#United Arab Emirates #Dubai #financial results #Yalla Group #YALA

Yalla Group Limited Reports Strong Financial Results for Q3 2025

Yalla Group Limited, the largest online social networking and gaming company in the MENA region, has published its unaudited financial results for the third quarter of 2025, revealing impressive growth and operational achievements. As a pioneer in connecting users through innovative platforms, Yalla demonstrated a commitment to enhancing user experience and expanding its market presence.

Financial Highlights

For the third quarter ended September 30, 2025, Yalla recorded revenues of US$89.6 million, signifying a modest rise of 0.8% from US$88.9 million in the same quarter of the previous year. Revenue streams were primarily driven by two main segments: chatting services, which contributed US$55.5 million, and gaming services, which accounted for US$33.8 million.

Net Income Growth

Yalla's net income reached US$40.7 million, reflecting a year-over-year increase of 3.9%, compared to US$39.2 million in Q3 2024. Notably, the net margin improved to 45.4%. Non-GAAP net income was reported at US$43.1 million, indicating a 1.2% increase from the previous year's third quarter. This performance underscores Yalla's strategic focus on operational efficiency and cost management.

User Metrics

One of the key adjacent highlights of this quarter was the growth in user engagement. The average monthly active users (MAUs) surged by 8.1% to 43.4 million, compared to 40.2 million in Q3 2024. However, the number of paying users saw a decrease of 9.7%, falling to 11.4 million from 12.6 million. The contradiction in these metrics highlights Yalla's ongoing efforts to attract new users while refining monetization strategies.

CEO Commentary

Mr. Tao Yang, Founder, Chairman, and CEO, expressed satisfaction with the results stating, “We are pleased to deliver a strong set of results for the third quarter of 2025, as our revenues reached US$89.6 million, even surpassing the high end of our guidance.” He further elaborated on the company’s successful product portfolios and its commitment to enhancing user engagement through innovative features and games.

Yalla has launched a new match-3 game, Turbo Match, on Android and is set to unveil additional gaming titles, including a self-developed roguelike game in collaboration with a prominent gaming studio. This strategy is aimed at expanding Yalla's footprint within the competitive MENA gaming market.

Commitment to Shareholder Returns

Ms. Karen Hu, CFO, emphasized the focus on shareholder value, reporting a total return of US$51.9 million to shareholders in 2025 via the share repurchase program. Yalla remains committed to a US$150 million share repurchase initiative, aimed at providing sustained long-term value amidst market fluctuations.

Future Outlook

Looking ahead, Yalla forecasts revenues for the fourth quarter of 2025 to fall between US$78.0 million and US$85.0 million. The company continues to adapt to market dynamics and user preferences, with an ongoing commitment to enhancing operational workflows and technology integration.

In summary, Yalla Group Limited's robust Q3 performance reaffirms its leading role in MENA's online social networking and gaming industry. As Yalla capitalizes on its expanding user base and innovative product lines, the company is poised for continuous growth, ensuring it meets the evolving demands of its users while fostering a strong return for its stakeholders.