1. MOMO's Q3 2025 revenues fell 0.9% year-over-year to RMB2,650.1 million. 2. Overseas revenues surged 69% year-over-year to RMB534.8 million. 3. Net income decreased to RMB348.9 million from RMB449.4 million last year. 4. Total paying users on MOMO decreased to 3.7 million from 6.9 million. 5. Future revenue growth expected from overseas markets.
FAQ
Why Bearish?
Declining user base and net income raise concerns, reminiscent of past performance drops in key metrics.
How important is it?
Financial downturns and user base declines are significant indicators for investors; key metrics too.
Why Short Term?
Immediate impact noticed due to declining revenues and user numbers; could affect sentiment swiftly.
Hello Group Inc. Reports Q3 2025 Financial Results
Hello Group Inc. (NASDAQ: MOMO), a prominent player in Asia's online social networking market, has announced its unaudited financial results for the third quarter of 2025. The results reveal slight fluctuations in revenue and user metrics, reflecting ongoing market challenges and strategic changes.
Third Quarter 2025 Highlights
- Net revenues decreased by 0.9% year over year to RMB 2,650.1 million (US$ 372.3 million).
- Net revenues from overseas surged by 69.0% year over year to RMB 534.8 million (US$ 75.1 million).
- Net income attributable to Hello Group Inc. was RMB 348.9 million (US$ 49.0 million), down from RMB 449.4 million in Q3 2024.
- Non-GAAP net income attributable to Hello Group Inc. reached RMB 404.5 million (US$ 56.8 million), compared to RMB 493.3 million during the same period last year.
- Diluted net income per American Depositary Share ("ADS") was RMB 2.06 (US$ 0.29), down from RMB 2.46 in Q3 2024.
- For the Momo app, total paying users declined to 3.7 million from 6.9 million a year ago.
Financial Performance Overview
Total net revenues for Q3 2025 stood at RMB 2,650.1 million (US$ 372.3 million), marking a 0.9% decrease from RMB 2,674.7 million in Q3 2024. The decline was primarily influenced by external factors affecting operational focus as well as subdued consumer sentiment on the Momo app. However, overseas revenues showed promising growth, particularly from the MENA region, demonstrating the effectiveness of new product offerings.
Value-added service revenues, crucial to the company's portfolio, also dipped by 1.2% to RMB 2,611.4 million (US$ 366.8 million). Factors such as a weak user base on the Tantan app affected overall performance, but the expansion of overseas apps provided offsetting revenue growth.
Year-to-Date Highlights for 2025
- Net revenues for the first nine months of 2025 decreased by 1.7% year over year, totaling RMB 7,791.3 million (US$ 1,094.4 million).
- Overseas net revenues surged 71.0% year over year to RMB 1,391.8 million (US$ 195.5 million).
- Net income attributable to Hello Group Inc. for this period was RMB 566.7 million (US$ 79.6 million), down from RMB 852.3 million in 2024.
Management Commentary
Yan Tang, Chairman and CEO of Hello Group, commented on the quarter, stating, “Q3 was a busy quarter. I am pleased to see that our team responded swiftly to external challenges and delivered good results in both user and financial metrics. As one of the earliest mobile social platforms in China, MOMO has maintained strong brand relevance and user stickiness over the years.”
He further emphasized the importance of overseas operations in driving future revenue growth, particularly through the rapid expansion of multiple social entertainment and dating brands within their portfolio.
Conclusion
While Hello Group Inc. has experienced a decrease in overall revenue and paying users within its flagship Momo app, the significant growth in overseas markets indicates a strategic shift towards international growth. Investors and stakeholders will be keen to monitor how these changes will affect the company's position in the global online networking landscape as it continues to innovate and adapt to market dynamics.