Hello Group Unveils Q3 2025 Financial Results
Hello Group Inc. (NASDAQ: MOMO), a prominent enterprise in Asia's online social networking sector, has publicly shared its unaudited financial highlights for Q3 2025, showcasing both challenges and achievements.
Financial Highlights for Q3 2025
During the third quarter, Hello Group reported a notable decrease in net revenues of 0.9%, totaling RMB2,650.1 million (approximately US$372.3 million). In contrast, net revenues from international markets witnessed a significant growth spurt, increasing by 69.0% year-over-year to RMB534.8 million (around US$75.1 million).
Furthermore, the company's net income attributable to Hello Group Inc. stood at RMB348.9 million (US$49.0 million), a decline from the previous year’s RMB449.4 million. Non-GAAP net income for the same quarter was RMB404.5 million (US$56.8 million), lower than the RMB493.3 million reported in Q3 2024.
Diluted net income per American Depositary Share (ADS) was recorded at RMB2.06 (US$0.29), a decrease compared to RMB2.46 from Q3 2024. The total paying users for the Momo app decreased to 3.7 million this quarter, contrasted with 6.9 million during the same period last year.
Performance Overview for the First Nine Months of 2025
Looking at the ongoing fiscal year, Hello Group reported a decrease in net revenues by 1.7%, reaching RMB7,791.3 million (approximately US$1,094.4 million). Notably, international revenues surged by 71.0%, amounting to RMB1,391.8 million (about US$195.5 million). The company recorded a net income of RMB566.7 million (US$79.6 million) for the first nine months, declining from RMB852.3 million compared to the equivalent timeframe in 2024. Diluted net income per ADS was RMB3.32 (US$0.47), a favorable comparison against RMB4.51 in 2024.
Business Updates and Strategic Focus
Yan Tang, the Chairman and CEO of Hello Group, expressed satisfaction with the team’s adaptability during external challenges, emphasizing strong user engagement and financial metrics. He reiterated that the Momo app continues to thrive, supported by ongoing product innovations and algorithm enhancements.
On the international front, continuous growth was noted due to the rapid expansion of various brands within their social entertainment and dating app portfolio. Tang highlighted the overseas business as an upcoming key contributor to future revenue growth.
Detailed Financial Insights for Q3 2025
Comprehensive Overview of Net Revenues
Total net revenues for the quarter amounted to RMB2,650.1 million (US$372.3 million), slightly lower than the preceding year's RMB2,674.7 million. Income from value-added services, including virtual gifts and membership subscriptions, generated revenues of RMB2,611.4 million (US$366.8 million), a 1.2% decrease from RMB2,642.7 million in 2024.
Nevertheless, revenues from other services witnessed growth, amounting to RMB38.8 million (US$5.4 million), compared to RMB32 million during the same period in 2024. The split of net revenues indicated a decrease in revenues generated from within the Chinese mainland to RMB2,115.4 million (US$297.1 million).
Cost and Expense Analysis
Total costs and expenses rose to RMB2,309.4 million (US$324.4 million), showcasing a 1.0% increase compared to RMB2,286.2 million in Q3 2024. This increase stemmed primarily from revised revenue sharing protocols for overseas apps, an uptick in commission fees, and an increase in amortization of intangible assets stemming from acquisitions.
Notably, non-GAAP costs and expenses were reported at RMB2,250.0 million (US$316.1 million), slightly up from RMB2,242.2 million a year prior.
Future Outlook
Looking ahead, Hello Group foresees total net revenues for the fourth quarter of 2025 to fall between RMB2.52 billion and RMB2.62 billion, symbolizing a slight decline of 4.4% to 0.6% compared to the same period last year. This projection reflects the ongoing market dynamics and operational conditions, which include expected fluctuations in revenue streams.
About Hello Group Inc.
Hello Group Inc. is at the forefront of Asia's online social networking sector. The company operates several popular applications like Momo and Tantan, aimed at facilitating social connections and enriching user interactions. Momo, a widely used mobile application, fosters engagement based on interests and locations. Tantan, acquired in 2018, is a leading dating application helping users explore meaningful connections.
Frequently Asked Questions
What were Hello Group's Q3 2025 revenue highlights?
The company reported total net revenues of RMB2,650.1 million (US$372.3 million), a slight decrease from the previous year.
How did the international business perform?
International revenues surged by 69.0% year-over-year to RMB534.8 million (US$75.1 million).
What were the net income figures for Q3 2025?
Net income attributable to Hello Group Inc. was RMB348.9 million (US$49.0 million).
What is the company's outlook for Q4 2025?
Hello Group expects total net revenues to be between RMB2.52 billion to RMB2.62 billion.
What is the strategic focus for Hello Group moving forward?
The company aims to grow its international business and enhance user engagement through innovative features and applications.
