million, reflecting current market and operating conditions.

• Full-year 2026 legacy business revenue expected to decline by low to mid-single digits year-over-year.

• Total 2026 revenues projected to be broadly flat versus 2025; potential for double-digit growth in 2027 if new games scale successfully.

• Plans to increase marketing spend to expand game titles into overseas markets and prepare for monetization of new SLG game in the second half of 2026.

• Focused on leveraging partnerships and esports events to drive brand exposure and user growth.