Yalla Group Limited Announces Unaudited Second Quarter 2025 Financial Results

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    DUBAI, UAE, Aug. 12, 2025 /PRNewswire/ — Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the second quarter ended June 30, 2025.

    Second Quarter 2025 Financial and Operating Highlights

    • Revenues were US$84.6 million in the second quarter of 2025, representing an increase of 4.1% from the second quarter of 2024.
      • Revenues generated from chatting services in the second quarter of 2025 were US$53.6 million.
      • Revenues generated from games services in the second quarter of 2025 were US$30.7 million.
    • Net income was US$36.5 million in the second quarter of 2025, a 16.4% increase from US$31.4 million in the second quarter of 2024. Net margin[1] was 43.2% in the second quarter of 2025.
    • Non-GAAP net income[2] was US$39.4 million in the second quarter of 2025, an 11.7% increase from US$35.2 million in the second quarter of 2024. Non-GAAP net margin[3] was 46.5% in the second quarter of 2025.
    • Average MAUs[4] increased by 8.8% to 42.4 million in the second quarter of 2025 from 39.0 million in the second quarter of 2024.
    • The number of paying users[5] on our platform decreased by 7.0% to 11.2 million in the second quarter of 2025 from 12.0 million in the second quarter of 2024.

    Key Operating Data

    For the three months ended

    June 30, 2024

    June 30, 2025

    Average MAUs (in thousands)

    38,999

    42,421

    Paying users (in thousands)

    12,023

    11,186

    [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 entitled “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. Yalla, Yalla Ludo, Yalla Parchis, YallaChat, 101 Okey Yalla, WeMuslim and Ludo Royal were our main mobile applications for the periods presented herein; and Yalla Jackaroo has been our main mobile application since the second quarter of 2025.

    [5] “Paying users” refers to registered users who played a game or purchased our virtual items or upgrade 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; YallaChat does not involve the usage of virtual currencies, and the metrics of “paying users” and “ARPPU” do not reflect user activities on YallaChat. “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 another robust performance in the second quarter,” said Mr. Yang Tao, Founder, Chairman and CEO of Yalla. “Our revenues reached US$84.6 million, beating the upper end of our guidance. Improvements in our internal processes boosted operational efficiency, bringing our net margin to 43.2%, a year-over-year expansion of 4.6 percentage points. Meanwhile, our continued efforts to enrich our product portfolio and maintain a highly-engaged community drove an 8.8% year-over-year increase in average MAUs to 42.4 million.

    “Building on these strong fundamentals, we continued to upgrade our flagship applications and broaden our product portfolio, expanding into new verticals to tap into MENA’s thriving digital transformation. We have two exciting Match-3 titles scheduled for release in the third quarter and a roguelike game set to debut in the fourth quarter this year. Additionally, our game distribution services segment is preparing for the distribution of a hard-core title. Going forward, Yalla Group will continue to enrich users’ digital lives with a diverse lineup of gaming products while working alongside partners to foster a sustainable digital ecosystem in MENA, compounding our advantages in this compelling market and unlocking its value for all of our stakeholders,” Mr. Yang concluded.

    Ms. Karen Hu, CFO of Yalla, commented, “Strong execution across our operations fueled this quarter’s strong results, highlighted by better-than-expected revenues and enhanced profitability. Our disciplined cost management and improved efficiency resulted in a 16.4% year-over-year increase in our net income to US$36.5 million. Bolstered by this success, we continued to accelerate our expanded share buyback program, with 6,230,299 shares totaling US$41.0 million repurchased this year through June 30, 2025. We are open to further scaling this program, reflecting our deep confidence in the Company’s future growth potential and dedication to elevating shareholder value. Looking ahead, we remain committed to product innovation and operational excellence as we advance toward our vision of becoming the most popular platform for online social networking and entertainment activities in MENA.”

    Second Quarter 2025 Financial Results

    Revenues

    Our revenues were US$84.6 million in the second quarter of 2025, a 4.1% increase from US$81.2 million in the second quarter of 2024. The increase was primarily driven by our broadening user base and enhanced monetization capability. Our average MAUs increased by 8.8% to 42.4 million in the second quarter of 2025 from 39.0 million in the second quarter of 2024.

    In the second quarter of 2025, revenues generated from chatting services were US$53.6 million, and revenues from games services were US$30.7 million.

    Costs and expenses

    Our total costs and expenses were US$53.9 million in the second quarter of 2025, a 4.6% increase from US$51.6 million in the second quarter of 2024.

