Momo Inc. Q2 2025 Earnings Recap

Hello Group, Inc. reported a mixed performance in Q2 2025, with total revenue of RMB 2.62 billion, reflecting a year-over-year decline, while overseas revenue surged by 73%, signaling growth potential in international markets.

Key Takeaways

• Domestic revenue fell 11% year-over-year, primarily due to soft spending among high-paying users amid a challenging macroeconomic environment.
• Overseas business grew by 73% year-over-year, contributing RMB 442 million, demonstrating successful expansion efforts.
• Adjusted operating income decreased 6% to RMB 448 million, with a margin of 17%, influenced by a reduction in user acquisition costs and improved profitability.
• Momo app saw a stable user retention despite a decrease in paying users, while Tantan implemented budget cuts on marketing channels to prioritize ROI, resulting in a slight decline in user numbers but steady organic growth.