Hello Group Inc. Announces Unaudited Financial Results for the Second Quarter of 2025
BEIJING, Sept. 9, 2025 /PRNewswire/ -- Hello Group Inc. (NASDAQ:MOMO) ("Hello Group" or the "Company"), a leading player in Asia's online social networking space, today announced its unaudited financial results for the second quarter of 2025.
Second Quarter of 2025 Highlights
- Net revenues decreased by 2.6% year over year to RMB2,620.4 million (US$365.8 million*) in the second quarter of 2025.
- Net revenues from overseas increased by 72.7% year over year to RMB442.4 million (US$61.8 million) in the second quarter of 2025.
- Net loss attributable to Hello Group Inc. was RMB140.2 million (US$19.6 million) in the second quarter of 2025, compared to a net income of RMB397.8 million in the same period of 2024.
- Non-GAAP net loss attributable to Hello Group Inc. (note 1) was RMB96.0 million (US$13.4 million) in the second quarter of 2025, compared to a net income of RMB449.2 million in the same period of 2024. In the second quarter of 2025, the Company accrued an additional withholding tax of RMB547.9 million (US$76.5 million) related to dividends paid or payable by its wholly-foreign owned enterprise ("WFOE") in Chinese mainland to its offshore parent company in Hong Kong, Momo Hong Kong. This accrual followed a notice the Company's WFOE, Momo Beijing, received from the Chinese tax authorities requiring Momo Beijing to withhold tax at the standard rate of 10% instead of the previously applied preferential rate of 5%. The RMB547.9 million (US$76.5 million) accrual in withholding tax was for prior periods. This accrual is unrelated to the normal business operation of the current period and future periods. In the second quarter of 2025 and going forward, we will continue to accrue withholding tax for the dividends payable by Momo Beijing to Momo Hong Kong at the standard rate of 10%. Further details are provided under "Income tax expenses."
- Diluted net loss per American Depositary Share ("ADS") was RMB0.84 (US$0.12) in the second quarter of 2025, compared to a diluted net income per ADS of RMB2.11 in the same period of 2024.
- Non-GAAP diluted net loss per ADS (note 1) was RMB0.58 (US$0.08) in the second quarter of 2025, compared to a diluted net income per ADS of RMB2.38 in the same period of 2024.
- Monthly Active Users ("MAU") on Tantan app were 10.2 million in June 2025, compared to 12.9 million in June 2024.
- For the Momo app total paying users was 3.5 million for the second quarter of 2025, compared to 7.2 million for the same period last year. Tantan had 0.7 million paying users for the second quarter of 2025 compared to 1.0 million from the year ago period.
First Half of 2025 Highlights
- Net revenues decreased by 2.1% year over year to RMB5,141.2 million (US$717.7 million) for the first half of 2025.
- Net revenues from overseas increased by 72.3% year over year to RMB857.0 million (US$119.6 million) for the first half of 2025.
- Net income attributable to Hello Group Inc. was RMB217.8 million (US$30.4 million) for the first half of 2025, compared to RMB403.0 million during the same period of 2024.
- Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB307.7 million (US$43.0 million) for the first half of 2025, compared to RMB509.1 million during the same period of 2024.
- Diluted net income per ADS was RMB1.27 (US$0.18) for the first half of 2025, compared to RMB2.10 during the same period of 2024.
- Non-GAAP diluted net income per ADS (note 1) was RMB1.80 (US$0.25) for the first half of 2025, compared to RMB2.65 during the same period of 2024.
* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.1636 to US$1.00, the effective noon buying rate for June 30, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board. |
"Q2 was a good quarter. Both our domestic and overseas business fundamentals extended the positive trend that began at the start of the year, achieving favorable results across various operational and financial metrics," commented Yan Tang, Chairman and CEO of Hello Group." Our Momo business has progressively stabilized, with both revenue and profit surpassing our initial expectations. For our overseas business, we have successfully maintained rapid growth while controlling costs and expenses effectively. This strategic approach keeps our overseas business on course to deliver an increasingly meaningful contribution to the group's overall financial performance. "
Second Quarter of 2025 Financial Results
Net revenues
Total net revenues were RMB2,620.4 million (US$365.8 million) in the second quarter of 2025, a decrease of 2.6% from RMB2,691.4 million in the second quarter of 2024.
