#China #Beijing #AI Technologies #Cheetah Mobile #Cheetah Apps

Cheetah Mobile Reports Strong Growth in Q2 2025

Cheetah Mobile Inc., known for its innovative IT solutions based in China, has recently announced its unaudited consolidated financial results for the quarter ending June 30, 2025. The report highlights a significant turnaround in revenue growth and profitability, marking a pivotal shift in the company's operational strategy.

Financial Growth

In the second quarter, Cheetah Mobile saw total revenue skyrocket by an impressive 57.5% year-over-year, reaching RMB 295.2 million (approximately US$41.2 million). This growth is attributed to robust performance across both of its reporting segments, notably the Internet business and the AI and others segment, the latter of which alone experienced a staggering 86.4% year-over-year growth. This performance underscores Cheetah Mobile's successful transition to a subscription-based model, which is yielding higher user engagement and retention.

Strategic Initiatives

Mr. Sheng Fu, Chairman and CEO, expressed his satisfaction with the quarter’s outcomes, emphasizing that the results validate the company's ongoing strategic transformation. With the acquisition of Ufactory, a robotic arm business, Cheetah Mobile aims to bolster its robotics capabilities and broaden its market reach. The focus remains on investing in AI utility applications and innovative robotics solutions.

Operational Efficiency

The company also demonstrated notable improvements in profitability. The gross profit rose by 85.0% year-over-year, translating to RMB 224.8 million (around US$31.4 million), significantly reducing GAAP and non-GAAP losses by over 81% and 96% respectively. Thomas Ren, CFO of Cheetah Mobile, noted that disciplined execution and enhanced operational efficiency have played crucial roles in narrowing the losses, paving the way for a credible path toward sustained profitability.

Looking Ahead

As part of an optimistic outlook, Cheetah Mobile reported that its adjustments in operational strategies are yielding measurable results. The transition towards AI-driven solutions and the integration of advanced technologies are expected to keep propelling the company’s growth trajectory. The strong balance sheet, with cash and cash equivalents amounting to RMB 2,019.6 million (around US$281.9 million), provides solid liquidity for continued innovation and investment. This robust financial standing allows the company the flexibility to maintain its momentum in the competitive tech landscape.

Mr. Fu remains confident in the company's potential for sustainable growth, aiming to provide long-term value to shareholders by exploiting emerging market opportunities and continuously enhancing product offerings.

Conference Call

Cheetah Mobile will host a conference call to discuss its financial results in detail on September 11, 2025. Interested stakeholders can participate by dialing the designated numbers provided in the quarterly report. A live and archived webcast will also be available via the company's investor relations website.

In conclusion, Cheetah Mobile’s second quarter financial results showcase not only a substantial recovery from previous losses but also highlight a well-structured approach towards capitalizing on current market trends through technological innovation and improved operational strategies. As Cheetah Mobile continues to build on these positive foundations, it is well-positioned to navigate the complexities of the IT landscape and realize its broader growth ambitions.