Hello Group Inc. (NASDAQ: MOMO) reported third‑quarter 2025 results on December 10, 2025, with total revenue of RMB2.650 billion (US$372.3 million), a 0.9% year‑over‑year decline. The decline was driven by a 1.2% drop in value‑added service revenue, while overseas revenue surged 69% to RMB534.8 million (US$75.1 million), reflecting strong demand in international markets.
Net income attributable to the company fell to RMB348.9 million (US$49.0 million), a decline from RMB449.4 million in Q3 2024. Despite the revenue dip, earnings per share rose to RMB2.06 (US$0.29), beating the consensus estimate of RMB1.80 (US$0.26) by 14.4%. The EPS beat was largely driven by disciplined cost management and a favorable mix shift toward higher‑margin overseas services.
Operating margin contracted to 15.2% from 15.8% in the prior year, reflecting domestic margin compression amid intensified competition and pricing pressure. Gross margin stood at 37.6%, near the lower end of the company’s historical range, underscoring the impact of lower‑margin domestic revenue.
Management highlighted a cautious outlook for the fourth quarter, guiding total net revenue to between RMB2.52 billion and RMB2.62 billion, a 4.4% to 0.6% year‑over‑year decline. Chief Financial Officer Cathy Peng noted that the guidance reflects ongoing domestic headwinds but also confidence in sustaining overseas growth.
CEO Yan Tang emphasized that the company’s international expansion remains a priority, citing the acquisition of European dating platform Happn and the integration of AI features across its apps as key drivers of future revenue. COO Sichuan Zhang added that the Momo app will focus on maintaining a healthy social ecosystem, while Tantan will refine its core dating experience.
Investor reaction was muted, with the stock trading slightly lower in pre‑market sessions. The modest dip reflects caution over the continued domestic revenue decline and the guidance for a further year‑over‑year drop, despite the EPS beat.
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