Value-added service revenues mainly include virtual gift revenues from various audio, video and text- based scenarios, and membership subscription revenues. Total value-added service revenues were RMB2,579.3 million (US$360.1 million) in the second quarter of 2025, a decrease of 2.6% from RMB2,648.3 million during the same period of 2024. The decrease was primarily due to a soft consumer sentiment among top users in the current macro environment of Momo app, and to a lesser extent, the decline in Tantan's paying users which was in turn due to the decline in user base. The decrease was partially mitigated by the rapid revenue growth from our overseas apps, driven by the strong performance of the relatively established brand-Soulchill, along with the monetization of a collection of new apps.
Other services revenues were RMB41.1 million (US$5.7 million) in the second quarter of 2025, compared to RMB43.1 million during the same period of 2024.
Net revenues from Chinese mainland decreased from RMB2,435.1 million in the second quarter of 2024 to RMB2,177.9 million (US$304.0 million) in the second quarter of 2025, primarily due to the decrease in net revenues from Momo app and Tantan app. Net revenues from overseas increased from RMB256.3 million in the second quarter of 2024 to RMB442.4 million (US$61.8 million) in the second quarter of 2025, driven by the growth of Souchill and incremental revenue from emerging brands.
Cost and expenses
Cost and expenses were RMB2,227.7 million (US$311.0 million) in the second quarter of 2025, a decrease of 2.1% from RMB2,275.2 million in the second quarter of 2024. The decrease was primarily attributable to: (a) a decrease in Tantan's marketing and promotional expense due to our continuous initiatives to control cost and optimize Tantan's channel marketing strategy, partially offset by an increase in sales and marketing expenses related to the promotion of overseas apps; (b) a decrease in revenue sharing with broadcasters on Momo apps, which was partially offset by an increase in revenue sharing with virtual gift recipients for overseas apps; and (c) a decrease in production costs in connection with films.
Non-GAAP cost and expenses (note 1) were RMB2,183.6 million (US$304.8 million) in the second quarter of 2025, compared to RMB2,223.8 million during the same period of 2024.
Income from operations
Income from operations was RMB403.5 million (US$56.3 million) in the second quarter of 2025, compared to RMB425.0 million during the same period of 2024.
Non-GAAP income from operations (note 1) was RMB447.7 million (US$62.5 million) in the second quarter of 2025, compared to RMB476.5 million during the same period of 2024.
Income tax expenses
Income tax expenses were RMB638.4 million (US$89.1 million) in the second quarter of 2025, compared to RMB102.6 million in the second quarter of 2024.
On August 27, 2025, the Company's WFOE, Momo Beijing, received a notice from the Chinese tax authorities requiring Momo Beijing to withhold tax at the standard rate of 10% instead of the previously applied preferential rate of 5%. As a result, the Company accrued an additional withholding tax of RMB547.9 million (US$76.5 million). Of this total amount, RMB356.1 million (US$49.7 million) was related to dividends paid by Momo Beijing in 2024 and in the first half of 2025, and this amount has been remitted in September 2025. The remaining RMB191.8 million (US$26.8 million) represents additional withholding tax accrued for the undistributed retained earnings of Momo Beijing as of March 31st 2025. The RMB547.9 million (US$76.5 million) accrual in withholding tax was for prior periods. This accrual is unrelated to the normal business operation of the current period and future periods. In the second quarter of 2025 and going forward, we will continue to accrue withholding tax for the dividends payable by Momo Beijing to Momo Hong Kong at the standard rate of 10%.
Net income (loss)
Net loss was RMB139.4 million (US$19.5 million) in the second quarter of 2025, compared to a net income of RMB397.8 million during the same period of 2024.
Non-GAAP net loss (note 1) was RMB95.2 million (US$13.3 million) in the second quarter of 2025, compared to a net income of RMB449.2 million during the same period of 2024.
Net income (loss) attributable to Hello Group Inc.
Net loss attributable to Hello Group Inc. was RMB140.2 million (US$19.6 million) in the second quarter of 2025, compared to a net income of RMB397.8 million during the same period of 2024.
Non-GAAP net loss (note 1) attributable to Hello Group Inc. was RMB96.0 million (US$13.4 million) in the second quarter of 2025, compared to a net income of RMB449.2 million during the same period of 2024.
Net income (loss) per ADS
Diluted net loss per ADS was RMB0.84 (US$0.12) in the second quarter of 2025, compared to a diluted net income per ADS of RMB2.11 in the second quarter of 2024.
