Sound Group Inc. Reports Unaudited Financial Results for the First Half 2026
Rhea-AI Summary
Sound Group (NASDAQ: SOGP) reported unaudited results for the six months ended June 30, 2026, with net revenues of RMB1,690.6 million (US$249.2 million), up 25% year over year, and net income of RMB120.5 million (US$17.8 million), up 78%.
Gross profit rose 32% to RMB516.1 million and gross margin improved to 31% from 29%. Operating income increased 88% to RMB118.8 million. According to Sound Group, AI subscription revenues grew 245% year over year, while value-added services remained a core revenue base. Basic net income per ADS reached RMB29.08, more than doubling from RMB13.73, and cash and restricted cash totaled RMB727.6 million (US$107.2 million) at period end.
Positive
- Net revenues +25% YoY to RMB1,690.6 million in H1 2026
- Net income +78% YoY to RMB120.5 million in H1 2026
- Operating income +88% YoY to RMB118.8 million
- Gross profit +32% YoY to RMB516.1 million; margin up to 31%
- AI subscription revenues +245% YoY, boosting overall growth mix
- Basic net income per ADS +112% YoY to RMB29.08
Negative
- Cost of revenues +22% YoY to RMB1,174.5 million
- Operating expenses +21% YoY to RMB397.3 million
- Selling and marketing expenses +47% YoY to RMB225.4 million
News Explained
Sound Group also presents non-GAAP measures that exclude share-based compensation, but says they are supplemental and should not replace or be considered superior to the U.S. GAAP results.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | FY 2025 earnings | Positive | +2.5% | Revenue growth, profitability recovery, margin improvement, and special dividend announcement |
| Aug 28 | H1 2025 earnings | Positive | +228.9% | Revenue growth, return to profitability, margin expansion, repurchase, and dividend |
| Dec 13 | H1 2024 earnings | Negative | +0.3% | Revenue decline, net loss, lower margin, and declining mobile monthly active users |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
SOGP's earnings announcements were followed by positive 24-hour price reactions, including a much larger move after the H1 2025 release.
Key Terms
non-gaap financial measures financial
voice ai technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
SINGAPORE, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Sound Group Inc. (NASDAQ: SOGP) (“SOGP” or the “Company” or “We”), a global AI-powered audio company, today announced its unaudited financial results for the six months ended June 30, 2026.
First Half 2026 Financial and Operational Highlights
- Net revenues were RMB1,690.6 million (US
$249.2 million ), representing a25% increase from RMB1,357.7 million for the same period last year. - Net income was RMB120.5 million (US
$17.8 million ), representing a78% increase from RMB67.6 million for the same period last year.
Mr. Jinnan (Marco) Lai, Founder and CEO of SOGP, commented, “We delivered another solid performance in the first half of 2026, with net revenues and net income increasing by
Our AI business achieved meaningful progress, with subscription revenues surging
On the technology front, we are strengthening our voice AI and real-time audio intelligence capabilities, while translating these technological advances into products designed for distinct user scenarios. Our product strategy combines horizontal expansion across diverse application scenarios with deep vertical development tailored to specific user groups, enabling both broader reach of our AI portfolio and increasingly unique experiences.
In our value-added services business, we continued to enrich our online audio ecosystem and reinforce the connections between users, content creators, and the platform. We expanded our content offerings, enhanced product experiences, and upgraded creator support and incentives. We also applied AI more widely across content creation, personalized recommendations, platform operations, and user acquisition to boost efficiency and better serve the evolving needs of our users and creators.
Looking ahead, AI will remain a key driver of both the continued evolution of our established business and the development of new growth opportunities. In our online audio business, we will deepen AI integration to enhance ecosystem efficiency and user engagement. For our AI applications, we will continue to refine products based on user insights, accelerate product iteration and commercialization validation, and explore practical, high-frequency, and scalable use cases through our expanding portfolio. By strengthening the flywheel connecting technology, products, users, and real-world data, we aim to scale our AI business and create sustainable, long-term value for our stakeholders.”
Ms. Chengfang Lu, Acting CFO of SOGP, said, “Our financial results remained robust in the first half of 2026, supported by the disciplined execution of our dual-engine growth strategy. Net revenues increased by
Our value-added services business continued to serve as a solid revenue foundation, while subscription revenues grew by
Going forward, we will maintain a disciplined approach to resource allocation and cost management, while making strategic investments in AI technology and product innovation. Supported by our solid financial position, we will continue to pursue sustainable growth and create long-term value for our shareholders.”
