#China #Beijing #Hello Group #Tantan #Momo

Hello Group Inc. Announces First Quarter 2026 Financial Results

On June 2, 2026, Hello Group Inc., a prominent entity in Asia's online social networking sector, released its unaudited financial outcomes for the first quarter of 2026. The results indicate noteworthy trends, demonstrating both areas of growth and challenges ahead.

Financial Performance Overview

In the first quarter of 2026, Hello Group reported net revenues of RMB 2,386.0 million (approximately US$345.9 million), reflecting a 5.3% decrease compared to RMB 2,520.8 million in Q1 2025. Although overall revenues saw a decline, the company noted an impressive 44.1% year-over-year increase in net overseas revenues, totaling RMB 597.4 million (US$86.6 million).

The net income attributable to shareholders stood at RMB 291.0 million (US$42.2 million), down from RMB 358.0 million during the same period last year. Furthermore, the diluted net income per American Depositary Share (ADS) decreased to RMB 1.81 (US$0.26), compared to RMB 2.07 in the first quarter of 2025.

User Engagement Metrics

Despite the dip in revenues, Hello Group’s engagement metrics show certain resilience, particularly in its flagship apps Momo and Tantan. The number of paying users for the Momo app dropped to 3.7 million, while Tantan reported 0.6 million paying users. Both apps experienced declines in user numbers compared to Q1 2025, attributed primarily to shifting market dynamics and external influences affecting their operational strategies.

Revenue Insights

The report notes that value-added services—primarily virtual gifts and subscription memberships—declined by 5.5%, dropping from RMB 2,489.9 million in Q1 2025 to RMB 2,353.6 million in Q1 2026. This decrease was significantly impacted by the operational shifts of various broadcasters on the Momo app and a decreased user base for Tantan.

Conversely, the overseas segment's growth reflects a strategic diversification in targeting international markets, particularly in the fast-growing regions of MENA, where demand for interactive audio and video content surged.

Cost Management

Cost management strategies appeared effective as total expenses decreased by 6.5% to RMB 2,088.7 million (US$302.8 million). Decreased revenue-sharing costs, which lowered payout to broadcasters on the Momo app, coupled with optimized personnel expenses contributed to this reduction. However, some marketing investments were shifted to support overseas operations, indicating a strategic pivot to bolster international presence amid domestic pressures.

Future Outlook

Looking forward, Hello Group anticipates total net revenues for Q2 2026 to be between RMB 2.45 billion and RMB 2.55 billion, suggesting a potential continued decline year-over-year. CEO Yan Tang expressed confidence in the company's ability to navigate the ongoing challenges and execute its strategic goals effectively.

Recent Developments

In March 2026, the company's board approved a special cash dividend of US$0.28 per ADS, which was disbursed in April. Additionally, Hello Group commenced a share repurchase program and plans to reinvest into areas with the highest growth potential.

Conclusion

Despite the challenges faced in the domestic market, Hello Group's significant international revenue growth, strategic focus, and commitment to innovation provide a foundation for potential recovery and future profitability. Stakeholders and investors are closely monitoring the company's adaptations to market fluctuations as it embarks on its strategic roadmap for 2026 and beyond.