Non-GAAP diluted net loss per ADS (note 1) was RMB0.58 (US$0.08) in the second quarter of 2025, compared to a diluted net income per ADS of RMB2.38 in the second quarter of 2024.
Cash and cash flow
As of June 30, 2025, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB12,390.6 million (US$1,729.7 million), compared to RMB14,728.5 million as of December 31, 2024.
Net cash provided by operating activities in the second quarter of 2025 was RMB250.1 million (US$34.9 million), compared to RMB475.2 million in the second quarter of 2024.
First Half of 2025 Financial Results
Net revenues for the first half of 2025 were RMB5,141.2 million (US$717.7 million), a decrease of 2.1% from RMB5,251.8 million in the same period of 2024.
Net income attributable to Hello Group Inc. was RMB217.8 million (US$30.4 million) for the first half of 2025, compared to RMB403.0 million during the same period of 2024.
Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB307.7 million (US$43.0 million) for the first half of 2025, compared to RMB509.1 million during the same period of 2024.
Diluted net income per ADS was RMB1.27 (US$0.18) during the first half of 2025, compared to RMB2.10 in the same period of 2024.
Non-GAAP diluted net income per ADS (note 1) was RMB1.80 (US$0.25) during the first half of 2025, compared to RMB2.65 in the same period of 2024.
Net cash provided by operating activities was RMB489.9 million (US$68.4 million) during the first half of 2025, compared to RMB875.4 million in the same period of 2024.
Recent Development
Share repurchase program
As of September, 9, 2025, the Company has repurchased 48.9 million ADSs for US$300.3 million on the open market under the Share Repurchase Program announced on June 7, 2022 and amended on March 14, 2024 and March 12, 2025, at an average purchase price of US$6.12 per ADS. The remaining size of the program is US$185.8 million.
Business Outlook
For the third quarter of 2025, the Company expects total net revenues to be between RMB2.59 billion to RMB2.69 billion, representing a decrease of 3.2% to an increase of 0.6% year over year. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, income from operations, net income (loss), net income (loss) attributable to Hello Group Inc., and diluted net income (loss) per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax. A limitation of using these non-GAAP financial measures is that share-based compensation and amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.
Conference Call
Hello Group's management will host an earnings conference call on Tuesday, September 9, 2025, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on September 9, 2025).
Participants can register for the conference call by navigating to:
https://s1.c-conf.com/diamondpass/10049643-g8d65s.html.
Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.
A telephone replay of the call will be available after the conclusion of the conference call through September 16, 2025. The dial-in details for the replay are as follows:
U.S. / Canada: 1-855-883-1031
Hong Kong: 800-930-639
Passcode: 10049643
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group's website at https://ir.hellogroup.com.
About Hello Group Inc.
We are a leading player in Asia's online social networking space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. Starting from 2019, we have incubated a number of other new apps, such as Hertz, Soulchill, and Duidui, which target more niche markets and more selective demographics.
For investor and media inquiries, please contact:
Hello Group Inc.
Investor Relations
Phone: +852 3157 1669
Email: [email protected]
Christensen
In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: [email protected]
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]
Safe Harbor Statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the third quarter of 2025, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the second quarter of 2025 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third quarter of 2025 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.
All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.
