Hello Group Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw a 5% revenue decline year-over-year, with domestic business pressured by regulatory and macro headwinds, while overseas revenue surged 44%. AI innovation and cost optimization supported margins, and full-year guidance expects mid-teens domestic decline but robust overseas growth.
Fiscal Year 2025
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Q4 2025 saw stable group revenue with strong 70% overseas growth offsetting domestic declines. Full-year margins improved, and a special dividend was declared. 2026 guidance expects flat revenue, with overseas expansion and disciplined investment balancing profitability and growth.
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Q3 2025 saw stable group revenue with strong 69% year-over-year overseas growth offsetting domestic declines driven by tax and macro headwinds. Adjusted operating income and margins fell, but overseas expansion and new acquisitions are expected to drive future growth.
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Q2 2025 revenue declined 3% year-over-year but rose 4% sequentially, with overseas business growing 17.3% and domestic revenue down 11%. A one-off withholding tax led to a non-GAAP net loss, but adjusted net income was up 1%. Overseas expansion and AI investment remain key growth drivers.
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Q1 2025 saw total revenue of RMB 2.52 billion, with overseas revenue up 72% year-over-year, offsetting domestic declines. Gross margin fell to 37.9% due to a higher overseas mix, and full-year group revenue may turn positive in H2 as overseas growth accelerates.
Fiscal Year 2024
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Revenue declined in 2024 due to macro headwinds and strategic user acquisition cuts, but overseas business grew 40% and new apps in MENA showed strong momentum. 2025 will focus on cost optimization, overseas expansion, and maintaining profitability, with a special dividend and flexible capital allocation.
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Q3 2024 revenue declined 12% year-over-year, but overseas business, led by SoulChill, saw rapid growth, partially offsetting domestic weakness. Momo and Tantan continued to face revenue and user declines, while the company prioritized buybacks over dividends due to undervaluation.
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Q2 2024 revenue declined 14% year-over-year but rose 5% sequentially, with profit margins under pressure. Momo and Tantan segments saw revenue drops, while overseas business grew over 40% year-over-year. Outlook remains cautious due to macro and regulatory factors.