US Market News
3週前
Yalla Group Limited Announces Unaudited First Quarter 2026 Financial ResultsMay 18, 2026 5:00 PM
PR Newswire (US) DUBAI, UAE, May 18, 2026 /PRNewswire/ -- Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the first quarter ended March 31, 2026.First Quarter 2026 Financial and Operating HighlightsRevenues were US$79.0 million in the first quarter of 2026, compared with US$83.9 million in the first quarter of 2025.Revenues generated from chatting services in the first quarter of 2026 were US$48.1 million.Revenues generated from games services in the first quarter of 2026 were US$30.3 million.Net income was US$28.4 million in the first quarter of 2026, compared with US$36.4 million in the first quarter of 2025. Net margin[1] was 35.9% in the first quarter of 2026.Non-GAAP net income[2] was US$33.3 million in the first quarter of 2026, compared with US$39.1 million in the first quarter of 2025. Non-GAAP net margin[3] was 42.1% in the first quarter of 2026.Average MAUs[4] increased by 7.7% to 48.0 million in the first quarter of 2026, compared with 44.6 million in the first quarter of 2025.The number of paying users[5] was 10.5 million in the first quarter of 2026, compared with 11.8 million in the first quarter of 2025.Key Operating DataFor the three months ended
March 31, 2025
March 31, 2026
Average MAUs (in thousands)
44,555
48,007
Paying users (in thousands)
11,787
10,476
[1] Net margin is net income as a percentage of revenues.[2] Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections titled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.[3] Non-GAAP net margin is non-GAAP net income as a percentage of revenues.[4] "Average MAUs" refers to the average monthly active users in a given period, calculated by dividing (i) the sum of active users for each month of such period by (ii) the number of months in such period. "Active users" refers to registered users who accessed any of our main mobile applications at least once during a given period; main mobile applications are mobile applications that have exceeded the 0.5 million average MAUs threshold at least once.[5] "Paying users" refers to registered users who played a game or purchased our virtual items or upgraded services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free. "Registered users" refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications."We delivered resilient first quarter results despite the shifting macro environment and the impact of Ramadan," said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. "Refined operations and strong execution of focused market strategies drove a 7.7% year-over- year increase in average MAUs to 48 million, a notable uptick demonstrating our growing reach and deepening user engagement. Our core product ecosystem performed steadily, while our gaming business reinforced its position as the Company's key growth engine. We continued to invest in our mid- and hard-core games, with the official launch of our SLG game garnering encouraging early feedback and our match-3 game, Turbo Match, progressing smoothly."We also elevated our regional presence through strategic partnerships and high-level industry engagement. As part of our partnership with the Saudi Esports Federation, in April we served as the Presenting Partner of Yalla Saudi eLeague Women 2026, promoting local women's participation in esports and exploring the significant growth opportunities in this strategically important region. Looking ahead, we will continue to maximize synergies between our social and gaming ecosystems and strengthen our AI capabilities to enrich user experience, extend user lifetime value, and drive operational leverage. We remain confident in our resilience and ability to capture market opportunities, creating sustainable value for all stakeholders."Ms. Karen Hu, CFO of Yalla, commented, "In the first quarter, we continued to focus on efficiency enhancement and pursue high-quality development. Total revenues were US$79.0 million, in line with our expectations, with revenues from games services growing to US$30.3 million, accounting for 38.3% of total revenues. Net income was US$28.4 million, and non-GAAP net income was US$33.3 million with a net margin of 42.1%. Supported by our strong balance sheet and healthy cash flow, we will continue returning value to our shareholders while investing strategically in business development, driving high-quality growth and long-term value creation."First Quarter 2026 Financial ResultsRevenuesRevenues were US$79.0 million in the first quarter of 2026, compared with US$83.9 million in the first quarter of 2025, primarily due to a decrease in paying users attributable to the impact of the recent geopolitical events in the broader region.In the first quarter of 2026, revenues generated from chatting services were US$48.1 