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 significant improvements in profitability.

• AI and other segments revenue surged 86% year-over-year, while internet business grew 39% year-over-year.

• Operating loss decreased 86% year-over-year, nearing break-even on a non-GAAP basis.

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

• Completed or planned acquisition of UFactory, expanding robotics capabilities and global reach.

Financial highlights

• Q2 total revenue: RMB 295 million, up 58% year-over-year and 14% quarter-over-quarter.

• Gross profit: RMB 224.8 million, up 85% year-over-year; gross margin improved to 76.1%.

• Operating loss: RMB 11.1 million, down 86% year-over-year; non-GAAP operating loss: RMB 2.1 million, down 97% year-over-year.

• Net loss attributable to shareholders: RMB 22.6 million, down 82% year-over-year.

• Operating cash flow: RMB 362 million; cash and equivalents: $282 million; long-term investments: $110 million.

Outlook and guidance

• Expects to maintain fast growth in H2 2025, driven by ~100% year-over-year growth in AI and other segments.

• Confident in achieving profitability in the near term, supported by a healthy internet business and disciplined AI investments.

• Internet business revenue and profit growth expected to remain healthy, with potential for higher margins.

• Focus on leveraging AI to accelerate R&D and scale real-world use cases.