Q2 2026 Hello Group Inc. Earnings Call Transcript
Key Points
- Overseas revenue surged 52% year-over-year to RMB673 million, now accounting for 27% of total revenue, up from 17% a year ago, driven by strong momentum in MENA products and acquired dating apps.
- Momo's paying users increased by 200,000 quarter-over-quarter to 3.9 million, supported by themed events around the World Cup and seasonal occasions, lifting engagement.
- Tantan's domestic user base stabilized with a slight uptick in Q2, marking the first stabilization since early 2022, aided by AI-driven features like AI icebreaker and AI chat assistant that improved retention.
- Yaahlan achieved net income breakeven for the first time in Q2, while Amar's net loss is narrowing quickly, demonstrating improving profitability in the MENA product portfolio.
- The company identified opportunities to optimize channel spend for user acquisition, with holdout experiments showing potential to maintain platform scale and revenue with less marketing expenditure.
- Happn and other acquired dating products are expanding successfully into new markets like Korea, Taiwan, and the UK, validating long-term growth potential with disciplined investment.
- Total group revenue declined 5% year-over-year to RMB2.49 billion, with domestic revenue down 17% year-over-year due to continued tax scrutiny on agencies and weak consumer spending.
- Momo's VAS revenue fell 16% year-over-year, pressured by sustained tax-related negative impacts on agencies and broadcasters, as well as macro-driven softness in consumer spending.
- Tantan's paying users decreased by 40,000 quarter-over-quarter to 0.5 million, mainly due to Alipay's adjustments to auto-renewal deduction rules pressuring paying conversion.
- The company revised its Q3 revenue guidance downward, expecting domestic revenue to decline by high teens year-over-year, widening from Q2's 17% decline, due to reduced spending from high-net-worth users.
- SoulChill's progress moderated due to its removal from the Turkish App Store and ongoing geopolitical tensions in the Middle East, leading to a downward revision of the full-year overseas revenue target by RMB100-200 million.
- Non-GAAP operating margin declined to 11.1% from 17.1% a year ago, impacted by film production expenses and rising payment channel costs from the geographic mix shift towards international operations.
Ladies and gentlemen, thank you for standing by, and welcome to Hello Group's second quarter 2026 earnings conference call. (Operator Instructions)
Please note, this conference is being recorded today. I would now like to hand the conference over to your first speaker today, Ms. Ashley Jing. Thank you. Please go ahead, ma'am.
Thank you, operator. Good morning, and good evening, everyone. Thank you for joining us today for Hello Group's Second Quarter 2026 Earnings Conference Call. The company's results were released earlier today and are available on the company's IR website.
On the call today are Mr. Tang Yan, CEO of the company; Mr. Wen Jianhua, CEO of the company; and Ms. Peng Hui, CFO of the company. They will discuss the company's business operations and highlights as well as the financials and guidance.
They will all be available to answer your questions during the Q&A session that follows.
Before we begin, I would like to remind you that this call may contain
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