million, and revenues from games services were US$30.3 million.Costs and expensesTotal costs and expenses were US$55.5 million in the first quarter of 2026, compared with US$52.7 million in the first quarter of 2025.Cost of revenues was US$26.5 million in the first quarter of 2026, a 9.3% decrease from US$29.2 million in the first quarter of 2025, primarily due to lower commission fees paid to third-party payment platforms. Cost of revenues as a percentage of total revenues decreased to 33.5% in the first quarter of 2026 from 34.8% in the first quarter of 2025.Selling and marketing expenses were US$9.7 million in the first quarter of 2026, a 40.0% increase from US$6.9 million in the first quarter of 2025, primarily due to higher advertising and market promotion expenses attributable to the Company's continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenues increased to 12.3% in the first quarter of 2026 from 8.3% in the first quarter of 2025.General and administrative expenses were US$10.3 million in the first quarter of 2026, a 17.9% increase from US$8.7 million in the first quarter of 2025, primarily due to an increase in share-based compensation and foreign exchange loss, partially offset by a decrease in incentive compensation. General and administrative expenses as a percentage of total revenues increased to 13.0% in the first quarter of 2026 from 10.4% in the first quarter of 2025.Technology and product development expenses were US$9.1 million in the first quarter of 2026, a 16.2% increase from US$7.8 million in the first quarter of 2025, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the headcount to support the development of new businesses and our product portfolio expansion. Technology and product development expenses as a percentage of total revenues increased to 11.5% in the first quarter of 2026 from 9.3% in the first quarter of 2025.Operating incomeOperating income was US$23.5 million in the first quarter of 2026, compared with US$31.2 million in the first quarter of 2025.Non-GAAP operating income[6]Non-GAAP operating income in the first quarter of 2026 was US$28.4 million, compared with US$34.0 million in the first quarter of 2025.Interest income Interest income was US$5.9 million in the first quarter of 2026, compared with US$6.6 million in the first quarter of 2025.Investment loss Investment loss was US$0.4 million in the first quarter of 2026, compared with US$17.7 thousand in the first quarter of 2025, primarily due to fluctuations in the fair value of wealth management products.Income tax expenseIncome tax expense was US$0.6 million in the first quarter of 2026, compared with US$1.4 million in the first quarter of 2025.Net incomeNet income was US$28.4 million in the first quarter of 2026, compared with US$36.4 million in the first quarter of 2025.Non-GAAP net incomeNon-GAAP net income in the first quarter of 2026 was US$33.3 million, compared with US$39.1 million in the first quarter of 2025.Earnings per ordinary shareBasic and diluted earnings per ordinary share were US$0.19 and US$0.16, respectively, in the first quarter of 2026, while basic and diluted earnings per ordinary share were US$0.23 and US$0.20, respectively, in the first quarter of 2025.Non-GAAP earnings per ordinary share[7]Non-GAAP basic and diluted earnings per ordinary share were US$0.22 and US$0.19, respectively, in the first quarter of 2026, compared with US$0.25 and US$0.22, respectively, in the first quarter of 2025.Cash and cash equivalents, restricted cash, term deposits and short-term investments As of March 31, 2026, the Company had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$806.7 million, compared with US$754.6 million as of December 31, 2025.[6] Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections titled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release. [7] Non-GAAP earnings per ordinary share is non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by the weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited's shareholders represents net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited's shareholders are non-GAAP financial measures. See the sections titled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.Share repurchase programPursuant to the Company's share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2026 (the "2021 Program"), the Company repurchased 1,460,989 American depositary shares ("ADSs"), representing 1,460,989 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$9.7 million, in the first quarter of 2026. As of March 31, 2026, the Company had cumulatively completed cash repurchases in the open market of 17,143,162 ADSs, representing 17,143,162 Class A ordinary shares, for an aggregate amount of approximately US$115.7 million, since the inception of the 2021 Program.The Company will continue to execute its 