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Yalla Group Limited Announces Unaudited Second Quarter 2025 Financial Results

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Yalla Group (NYSE:YALA), the largest MENA-based online social networking and gaming company, reported strong Q2 2025 financial results. Revenues increased 4.1% year-over-year to US$84.6 million, with chatting services generating US$53.6 million and gaming services contributing US$30.7 million.

The company achieved significant profitability improvements with net income rising 16.4% to US$36.5 million and a net margin of 43.2%. Average MAUs grew 8.8% to 42.4 million, though paying users decreased 7.0% to 11.2 million. Yalla accelerated its share buyback program, repurchasing 6.2 million shares worth US$41.0 million through June 2025.

For Q3 2025, Yalla expects revenues between US$78.0 million and US$85.0 million. The company plans to release two Match-3 titles in Q3 and a roguelike game in Q4 2025.

Yalla Group (NYSE:YALA), la più grande società di social networking e gaming online con sede nella regione MENA, ha riportato solidi risultati finanziari nel secondo trimestre 2025. I ricavi sono aumentati del 4.1% su base annua, raggiungendo US$84.6 million, con i servizi di chat che hanno generato US$53.6 million e i servizi di gaming che hanno contribuito per US$30.7 million.

L'azienda ha registrato significativi miglioramenti della redditività con il utile netto in aumento del 16.4% a US$36.5 million e un margine netto del 43.2%. Gli MAU medi sono cresciuti dell'8.8% a 42.4 million, mentre gli utenti paganti sono diminuiti del 7.0% a 11.2 million. Yalla ha accelerato il programma di riacquisto di azioni, ricomprando 6.2 million di azioni per un valore di US$41.0 million fino a giugno 2025.

Per il terzo trimestre 2025, Yalla prevede ricavi compresi tra US$78.0 million e US$85.0 million. L'azienda prevede di lanciare due titoli Match-3 nel Q3 e un gioco roguelike nel Q4 2025.

Yalla Group (NYSE:YALA), la mayor empresa de redes sociales y juegos en línea con sede en la región MENA, informó sólidos resultados financieros en el segundo trimestre de 2025. Los ingresos aumentaron un 4.1% interanual hasta US$84.6 million, con los servicios de chat generando US$53.6 million y los servicios de gaming aportando US$30.7 million.

La compañía logró mejoras significativas en rentabilidad con un beneficio neto que subió 16.4% hasta US$36.5 million y un margen neto del 43.2%. Los MAU promedio crecieron un 8.8% hasta 42.4 million, aunque los usuarios de pago disminuyeron 7.0% hasta 11.2 million. Yalla aceleró su programa de recompra de acciones, readquiriendo 6.2 million de acciones por un valor de US$41.0 million hasta junio de 2025.

Para el tercer trimestre de 2025, Yalla espera ingresos entre US$78.0 million y US$85.0 million. La compañía planea lanzar dos títulos Match-3 en el Q3 y un juego roguelike en el Q4 de 2025.

Yalla Group (NYSE:YALA)는 MENA 지역에 기반을 둔 최대 온라인 소셜 네트워킹 및 게임 회사로, 2025년 2분기 견조한 실적을 발표했습니다. 매출은 전년 대비 4.1% 증가한 US$84.6 million으로, 채팅 서비스가 US$53.6 million을, 게임 서비스가 US$30.7 million을 기여했습니다.

회사는 수익성에서 큰 개선을 보이며 순이익이 16.4% 증가한 US$36.5 million을 기록했고 순이익률은 43.2%였습니다. 평균 MAU는 8.8% 증가한 42.4 million을 기록했으나 유료 사용자는 7.0% 감소해 11.2 million이었습니다. Yalla는 자사주 매입 프로그램을 가속화해 2025년 6월까지 US$41.0 million 상당의 6.2 million주를 재매입했습니다.

2025년 3분기 매출은 US$78.0 million~US$85.0 million을 전망합니다. 회사는 3분기에 Match-3 장르의 타이틀 2종을, 4분기에는 로그라이크 게임을 출시할 계획입니다.

Yalla Group (NYSE:YALA), la plus grande société de réseaux sociaux et de jeux en ligne basée dans la région MENA, a publié de solides résultats financiers au deuxième trimestre 2025. Les revenus ont augmenté de 4.1% en glissement annuel pour atteindre US$84.6 million, les services de chat ayant généré US$53.6 million et les services de gaming US$30.7 million.

