Second Quarter 2026 Financial and Operating Highlights
- Revenues were
US$82.6 million in the second quarter of 2026, compared withUS$84.6 million in the second quarter of 2025.- Revenues generated from chatting services in the second quarter of 2026 were
US$47.4 million . - Revenues generated from games services in the second quarter of 2026 were
US$34.2 million .
- Revenues generated from chatting services in the second quarter of 2026 were
- Net income was
US$29.3 million in the second quarter of 2026, compared withUS$36.5 million in the second quarter of 2025. Net margin[1] was 35.5% in the second quarter of 2026. - Non-GAAP net income[2] was
US$34.4 million in the second quarter of 2026, compared withUS$39.4 million in the second quarter of 2025. Non-GAAP net margin[3] was 41.7% in the second quarter of 2026. - Average MAUs[4] increased by 12.3% to 47.6 million in the second quarter of 2026, compared with 42.4 million in the second quarter of 2025.
- The number of paying users[5] was 10.9 million in the second quarter of 2026, compared with 11.2 million in the second quarter of 2025.
Key Operating Data | For the three months ended | ||||||
Average MAUs (in thousands) | 42,421 | 47,625 | |||||
Paying users (in thousands) | 11,186 | 10,861 | |||||
[1] Net margin is net income as a percentage of revenues. |
[2] Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections titled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release. |
[3] Non-GAAP net margin is non-GAAP net income as a percentage of revenues. |
[4] "Average MAUs" refers to the average monthly active users in a given period, calculated by dividing (i) the sum of active users for each month of such period by (ii) the number of months in such period. "Active users" refers to registered users who accessed any of our main mobile applications at least once during a given period; main mobile applications are mobile applications that have exceeded the 0.5 million average MAUs threshold at least once. |
[5] "Paying users" refers to registered users who played a game or purchased our virtual items or upgraded services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free. "Registered users" refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications. |
"We delivered solid results across our flagship products and growing momentum in our gaming business in the second quarter of 2026," said Mr.
"Beyond the sustained strength of our flagship products, we made progress in expanding our gaming ecosystem. Our new games, including our first self-developed match-3 title and desert-themed SLG title, continued to advance smoothly with a clear roadmap taking shape for the next stage of development. We also continued to strengthen our pipeline of self-developed products, spanning casual games, hyper-casual games, social products and AI applications, designed to maximize the synergy between our social and gaming ecosystems. Building on years of deep-rooted expertise in MENA, we will continue to unlock local opportunities and broaden our reach globally through strategic partnerships to deliver sustainable growth for our shareholders."
Ms.
Second Quarter 2026 Financial Results
Revenues
Revenues were
In the second quarter of 2026, revenues generated from chatting services were
Costs and expenses
Total costs and expenses were
Cost of revenues was
Selling and marketing expenses were
General and administrative expenses were
Technology and product development expenses were
Operating income
Operating income was
Non-GAAP operating income[6]
Non-GAAP operating income in the second quarter of 2026 was
Interest income
Interest income was
Investment income
Investment income was
Income tax expense
Income tax expense was
Net income
Net income was
Non-GAAP net income
Non-GAAP net income in the second quarter of 2026 was
Earnings per ordinary share
Basic and diluted earnings per ordinary share were
Non-GAAP earnings per ordinary share[7]
Non-GAAP basic and diluted earnings per ordinary share were
Cash and cash equivalents, restricted cash, term deposits and short-term investments
As of
[6] Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections titled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release. |
[7] Non-GAAP earnings per ordinary share is non-GAAP net income attributable to |
Share Repurchase Program
Under the Company's two share repurchase programs launched in 2021 and 2026 (the "2021 Program" and the "2026 Program"), the Company repurchased 4,357,024 American depositary shares ("ADSs"), representing 4,357,024 Class A ordinary shares, for an aggregate amount of approximately
The 2021 Program expired on
In addition, the Company had cancelled 12,734,059 ADSs, representing 12,734,059 Class A ordinary shares, as of
Outlook
For the third quarter of 2026,
The above outlook is based on current market conditions and reflects the Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.
Conference Call
Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.