    Our cost of revenues was US$27.9 million in the second quarter of 2025, a 3.7% decrease from US$29.0 million in the second quarter of 2024, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels and lower share-based compensation expenses recognized in the second quarter of 2025. Cost of revenues as a percentage of our total revenues decreased to 33.0% in the second quarter of 2025 from 35.7% in the second quarter of 2024.

    Our selling and marketing expenses were US$8.7 million in the second quarter of 2025, a 2.0% increase from US$8.5 million in the second quarter of 2024, primarily due to higher advertising and market promotion expenses attributable to our continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of our total revenues decreased to 10.2% in the second quarter of 2025 from 10.5% in the second quarter of 2024.

    Our general and administrative expenses were US$9.0 million in the second quarter of 2025, an 18.8% increase from US$7.6 million in the second quarter of 2024, primarily due to increases in incentive compensation and foreign exchange loss. General and administrative expenses as a percentage of our total revenues increased to 10.6% in the second quarter of 2025 from 9.3% in the second quarter of 2024.

    Our technology and product development expenses were US$8.3 million in the second quarter of 2025, a 28.6% increase from US$6.5 million in the second quarter of 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in their headcount to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of our total revenues increased to 9.9% in the second quarter of 2025 from 8.0% in the second quarter of 2024.

    Operating income

    Operating income was US$30.6 million in the second quarter of 2025, a 3.4% increase from US$29.6 million in the second quarter of 2024.

    Non-GAAP operating income[6]

    Non-GAAP operating income in the second quarter of 2025 was flat at US$33.5 million compared with that of the second quarter of 2024.

    Interest income

    Interest income was US$6.8 million in the second quarter of 2025, compared with US$7.1 million in the second quarter of 2024.

    Income tax expense

    Income tax expense was US$1.5 million in the second quarter of 2025, compared with US$5.8 million in the second quarter of 2024, primarily due to a decrease in UAE corporate tax.

    Net income

    As a result of the foregoing, our net income was US$36.5 million in the second quarter of 2025, a 16.4% increase from US$31.4 million in the second quarter of 2024.

    Non-GAAP net income

    Non-GAAP net income in the second quarter of 2025 was US$39.4 million, an 11.7% increase from US$35.2 million in the second quarter of 2024.

    Earnings per ordinary share

    Basic and diluted earnings per ordinary share were US$0.24 and US$0.20, respectively, in the second quarter of 2025, while basic and diluted earnings per ordinary share were US$0.20 and US$0.17, respectively, in the second quarter of 2024.

    Non-GAAP earnings per ordinary share[7]

    Non-GAAP basic and diluted earnings per ordinary share were US$0.25 and US$0.22, respectively, in the second quarter of 2025, compared with US$0.22 and US$0.19, respectively, in the second quarter of 2024.

    Cash and cash equivalents, restricted cash, term deposits and short-term investments 

    As of June 30, 2025, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$704.1 million, compared with US$656.3 million as of December 31, 2024.

    Share repurchase program

    Pursuant to the Company’s share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2026, from January 1 through June 30, 2025, the Company repurchased 6,230,299 American depositary shares (“ADSs”), representing 6,230,299 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$41.0 million, including US$5.4 million in the first quarter of 2025 and US$35.6 million in the second quarter of 2025. As of June 30, 2025, the Company had cumulatively completed cash repurchases in the open market of 13,535,437 ADSs, representing 13,535,437 Class A ordinary shares, for an aggregate amount of approximately US$90.4 million, since the inception of the current share repurchase program. The aggregate value of ADSs and/or Class A ordinary shares that remain available for purchase under the current share repurchase program was US$59.6 million as of June 30, 2025. In addition, the Company has decided to cancel all shares repurchased in 2025. As of August 11, 2025, the Company had cancelled 6,230,299 ADSs, representing 6,230,299 Class A ordinary shares.

    Outlook

    For the third quarter of 2025, Yalla currently expects revenues to be between US$78.0 million and US$85.0 million.

    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.

    [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 entitled “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 Yalla Group Limited’s shareholders, divided by weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited’s shareholders represents net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited’s shareholders are non-GAAP financial measures. See the sections entitled “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.

    Conference Call

    The Company’s management will host an earnings conference call on Monday, August 11, 2025, at 8:00 PM U.S. Eastern Time, which is Tuesday, August 12, 2025, at 4:00 AM Dubai Time, or Tuesday, August 12, 2025, at 8:00 AM Beijing/Hong Kong time.