La société a enregistré des améliorations significatives de sa rentabilité, avec un résultat net en hausse de 16.4% à US$36.5 million et une marge nette de 43.2%. Les MAU moyens ont augmenté de 8.8% à 42.4 million, tandis que le nombre d'utilisateurs payants a diminué de 7.0% à 11.2 million. Yalla a accéléré son programme de rachat d'actions, rachetant 6.2 million d'actions pour une valeur de US$41.0 million jusqu'en juin 2025.

Pour le troisième trimestre 2025, Yalla prévoit des revenus compris entre US$78.0 million et US$85.0 million. La société prévoit de sortir deux titres Match-3 au T3 et un jeu roguelike au T4 2025.

Yalla Group (NYSE:YALA), das größte in der MENA-Region ansässige Online-Social-Networking- und Gaming-Unternehmen, meldete starke Finanzergebnisse für das 2. Quartal 2025. Die Umsätze stiegen um 4.1% im Jahresvergleich auf US$84.6 million, wobei Chat-Dienste US$53.6 million und Gaming-Dienste US$30.7 million beitrugen.

Das Unternehmen erzielte deutliche Verbesserungen der Profitabilität: Der Nettogewinn stieg um 16.4% auf US$36.5 million und die Nettomarge lag bei 43.2%. Die durchschnittlichen MAUs wuchsen um 8.8% auf 42.4 million, während zahlende Nutzer um 7.0% auf 11.2 million zurückgingen. Yalla beschleunigte sein Aktienrückkaufprogramm und kaufte bis Juni 2025 6.2 million Aktien im Wert von US$41.0 million zurück.

Für das 3. Quartal 2025 erwartet Yalla Umsätze zwischen US$78.0 million und US$85.0 million. Das Unternehmen plant, im 3. Quartal zwei Match-3-Titel und im 4. Quartal 2025 ein Roguelike-Spiel zu veröffentlichen.

Positive
  • Net income increased 16.4% YoY to US$36.5 million
  • Net margin expanded by 4.6 percentage points to 43.2%
  • Average MAUs grew 8.8% to 42.4 million users
  • Cost of revenues decreased to 33.0% from 35.7% of total revenues
  • Cash position strengthened to US$704.1 million from US$656.3 million in December 2024
  • Accelerated share buyback program with US$41.0 million in repurchases during H1 2025
Negative
  • Paying users decreased 7.0% YoY to 11.2 million
  • General and administrative expenses increased 18.8% YoY
  • Technology and product development expenses rose 28.6% YoY
  • Interest income declined compared to Q2 2024

Insights

Yalla delivered solid Q2 results with 4.1% revenue growth and impressive 43.2% net margin despite declining paying users.

Yalla Group's Q2 2025 results demonstrate robust performance with $84.6 million in revenue, exceeding guidance and growing 4.1% year-over-year. The company's profitability metrics are particularly impressive, with net income increasing 16.4% to $36.5 million and net margin expanding by 4.6 percentage points to 43.2%. This margin expansion reflects improved operational efficiency and disciplined cost management.

Revenue growth was supported by an 8.8% increase in monthly active users (MAUs) to 42.4 million, though paying users declined by 7.0% to 11.2 million. This divergence suggests Yalla is successfully growing its user base but facing some monetization challenges. The company's revenue mix shows $53.6 million from chatting services and $30.7 million from gaming services.

Cost control efforts are evident in the 3.7% decrease in cost of revenues, which improved from 35.7% to 33.0% of total revenue. While selling and marketing expenses increased slightly by 2.0%, they declined as a percentage of revenue. However, general and administrative expenses rose 18.8% due to higher incentive compensation, and technology and product development expenses increased 28.6% as the company invested in new product development.

Yalla's balance sheet remains strong with $704.1 million in cash and equivalents as of June 30, 2025, up from $656.3 million at the end of 2024. The company has been actively returning capital to shareholders, repurchasing 6.23 million ADSs for $41.0 million in the first half of 2025, with $35.6 million of that occurring in Q2 alone.

For Q3 2025, management expects revenues between $78.0 million and $85.0 million, suggesting potential quarterly sequential decline at the midpoint but continued year-over-year growth. The company's strategy focuses on expanding its product portfolio with two Match-3 titles scheduled for Q3 release, a roguelike game for Q4, and plans for hard-core game distribution, indicating ongoing investment in growth initiatives within the MENA digital entertainment market.