2021 Program until May 21, 2026, upon which date the Company will begin executing its new share repurchase program authorized by the Company's board of directors in March 2026, under which the Company may repurchase up to US$150 million worth of its outstanding ADS and/or Class A ordinary shares over the 24 months starting from March 9, 2026. The Company will provide an update on the progress of both programs in due course.OutlookFor the second quarter of 2026, Yalla currently expects revenues to be between US$75.0 million and US$82.0 million.The above outlook is based on current market conditions and reflects the Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.Conference CallYalla Group Limited will hold a conference call on Monday, May 18, 2026, at 8:00 PM Eastern Time, 4:00 AM Dubai Time on Tuesday, May 19, 2026, or 8:00 AM Beijing Time on Tuesday, May 19, 2026, to discuss the financial results.Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.Event Title: Yalla Group Ltd. First Quarter 2026 Earnings Conference Call
Registration Link: https://register-conf.media-server.com/register/BI2da0a6c7f4b54fc19ab854c822afa58aAdditionally, a live webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session.Non-GAAP Financial MeasuresTo supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company's operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited's shareholders as net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by the weighted average number of basic and diluted shares outstanding.By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. Investors can better understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.About Yalla Group LimitedYalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla's mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.For more information, please visit: https://ir.yalla.com.Safe Harbor StatementThis press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited's filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.For investor and media inquiries, please contact: Yalla Group Limited
Investor Relations
Kerry Gao - IR Director
Tel: +86-571-8980-7962
Email: ir@yalla.comPiacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: yalla@tpg-ir.comIn the United States:Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: yalla@tpg-ir.com YALLA GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of
December 31,
2025
March 31,
2026
US$
US$
ASSETS
Current assets
Cash and cash equivalents
526,972,019
368,953,281
Restricted cash
1,625,525
1,652,268
Term deposits
84,800,000
120,000,000
Short-term investments
141,251,128
316,052,381
Prepayments and other current assets
41,659,226
29,568,861
Total current assets
796,307,898
836,226,791
Non-current assets
Property and equipment, net
14,976,818
14,875,625
Intangible asset, net
728,348
667,104
Operating lease right-of-use assets
1,902,655
2,446,814
Long-term investments
82,053,772
56,242,491
Other assets
250,000
500,000
Total non-current assets
99,911,593
74,732,034
Total assets
896,219,491
910,958,825
LIABILITIES
Current liabilities
Accounts payable
1,066,625
884,186
Deferred revenue, current
55,178,093
53,986,908
Operating lease liabilities, current
357,525
798,145
Amounts due to a related party
44,177
24,046
Income taxes payable
1,319,111
1,750,137
Accrued expenses and other current liabilities
30,350,120
20,385,644
Total current liabilities
88,315,651
77,829,066
Non-current liabilities
Deferred revenue, non-current
1,837,543
1,762,983
Operating lease liabilities, non-current
1,095,245
1,386,639
Deferred tax liabilities
2,924,137
3,032,062
Total non-current liabilities
5,856,925
6,181,684
Total liabilities
94,172,576
84,010,750
EQUITY
Shareholders' equity of Yalla Group Limited
Class A Ordinary Shares
13,441
13,441
Class B Ordinary Shares
2,473
2,473
Additional paid-in capital
339,199,644
344,098,968
Treasury stock
(42,497,929)
(49,915,895)
Accumulated other comprehensive loss
(1,636,586)
(460,218)
Retained earnings
515,197,658
542,009,324
Total shareholders' equity of Yalla Group Limited
810,278,701
835,748,093
Non-controlling interests
(8,231,786)
(8,800,018)
Total equity
802,046,915
826,948,075
Total liabilities and equity
896,219,491
910,958,825
YALLA GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS
Three Months Ended
March 31,
2025
December 31,
2025
March 31,
2026
US$
US$
US$Revenues
83,876,767
83,860,924
79,006,789Costs and expenses
Cost of revenues
(29,200,423)
(26,349,923)
(26,473,813)Selling and marketing expenses
(6,943,268)
(9,362,742)
(9,722,665)General and administrative expenses
(8,695,308)
(12,052,397)
(10,251,576)Technology and product development expenses
(7,828,137)
(9,474,910)
(9,097,323)Total costs and expenses
(52,667,136)
(57,239,972)
(55,545,377)Operating income
31,209,631
26,620,952
23,461,412Interest income
6,561,180
6,008,731
5,884,059Government grants
