Hello Group (MOMO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was RMB 2.65 billion, down 0.9% year-over-year but up 1% quarter-over-quarter, with overseas revenue up 69% year-over-year and domestic revenue down 10% year-over-year.

• Adjusted operating income was RMB 404 million, down 11% year-over-year, with a margin of 15.2%.

• Net income attributable to shareholders was RMB 348.9 million, down from RMB 449.4 million a year ago.

• Overseas business, especially in the MENA region, drove growth, while domestic business faced headwinds from tax policy changes and macro softness.

• Paying users on the Momo app dropped to 3.7 million from 6.9 million year-over-year, but increased sequentially from 3.5 million last quarter.

Financial highlights

• Non-GAAP net income was RMB 404.5 million, down from RMB 493.3 million a year ago.

• Non-GAAP gross margin was 37.6%, down 1.7 percentage points year-over-year.

• Cash reserves at quarter-end were RMB 8.86 billion, down from RMB 14.73 billion at year-end 2024, mainly due to loan repayment, dividends, and a one-off tax payment.

• Net cash from operating activities was RMB 143.5 million in Q3, down from RMB 341.0 million year-over-year.

• Diluted net income per ADS was RMB 2.06, down from RMB 2.46 year-over-year.

Outlook and guidance

• Q4 2025 revenue is expected between RMB 2.52–2.62 billion, a year-over-year decrease of 4.4% to 0.6%.

• Domestic revenue is projected to decline by mid- to low-teens percentage, while overseas revenue is expected to maintain strong growth.

• For 2026, domestic revenue is likely to decline around 10%, with overseas growth potentially offsetting some of the domestic weakness.

• Management expects overseas business to become an increasingly important revenue contributor.