Cheetah Mobile (CMCM) Q2 2025 earnings summary

Executive summary

• Achieved best results since Q1 2021, with Q2 2025 revenue up 58% year-over-year and 14% quarter-over-quarter, driven by 39% growth in internet business and 86% in AI and other segments.

• Gross profit rose 85% year-over-year to RMB 224.8 million, with gross margin improving to 76% from 65% a year ago.

• Operating loss decreased 86% year-over-year to RMB 11 million, nearly reaching break-even; non-GAAP operating loss at RMB 2 million, down 97%.

• AI is now core to operations, with agile R&D teams leveraging AI for efficiency and product development.

• Acquisition and planned integration of UFactory, a profitable robotic arm company, expands global reach and robotics capabilities.

Financial highlights

• Q2 2025 revenue reached RMB 295.2 million ($41.2 million), up 58% year-over-year and 14% quarter-over-quarter.

• Gross profit increased 85% year-over-year to RMB 224.8 million ($31.4 million); gross margin improved to 76.1% from 65% a year ago.

• Operating loss narrowed to RMB 11.1 million ($1.5 million), down 86% year-over-year; non-GAAP operating loss at RMB 2.1 million ($0.3 million), down 97%.

• Net loss attributable to shareholders decreased by 82% year-over-year to RMB 22.6 million ($3.2 million); non-GAAP net loss at RMB 14 million.

• Operating cash flow for the quarter was RMB 362 million ($50.5 million); cash and equivalents at RMB 2,019.6 million ($281.9 million), with RMB 791.2 million ($110.5 million) in long-term investments.

Outlook and guidance

• Expects to maintain fast growth in H2 2025, targeting about 100% year-over-year revenue growth in AI and other segments.

• Confident in achieving profitability in the near term, supported by a strong cash position and zero debt.

• Management committed to investing in AI utility applications and robotics for sustainable growth and shareholder value.

• Internet business growth expected to remain healthy and sustainable, with profit margins stable or improving.

• Robotics business to focus on scalable, high-ROI use cases, with mass deployment not expected in the immediate quarters.