#China #Beijing #Hello Group #Tantan #Momo

Hello Group Inc. Fourth Quarter and Annual Financial Results for 2025

Hello Group Inc., a key player in Asia’s online social networking domain, has released its unaudited financial results for both the fourth quarter and the entire fiscal year ending December 31, 2025. The report reveals a complex scenario for the company, illustrating both challenges and successes in different areas of its operations.

Fourth Quarter Highlights

In the fourth quarter of 2025, Hello Group reported net revenues of RMB 2,575.8 million (approximately US$ 368.3 million), marking a 2.3% decline compared to the same period in 2024. This downturn is attributed to various factors affecting its operational focus across its product portfolio.

Overseas Performance

Despite the overall revenue drop, the company witnessed a remarkable growth in its overseas operations, with revenues climbing by 70.3% year-over-year to reach RMB 608.2 million (US$ 87.0 million). This shift highlights the company's strategic expansion and successful penetration into international markets, particularly with its recent product incubations and mergers that have diversified its offerings.

Profitability

The net income attributable to Hello Group for the fourth quarter totaled RMB 237.3 million (US$ 33.9 million), an improvement from RMB 187.2 million in the previous year, indicating a positive trend in profitability against a backdrop of declining revenues. The non-GAAP net income also rose to RMB 281.3 million (US$ 40.2 million), showcasing effective cost management despite revenue challenges.

User Base Changes

User engagement metrics showed a decline as well, with the Momo app reporting 3.9 million total paying users, down from 5.7 million during the same quarter last year. Similarly, Tantan had 0.6 million paying users, decreasing from 0.9 million year-over-year. The shrinking user base has prompted the company to rethink its strategies to enhance engagement and attract new users.

Full Year 2025 Overview

For the overall fiscal year 2025, Hello Group's financial situation showed a sustained decline with total revenues of RMB 10,367.1 million (US$ 1,482.5 million), down by 1.9% from 2024. However, robust growth in overseas revenue, which tallied RMB 2,000.0 million (US$ 286 million), reflects a strong international performance that offset some domestic challenges.

Profit Margins

Net income for the entire year fell to RMB 804.0 million (US$ 115.0 million), a significant drop from RMB 1,039.6 million in 2024. The diluted net income per American Depositary Share (ADS) decreased to RMB 4.75 (US$ 0.68), highlighting the need for strategic adjustments in the coming quarters.

Strategic Insights

Yan Tang, Chairman and CEO of Hello Group, expressed concerns over external factors impacting the domestic business landscape during the second half of 2025. However, he emphasized the resilience and adaptability of the management team, which effectively navigated challenges while also ensuring a vibrant ecosystem and operations elsewhere. Over the past year, the company's overseas initiatives have not only diversified its brand portfolio but have also substantially boosted revenue growth.

Future Outlook

Looking ahead into the first quarter of 2026, Hello Group anticipates revenues between RMB 2.3 billion and RMB 2.4 billion, indicating a forecasted decline of 8.8% to 4.8% year-over-year. This guidance reveals cautious optimism amidst ongoing market challenges.

With the declared special cash dividend of US$ 0.28 per ADS and an active share repurchase program indicating confidence in the company’s valuation, Hello Group continues to position itself strategically, aiming for growth through resources allocation and brand revitalization strategies.

Conclusion

Overall, Hello Group’s financial results for 2025 bring forth a narrative of resilience and adaptability amidst fluctuating market conditions. While faced with a decline in key domestic metrics, the company’s push towards overseas revenue streams reflects a proactive stance towards long-term growth sustainability in the highly competitive landscape of social networking.