Yalla Group Limited Announces Unaudited Third Quarter 2025 Financial Results

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    DUBAI, UAE, Nov. 11, 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 third quarter ended September 30, 2025.

    Third Quarter 2025 Financial and Operating Highlights

    • Revenues were US$89.6 million in the third quarter of 2025, representing an increase of 0.8% from the third quarter of 2024.
      • Revenues generated from chatting services in the third quarter of 2025 were US$55.5 million.
      • Revenues generated from games services in the third quarter of 2025 were US$33.8 million.
    • Net income was US$40.7 million in the third quarter of 2025, a 3.9% increase from US$39.2 million in the third quarter of 2024. Net margin[1] was 45.4% in the third quarter of 2025.
    • Non-GAAP net income[2] was US$43.1 million in the third quarter of 2025, a 1.2% increase from US$42.6 million in the third quarter of 2024. Non-GAAP net margin[3] was 48.1% in the third quarter of 2025.
    • Average MAUs[4] increased by 8.1% to 43.4 million in the third quarter of 2025, from 40.2 million in the third quarter of 2024.
    • The number of paying users[5] on our platform decreased by 9.7% to 11.4 million in the third quarter of 2025, from 12.6 million in the third quarter of 2024.

    Key Operating Data

    For the three months ended

    September 30, 2024

    September 30, 2025

    Average MAUs (in thousands)

    40,176

    43,420

    Paying users (in thousands)

    12,582

    11,366

    [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.

    [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’re pleased to deliver a strong set of results for the third quarter of 2025,” said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. “Our revenues reached US$89.6 million, once again beating the high end of our guidance. Our dedication to enhancing operational efficiency continued to pay off, with net margin increasing by 1.4 percentage points year-over-year to 45.4%. We also continued to optimize our product portfolio and enhance user engagement, driving an 8.1% year-over-year increase in average MAUs to 43.4 million.

    “Our thriving game pipeline served as our primary market expansion driver during the third quarter. We soft-launched our first match-3 title, Turbo Match, on Android during the quarter, and we were pleased to see its initial user acquisition and retention metrics meeting our expectations. We also expect to debut our self-developed roguelike game and an SLG game in collaboration with an industry-leading gaming studio in the coming weeks, deepening our penetration of MENA’s mid- and hard-core game market.

    “Yalla Group celebrated the fifth anniversary of its IPO with a bell-ringing ceremony at NYSE in September, a proud symbol of our years of growth, learning, persistence, and achievement. Going forward, we will remain dedicated to maximizing the synergy between our social and gaming ecosystems and enhancing our AI-fueled technological edge, bringing us ever closer to our vision of becoming the most popular platform for online social networking and entertainment activities in MENA,” Mr. Yang concluded.

    Ms. Karen Hu, CFO of Yalla, commented, “In the third quarter, we continued to pursue high-quality growth and profitability enhancement. Excellent execution of our ongoing cost management and efficiency improvement initiatives, including AI development and application, drove an increase in our net income to US$40.7 million. Supported by these healthy results and our robust fundamentals, we continued to return value to shareholders. As of November 7, 2025, we had returned a total of US$51.9 million to shareholders in 2025 through our share repurchase program. We will continue to deepen our commitment to shareholder returns, and look forward to completing our current US$150 million share repurchase program within the next year, delivering sustainable, long-term value to all stakeholders.”

    Third Quarter 2025 Financial Results

    Revenues                                                                                                      

    Our revenues were US$89.6 million in the third quarter of 2025, a 0.8% increase from US$88.9 million in the third quarter of 2024. The increase was primarily driven by our broadening user base and enhanced monetization capability.

    In the third quarter of 2025, revenues generated from chatting services were US$55.5 million, and revenues from games services were US$33.8 million.

    Costs and expenses

    Our total costs and expenses were US$55.9 million in the third quarter of 2025, a 1.0% decrease from US$56.4 million in the third quarter of 2024.

    Our cost of revenues was US$28.4 million in the third quarter of 2025, a 10.7% decrease from US$31.8 million in the third 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 third quarter of 2025. Cost of revenues as a percentage of our total revenues decreased to 31.7% in the third quarter of 2025 from 35.8% in the third quarter of 2024.

    Our selling and marketing expenses were US$9.6 million in the third quarter of 2025, a 30.3% increase from US$7.4 million in the third 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 increased to 10.7 % in the third quarter of 2025 from 8.3% in the third quarter of 2024.

    Our general and administrative expenses were US$9.2 million in the third quarter of 2025, a 9.0% decrease from US$10.1 million in the third quarter of 2024, primarily due to a decrease in incentive compensation and professional service fees. General and administrative expenses as a percentage of our total revenues decreased to 10.3% in the third quarter of 2025 from 11.4% in the third quarter of 2024.

    Our technology and product development expenses were US$8.6 million in the third quarter of 2025, a 21.4% increase from US$7.1 million in the third quarter of 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the 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 9.6% in the third quarter of 2025 from 8.0% in the third quarter of 2024.