DUBAI, UAE, Aug. 11, 2025 /PRNewswire/ -- Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Financial and Operating Highlights

  • Revenues were US$84.6 million in the second quarter of 2025, representing an increase of 4.1% from the second quarter of 2024.
    • Revenues generated from chatting services in the second quarter of 2025 were US$53.6 million.
    • Revenues generated from games services in the second quarter of 2025 were US$30.7 million.
  • Net income was US$36.5 million in the second quarter of 2025, a 16.4% increase from US$31.4 million in the second quarter of 2024. Net margin[1] was 43.2% in the second quarter of 2025.
  • Non-GAAP net income[2] was US$39.4 million in the second quarter of 2025, an 11.7% increase from US$35.2 million in the second quarter of 2024. Non-GAAP net margin[3] was 46.5% in the second quarter of 2025.
  • Average MAUs[4] increased by 8.8% to 42.4 million in the second quarter of 2025 from 39.0 million in the second quarter of 2024.
  • The number of paying users[5] on our platform decreased by 7.0% to 11.2 million in the second quarter of 2025 from 12.0 million in the second quarter of 2024.

Key Operating Data

For the three months ended



June 30, 2024



June 30, 2025








Average MAUs (in thousands)


38,999




42,421








Paying users (in thousands)


12,023




11,186










[1] Net margin is net income as a percentage of revenues.

[2] Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.

[3] Non-GAAP net margin is non-GAAP net income as a percentage of revenues.

[4] "Average MAUs" refers to the average monthly active users in a given period calculated by dividing (i) the sum of active users for each month of such period, by (ii) the number of months in such period. "Active users" refers to registered users who accessed any of our main mobile applications at least once during a given period. Yalla, Yalla Ludo, Yalla Parchis, YallaChat, 101 Okey Yalla, WeMuslim and Ludo Royal were our main mobile applications for the periods presented herein; and Yalla Jackaroo has been our main mobile application since the second quarter of 2025.

[5] "Paying users" refers to registered users who played a game or purchased our virtual items or upgrade services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free; YallaChat does not involve the usage of virtual currencies, and the metrics of "paying users" and "ARPPU" do not reflect user activities on YallaChat. "Registered users" refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications.

"We delivered another robust performance in the second quarter," said Mr. Yang Tao, Founder, Chairman and CEO of Yalla. "Our revenues reached US$84.6 million, beating the upper end of our guidance. Improvements in our internal processes boosted operational efficiency, bringing our net margin to 43.2%, a year-over-year expansion of 4.6 percentage points. Meanwhile, our continued efforts to enrich our product portfolio and maintain a highly-engaged community drove an 8.8% year-over-year increase in average MAUs to 42.4 million.

"Building on these strong fundamentals, we continued to upgrade our flagship applications and broaden our product portfolio, expanding into new verticals to tap into MENA's thriving digital transformation. We have two exciting Match-3 titles scheduled for release in the third quarter and a roguelike game set to debut in the fourth quarter this year. Additionally, our game distribution services segment is preparing for the distribution of a hard-core title. Going forward, Yalla Group will continue to enrich users' digital lives with a diverse lineup of gaming products while working alongside partners to foster a sustainable digital ecosystem in MENA, compounding our advantages in this compelling market and unlocking its value for all of our stakeholders," Mr. Yang concluded.

Ms. Karen Hu, CFO of Yalla, commented, "Strong execution across our operations fueled this quarter's strong results, highlighted by better-than-expected revenues and enhanced profitability. Our disciplined cost management and improved efficiency resulted in a 16.4% year-over-year increase in our net income to US$36.5 million. Bolstered by this success, we continued to accelerate our expanded share buyback program, with 6,230,299 shares totaling US$41.0 million repurchased this year through June 30, 2025. We are open to further scaling this program, reflecting our deep confidence in the Company's future growth potential and dedication to elevating shareholder value. Looking ahead, we remain committed to product innovation and operational excellence as we advance toward our vision of becoming the most popular platform for online social networking and entertainment activities in MENA."

Second Quarter 2025 Financial Results

Revenues

Our revenues were US$84.6 million in the second quarter of 2025, a 4.1% increase from US$81.2 million in the second quarter of 2024. The increase was primarily driven by our broadening user base and enhanced monetization capability. Our average MAUs increased by 8.8% to 42.4 million in the second quarter of 2025 from 39.0 million in the second quarter of 2024.

In the second quarter of 2025, revenues generated from chatting services were US$53.6 million, and revenues from games services were US$30.7 million.