First Half 2026 Unaudited Financial Results
Net revenues were RMB1,690.6 million (US
Cost of revenues were RMB1,174.5 million (US
Gross profit was RMB516.1 million (US
Non-GAAP gross profit1 was RMB516.3 million (US
Gross margin was
Non-GAAP gross margin was
Operating expenses were RMB397.3 million (US
Research and development expenses were RMB127.2 million (US
Selling and marketing expenses were RMB225.4 million (US
General and administrative expenses were RMB44.8 million (US
Operating income was RMB118.8 million (US
Non-GAAP operating income2 was RMB119.7 million (US
Net income was RMB120.5 million (US
Non-GAAP net income3 was RMB121.4 million (US
Net income attributable to Sound Group Inc.’s ordinary shareholders was RMB123.5 million (US
Non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders4 was RMB124.4 million (US
Basic and diluted net income per ADS5 were RMB29.08 and RMB28.96 (US
Non-GAAP basic and diluted net income per ADS6 were RMB29.29 and RMB29.17 (US
Balance Sheet
As of June 30, 2026, the Company had cash and cash equivalents and restricted cash of RMB727.6 million (US
___________________________
1 Non-GAAP gross profit is a non-GAAP financial measure, which is defined as gross profit excluding share-based compensation expenses. This adjustment amounted to RMB0.2 million (US
2 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses. This adjustment amounted to RMB0.9 million (US
3 Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. These adjustments amounted to RMB0.9 million (US
4 Non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income attributable to Sound Group Inc.’s ordinary shareholders, excluding share-based compensation expenses. These adjustments amounted to RMB0.9 million (US
5 ADS refers to American Depositary Share. Each ADS represents two hundred Class A ordinary shares of the Company. Basic and diluted net income per ADS is net income attributable to Sound Group Inc.’s ordinary shareholders divided by the weighted average number of ADS.
6 Non-GAAP basic and diluted net income per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders divided by the weighted average number of ADS used in the calculation of basic and diluted net income per ADS.
About Sound Group Inc.
Sound Group Inc. (NASDAQ: SOGP) is a global AI-powered audio company on a mission to help people connect better and live happier. Leveraging its voice AI technologies and deep expertise in audio interaction, Sound Group is building a diverse ecosystem of intelligent audio products that cater to a global user base. By integrating technology, innovative products, and real-world data within a user-centric ecosystem, the Company generates a powerful growth flywheel that is driving continuous innovation and accelerating its global expansion. Sound Group Inc. has been listed on Nasdaq since January 2020.
For more information, please visit: https://ir.soundgroupinc.com/
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
SOGP uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss/income, non-GAAP net loss/income, non-GAAP net loss/income attributable to Sound Group Inc.’s ordinary shareholders and non-GAAP basic and diluted net loss/income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses. Non-GAAP gross margin is non-GAAP gross profit as a percentage of net revenues. Non-GAAP operating loss/income is operating loss/income excluding share-based compensation expenses. Non-GAAP net loss/income is net loss/income, excluding share-based compensation expenses. Non-GAAP net loss/income attributable to Sound Group Inc.’s ordinary shareholders is net loss/income attributable to Sound Group Inc.’s ordinary shareholders, excluding share-based compensation expenses. Non-GAAP basic and diluted net loss/income per ADS is non-GAAP net loss/income attributable to Sound Group Inc.’s ordinary shareholders divided by the weighted average number of ADS used in the calculation of basic and diluted net loss/income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of the above reconciling item adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of share-based compensation expenses.
However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures in isolation from, superior to, or as an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” near the end of this release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.7851 to US
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, results of operations and financial condition; the expected growth of the online audio market; the expectation regarding the rate at which to gain active users, especially paying users; the Company’s ability to monetize the user base; fluctuations in general economic and business conditions in China and overseas markets; any adverse changes in laws, regulations, rules, policies or guidelines applicable to the Company; and assumptions underlying or related to any of the foregoing. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the Securities Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
Sound Group Inc.
