Cheetah Mobile (CMCM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 36.1% year-over-year and 9.2% quarter-over-quarter to RMB259.0 million, with significant loss reduction and strong momentum in both legacy internet and new AI/robotics businesses.

• Internet business revenue rose 46% year-over-year; AI and robotics segments grew 22.9% year-over-year and 29.8% sequentially.

• Operating loss narrowed to RMB26.5 million from RMB80.6 million a year ago and RMB207.1 million last quarter.

• Net loss attributable to shareholders reduced to RMB33.4 million from RMB80.0 million a year ago and RMB366.8 million last quarter.

• Management remains focused on AI-driven innovation, margin expansion, and steady growth in legacy businesses.

Financial highlights

• Gross profit increased 67.2% year-over-year to RMB189.5 million, with gross margin improving to 73.2% from 59.2% a year ago.

• Non-GAAP net loss attributable to shareholders was RMB21.1 million, down from RMB65.8 million a year ago and RMB202.1 million last quarter.

• Adjusted EBITDA loss narrowed to RMB11.2 million from RMB60.7 million a year ago and RMB34.5 million last quarter.

• Cash and cash equivalents stood at RMB1,699.2 million ($234.2 million) as of March 31, 2025.

• Long-term investments totaled RMB813.1 million ($112.1 million) as of March 31, 2025.

Outlook and guidance

• Management targets overall break-even in the second half of 2025, with profitability dependent on business progress and market conditions.

• Internet business expected to maintain stable growth, while AI and robotics are positioned as future growth engines.

• Further margin expansion and continued loss reduction anticipated, with disciplined AI investment.

• Management expects continued progress in AI strategy, focusing on agentic AI and application-driven innovation.

• Emphasis on steady revenue and profit growth from legacy businesses while expanding practical AI tools and robotics.