Hello Group (MOMO) Q2 2025 earnings summary

Executive summary

• Q2 2025 total revenue was RMB 2.62 billion, down 2.6% year-over-year but up 4% sequentially, with overseas revenues up 72.7% year-over-year to RMB 442.4 million.

• Domestic revenue declined 11% year-over-year, while overseas revenue grew 17.3% year-over-year and 7% quarter-over-quarter.

• Adjusted operating income was RMB 448 million, down 6% year-over-year, with a margin of 17%.

• Non-GAAP net loss was RMB 96 million due to a one-off withholding tax; excluding this, non-GAAP net income was RMB 451.9 million, up 1% year-over-year.

• Monthly active users on Tantan dropped to 10.2 million in June 2025 from 12.9 million in June 2024; Momo app paying users fell to 3.5 million from 7.2 million year-over-year.

Financial highlights

• Value-added services revenue was RMB 2.58 billion, down 2.6% year-over-year, but up 4% sequentially.

• PRC Mainland VAS revenue was RMB 2.14 billion, down 11% year-over-year; overseas VAS revenue was RMB 440.7 million, up 73% year-over-year.

• Non-GAAP gross margin was 38.8%, down 2 percentage points year-over-year.

• Non-GAAP operating income was RMB 447.7 million with a margin of 17.1%.

• Cost and expenses in Q2 2025 were RMB 2,227.7 million, down 2.1% year-over-year, driven by reduced marketing and production costs.

Outlook and guidance

• Q3 2025 revenue is expected between RMB 2.59 billion and RMB 2.69 billion, representing a year-over-year change of -3.2% to +0.6%.

• Domestic business is projected to decrease mid to low teens year-over-year, while overseas revenue is expected to grow in the mid-60% range.

• For 2025, group top-line could see a slight downtick or remain flat versus 2024, with domestic revenue declining low teens and overseas revenue growing around 70%.

• Gross margin for 2025 is expected at the lower end of 36-37%, with operating margin at the lower end of 13-14%.