63,433
201,230
67,165Investment (loss) income
(17,702)
1,101,141
(432,522)Income before income taxes
37,816,542
33,932,054
28,980,114Income tax (expense) benefit
(1,437,077)
601,477
(620,089)Net income
36,379,465
34,533,531
28,360,025Net loss attributable to non-controlling interests
711,935
327,002
575,459Net income attributable to Yalla Group
Limited's shareholders
37,091,400
34,860,533
28,935,484Earnings per ordinary share
——Basic
0.23
0.23
0.19——Diluted
0.20
0.20
0.16Weighted average number of shares
outstanding used in computing earnings
per ordinary share
——Basic
159,186,659
153,979,633
152,975,006——Diluted
182,187,686
178,066,658
177,171,652
Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and
technology and product development expenses as follows:
Three Months Ended
March 31,
2025
December 31,
2025
March 31,
2026
US$
US$
US$Cost of revenues
1,326,085
1,060,328
2,150,971Selling and marketing expenses
171,028
144,874
440,566General and administrative expenses
1,130,507
1,068,269
2,161,700Technology and product development expenses
119,474
43,907
146,087Total share-based compensation expenses
2,747,094
2,317,378
4,899,324 YALLA GROUP LIMITEDRECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
Three Months Ended
March 31,
2025
December 31,
2025
March 31,
2026
US$
US$
US$
Operating income
31,209,631
26,620,952
23,461,412
Share-based compensation expenses
2,747,094
2,317,378
4,899,324
Non-GAAP operating income
33,956,725
28,938,330
28,360,736
Net income
36,379,465
34,533,531
28,360,025
Share-based compensation expenses,
net of tax effect of nil
2,747,094
2,317,378
4,899,324
Non-GAAP net income
39,126,559
36,850,909
33,259,349
Net income attributable to Yalla
Group Limited's shareholders
37,091,400
34,860,533
28,935,484
Share-based compensation expenses,
net of tax effect of nil
2,747,094
2,317,378
4,899,324
Non-GAAP net income attributable to
Yalla Group Limited's shareholders
39,838,494
37,177,911
33,834,808
Non-GAAP earnings per ordinary share
——Basic
0.25
0.24
0.22
——Diluted
0.22
0.21
0.19
Weighted average number of shares
outstanding used in computing earnings
per ordinary share
——Basic
159,186,659
153,979,633
152,975,006
——Diluted
182,187,686
178,066,658
177,171,652
View original content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-first-quarter-2026-financial-results-302774557.htmlSOURCE Yalla Group Limited Original: Yalla Group Limited Announces Unaudited First Quarter 2026 Financial Results
US Market News
3月前
Yalla Group Limited Announces Unaudited Fourth Quarter and Full Year 2025 Financial ResultsMarch 9, 2026 5:00 PM
PR Newswire (US)
DUBAI, UAE, March 9, 2026 /PRNewswire/ -- Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.Fourth Quarter 2025 Financial and Operating HighlightsRevenues were US$83.9 million in the fourth quarter of 2025, compared with US$90.8 million in the fourth quarter of 2024.Revenues generated from chatting services in the fourth quarter of 2025 were US$53.8 million.Revenues generated from games services in the fourth quarter of 2025 were US$29.5 million.Net income was US$34.5 million in the fourth quarter of 2025, a 6.2% increase from US$32.5 million in the fourth quarter of 2024. Net margin[1] was 41.2% in the fourth quarter of 2025.Non-GAAP net income[2] was US$36.9 million in the fourth quarter of 2025, a 3.2% increase from US$35.7 million in the fourth quarter of 2024. Non-GAAP net margin[3] was 43.9% in the fourth quarter of 2025.Average MAUs[4] increased by 8.2% to 44.8 million in the fourth quarter of 2025, from 41.4 million in the fourth quarter of 2024.The number of paying users[5] was 10.4 million in the fourth quarter of 2025, compared with 12.3 million in the fourth quarter of 2024.Key Operating DataFor the three months ended
December 31, 2024
December 31, 2025
Average MAUs (in thousands)
41,445
44,848
Paying users (in thousands)
12,309
10,444
[1] Net margin is net income as a percentage of revenues.[2] Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.[3] Non-GAAP net margin is non-GAAP net income as a percentage of revenues.[4] "Average MAUs" refers to the average monthly active users in a given period, calculated by dividing (i) the sum of active users for each month of such period by (ii) the number of months in such period. "Active users" refers to registered users who accessed any of our main mobile applications at least once during a given period.