Hello Group Inc. | ||||||||||||
Unaudited Condensed Consolidated Statement of Operations | ||||||||||||
(All amounts in thousands, except share and per share data) | ||||||||||||
Three months | First half year | |||||||||||
Ended June 30 | Ended June 30 | |||||||||||
2024 | 2025 | 2025 | 2024 | 2025 | 2025 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Net revenues(i): | ||||||||||||
Value-added service | 2,648,336 | 2,579,292 | 360,055 | 5,181,253 | 5,069,194 | 707,632 | ||||||
Other services | 43,055 | 41,076 | 5,734 | 70,558 | 72,009 | 10,052 | ||||||
Total net revenues | 2,691,391 | 2,620,368 | 365,789 | 5,251,811 | 5,141,203 | 717,684 | ||||||
Cost and expenses: | ||||||||||||
Cost of revenues | (1,595,789) | (1,607,712) | (224,428) | (3,098,797) | (3,176,786) | (443,462) | ||||||
Research and development | (193,168) | (183,859) | (25,666) | (385,359) | (379,628) | (52,994) | ||||||
Sales and marketing | (364,769) | (347,327) | (48,485) | (658,200) | (676,505) | (94,436) | ||||||
General and administrative | (121,482) | (88,839) | (12,401) | (252,863) | (229,350) | (32,016) | ||||||
Total cost and expenses | (2,275,208) | (2,227,737) | (310,980) | (4,395,219) | (4,462,269) | (622,908) | ||||||
Other operating income, net | 8,861 | 10,865 | 1,517 | 28,767 | 24,047 | 3,357 | ||||||
Income from operations | 425,044 | 403,496 | 56,326 | 885,359 | 702,981 | 98,133 | ||||||
Interest income | 130,937 | 105,513 | 14,729 | 252,044 | 225,851 | 31,528 | ||||||
Interest expense | (32,493) | (23,417) | (3,269) | (56,191) | (54,076) | (7,549) | ||||||
Other gain or loss, net | (34,625) | (40) | (6) | (43,870) | (40) | (6) | ||||||
Income before income tax and share of income on equity method investments | 488,863 | 485,552 | 67,780 | 1,037,342 | 874,716 | 122,106 | ||||||
Income tax expenses | (102,614) | (638,390) | (89,116) | (660,227) | (708,796) | (98,944) | ||||||
Income (loss) before share of income on equity method investments | 386,249 | (152,838) | (21,336) | 377,115 | 165,920 | 23,162 | ||||||
Share of income on equity method investments | 11,536 | 13,427 | 1,874 | 25,854 | 53,158 | 7,421 | ||||||
Net income (loss) | 397,785 | (139,411) | (19,462) | 402,969 | 219,078 | 30,583 | ||||||
Less: net income attributable to non-controlling interest | - | 793 | 111 | - | 1,288 | 180 | ||||||
Net income (loss) attributable to the shareholders of Hello Group Inc. | 397,785 | (140,204) | (19,573) | 402,969 | 217,790 | 30,403 | ||||||
Net income (loss) per share attributable to ordinary shareholders | ||||||||||||
Basic | 1.10 | (0.42) | (0.06) | 1.09 | 0.65 | 0.09 | ||||||
Diluted | 1.05 | (0.42) | (0.06) | 1.05 | 0.64 | 0.09 | ||||||
Weighted average shares used in calculating net income (loss) per ordinary share | ||||||||||||
Basic | 362,394,762 | 332,986,414 | 332,986,414 | 368,522,705 | 335,653,491 | 335,653,491 | ||||||
Diluted | 377,903,589 | 332,986,414 | 332,986,414 | 383,528,002 | 341,743,527 | 341,743,527 | ||||||
(i) The following table presents revenues by geographic area based on the addresses of our customers of our users: | ||||||||||||
Three months | First half year | |||||||||||
Ended June 30 | Ended June 30 | |||||||||||
2024 | 2025 | 2025 | 2024 | 2025 | 2025 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Chinese mainland | 2,435,133 | 2,177,929 | 304,027 | 4,754,356 | 4,284,162 | 598,046 | ||||||
Overseas | 256,258 | 442,439 | 61,762 | 497,455 | 857,041 | 119,638 | ||||||
Total | 2,691,391 | 2,620,368 | 365,789 | 5,251,811 | 5,141,203 | 717,684 | ||||||
Hello Group Inc. | ||||||||||||
Unaudited Condensed Consolidated Statement of Comprehensive Income | ||||||||||||
(All amounts in thousands, except share and per share data) | ||||||||||||
Three months | First half year | |||||||||||
Ended June 30 | Ended June 30 | |||||||||||