IR Department
E-mail: ir@soundgroupinc.com
Christensen Advisory
E-mail: soundgroup@christensencomms.com
| Sound Group Inc. | ||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||
| RMB | RMB | US$ | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 655,058 | 721,118 | 106,280 | |||
| Restricted cash | 4,844 | 6,465 | 953 | |||
| Accounts receivable, net | 972 | - | - | |||
| Prepayments and other current assets | 49,683 | 52,708 | 7,768 | |||
| Total current assets | 710,557 | 780,291 | 115,001 | |||
| Non-current assets | ||||||
| Property, equipment and leasehold improvement, net | 12,070 | 10,141 | 1,495 | |||
| Intangible assets, net | 879 | 601 | 89 | |||
| Investment in Equity Securities | - | 6,000 | 884 | |||
| Deferred tax assets | - | 85 | 13 | |||
| Right-of-use assets, net | 23,572 | 21,950 | 3,235 | |||
| Other non-current assets | 2,536 | 5,157 | 760 | |||
| Total non-current assets | 39,057 | 43,934 | 6,476 | |||
| TOTAL ASSETS | 749,614 | 824,225 | 121,477 | |||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Accounts payable | 58,751 | 66,403 | 9,787 | |||
| Deferred revenue | 38,240 | 37,998 | 5,600 | |||
| Salary and welfare payable | 176,216 | 145,870 | 21,499 | |||
| Taxes payable | 9,203 | 7,136 | 1,052 | |||
| Short-term loans | - | - | - | |||
| Lease liabilities due within one year | 14,619 | 14,115 | 2,080 | |||
| Accrued expenses and other current liabilities | 68,327 | 86,323 | 12,724 | |||
| Total current liabilities | 365,356 | 357,845 | 52,742 | |||
| Non-current liabilities | ||||||
| Lease liabilities | 9,962 | 8,536 | 1,258 | |||
| Deferred tax liabilities | - | 9 | 1 | |||
| Total non-current liabilities | 9,962 | 8,545 | 1,259 | |||
| TOTAL LIABILITIES | 375,318 | 366,390 | 54,001 | |||
| Sound Group Inc. | |||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||||
| (All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||||||
| December 31, 2025 | June 30, 2026 | June 30, 2026 | |||||||
| RMB | RMB | US$ | |||||||
| SHAREHOLDERS’ EQUITY | |||||||||
| Class A Ordinary shares (US | 422 | 422 | 62 | ||||||
| Class B Ordinary shares (US | 168 | 168 | 25 | ||||||
| Treasury stock | (10,156 | ) | (4,787 | ) | (706 | ) | |||
| Additional paid in capital | 2,678,350 | 2,673,585 | 394,038 | ||||||
| Statutory reserves | 14,392 | 14,392 | 2,121 | ||||||
| Accumulated deficit | (2,314,891 | ) | (2,225,273 | ) | (327,965 | ) | |||
| Accumulated other comprehensive income | 32,777 | 28,972 | 4,270 | ||||||
| TOTAL SOGP Inc.’s shareholders’ equity | 401,062 | 487,479 | 71,845 | ||||||
| Non-controlling interests | (26,766 | ) | (29,644 | ) | (4,369 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 374,296 | 457,835 | 67,476 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 749,614 | 824,225 | 121,477 | ||||||
| Sound Group Inc. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||||||||
| Six Months Ended | ||||||||||||
| June 30, 2025 | December 31, 2025 | June 30, 2026 | June 30, 2026 | |||||||||
| RMB | RMB | RMB | US$ | |||||||||
| Net revenues | ||||||||||||
| Value-added services | 1,341,392 | 1,715,034 | 1,634,521 | 240,899 | ||||||||
| Subscription and others | 16,282 | 30,046 | 56,128 | 8,272 | ||||||||
| Total net revenues | 1,357,674 | 1,745,080 | 1,690,649 | 249,171 | ||||||||
| Cost of revenues(1) | (965,618 | ) | (1,231,977 | ) | (1,174,531 | ) | (173,104 | ) | ||||
| Gross profit | 392,056 | 513,103 | 516,118 | 76,067 | ||||||||
| Operating expenses(1) | ||||||||||||
| Selling and marketing expenses | (153,390 | ) | (194,300 | ) | (225,372 | ) | (33,216 | ) | ||||
| General and administrative expenses | (54,119 | ) | (46,135 | ) | (44,788 | ) | (6,601 | ) | ||||
| Research and development expenses | (121,390 | ) | (118,823 | ) | (127,177 | ) | (18,744 | ) | ||||
| Total operating expenses | (328,899 | ) | (359,258 | ) | (397,337 | ) | (58,561 | ) | ||||
| Operating income | 63,157 | 153,845 | 118,781 | 17,506 | ||||||||
| Interest expense | (28 | ) | - | - | - | |||||||
| Foreign exchange gains/(losses) | 573 | (1,595 | ) | (438 | ) | (65 | ) | |||||
| Interest income and investment income | 3,519 | 3,750 | 2,853 | 420 | ||||||||
| Government grants | 2,175 | 120 | 1,538 | 227 | ||||||||
| Others, net | (653 | ) | (1,433 | ) | (1,516 | ) | (223 | ) | ||||
| Income before income taxes | 68,743 | 154,687 | 121,218 | 17,865 | ||||||||
| Income tax expenses | (1,158 | ) | (1,623 | ) | (669 | ) | (99 | ) | ||||