Event Title:
Registration Link: https://register-conf.media-server.com/register/BIa9b95130104d40aa9a598586197e750b
Additionally, a live webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in
By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. Investors can better understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under
The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest
Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.
About
For more information, please visit: https://ir.yalla.com.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the
For investor and media inquiries, please contact:
Investor Relations
Tel: +86-571-8980-7962
Email: ir@yalla.com
Tel: +86-10-6508-0677
Email: yalla@tpg-ir.com
In
Tel: +1-212-481-2050
Email: yalla@tpg-ir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
As of | ||||||||
|
| |||||||
US$ | US$ | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 526,972,019 | 268,371,117 | ||||||
Restricted cash | 1,625,525 | 1,797,132 | ||||||
Term deposits | 84,800,000 | 217,427,135 | ||||||
Short-term investments | 141,251,128 | 336,596,144 | ||||||
Prepayments and other current assets | 41,659,226 | 31,167,184 | ||||||
Total current assets | 796,307,898 | 855,358,712 | ||||||
Non-current assets | ||||||||
Property and equipment, net | 14,976,818 | 15,146,724 | ||||||
Intangible asset, net | 728,348 | 663,976 | ||||||
Operating lease right-of-use assets | 1,902,655 | 4,840,602 | ||||||
Long-term investments | 82,053,772 | 57,821,227 | ||||||
Other assets | 250,000 | 858,516 | ||||||
Total non-current assets | 99,911,593 | 79,331,045 | ||||||
Total assets | 896,219,491 | 934,689,757 | ||||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Accounts payable | 1,066,625 | 1,059,103 | ||||||
Deferred revenue, current | 55,178,093 | 52,493,495 | ||||||
Operating lease liabilities, current | 357,525 | 1,781,737 | ||||||
Amounts due to a related party | 44,177 | 15,264 | ||||||
Income taxes payable | 1,319,111 | 2,325,945 | ||||||
Accrued expenses and other current liabilities | 30,350,120 | 25,363,411 | ||||||
Total current liabilities | 88,315,651 | 83,038,955 | ||||||
Non-current liabilities | ||||||||
Deferred revenue, non-current | 1,837,543 | 1,453,259 | ||||||
Operating lease liabilities, non-current | 1,095,245 | 2,686,922 | ||||||
Deferred tax liabilities | 2,924,137 | 2,885,096 | ||||||
Total non-current liabilities | 5,856,925 | 7,025,277 | ||||||
Total liabilities | 94,172,576 | 90,064,232 | ||||||
EQUITY | ||||||||
Shareholders' equity of | ||||||||
Class A Ordinary Shares | 13,441 | 13,441 | ||||||
Class B Ordinary Shares | 2,473 | 2,473 | ||||||
Additional paid-in capital | 339,199,644 | 349,196,164 | ||||||
(42,497,929) | (66,242,824) | |||||||
Accumulated other comprehensive (loss) income | (1,636,586) | 668,175 | ||||||
Retained earnings | 515,197,658 | 572,215,132 | ||||||
Total shareholders' equity of | 810,278,701 | 855,852,561 | ||||||
Non-controlling interests | (8,231,786) | (11,227,036) | ||||||
Total equity | 802,046,915 | 844,625,525 | ||||||
Total liabilities and equity | 896,219,491 | 934,689,757 | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS | ||||||||||||||||||||
OF OPERATIONS | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
|
|
|
|
| ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Revenues | 84,564,086 | 79,006,789 | 82,608,696 | 168,440,853 | 161,615,485 | |||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of revenues | (27,944,596) | (26,473,813) | (26,802,984) | (57,145,019) | (53,276,797) | |||||||||||||||
Selling and marketing expenses | (8,661,573) | (9,722,665) | (17,841,216) | (15,604,841) | (27,563,881) | |||||||||||||||
