Hello Group (MOMO) Reports Profit Amid Declining China Revenue
On September 3, Hello Group (NASDAQ:MOMO) reported second-quarter 2026 results showing a net profit of RMB237.4 million ($35 million), reversing from a year-ago loss. However, total revenue declined by 5.1% to RMB2,486.0 million ($366.4 million) due primarily to shrinking domestic business in China. The company's overseas segment saw strong growth with a 52% increase in revenue to RMB672.7 million ($99.1 million), driven by new audio and video products expanding into the Middle East and North Africa, as well as diversified dating brands outside that region. The Momo app also added paying users, reaching 3.9 million. Conversely, China's core value-added services revenue dropped 5.4% to RMB2.44 billion ($359.6 million), attributed to external factors affecting broadcasters and weak consumer sentiment. Tantan’s paying user base declined as well. Hello Group also guided for a third-quarter revenue decline of between 9.4% and 5.7%. Despite this, the company has been repurchasing shares aggressively under its buyback program.
Topics: buybacks overseas growth profitability revenue decline