2024 | 2025 | 2025 | 2024 | 2025 | 2025 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Net income (loss) | 397,785 | (139,411) | (19,462) | 402,969 | 219,078 | 30,583 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Foreign currency translation adjustment | 41,569 | (73,476) | (10,257) | 96,463 | (116,814) | (16,307) | ||||||
Comprehensive income (loss) | 439,354 | (212,887) | (29,719) | 499,432 | 102,264 | 14,276 | ||||||
Less: comprehensive income (loss) attributed to the non-controlling interest | 1,202 | (920) | (128) | 4,286 | (1,519) | (212) | ||||||
Comprehensive income (loss) attributable to Hello Group Inc. | 438,152 | (211,967) | (29,591) | 495,146 | 103,783 | 14,488 | ||||||
Hello Group Inc. | |||||
Unaudited Condensed Consolidated Balance Sheets | |||||
(All amounts in thousands, except share and per share data) | |||||
December 31 | June 30 | June 30 | |||
2024 | 2025 | 2025 | |||
RMB | RMB | US$ | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 4,122,659 | 5,017,224 | 700,377 | ||
Short-term deposits | 2,026,245 | 1,308,180 | 182,615 | ||
Restricted cash | 4,566,477 | 3,539,451 | 494,088 | ||
Accounts receivable, net of allowance for credit losses of RMB12,433 and | 192,317 | 238,778 | 33,332 | ||
Prepaid expenses and other current assets | 1,104,172 | 982,242 | 137,116 | ||
Total current assets | 12,011,870 | 11,085,875 | 1,547,528 | ||
Long-term deposits | 3,059,860 | 2,482,720 | 346,574 | ||
Long-term restricted cash | 953,285 | 42,982 | 6,000 | ||
Right-of-use assets, net | 252,169 | 154,635 | 21,586 | ||
Property and equipment, net | 897,036 | 928,462 | 129,608 | ||
Intangible assets, net | 86,661 | 186,287 | 26,005 | ||
Rental deposits | 13,280 | 5,365 | 749 | ||
Long-term investments | 825,533 | 1,195,290 | 166,856 | ||
Other non-current assets | 110,960 | 147,693 | 20,617 | ||
Deferred tax assets | 36,066 | 35,144 | 4,906 | ||
Goodwill | 136,250 | 250,684 | 34,994 | ||
Total assets | 18,382,970 | 16,515,137 | 2,305,423 | ||
Liabilities and equity | |||||
Current liabilities | |||||
Accounts payable | 615,254 | 619,442 | 86,469 | ||
Deferred revenue | 427,702 | 439,478 | 61,349 | ||
Accrued expenses and other current liabilities | 704,410 | 603,410 | 84,233 | ||
Lease liabilities due within one year | 141,971 | 103,672 | 14,472 | ||
Income tax payable | 157,057 | 415,524 | 58,005 | ||
Deferred consideration in connection with business acquisitions-current | 28,027 | 48,997 | 6,840 | ||
Convertible Senior Notes-current | 20,191 | - | - | ||
Long-term borrowings, current portion | 1,938,385 | 1,939,273 | 270,712 | ||
Short-term borrowings | 2,365,535 | 675,000 | 94,226 | ||
Total current liabilities | 6,398,532 | 4,844,796 | 676,306 | ||
Deferred consideration in connection with business acquisitions-non current | 65,694 | 42,982 | 6,000 | ||
Lease liabilities | 115,105 | 57,640 | 8,046 | ||
Deferred tax liabilities | 241,915 | 435,811 | 60,837 | ||
Long-term borrowings | - | 3,036 | 424 | ||
Other non-current liabilities | 129,051 | 137,491 | 19,193 | ||
Total liabilities | 6,950,297 | 5,521,756 | 770,806 | ||
Shareholder's equity (ii) | 11,432,673 | 10,993,381 | 1,534,617 | ||
Total liabilities and shareholder's equity | 18,382,970 | 16,515,137 | 2,305,423 | ||
(ii): As of June 30, 2025, the number of ordinary shares outstanding was 318,881,690. | |||||
Hello Group Inc. | ||||||||||||
Unaudited Condensed Consolidated Statement of Cash Flows | ||||||||||||
(All amounts in thousands, except share and per share data) | ||||||||||||
Three months | First half year | |||||||||||
Ended June 30 | Ended June 30 | |||||||||||
2024 | 2025 | 2025 | 2024 | 2025 | 2025 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | 397,785 | (139,411) | (19,462) | 402,969 | 219,078 | 30,583 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating | ||||||||||||