[5] "Paying users" refers to registered users who played a game or purchased our virtual items or upgraded services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free. "Registered users" refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications.Full Year 2025 HighlightsRevenues were US$341.9 million in 2025, representing an increase of 0.7% from 2024.Revenues generated from chatting services in 2025 were US$216.4 million.Revenues generated from games services in 2025 were US$124.0 million.Net income was US$148.1 million in 2025, a 10.4% increase from US$134.2 million in 2024. Net margin was 43.3% in 2025.Non-GAAP net income was US$158.5 million in 2025, a 6.5% increase from US$148.8 million in 2024. Non-GAAP net margin was 46.3% in 2025."We delivered solid 2025 results, with full-year revenues rising to US$341.9 million and net income up 10.4% to US$148.1 million," said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. "Strong execution across our product ecosystem drove increased user engagement, underscored by an 8.2% year-over-year increase in MAUs to 44.8 million in the fourth quarter of 2025. Additionally, revenues from games services started to accelerate, delivering a year-over-year increase of 9.1% for the full year thanks to our dedication to gaming innovation and effective marketing campaigns. Our first match-3 game Turbo Match is now available and gathering positive user reviews, and our desert-themed SLG title is set for official promotion in the second quarter of 2026, strengthening our position to tap new user cohorts."Meanwhile, we deepened AI integration across our ecosystem, boosting operational efficiency and accelerating our product innovation and localization efforts. We also continued to strengthen our presence in Saudi Arabia as part of our regional growth strategy, establishing a partnership with the Saudi Esports Federation to support the Saudi eLeague 2026 and local talent programs. Looking ahead, we will continue to unlock deeper synergies between our social and gaming ecosystems while building our technological capabilities and product pipeline to strengthen our industry leadership in the rapidly growing MENA market and drive sustainable long-term growth."Ms. Karen Hu, CFO of Yalla, commented, "In the fourth quarter, we continued to focus on efficiency enhancement to strengthen profitability. Our net income increased by 6.2% year-over-year to US$34.5 million with a net margin of 41.2%, up 5.4 percentage points year-over-year. For the full year, we delivered both top-line and bottom-line growth through strong strategic execution and effective cost control. Our solid balance sheet and healthy cash flow position us to continue returning value to shareholders, highlighted by US$56.6 million returned in 2025 through our share repurchase program and the launch of a new share repurchase program for up to US$150 million over the next 24 months starting March 9,2026. Moving forward, we will continue to invest in long-term opportunities that propel high-quality growth, maximizing value for all stakeholders."Fourth Quarter 2025 Financial ResultsRevenues Revenues were US$83.9 million in the fourth quarter of 2025, compared with US$90.8 million in the fourth quarter of 2024. The decrease was primarily due to a decrease in paying users as a result of fewer promotion events held by third-party payment platforms in the fourth quarter of 2025 compared with those held in the fourth quarter of 2024.In the fourth quarter of 2025, revenues generated from chatting services were US$53.8 million, and revenues from games services were US$29.5 million.Costs and expensesTotal costs and expenses were US$57.2 million in the fourth quarter of 2025, a 5.7% decrease from US$60.7 million in the fourth quarter of 2024.Cost of revenues was US$26.3 million in the fourth quarter of 2025, a 15.1% decrease from US$31.0 million in the fourth quarter of 2024, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels. Cost of revenues as a percentage of total revenues decreased to 31.4% in the fourth quarter of 2025 from 34.2% in the fourth quarter of 2024.Selling and marketing expenses were US$9.4 million in the fourth quarter of 2025, a 26.5% increase from US$7.4 million in the fourth quarter of 2024, primarily due to higher advertising and market promotion expenses attributable to the Company's continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenues increased to 11.2% in the fourth quarter of 2025 from 8.2% in the fourth quarter of 2024.General and administrative expenses were US$12.1 million in the fourth quarter of 2025, a 7.8% decrease from US$13.1 million in the fourth quarter of 2024, primarily due to a decrease in incentive compensation. General and administrative expenses as a percentage of total revenues was flat at 14.4% in the fourth quarter of 2025 compared with the fourth quarter of 2024.Technology and product development expenses were US$9.5 million in the fourth quarter of 2025, a 3.2% increase from US$9.2 million in the fourth quarter of 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the headcount to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of total revenues increased to 11.3% in the fourth quarter of 2025 from 10.1% in the fourth quarter of 2024.Operating incomeOperating