| Net income | 67,585 | 153,064 | 120,549 | 17,766 | ||||||||
| Net loss attributable to the non-controlling interests shareholders | 2,957 | 2,876 | 2,986 | 440 | ||||||||
| Net income attributable to Sound Group Inc.’s ordinary shareholders | 70,542 | 155,940 | 123,535 | 18,206 | ||||||||
| Sound Group Inc. | |||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | |||||||||||
| (All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||||||||
| Six Months Ended | |||||||||||
| June 30, 2025 | December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||
| RMB | RMB | RMB | US$ | ||||||||
| Net income | 67,585 | 153,064 | 120,549 | 17,766 | |||||||
| Other comprehensive income/(loss): | |||||||||||
| Foreign currency translation adjustments | 6,771 | (3,746 | ) | (3,697 | ) | (545 | ) | ||||
| Total comprehensive income | 74,356 | 149,318 | 116,852 | 17,221 | |||||||
| Comprehensive loss attributable to non‑controlling interests shareholders | 2,945 | 2,837 | 2,878 | 424 | |||||||
| Comprehensive income attributable to Sound Group Inc.’s ordinary shareholders | 77,301 | 152,155 | 119,730 | 17,645 | |||||||
| Net income attributable to Sound Group Inc.’s ordinary shareholders per share | |||||||||||
| —Basic | 0.07 | 0.17 | 0.15 | 0.02 | |||||||
| —Diluted | 0.07 | 0.17 | 0.14 | 0.02 | |||||||
| Weighted average number of ordinary shares | |||||||||||
| —Basic | 1,027,216,172 | 940,749,734 | 849,621,986 | 849,621,986 | |||||||
| —Diluted | 1,027,216,172 | 943,559,133 | 853,060,701 | 853,060,701 | |||||||
| Net income attributable to Sound Group Inc.’s ordinary shareholders per ADS | |||||||||||
| —Basic | 13.73 | 33.15 | 29.08 | 4.29 | |||||||
| —Diluted | 13.73 | 33.05 | 28.96 | 4.27 | |||||||
| Weighted average number of ADS | |||||||||||
| —Basic | 5,136,081 | 4,703,749 | 4,248,110 | 4,248,110 | |||||||
| —Diluted | 5,136,081 | 4,717,796 | 4,265,304 | 4,265,304 | |||||||
| Sound Group Inc. | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | ||||||||
| (All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||||
| (1) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | ||||||||
| Six Months Ended | ||||||||
| June 30, 2025 | December 31, 2025 | June 30, 2026 | June 30, 2026 | |||||
| RMB | RMB | RMB | US$ | |||||
| Cost of revenues | 237 | 319 | 204 | 30 | ||||
| Selling and marketing expenses | 59 | - | - | - | ||||
| General and administrative expenses | 236 | 238 | 227 | 33 | ||||
| Research and development expenses | 2,247 | 1,182 | 455 | 67 | ||||
| Total | 2,779 | 1,739 | 886 | 130 | ||||
| Sound Group Inc. | ||||||||
| UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||
| (All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||||
| Six Months Ended | ||||||||
| June 30, 2025 | December 31, 2025 | June 30, 2026 | June 30, 2026 | |||||
| RMB | RMB | RMB | US$ | |||||
| Gross profit | 392,056 | 513,103 | 516,118 | 76,067 | ||||
| Share-based compensation expenses | 237 | 319 | 204 | 30 | ||||
| Non-GAAP gross profit | 392,293 | 513,422 | 516,322 | 76,097 | ||||
| Operating income | 63,157 | 153,845 | 118,781 | 17,506 | ||||
| Share-based compensation expenses | 2,779 | 1,739 | 886 | 130 | ||||
| Non-GAAP operating income | 65,936 | 155,584 | 119,667 | 17,636 | ||||
| Net income | 67,585 | 153,064 | 120,549 | 17,766 | ||||
| Share-based compensation expenses | 2,779 | 1,739 | 886 | 130 | ||||
| Non-GAAP net income | 70,364 | 154,803 | 121,435 | 17,896 | ||||
| Net income attributable to Sound Group Inc.’s ordinary shareholders | 70,542 | 155,940 | 123,535 | 18,206 | ||||
| Share-based compensation expenses | 2,779 | 1,739 | 886 | 130 | ||||
| Non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders | 73,321 | 157,679 | 124,421 | 18,336 | ||||
| Non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders per share | ||||||||
| —Basic | 0.07 | 0.17 | 0.15 | 0.02 | ||||
| —Diluted | 0.07 | 0.17 | 0.15 | 0.02 | ||||
| Weighted average number of ordinary shares | ||||||||
| —Basic | 1,027,216,172 | 940,749,734 | 849,621,986 | 849,621,986 | ||||
| —Diluted | 1,027,216,172 | 943,559,133 | 853,060,701 | 853,060,701 | ||||
| Non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders per ADS | ||||||||
| —Basic | 14.28 | 33.52 | 29.29 | 4.32 | ||||
| —Diluted | 14.28 | 33.42 | 29.17 | 4.30 | ||||
| Weighted average number of ADS | ||||||||
| —Basic | 5,136,081 | 4,703,749 | 4,248,110 | 4,248,110 | ||||
| —Diluted | 5,136,081 | 4,717,796 | 4,265,304 | 4,265,304 | ||||