Costs and expenses

Our total costs and expenses were US$53.9 million in the second quarter of 2025, a 4.6% increase from US$51.6 million in the second quarter of 2024.

Our cost of revenues was US$27.9 million in the second quarter of 2025, a 3.7% decrease from US$29.0 million in the second quarter of 2024, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels and lower share-based compensation expenses recognized in the second quarter of 2025. Cost of revenues as a percentage of our total revenues decreased to 33.0% in the second quarter of 2025 from 35.7% in the second quarter of 2024.

Our selling and marketing expenses were US$8.7 million in the second quarter of 2025, a 2.0% increase from US$8.5 million in the second quarter of 2024, primarily due to higher advertising and market promotion expenses attributable to our continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of our total revenues decreased to 10.2% in the second quarter of 2025 from 10.5% in the second quarter of 2024.

Our general and administrative expenses were US$9.0 million in the second quarter of 2025, an 18.8% increase from US$7.6 million in the second quarter of 2024, primarily due to increases in incentive compensation and foreign exchange loss. General and administrative expenses as a percentage of our total revenues increased to 10.6% in the second quarter of 2025 from 9.3% in the second quarter of 2024.

Our technology and product development expenses were US$8.3 million in the second quarter of 2025, a 28.6% increase from US$6.5 million in the second quarter of 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in their headcount to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of our total revenues increased to 9.9% in the second quarter of 2025 from 8.0% in the second quarter of 2024.

Operating income

Operating income was US$30.6 million in the second quarter of 2025, a 3.4% increase from US$29.6 million in the second quarter of 2024.

Non-GAAP operating income[6]

Non-GAAP operating income in the second quarter of 2025 was flat at US$33.5 million compared with that of the second quarter of 2024.

Interest income

Interest income was US$6.8 million in the second quarter of 2025, compared with US$7.1 million in the second quarter of 2024.

Income tax expense

Income tax expense was US$1.5 million in the second quarter of 2025, compared with US$5.8 million in the second quarter of 2024, primarily due to a decrease in UAE corporate tax.

Net income

As a result of the foregoing, our net income was US$36.5 million in the second quarter of 2025, a 16.4% increase from US$31.4 million in the second quarter of 2024.

Non-GAAP net income

Non-GAAP net income in the second quarter of 2025 was US$39.4 million, an 11.7% increase from US$35.2 million in the second quarter of 2024.

Earnings per ordinary share

Basic and diluted earnings per ordinary share were US$0.24 and US$0.20, respectively, in the second quarter of 2025, while basic and diluted earnings per ordinary share were US$0.20 and US$0.17, respectively, in the second quarter of 2024.

Non-GAAP earnings per ordinary share[7]

Non-GAAP basic and diluted earnings per ordinary share were US$0.25 and US$0.22, respectively, in the second quarter of 2025, compared with US$0.22 and US$0.19, respectively, in the second quarter of 2024.

Cash and cash equivalents, restricted cash, term deposits and short-term investments 

As of June 30, 2025, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$704.1 million, compared with US$656.3 million as of December 31, 2024.

Share repurchase program

Pursuant to the Company's share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2026, from January 1 through June 30, 2025, the Company repurchased 6,230,299 American depositary shares ("ADSs"), representing 6,230,299 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$41.0 million, including US$5.4 million in the first quarter of 2025 and US$35.6 million in the second quarter of 2025. As of June 30, 2025, the Company had cumulatively completed cash repurchases in the open market of 13,535,437 ADSs, representing 13,535,437 Class A ordinary shares, for an aggregate amount of approximately US$90.4 million, since the inception of the current share repurchase program. The aggregate value of ADSs and/or Class A ordinary shares that remain available for purchase under the current share repurchase program was US$59.6 million as of June 30, 2025. In addition, the Company has decided to cancel all shares repurchased in 2025. As of August 11, 2025, the Company had cancelled 6,230,299 ADSs, representing 6,230,299 Class A ordinary shares.

Outlook

For the third quarter of 2025, Yalla currently expects revenues to be between US$78.0 million and US$85.0 million.

The above outlook is based on current market conditions and reflects the Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

[6] Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.

[7] Non-GAAP earnings per ordinary share is non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited's shareholders represents net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited's shareholders are non-GAAP financial measures. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.

Conference Call

The Company's management will host an earnings conference call on Monday, August 11, 2025, at 8:00 PM U.S. Eastern Time, which is Tuesday, August 12, 2025, at 4:00 AM Dubai Time, or Tuesday, August 12, 2025, at 8:00 AM Beijing/Hong Kong time.