income was US$26.6 million in the fourth quarter of 2025, compared with US$30.1 million in the fourth quarter of 2024.Non-GAAP operating income[6]Non-GAAP operating income in the fourth quarter of 2025 was US$28.9 million, compared with US$33.3 million in the fourth quarter of 2024.Interest income Interest income was US$6.0 million in the fourth quarter of 2025, compared with US$7.1 million in the fourth quarter of 2024.Investment (loss) income Investment income was US$1.1 million in the fourth quarter of 2025, compared with an investment loss of US$1.7 million in the fourth quarter of 2024, primarily due to changes in the fair value of wealth management products.Income tax (expense) benefitIncome tax benefit was US$0.6 million in the fourth quarter of 2025, compared with income tax expense of US$3.4 million in the fourth quarter of 2024, primarily attributable to the preferential tax rate applicable to a subsidiary since the fourth quarter of 2025.Net incomeNet income was US$34.5 million in the fourth quarter of 2025, a 6.2% increase from US$32.5 million in the fourth quarter of 2024.Non-GAAP net incomeNon-GAAP net income in the fourth quarter of 2025 was US$36.9 million, a 3.2% increase from US$35.7 million in the fourth quarter of 2024.Earnings per ordinary shareBasic and diluted earnings per ordinary share were US$0.23 and US$0.20, respectively, in the fourth quarter of 2025, while basic and diluted earnings per ordinary share were US$0.20 and US$0.18, respectively, in the fourth quarter of 2024.Non-GAAP earnings per ordinary share[7]Non-GAAP basic and diluted earnings per ordinary share were US$0.24 and US$0.21, respectively, in the fourth quarter of 2025, compared with US$0.22 and US$0.20, respectively, in the fourth quarter of 2024.Cash and cash equivalents, restricted cash, term deposits and short-term investments As of December 31, 2025, the Company had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$754.6 million, compared with US$656.3 million as of December 31, 2024.Full Year 2025 Financial ResultsRevenuesRevenues were US$341.9 million in 2025, a 0.7% increase from US$339.7 million in 2024. The increase was primarily driven by the broadening of user base and enhanced user monetization.Revenues generated from chatting services were US$216.4 million in 2025, and revenues generated from games services were US$124.0 million in 2025.Costs and expensesTotal costs and expenses were US$219.7 million in 2025, compared with US$218.3 million in 2024.Cost of revenues was US$111.9 million in 2025, a 7.1% decrease from US$120.5 million last year, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels. Cost of revenues as a percentage of total revenues decreased to 32.7% in 2025 from 35.5% in 2024.Selling and marketing expenses were US$34.6 million in 2025, a 10.2% increase from US$31.3 million in 2024, primarily driven by higher advertising and market promotion expenses attributable to our continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenues increased to 10.1% in 2025 from 9.2% in 2024.General and administrative expenses were US$39.0 million in 2025, a 4.1% increase from US$37.4 million in 2024, primarily due to an increase in foreign exchange loss. General and administrative expenses as a percentage of total revenues increased to 11.4% in 2025 from 11.0% in 2024.Technology and product development expenses were US$34.3 million in 2025, an 18.0% increase from US$29.0 million in 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the headcount of our technology and product development staff to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of total revenues increased to 10.0% in 2025 from 8.5% in 2024.Operating incomeOperating income was US$122.2 million in 2025, a 0.7% increase from US$121.4 million in 2024.Non-GAAP operating incomeNon-GAAP operating income in 2025 was US$132.5 million, compared with US$136.1 million in 2024.Interest income Interest income was US$25.7 million in 2025, compared with US$28.7 million in 2024.Investment (loss) income Investment income was US$3.3 million in 2025, compared with an investment loss of US$2.8 million in 2024, primarily due to changes in the fair value of wealth management products.Income tax expenseIncome tax expense was US$4.0 million in 2025, compared with US$13.9 million in 2024, primarily due to a decrease in UAE corporate tax.Net incomeNet income was US$148.1 million in 2025, a 10.4% increase from US$134.2 million in 2024.Non-GAAP net incomeNon-GAAP net income was US$158.5 million in 2025, a 6.5% increase from US$148.8 million in 2024.Earnings per ordinary shareBasic and diluted earnings per ordinary share were US$0.96 and US$0.83, respectively, in 2025, compared with US$0.85 and US$0.74, respectively, in 2024.Non-GAAP earnings per ordinary shareNon-GAAP basic and diluted earnings per ordinary share were US$1.03 and US$0.89, respectively, in 2025, compared with US$0.94 and US$0.82, respectively, in 2024.