Hello Group Reports Q2 Earnings with Revenue Decline Amid Domestic Challenges
Hello Group Inc. (NASDAQ:MOMO) reported second-quarter revenue of RMB2.49 billion in 2026, a 5% year-over-year decline but an improvement from the first quarter's performance. Non-GAAP net income recovered to RMB273.9 million compared to a loss in the prior-year period and slightly dropped from Q1 figures. The domestic business faced significant pressure due to tax scrutiny affecting agencies and broadcasters, as well as reduced spending by high-value livestreaming users. Overseas revenue surged 52% year-over-year to RMB673 million, contributing nearly a quarter of total revenue, driven primarily by growth in the Middle East and North Africa. However, Hello Group revised its full-year outlook downward, now expecting mid-single-digit revenue declines for the year and acknowledging it may miss an overseas revenue target. The company is implementing strategies to address domestic challenges, including targeted subsidies and new product features like AI-generated gifts and social mini-games.
Topics: domestic business decline non-GAAP net income operating margin overseas growth revenue