Dial-in details for the earnings conference call are as follows:

United States Toll Free:

+1-888-317-6003

International:

+1-412-317-6061

United Arab Emirates Toll Free:

80-003-570-3598

Mainland China Toll Free:

400-120-6115

Hong Kong, China Toll Free:

800-963-976

Access Code:

5144068

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com.

A replay of the conference call will be accessible until August 18, 2025, by dialing the following telephone numbers:

United States Toll Free:

+1-877-344-7529

International:

+1-412-317-0088

Access Code:

1658736

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company's operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited's shareholders as net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by the weighted average number of basic and diluted shares outstanding.

By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. Investors can better understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.

About Yalla Group Limited

Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla's mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.

For more information, please visit: https://ir.yalla.com.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited's filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Yalla Group Limited
Investor Relations
Kerry Gao - IR Director
Tel: +86-571-8980-7962
Email: ir@yalla.com 

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: yalla@tpg-ir.com 

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: yalla@tpg-ir.com 

 

YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS




As of




December 31,
2024



June 30,
2025




US$



US$


ASSETS







Current assets







Cash and cash equivalents



488,379,894




342,981,483


Restricted cash



1,975,616




1,593,343


Term deposits



94,983,813




157,826,639


Short-term investments



70,932,713




201,710,485


Prepayments and other current assets



35,429,988




31,377,720


Total current assets



691,702,024




735,489,670


Non-current assets







Property and equipment, net



13,962,393




14,203,523


Intangible asset, net



896,005




786,429


Operating lease right-of-use assets



1,370,914




1,379,873


Long-term investments



93,698,924




81,061,625


Total non-current assets



109,928,236




97,431,450


Total assets



801,630,260




832,921,120









LIABILITIES







Current liabilities







Accounts payable



957,717




723,355


Deferred revenue, current



58,081,649




57,994,279


Operating lease liabilities, current



1,012,481




755,974


Amounts due to a related party



87,156




54,887


Income taxes payable



9,117,261




10,429,556


Accrued expenses and other current liabilities



32,404,872




21,941,503


Total current liabilities



101,661,136




91,899,554


Non-current liabilities







Deferred revenue, non-current






2,019,314


Operating lease liabilities, non-current



13,495




308,246


Deferred tax liabilities



2,148,022




2,593,131


Total non-current liabilities



2,161,517




4,920,691


Total liabilities



103,822,653




96,820,245









EQUITY







Shareholders' equity of Yalla Group Limited







Class A Ordinary Shares



14,064




14,064


Class B Ordinary Shares



2,473




2,473


Additional paid-in capital



328,883,061




334,478,211


Treasury stock



(49,438,661)




(78,061,004)


Accumulated other comprehensive loss



(3,016,579)




(2,707,083)


Retained earnings



427,907,766




489,899,413


Total shareholders' equity of Yalla Group Limited



704,352,124




743,626,074


Non-controlling interests



(6,544,517)




(7,525,199)


Total equity



697,807,607




736,100,875


Total liabilities and equity



801,630,260




832,921,120


 

YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS




Three Months Ended



Six Months Ended




June 30,
2024



March 31,
2025



June 30,
2025



June 30,
2024



June 30,
2025




US$



US$



US$



US$



US$


Revenues



81,197,482




83,876,767




84,564,086




159,926,060




168,440,853


Costs and expenses
















Cost of revenues



(29,025,673)




(29,200,423)




(27,944,596)




(57,596,934)




(57,145,019)


Selling and marketing expenses



(8,491,520)




(6,943,268)




(8,661,573)




(16,591,456)




(15,604,841)


General and administrative expenses



(7,576,904)




(8,695,308)




(9,002,347)




(14,224,796)




(17,697,655)


Technology and product development expenses



(6,481,616)




(7,828,137)




(8,338,195)




(12,743,870)




(16,166,332)


Total costs and expenses



(51,575,713)




(52,667,136)




(53,946,711)




(101,157,056)




(106,613,847)


Operating income



29,621,769




31,209,631




30,617,375




58,769,004




61,827,006


Interest income



7,097,975




6,561,180




6,791,492




13,742,859




13,352,672


Government grants



365,031




63,433




603,115




432,363




666,548


Investment income (loss)



60,233




(17,702)




21,758




(1,227,894)




4,056


Income before income taxes



37,145,008




37,816,542




38,033,740




71,716,332




75,850,282


Income tax expense



(5,793,582)