Depreciation of property and equipment | 13,525 | 11,229 | 1,568 | 27,835 | 23,620 | 3,297 | ||||||
Amortization of intangible assets | 1,279 | 7,655 | 1,069 | 2,558 | 13,846 | 1,933 | ||||||
Share-based compensation | 51,458 | 37,801 | 5,277 | 106,128 | 78,661 | 10,980 | ||||||
Share of income on equity method investments | (11,536) | (13,427) | (1,874) | (25,854) | (53,158) | (7,421) | ||||||
Cash received on distributions from equity method investments | 1,197 | - | - | 1,197 | - | - | ||||||
Returns on investments | - | 289 | 40 | - | 797 | 111 | ||||||
Loss on long-term investments | 34,625 | 40 | 6 | 43,870 | 40 | 6 | ||||||
Gain or loss on disposal of property and equipment | (178) | (146) | (20) | 80 | (248) | (35) | ||||||
Provision of loss on receivable and other assets | 145 | 312 | 44 | 1,921 | 5,717 | 798 | ||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | 4,848 | (17,847) | (2,491) | 15,828 | (36,991) | (5,164) | ||||||
Prepaid expenses and other current assets | 15,043 | (133,016) | (18,568) | 5,366 | (121,641) | (16,980) | ||||||
Rental deposits | - | 8,016 | 1,119 | (802) | 7,906 | 1,104 | ||||||
Deferred tax assets | (1,580) | 581 | 81 | (4,078) | 921 | 129 | ||||||
Other non-current assets | (198,746) | 46,626 | 6,509 | (206,343) | 81,672 | 11,401 | ||||||
Accounts payable | (14,292) | 4,047 | 565 | (31,746) | (9,496) | (1,326) | ||||||
Income tax payable | (42,533) | 363,302 | 50,715 | (36,497) | 262,323 | 36,619 | ||||||
Deferred revenue | (15,268) | 2,684 | 375 | 1,406 | 11,719 | 1,636 | ||||||
Accrued expenses and other current liabilities | 121,547 | (70,803) | (9,884) | 64,747 | (141,786) | (19,793) | ||||||
Deferred tax liabilities | 14,410 | 181,183 | 25,292 | 379,421 | 193,896 | 27,067 | ||||||
Other non-current liabilities | 103,500 | (38,986) | (5,442) | 127,393 | (47,026) | (6,565) | ||||||
Net cash provided by operating activities | 475,229 | 250,129 | 34,919 | 875,399 | 489,850 | 68,380 | ||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property and equipment | (199,842) | (26,162) | (3,652) | (244,018) | (53,976) | (7,535) | ||||||
Payment for long-term investments | (5,250) | (72,593) | (10,134) | (5,250) | (72,593) | (10,134) | ||||||
Payment for business acquisition | - | - | - | - | (194,390) | (27,136) | ||||||
Cash received on maturity of short-term deposits | 781,016 | - | - | 1,081,016 | 1,107,245 | 154,565 | ||||||
Purchase of long-term deposits | - | - | - | (718,860) | - | - | ||||||
Cash received on maturity of long-term deposits | - | - | - | 718,860 | 150,000 | 20,939 | ||||||
Cash received from sales of long-term investment | - | - | - | 2,000 | - | - | ||||||
Loan to a third-party company | - | (6,278) | (876) | - | (33,756) | (4,712) | ||||||
Other investing activities | 298 | 302 | 42 | 683 | 494 | 69 | ||||||
Net cash provided by (used in) investing activities | 576,222 | (104,731) | (14,620) | 834,431 | 903,024 | 126,056 | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of share options | 2 | 2 | - | 13 | 4 | 1 | ||||||
Repurchase of ordinary shares | (394,561) | (97,196) | (13,568) | (506,822) | (298,725) | (41,700) | ||||||
Dividends payment | (716,302) | (346,182) | (48,325) | (716,302) | (346,182) | (48,325) | ||||||
Payment in relation to redemption of convertible bonds | - | (20,221) | (2,823) | - | (20,221) | (2,823) | ||||||
Proceeds from short-term borrowings | - | - | - | 1,331,635 | - | - | ||||||
Repayment of short-term borrowings | - | - | - | - | (1,690,535) | (235,990) | ||||||
Repayment of long-term borrowings | - | (279) | (39) | (215) | (674) | (94) | ||||||
Net cash (used in) provided by financing activities | (1,110,861) | (463,876) | (64,755) | 108,309 | (2,356,333) | (328,931) | ||||||
Effect of exchange rate changes | 27,725 | (53,620) | (7,488) | 48,539 | (79,305) | (11,070) | ||||||