[6] Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release. [7] Non-GAAP earnings per ordinary share is non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited's shareholders represents net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited's shareholders are non-GAAP financial measures. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.Share repurchase programPursuant to the Company's share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2026, the Company repurchased 8,377,035 American depositary shares ("ADSs"), representing 8,377,035 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$56.6 million in 2025. As of December 31, 2025, the Company had cumulatively completed cash repurchases in the open market of 15,682,173 ADSs, representing 15,682,173 Class A ordinary shares, for an aggregate amount of approximately US$106.0 million, since the inception of the current share repurchase program. The aggregate value of ADSs and/or Class A ordinary shares that remain available for purchase under the current share repurchase program was US$44.0 million as of December 31, 2025. In addition, the Company has decided to cancel all shares repurchased in 2025. As of December 31, 2025, the Company had cancelled 6,230,299 ADSs, representing 6,230,299 Class A ordinary shares.The Company's board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$150 million worth of its outstanding ADS and/or Class A ordinary shares over the 24 months starting March 9, 2026. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size.OutlookFor the first quarter of 2026, considering the impact of Ramadan, which falls completely within the first quarter this year, Yalla currently expects revenues to be between US$75.0 million and US$82.0 million.The above outlook is based on current market conditions and reflects the Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.Conference CallYalla Group Limited will hold a conference call on Monday, March 9, 2026, at 8:00 PM Eastern Time, 4:00 AM Dubai Time on Tuesday, March 10, 2026, or 8:00 AM Beijing Time on Tuesday, March 10, 2026, to discuss the financial results.Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.Event Title: Yalla Group Ltd. Fourth Quarter and Full Year 2025 Earnings Conference Call
Registration Link: https://register-conf.media-server.com/register/BId6ac40b44aa146df8531eae7cb1148cf Additionally, a live webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session.Non-GAAP Financial MeasuresTo supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company's operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited's shareholders as net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by the weighted average number of basic and diluted shares outstanding.By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. Investors can better understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.About Yalla Group LimitedYalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla's mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.For more information, please visit: https://ir.yalla.com.Safe Harbor StatementThis press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited's filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.For investor and media inquiries, please contact: Yalla Group Limited
Investor Relations
Kerry Gao - IR Director
Tel: +86-571-8980-7962
Email: ir@yalla.com Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: yalla@tpg-ir.com In the United States:Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: yalla@tpg-ir.com YALLA GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of
December 31,
2024
December 31,
2025
US$
US$
ASSETS
Current assets
Cash and cash equivalents
488,379,894
526,972,019
Restricted cash
1,975,616
1,625,525
Term deposits
94,983,813
84,800,000
Short-term investments
70,932,713
141,251,128
Prepayments and other current assets
35,429,988
41,659,226
Total current assets
691,702,024
796,307,898
Non-current assets
Property and equipment, net
13,962,393
14,976,818
Intangible asset, net
896,005
728,348
Operating lease right-of-use assets
1,370,914
1,902,655
Long-term investments
93,698,924
82,053,772
Other assets
—
250,000
Total non-current assets
109,928,236
99,911,593
Total assets
801,630,260
896,219,491
LIABILITIES
Current liabilities
Accounts payable
957,717
1,066,625
Deferred revenue, current
58,081,649
55,178,093
Operating lease liabilities, current
1,012,481
357,525
Amounts due to a related party
87,156
44,177
Income taxes payable
9,117,261
1,319,111
Accrued expenses and other current liabilities
32,404,872
30,350,120
Total current liabilities
101,661,136
88,315,651
Non-current liabilities
Deferred revenue, non-current
—
1,837,543
Operating lease liabilities, non-current