(1,437,077)




(1,531,310)




(9,276,790)




(2,968,387)


Net income



31,351,426




36,379,465




36,502,430




62,439,542




72,881,895


Net loss attributable to non-controlling interests



292,428




711,935




269,782




798,415




981,717


Net income attributable to Yalla Group
   Limited's shareholders



31,643,854




37,091,400




36,772,212




63,237,957




73,863,612


Earnings per ordinary share
















——Basic



0.20




0.23




0.24




0.39




0.47


——Diluted



0.17




0.20




0.20




0.34




0.41


Weighted average number of shares
   outstanding used in computing earnings
   per ordinary share
















——Basic



160,721,827




159,186,659




155,958,658




160,550,641




157,604,992


——Diluted



183,535,654




182,187,686




180,765,359




183,397,911




181,508,856























Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and technology and
product development expenses as follows:
























Three Months Ended



Six Months Ended




June 30,
2024



March 31,
2025



June 30,
2025



June 30,
2024



June 30,
2025




US$



US$



US$



US$



US$


Cost of revenues



1,867,863




1,326,085




1,328,152




3,770,580




2,654,237


Selling and marketing expenses



681,035




171,028




170,304




1,381,150




341,332


General and administrative expenses



1,321,200




1,130,507




1,328,931




2,654,514




2,459,438


Technology and product development expenses



19,198




119,474




20,670




281,929




140,144


Total share-based compensation expenses



3,889,296




2,747,094




2,848,057




8,088,173




5,595,151


 

YALLA GROUP LIMITED

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS 




Three Months Ended



Six Months Ended




June 30,
2024



March 31,
2025



June 30,
2025



June 30,
2024



June 30,
2025




US$



US$



US$



US$



US$


Operating income



29,621,769




31,209,631




30,617,375




58,769,004




61,827,006


Share-based compensation expenses



3,889,296




2,747,094




2,848,057




8,088,173




5,595,151


Non-GAAP operating income



33,511,065




33,956,725




33,465,432




66,857,177




67,422,157


















Net income



31,351,426




36,379,465




36,502,430




62,439,542




72,881,895


Share-based compensation expenses,
   net of tax effect of nil



3,889,296




2,747,094




2,848,057




8,088,173




5,595,151


Non-GAAP net income



35,240,722




39,126,559




39,350,487




70,527,715




78,477,046


















Net income attributable to Yalla
   Group Limited's shareholders



31,643,854




37,091,400




36,772,212




63,237,957




73,863,612


Share-based compensation expenses,
   net of tax effect of nil



3,889,296




2,747,094




2,848,057




8,088,173




5,595,151


Non-GAAP net income attributable to
   Yalla Group Limited's shareholders



35,533,150




39,838,494




39,620,269




71,326,130




79,458,763


















Non-GAAP earnings per ordinary share
















——Basic



0.22




0.25




0.25




0.44




0.50


——Diluted



0.19




0.22




0.22




0.39




0.44


Weighted average number of shares
   outstanding used in computing earnings
   per ordinary share
















——Basic



160,721,827




159,186,659




155,958,658




160,550,641




157,604,992


——Diluted



183,535,654




182,187,686




180,765,359




183,397,911




181,508,856


 

Cision View original content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-second-quarter-2025-financial-results-302526373.html

SOURCE Yalla Group Limited

FAQ

What were Yalla Group's (YALA) Q2 2025 revenue and earnings?

Yalla reported Q2 2025 revenues of US$84.6 million (up 4.1% YoY) and net income of US$36.5 million (up 16.4% YoY), with a net margin of 43.2%.

How many users does Yalla (YALA) have in Q2 2025?

Yalla had 42.4 million average monthly active users (up 8.8% YoY) and 11.2 million paying users (down 7.0% YoY) in Q2 2025.

What is Yalla's (YALA) revenue guidance for Q3 2025?

Yalla expects Q3 2025 revenues to be between US$78.0 million and US$85.0 million.

How much stock did Yalla (YALA) repurchase in 2025?

Through June 30, 2025, Yalla repurchased 6,230,299 ADSs for US$41.0 million, including US$5.4 million in Q1 and US$35.6 million in Q2.

What new games is Yalla (YALA) planning to release?

Yalla plans to release two Match-3 titles in Q3 2025 and a roguelike game in Q4 2025, along with preparing to distribute a hard-core title.
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Software - Application
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United Arab Emirates
Dubai