Hello Group (MOMO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was RMB 2.39 billion, down 5.3% year-over-year, with domestic revenue declining 15% and overseas revenue rising 44.1% year-over-year.

• Adjusted operating income reached RMB 349 million, up 1% year-over-year, with a margin of 14.6%.

• Net income attributable to shareholders was RMB 291 million, down from RMB 358 million in Q1 2025.

• Domestic business faced regulatory and macro headwinds, while overseas business, especially in MENA and dating segments, showed strong growth.

• AI-driven product innovation and operational refinements supported user engagement and monetization.

Financial highlights

• Non-GAAP net income attributable to shareholders was RMB 328.8 million, down from RMB 403.8 million a year ago but up from RMB 281.3 million last quarter.

• Non-GAAP gross margin improved to 38.8% from 37.9% year-over-year, driven by higher-margin overseas products.

• Non-GAAP R&D expenses fell 11% year-over-year to RMB 165.2 million, reflecting labor cost optimization.

• Cash and equivalents stood at RMB 8.56 billion as of March 31, 2026.

• Value-added service revenues were RMB 2,353.6 million, down 5.5% year-over-year, mainly due to declines in Momo and Tantan, partially offset by overseas growth.

Outlook and guidance

• Q2 2026 revenue is expected between RMB 2.45–2.55 billion, a year-over-year decrease of 6.5%–2.7%.

• Domestic revenue is projected to decline by high teens percentage, while overseas revenue is expected to grow by high 50s percentage.

• Full-year domestic revenue decline revised to mid-teens year-over-year due to regulatory pressures.

• Overseas revenue for 2026 is expected to reach around RMB 3 billion, up from RMB 2 billion in 2025.

• Adjusted operating margin target remains in the low teens for the year.