    Operating income

    Operating income was US$33.8 million in the third quarter of 2025, a 3.9% increase from US$32.5 million in the third quarter of 2024.

    Non-GAAP operating income[6]

    Non-GAAP operating income in the third quarter of 2025 increased to US$36.2 million, a 0.7% increase from US$35.9 million in the third quarter of 2024.

    Interest income

    Interest income was US$6.3 million in the third quarter of 2025, compared with US$7.8 million in the third quarter of 2024.

    Investment income

    Investment income was US$2.2 million in the third quarter of 2025, compared with US$0.1 million in the third quarter of 2024, primarily due to increased investments in wealth management products.

    Income tax expense

    Income tax expense was US$1.6 million in the third quarter of 2025, compared with US$1.3 million in the third quarter of 2024.

    Net income

    As a result of the foregoing, our net income was US$40.7 million in the third quarter of 2025, a 3.9% increase from US$39.2 million in the third quarter of 2024.

    Non-GAAP net income

    Non-GAAP net income in the third quarter of 2025 was US$43.1 million, a 1.2% increase from US$42.6 million in the third quarter of 2024.

    Earnings per ordinary share

    Basic and diluted earnings per ordinary share were US$0.27 and US$0.23, respectively, in the third quarter of 2025, while basic and diluted earnings per ordinary share were US$0.25 and US$0.22, respectively, in the third quarter of 2024.

    Non-GAAP earnings per ordinary share[7]

    Non-GAAP basic and diluted earnings per ordinary share were US$0.28 and US$0.24, respectively, in the third quarter of 2025, compared with US$0.27 and US$0.24, respectively, in the third quarter of 2024.

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

    As of September 30, 2025, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$739.5 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 November 7, 2025, the Company repurchased 7,716,483 American depositary shares (“ADSs”), representing 7,716,483 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$51.9 million. As of November 7, 2025, the Company had cumulatively completed cash repurchases in the open market of 15,021,621 ADSs, representing 15,021,621 Class A ordinary shares, for an aggregate amount of approximately US$101.4 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$48.6 million as of November 7, 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 fourth 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, November 10, 2025, at 8:00 PM U.S. Eastern Time, which is Tuesday, November 11, 2025, at 5:00 AM Dubai Time, or Tuesday, November 11, 2025, at 9:00 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:

    4820370

    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 November 17, 2025, by dialing the following telephone numbers:

    United States Toll Free:

    +1-855-669-9658

    International:

    +1-412-317-0088

    Access Code:

    5560759

    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

    September 30,
    2025

    US$

    US$

    ASSETS

    Current assets

    Cash and cash equivalents

    488,379,894

    422,572,636

    Restricted cash

    1,975,616

    1,645,579

    Term deposits

    94,983,813

    84,800,000

    Short-term investments

    70,932,713

    230,514,582

    Prepayments and other current assets

    35,429,988

    31,913,969

    Total current assets

    691,702,024

    771,446,766

    Non-current assets

    Property and equipment, net

    13,962,393

    14,440,027

    Intangible asset, net

    896,005

    748,040

    Operating lease right-of-use assets

    1,370,914

    1,082,968

    Long-term investments

    93,698,924

    81,737,548

    Total non-current assets

    109,928,236

    98,008,583

    Total assets

    801,630,260

    869,455,349

    LIABILITIES

    Current liabilities

    Accounts payable

    957,717

    781,364

    Deferred revenue, current

    58,081,649

    55,446,794

    Operating lease liabilities, current

    1,012,481

    232,331

    Amounts due to a related party

    87,156

    57,940

    Income taxes payable

    9,117,261

    2,414,471

    Accrued expenses and other current liabilities

    32,404,872

    28,029,561

    Total current liabilities

    101,661,136

    86,962,461

    Non-current liabilities

    Deferred revenue, non-current

    2,173,826

    Operating lease liabilities, non-current

    13,495

    257,128

    Deferred tax liabilities

    2,148,022

    2,704,619

    Total non-current liabilities

    2,161,517

    5,135,573

    Total liabilities

    103,822,653

    92,098,034

    EQUITY

    Shareholders’ equity of Yalla Group Limited

    Class A Ordinary Shares

    14,064

    13,441

    Class B Ordinary Shares

    2,473

    2,473

    Additional paid-in capital

    328,883,061

    336,882,266

    Treasury stock

    (49,438,661)

    (34,635,502)

    Accumulated other comprehensive loss

    (3,016,579)

    (2,396,947)

    Retained earnings

    427,907,766

    485,401,009

    Total shareholders’ equity of Yalla Group Limited

    704,352,124

    785,266,740

    Non-controlling interests

    (6,544,517)

    (7,909,425)