    Dial-in details for the earnings conference call are as follows:

    United States Toll Free:

    +1-888-317-6003

    International:

    +1-412-317-6061

    United Arab Emirates Toll Free:

    80-003-570-3598

    Mainland China Toll Free:

    400-120-6115

    Hong Kong, China Toll Free:

    800-963-976

    Access Code:

    5144068

    Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.yalla.com.

    A replay of the conference call will be accessible until August 18, 2025, by dialing the following telephone numbers:

    United States Toll Free:

    +1-877-344-7529

    International:

    +1-412-317-0088

    Access Code:

    1658736

    Non-GAAP Financial Measures

    To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company’s operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited’s shareholders as net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited’s shareholders, divided by the weighted average number of basic and diluted shares outstanding.

    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 measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation has been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

    The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

    Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.

    About Yalla Group Limited

    Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users’ evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla’s mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.

    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 U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    For investor and media inquiries, please contact:

    Yalla Group Limited
    Investor Relations
    Kerry Gao – IR Director
    Tel: +86-571-8980-7962
    Email: ir@yalla.com 

    Piacente Financial Communications
    Jenny Cai
    Tel: +86-10-6508-0677
    Email: yalla@tpg-ir.com 

    In the United States:

    Piacente Financial Communications
    Brandi Piacente
    Tel: +1-212-481-2050
    Email: yalla@tpg-ir.com 

    YALLA GROUP LIMITED

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

    As of

    December 31,
    2024

    June 30,
    2025

    US$

    US$

    ASSETS

    Current assets

    Cash and cash equivalents

    488,379,894

    342,981,483

    Restricted cash

    1,975,616

    1,593,343

    Term deposits

    94,983,813

    157,826,639

    Short-term investments

    70,932,713

    201,710,485

    Prepayments and other current assets

    35,429,988

    31,377,720

    Total current assets

    691,702,024

    735,489,670

    Non-current assets

    Property and equipment, net

    13,962,393

    14,203,523

    Intangible asset, net

    896,005

    786,429

    Operating lease right-of-use assets

    1,370,914

    1,379,873

    Long-term investments

    93,698,924

    81,061,625

    Total non-current assets

    109,928,236

    97,431,450

    Total assets

    801,630,260

    832,921,120

    LIABILITIES

    Current liabilities

    Accounts payable

    957,717

    723,355

    Deferred revenue, current

    58,081,649

    57,994,279

    Operating lease liabilities, current

    1,012,481

    755,974

    Amounts due to a related party

    87,156

    54,887

    Income taxes payable

    9,117,261

    10,429,556

    Accrued expenses and other current liabilities

    32,404,872

    21,941,503

    Total current liabilities

    101,661,136

    91,899,554

    Non-current liabilities

    Deferred revenue, non-current

    2,019,314

    Operating lease liabilities, non-current

    13,495

    308,246

    Deferred tax liabilities

    2,148,022

    2,593,131

    Total non-current liabilities

    2,161,517

    4,920,691

    Total liabilities

    103,822,653

    96,820,245

    EQUITY

    Shareholders’ equity of Yalla Group Limited

    Class A Ordinary Shares

    14,064

    14,064

    Class B Ordinary Shares

    2,473

    2,473

    Additional paid-in capital

    328,883,061

    334,478,211

    Treasury stock

    (49,438,661)

    (78,061,004)

    Accumulated other comprehensive loss

    (3,016,579)

    (2,707,083)

    Retained earnings

    427,907,766

    489,899,413

    Total shareholders’ equity of Yalla Group Limited

    704,352,124

    743,626,074

    Non-controlling interests

    (6,544,517)

    (7,525,199)

    Total equity

    697,807,607

    736,100,875

    Total liabilities and equity

    801,630,260

    832,921,120

    YALLA GROUP LIMITED

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

    OF OPERATIONS

    Three Months Ended

    Six Months Ended

    June 30,
    2024

    March 31,
    2025

    June 30,
    2025

    June 30,
    2024

    June 30,
    2025

    US$

    US$

    US$

    US$

    US$

    Revenues

    81,197,482

    83,876,767

    84,564,086

    159,926,060

    168,440,853

    Costs and expenses

    Cost of revenues

    (29,025,673)

    (29,200,423)

    (27,944,596)

    (57,596,934)

    (57,145,019)

    Selling and marketing expenses

    (8,491,520)

    (6,943,268)

    (8,661,573)

    (16,591,456)

    (15,604,841)

    General and administrative expenses

    (7,576,904)

    (8,695,308)

    (9,002,347)

    (14,224,796)

    (17,697,655)