General and administrative expenses | (9,002,347) | (10,251,576) | (8,642,276) | (17,697,655) | (18,893,852) | |||||||||||||||
Technology and product development expenses | (8,338,195) | (9,097,323) | (9,915,355) | (16,166,332) | (19,012,678) | |||||||||||||||
Total costs and expenses | (53,946,711) | (55,545,377) | (63,201,831) | (106,613,847) | (118,747,208) | |||||||||||||||
Operating income | 30,617,375 | 23,461,412 | 19,406,865 | 61,827,006 | 42,868,277 | |||||||||||||||
Interest income | 6,791,492 | 5,884,059 | 5,446,054 | 13,352,672 | 11,330,113 | |||||||||||||||
Government grants | 603,115 | 67,165 | 4,699 | 666,548 | 71,864 | |||||||||||||||
Investment income (loss) | 21,758 | (432,522) | 5,090,505 | 4,056 | 4,657,983 | |||||||||||||||
Income before income taxes | 38,033,740 | 28,980,114 | 29,948,123 | 75,850,282 | 58,928,237 | |||||||||||||||
Income tax expense | (1,531,310) | (620,089) | (619,210) | (2,968,387) | (1,239,299) | |||||||||||||||
Net income | 36,502,430 | 28,360,025 | 29,328,913 | 72,881,895 | 57,688,938 | |||||||||||||||
Net loss attributable to non-controlling interests | 269,782 | 575,459 | 2,434,355 | 981,717 | 3,009,814 | |||||||||||||||
Net income attributable to | 36,772,212 | 28,935,484 | 31,763,268 | 73,863,612 | 60,698,752 | |||||||||||||||
Earnings per ordinary share | ||||||||||||||||||||
——Basic | 0.24 | 0.19 | 0.21 | 0.47 | 0.40 | |||||||||||||||
——Diluted | 0.20 | 0.16 | 0.18 | 0.41 | 0.34 | |||||||||||||||
Weighted average number of shares | ||||||||||||||||||||
——Basic | 155,958,658 | 152,975,006 | 150,945,883 | 157,604,992 | 151,954,839 | |||||||||||||||
——Diluted | 180,765,359 | 177,171,652 | 175,048,711 | 181,508,856 | 176,104,576 | |||||||||||||||
Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
|
|
|
|
| ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Cost of revenues | 1,328,152 | 2,150,971 | 2,391,819 | 2,654,237 | 4,542,790 | |||||||||||||||
Selling and marketing expenses | 170,304 | 440,566 | 425,808 | 341,332 | 866,374 | |||||||||||||||
General and administrative expenses | 1,328,931 | 2,161,700 | 2,097,097 | 2,459,438 | 4,258,797 | |||||||||||||||
Technology and product development expenses | 20,670 | 146,087 | 182,472 | 140,144 | 328,559 | |||||||||||||||
Total share-based compensation expenses | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
|
|
|
|
| ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Operating income | 30,617,375 | 23,461,412 | 19,406,865 | 61,827,006 | 42,868,277 | |||||||||||||||
Share-based compensation expenses | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
Non-GAAP operating income | 33,465,432 | 28,360,736 | 24,504,061 | 67,422,157 | 52,864,797 | |||||||||||||||
Net income | 36,502,430 | 28,360,025 | 29,328,913 | 72,881,895 | 57,688,938 | |||||||||||||||
Share-based compensation expenses, | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
Non-GAAP net income | 39,350,487 | 33,259,349 | 34,426,109 | 78,477,046 | 67,685,458 | |||||||||||||||
Net income attributable to | 36,772,212 | 28,935,484 | 31,763,268 | 73,863,612 | 60,698,752 | |||||||||||||||
Share-based compensation expenses, net of | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
Non-GAAP net income attributable to | 39,620,269 | 33,834,808 | 36,860,464 | 79,458,763 | 70,695,272 | |||||||||||||||
Non-GAAP earnings per ordinary share | ||||||||||||||||||||
——Basic | 0.25 | 0.22 | 0.24 | 0.50 | 0.47 | |||||||||||||||
——Diluted | 0.22 | 0.19 | 0.21 | 0.44 | 0.40 | |||||||||||||||
Weighted average number of shares | ||||||||||||||||||||
——Basic | 155,958,658 | 152,975,006 | 150,945,883 | 157,604,992 | 151,954,839 | |||||||||||||||
——Diluted | 180,765,359 | 177,171,652 | 175,048,711 | 181,508,856 | 176,104,576 | |||||||||||||||
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