#China #Beijing #Hello Group #Tantan #Momo

Hello Group Inc.: Q3 2025 Financial Results Overview

Hello Group Inc. (NASDAQ: MOMO), a key player in Asia's digital social networking sector, has unveiled its unaudited financial results for the third quarter of 2025. In a dynamic marketplace, the company has endured challenges but also managed to achieve notable milestones, particularly in international revenue streams.

Financial Highlights of Q3 2025

• - Total Net Revenues: The company reported net revenues of RMB 2,650.1 million (US$ 372.3 million), representing a minor decrease of 0.9% compared to the previous year.
• - International Revenue Growth: Notably, revenues generated from overseas markets rose by 69.0% year-over-year to RMB 534.8 million (US$ 75.1 million), demonstrating significant expansion in international markets.
• - Net Income: The net income for Hello Group was RMB 348.9 million (US$ 49.0 million), down from RMB 449.4 million in the same quarter of the previous year. This decline reflects the ongoing market challenges the company faces.
• - User Base Changes: The third quarter saw a significant change in user engagement, with 3.7 million total paying users on the Momo app, a decrease from 6.9 million a year earlier. Tantan also saw a decline in paying users, with 0.7 million reported for this quarter.

Nine-Month Summary

• - For the first nine months of 2025, net revenues fell by 1.7% to RMB 7,791.3 million (US$ 1,094.4 million). International revenues, however, surged by 71.0% to RMB 1,391.8 million (US$ 195.5 million), underlining the increasing importance of global markets to the company’s strategy.
• - Net Income for Nine Months: The net income attributable to Hello Group for this period was RMB 566.7 million (US$ 79.6 million), in contrast to RMB 852.3 million the previous year.

Q3 Analysis

Chairman and CEO Yan Tang stated, "The third quarter proved our team's resilience against external market challenges with solid performance in user metrics despite economic fluctuations. Momo’s established reputation as a leading social platform in China continues to be a central strength. Our focus on product innovation and algorithm enhancements has led to gradual improvements in user engagement, laying a strong foundation for sustained performance in our core business."

He further highlighted the company's commitment to growing its international base: “Our overseas operations are becoming crucial for future revenue growth, with our diverse portfolio of social entertainment and dating brands driving this expansion.”

Looking Ahead

For the fourth quarter of 2025, Hello Group anticipates net revenues between RMB 2.52 billion and RMB 2.62 billion, reflecting a forecasted decline ranging from 4.4% to 0.6% year-over-year. This outlook is dependent on current and preliminary assessments of market conditions, with the understanding that it may be subject to adjustments.

Conclusion

Despite the observed downward trends in domestic user engagement, Hello Group's adaptability and international revenue streams signify a promising future. The focus on maintaining relationships and expanding into new markets continues to fuel the company’s strategic goals. Investors will likely await the forthcoming conference call for additional insights and detailed clarifications about the company's strategies aimed at enhancing user engagement and boosting revenues in the competitive landscape of social networking.

Hello Group Inc.'s strategic responses to current challenges position them well to capitalize on growth opportunities, particularly in international markets, as they navigate the pathway to recovery and growth in a rapidly evolving digital ecosystem.