13,495
1,095,245
Deferred tax liabilities
2,148,022
2,924,137
Total non-current liabilities
2,161,517
5,856,925
Total liabilities
103,822,653
94,172,576
EQUITY
Shareholders' equity of Yalla Group Limited
Class A Ordinary Shares
14,064
13,441
Class B Ordinary Shares
2,473
2,473
Additional paid-in capital
328,883,061
339,199,644
Treasury stock
(49,438,661)
(42,497,929)
Accumulated other comprehensive loss
(3,016,579)
(1,636,586)
Retained earnings
427,907,766
515,197,658
Total shareholders' equity of Yalla Group Limited
704,352,124
810,278,701
Non-controlling interests
(6,544,517)
(8,231,786)
Total equity
697,807,607
802,046,915
Total liabilities and equity
801,630,260
896,219,491
YALLA GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS
Three Months Ended
Year Ended
December 31,
2024
September 30,
2025
December 31,
2025
December 31,
2024
December 31,
2025
US$
US$
US$
US$
US$Revenues
90,827,754
89,636,333
83,860,924
339,675,845
341,938,110Costs and expenses
Cost of revenues
(31,044,004)
(28,430,988)
(26,349,923)
(120,471,064)
(111,925,930)Selling and marketing expenses
(7,403,643)
(9,582,434)
(9,362,742)
(31,347,919)
(34,550,017)General and administrative expenses
(13,066,301)
(9,224,448)
(12,052,397)
(37,424,491)
(38,974,500)Technology and product development expenses
(9,178,864)
(8,629,226)
(9,474,910)
(29,030,758)
(34,270,468)Total costs and expenses
(60,692,812)
(55,867,096)
(57,239,972)
(218,274,232)
(219,720,915)Operating income
30,134,942
33,769,237
26,620,952
121,401,613
122,217,195Interest income
7,101,823
6,300,342
6,008,731
28,673,905
25,661,745Government grants
360,194
63,629
201,230
800,160
931,407Investment (loss) income
(1,711,657)
2,204,831
1,101,141
(2,805,945)
3,310,028Income before income taxes
35,885,302
42,338,039
33,932,054
148,069,733
152,120,375Income tax (expense) benefit
(3,354,580)
(1,613,621)
601,477
(13,918,526)
(3,980,531)Net income
32,530,722
40,724,418
34,533,531
134,151,207
148,139,844Net loss attributable to non-controlling interests
60,763
386,428
327,002
1,533,034
1,695,147Net income attributable to Yalla Group
Limited's shareholders
32,591,485
41,110,846
34,860,533
135,684,241
149,834,991Earnings per ordinary share
——Basic
0.20
0.27
0.23
0.85
0.96——Diluted
0.18
0.23
0.20
0.74
0.83Weighted average number of shares
outstanding used in computing earnings
per ordinary share
——Basic
159,672,548
154,491,280
153,979,633
160,429,693
155,977,062——Diluted
182,474,460
179,310,959
178,066,658
183,156,324
180,082,810
Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and technology and product development expenses as follows:
Three Months Ended
Year Ended
December 31,
2024
September 30,
2025
December 31,
2025
December 31,
2024
December 31,
2025
US$
US$
US$
US$
US$Cost of revenues
1,582,874
1,143,119
1,060,328
7,220,748
4,857,684Selling and marketing expenses
179,964
131,359
144,874
1,822,939
617,565General and administrative expenses
1,236,586
1,073,416
1,068,269
5,005,853
4,601,123Technology and product development expenses
173,063
56,160
43,907
642,197
240,211Total share-based compensation expenses
3,172,487
2,404,054
2,317,378
14,691,737
10,316,583 YALLA GROUP LIMITEDRECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
Three Months Ended
Year Ended
December 31,
2024
September 30,
2025
December 31,
2025
December 31,
2024
December 31,
2025
US$
US$
US$
US$
US$
Operating income
30,134,942
33,769,237
26,620,952
121,401,613
122,217,195
Share-based compensation expenses
3,172,487
2,404,054
2,317,378
14,691,737
10,316,583
Non-GAAP operating income
33,307,429
36,173,291
28,938,330
136,093,350
132,533,778
Net income
32,530,722
40,724,418
34,533,531
134,151,207
148,139,844
Share-based compensation expenses,
net of tax effect of nil
3,172,487
2,404,054
2,317,378
14,691,737
10,316,583
Non-GAAP net income
35,703,209
43,128,472
36,850,909
148,842,944
158,456,427
Net income attributable to Yalla
Group Limited's shareholders
32,591,485
41,110,846
34,860,533
135,684,241
149,834,991
Share-based compensation expenses,
net of tax effect of nil
3,172,487
2,404,054
2,317,378
14,691,737
10,316,583
Non-GAAP net income attributable to
Yalla Group Limited's shareholders
35,763,972
43,514,900
37,177,911
150,375,978
160,151,574
Non-GAAP earnings per ordinary share
——Basic
0.22
0.28
0.24
0.94
1.03
——Diluted
0.20
0.24
0.21
0.82
0.89
Weighted average number of shares
outstanding used in computing earnings
per ordinary share
——Basic
159,672,548
154,491,280
153,979,633
160,429,693
155,977,062
——Diluted
182,474,460
179,310,959
178,066,658
183,156,324
180,082,810
View original content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-fourth-quarter-and-full-year-2025-financial-results-302708040.htmlSOURCE Yalla Group Limited
Original: Yalla Group Limited Announces Unaudited Fourth Quarter and Full Year 2025 Financial Results
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