Net (decrease) increase in cash and cash equivalents | (31,685) | (372,098) | (51,944) | 1,866,678 | (1,042,764) | (145,565) | ||||||
Cash, cash equivalents and restricted cash at the beginning of period | 10,181,275 | 8,971,755 | 1,252,409 | 8,282,912 | 9,642,421 | 1,346,030 | ||||||
Cash, cash equivalents and restricted cash at the end of period | 10,149,590 | 8,599,657 | 1,200,465 | 10,149,590 | 8,599,657 | 1,200,465 | ||||||
Hello Group Inc. | |||||||||||||
Reconciliation of Non-GAAP financial measures to comparable GAAP measures | |||||||||||||
(All amounts in thousands, except per share data) | |||||||||||||
1. | Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income (loss) to comparable GAAP measures. | ||||||||||||
Three months | Three months | Three months | |||||||||||
Ended June 30, 2024 | Ended June 30, 2025 | Ended June 30, 2025 | |||||||||||
GAAP | Share-based | Non-GAAP | GAAP | Amortization of | Share-based | Non-GAAP | GAAP | Amortization of | Share-based | Non-GAAP | |||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | US$ | US$ | US$ | US$ | |||
Cost of revenues | (1,595,789) | 1,796 | (1,593,993) | (1,607,712) | 1,762 | 1,560 | (1,604,390) | (224,428) | 246 | 218 | (223,964) | ||
Research and development | (193,168) | 13,512 | (179,656) | (183,859) | 1,140 | 10,710 | (172,009) | (25,666) | 159 | 1,495 | (24,012) | ||
Sales and marketing | (364,769) | 4,149 | (360,620) | (347,327) | 3,474 | 4,159 | (339,694) | (48,485) | 485 | 581 | (47,419) | ||
General and administrative | (121,482) | 32,001 | (89,481) | (88,839) | - | 21,372 | (67,467) | (12,401) | - | 2,983 | (9,418) | ||
Cost and operating expenses | (2,275,208) | 51,458 | (2,223,750) | (2,227,737) | 6,376 | 37,801 | (2,183,560) | (310,980) | 890 | 5,277 | (304,813) | ||
Income from operations | 425,044 | 51,458 | 476,502 | 403,496 | 6,376 | 37,801 | 447,673 | 56,326 | 890 | 5,277 | 62,493 | ||
Net income (loss) attributable to Hello Group Inc. | 397,785 | 51,458 | 449,243 | (140,204) | 6,376 | 37,801 | (96,027) | (19,573) | 890 | 5,277 | (13,406) | ||
Hello Group Inc. | |||||||||||||
Reconciliation of Non-GAAP financial measures to comparable GAAP measures | |||||||||||||
(All amounts in thousands, except per share data) | |||||||||||||
1. | Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income (loss) to comparable GAAP measures-continued. | ||||||||||||
First half year | First half year | First half year | |||||||||||
Ended June 30, 2024 | Ended June 30, 2025 | Ended June 30, 2025 | |||||||||||
GAAP | Share-based | Non-GAAP | GAAP | Amortization of | Share-based | Non-GAAP | GAAP | Amortization of | Share-based | Non-GAAP | |||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | US$ | US$ | US$ | US$ | |||
Cost of revenues | (3,098,797) | 3,678 | (3,095,119) | (3,176,786) | 3,025 | 3,334 | (3,170,427) | (443,462) | 422 | 465 | (442,575) | ||
Research and development | (385,359) | 22,298 | (363,061) | (379,628) | 1,999 | 19,770 | (357,859) | (52,994) | 279 | 2,760 | (49,955) | ||
Sales and marketing | (658,200) | 10,266 | (647,934) | (676,505) | 6,264 | 8,470 | (661,771) | (94,436) | 874 | 1,182 | (92,380) | ||
General and administrative | (252,863) | 69,886 | (182,977) | (229,350) | - | 47,087 | (182,263) | (32,016) | - | 6,573 | (25,443) | ||
Cost and operating expenses | (4,395,219) | 106,128 | (4,289,091) | (4,462,269) | 11,288 | 78,661 | (4,372,320) | (622,908) | 1,575 | 10,980 | (610,353) | ||
Income from operations | 885,359 | 106,128 | 991,487 | 702,981 | 11,288 | 78,661 | 792,930 | 98,133 | 1,575 | 10,980 | 110,688 | ||
Net income attributable to Hello Group Inc. | 402,969 | 106,128 | 509,097 | 217,790 | 11,288 | 78,661 | 307,739 | 30,403 | 1,575 | 10,980 | 42,958 | ||
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SOURCE Hello Group Inc.