    Total equity

    697,807,607

    777,357,315

    Total liabilities and equity

    801,630,260

    869,455,349

    YALLA GROUP LIMITED

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

    OF OPERATIONS

    Three Months Ended

    Nine Months Ended

    September 30,
    2024

    June 30,
    2025

    September 30,
    2025

    September 30,
    2024

    September 30,
    2025

    US$

    US$

    US$

    US$

    US$

    Revenues

    88,922,031

    84,564,086

    89,636,333

    248,848,091

    258,077,186

    Costs and expenses

    Cost of revenues

    (31,830,126)

    (27,944,596)

    (28,430,988)

    (89,427,060)

    (85,576,007)

    Selling and marketing expenses

    (7,352,820)

    (8,661,573)

    (9,582,434)

    (23,944,276)

    (25,187,275)

    General and administrative expenses

    (10,133,394)

    (9,002,347)

    (9,224,448)

    (24,358,190)

    (26,922,103)

    Technology and product development expenses

    (7,108,024)

    (8,338,195)

    (8,629,226)

    (19,851,894)

    (24,795,558)

    Total costs and expenses

    (56,424,364)

    (53,946,711)

    (55,867,096)

    (157,581,420)

    (162,480,943)

    Operating income

    32,497,667

    30,617,375

    33,769,237

    91,266,671

    95,596,243

    Interest income

    7,829,223

    6,791,492

    6,300,342

    21,572,082

    19,653,014

    Government grants

    7,603

    603,115

    63,629

    439,966

    730,177

    Investment income (loss)

    133,606

    21,758

    2,204,831

    (1,094,288)

    2,208,887

    Income before income taxes

    40,468,099

    38,033,740

    42,338,039

    112,184,431

    118,188,321

    Income tax expense

    (1,287,156)

    (1,531,310)

    (1,613,621)

    (10,563,946)

    (4,582,008)

    Net income

    39,180,943

    36,502,430

    40,724,418

    101,620,485

    113,606,313

    Net loss attributable to non-controlling interests

    673,856

    269,782

    386,428

    1,472,271

    1,368,145

    Net income attributable to Yalla Group
       Limited’s shareholders

    39,854,799

    36,772,212

    41,110,846

    103,092,756

    114,974,458

    Earnings per ordinary share

    ——Basic

    0.25

    0.24

    0.27

    0.64

    0.73

    ——Diluted

    0.22

    0.20

    0.23

    0.56

    0.64

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

    ——Basic

    160,944,036

    155,958,658

    154,491,280

    160,681,773

    156,555,683

    ——Diluted

    183,354,110

    180,765,359

    179,310,959

    183,383,311

    180,764,819

    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

    Nine Months Ended

    September 30,
    2024

    June 30,
    2025

    September 30,
    2025

    September 30,
    2024

    September 30,
    2025

    US$

    US$

    US$

    US$

    US$

    Cost of revenues

    1,867,294

    1,328,152

    1,143,119

    5,637,874

    3,797,356

    Selling and marketing expenses

    261,825

    170,304

    131,359

    1,642,975

    472,691

    General and administrative expenses

    1,114,753

    1,328,931

    1,073,416

    3,769,267

    3,532,854

    Technology and product development expenses

    187,205

    20,670

    56,160

    469,134

    196,304

    Total share-based compensation expenses

    3,431,077

    2,848,057

    2,404,054

    11,519,250

    7,999,205

    YALLA GROUP LIMITED

    RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

    Three Months Ended

    Nine Months Ended

    September 30,
    2024

    June 30,
    2025

    September 30,
    2025

    September 30,
    2024

    September 30,
    2025

    US$

    US$

    US$

    US$

    US$

    Operating income

    32,497,667

    30,617,375

    33,769,237

    91,266,671

    95,596,243

    Share-based compensation expenses

    3,431,077

    2,848,057

    2,404,054

    11,519,250

    7,999,205

    Non-GAAP operating income

    35,928,744

    33,465,432

    36,173,291

    102,785,921

    103,595,448

    Net income

    39,180,943

    36,502,430

    40,724,418

    101,620,485

    113,606,313

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

    3,431,077

    2,848,057

    2,404,054

    11,519,250

    7,999,205

    Non-GAAP net income

    42,612,020

    39,350,487

    43,128,472

    113,139,735

    121,605,518

    Net income attributable to Yalla
       Group Limited’s shareholders

    39,854,799

    36,772,212

    41,110,846

    103,092,756

    114,974,458

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

    3,431,077

    2,848,057

    2,404,054

    11,519,250

    7,999,205

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

    43,285,876

    39,620,269

    43,514,900

    114,612,006

    122,973,663

    Non-GAAP earnings per ordinary share

    ——Basic

    0.27

    0.25

    0.28

    0.71

    0.79

    ——Diluted

    0.24

    0.22

    0.24

    0.62

    0.68

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

    ——Basic

    160,944,036

    155,958,658

    154,491,280

    160,681,773

    156,555,683

    ——Diluted

    183,354,110

    180,765,359

    179,310,959

    183,383,311

    180,764,819