Sep 3, 2026 earnings call — Overseas expansion and domestic cash cow focus
Total group revenue was 2.49 billion renminbi, down 5% year over year.
Revenue $0.4B (est $0.4B) · EPS $0.26 (est $0.22)
Key quotes
"On the domestic side, Momo continued to preserve the healthy functioning of our Cash Cow business through product innovation and refined operations."
"The acceleration in year-over-year growth was mainly driven by strong momentum from our new MENA products as well as the consolidation of overseas dating products acquired last year."
"Among this, AI icebreaker and AI chat assistant delivered encouraging early results."
Analyst Q&A 3
domestic revenue decline reasons and actions
Q (Thomas Chong · Jefferies): Why does Q3 guidance show a slightly wider domestic revenue decline than the first half? Is it due to macro or operations? What specific measures and expense plans do you have for domestic business in H2?
A: Management said the revenue pressure is concentrated in high-spending paying users who remain active but are spending less, driven by weaker wealth expectations among high net worth users. They will use a tiered approach: deepen social connections for top users (VIP services, offline events, broadcaster support) and offer low-barrier features for mid and long-tail users. They also said Q3 guidance implies roughly a high teens year over year decline for the domestic business, widening from a 17% year-over-year decline rate, and they will optimize personnel and sales and marketing costs.
"Since entering the second half of the year, the data shows that the revenue pressure is concentrated mainly in consumption downgrading among high spending paying users." — Yan Tang
MENA product mix, margins, outlook
Q (BICC): How will the shift in product mix in MENA affect margins and stability? Any update to the full-year overseas revenue outlook?
A: They said Yahalan and Ammar are growing fast and make the MENA business more diversified and resilient; Yahalan has already crossed breakeven and Ammar is likely around half a year away. SoulChill underperformed earlier due to app removal in Turkey and regional conflict, but has been recovering; given the balance between top-line growth and healthy margins, the original 3 billion renminbi overseas target looks a little bit of a stretch and they would rather take 100 or 200 million down from that target.
"Therefore, my current view is that the original 3 billion renminbi target for overseas revenue for 2026, at this point, looks a little bit of a stretch." — Hui Peng (CFO)
profit outlook after weaker domestic revenue
Q (Jenny Yuan · UBS): How will the weaker domestic revenue in H2 affect group profitability and earnings going forward?
A: They now expect full-year group revenue decline maybe to the mid-single-digit range. They also recognized roughly somewhere around RMB 60 million of additional losses in Q2 from two movies, which adds pressure, but they believe the low-teens adjusted operating margin target for 2026 remains achievable if they execute cost cuts and improve efficiency (personnel and sales and marketing).
"With both movies now released, we have recognized roughly somewhere around RMB 60 million of additional losses." — Hui Peng (CFO)