    Technology and product development expenses

    (6,481,616)

    (7,828,137)

    (8,338,195)

    (12,743,870)

    (16,166,332)

    Total costs and expenses

    (51,575,713)

    (52,667,136)

    (53,946,711)

    (101,157,056)

    (106,613,847)

    Operating income

    29,621,769

    31,209,631

    30,617,375

    58,769,004

    61,827,006

    Interest income

    7,097,975

    6,561,180

    6,791,492

    13,742,859

    13,352,672

    Government grants

    365,031

    63,433

    603,115

    432,363

    666,548

    Investment income (loss)

    60,233

    (17,702)

    21,758

    (1,227,894)

    4,056

    Income before income taxes

    37,145,008

    37,816,542

    38,033,740

    71,716,332

    75,850,282

    Income tax expense

    (5,793,582)

    (1,437,077)

    (1,531,310)

    (9,276,790)

    (2,968,387)

    Net income

    31,351,426

    36,379,465

    36,502,430

    62,439,542

    72,881,895

    Net loss attributable to non-controlling interests

    292,428

    711,935

    269,782

    798,415

    981,717

    Net income attributable to Yalla Group
       Limited’s shareholders

    31,643,854

    37,091,400

    36,772,212

    63,237,957

    73,863,612

    Earnings per ordinary share

    ——Basic

    0.20

    0.23

    0.24

    0.39

    0.47

    ——Diluted

    0.17

    0.20

    0.20

    0.34

    0.41

    Weighted average number of shares
       outstanding used in computing earnings
       per ordinary share

    ——Basic

    160,721,827

    159,186,659

    155,958,658

    160,550,641

    157,604,992

    ——Diluted

    183,535,654

    182,187,686

    180,765,359

    183,397,911

    181,508,856

    Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and technology and
    product development expenses as follows:

    Three Months Ended

    Six Months Ended

    June 30,
    2024

    March 31,
    2025

    June 30,
    2025

    June 30,
    2024

    June 30,
    2025

    US$

    US$

    US$

    US$

    US$

    Cost of revenues

    1,867,863

    1,326,085

    1,328,152

    3,770,580

    2,654,237

    Selling and marketing expenses

    681,035

    171,028

    170,304

    1,381,150

    341,332

    General and administrative expenses

    1,321,200

    1,130,507

    1,328,931

    2,654,514

    2,459,438

    Technology and product development expenses

    19,198

    119,474

    20,670

    281,929

    140,144

    Total share-based compensation expenses

    3,889,296

    2,747,094

    2,848,057

    8,088,173

    5,595,151

    YALLA GROUP LIMITED

    RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS 

    Three Months Ended

    Six Months Ended

    June 30,
    2024

    March 31,
    2025

    June 30,
    2025

    June 30,
    2024

    June 30,
    2025

    US$

    US$

    US$

    US$

    US$

    Operating income

    29,621,769

    31,209,631

    30,617,375

    58,769,004

    61,827,006

    Share-based compensation expenses

    3,889,296

    2,747,094

    2,848,057

    8,088,173

    5,595,151

    Non-GAAP operating income

    33,511,065

    33,956,725

    33,465,432

    66,857,177

    67,422,157

    Net income

    31,351,426

    36,379,465

    36,502,430

    62,439,542

    72,881,895

    Share-based compensation expenses,
       net of tax effect of nil

    3,889,296

    2,747,094

    2,848,057

    8,088,173

    5,595,151

    Non-GAAP net income

    35,240,722

    39,126,559

    39,350,487

    70,527,715

    78,477,046

    Net income attributable to Yalla
       Group Limited’s shareholders

    31,643,854

    37,091,400

    36,772,212

    63,237,957

    73,863,612

    Share-based compensation expenses,
       net of tax effect of nil

    3,889,296

    2,747,094

    2,848,057

    8,088,173

    5,595,151

    Non-GAAP net income attributable to
       Yalla Group Limited’s shareholders

    35,533,150

    39,838,494

    39,620,269

    71,326,130

    79,458,763

    Non-GAAP earnings per ordinary share

    ——Basic

    0.22

    0.25

    0.25

    0.44

    0.50

    ——Diluted

    0.19

    0.22

    0.22

    0.39

    0.44

    Weighted average number of shares
       outstanding used in computing earnings
       per ordinary share

    ——Basic

    160,721,827

    159,186,659

    155,958,658

    160,550,641

    157,604,992

    ——Diluted

    183,535,654

    182,187,686

    180,765,359

    183,397,911

    181,508,856