Yalla Group Limited Announces Unaudited Second Quarter 2026 Financial Results
Rhea-AI Summary
Yalla Group (NYSE: YALA) reported second quarter 2026 revenues of US$82.6 million, down from US$84.6 million a year earlier, with chatting services contributing US$47.4 million and games services US$34.2 million. Net income was US$29.3 million (net margin 35.5%), versus US$36.5 million in Q2 2025, while non-GAAP net income reached US$34.4 million (non-GAAP net margin 41.7%).
Average MAUs rose 12.3% year over year to 47.6 million, and paying users were 10.9 million. Total costs and expenses increased to US$63.2 million, driven mainly by a 106.0% year-over-year rise in selling and marketing. Cash, term deposits and short-term investments totaled US$824.2 million as of June 30, 2026.
Yalla repurchased 4.36 million ADSs for about US$27.6 million in the first half of 2026 and continues a 2026 buyback authorization of up to US$150 million. For Q3 2026, the company guides revenues of US$78.0–85.0 million.
Positive
- Games services revenue grew to US$34.2 million, +11.6% year over year
- Non-GAAP net margin remained high at 41.7% in Q2 2026
- Average MAUs increased 12.3% year over year to 47.6 million
- Cash, term deposits and short-term investments reached US$824.2 million at June 30, 2026
- Share repurchases of 4.36 million ADSs for approximately US$27.6 million in H1 2026
- Cost of revenues ratio improved to 32.4% of revenues from 33.0% year over year
Negative
- Total revenues declined to US$82.6 million from US$84.6 million year over year
- Net income fell to US$29.3 million from US$36.5 million year over year
- Operating income decreased to US$19.4 million from US$30.6 million year over year
- Selling and marketing expenses rose 106.0% to US$17.8 million
- Technology and product development expenses increased 18.9% to US$9.9 million
- Paying users declined to 10.9 million from 11.2 million year over year
News Explained
The completed cancellation changes the share base; the remaining US$150 million program only permits, rather than commits, more repurchases.
The Yalla Group second-quarter results are now reported, and the company says
The earlier 2021 program expired on
For existing holders, cancellation is the completed structural action; the 2026 authorization sets a maximum amount, not a committed cash outlay or additional share-count change.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 18 | Q1 earnings report | Negative | -6.7% | Revenue and paying users declined amid regional geopolitical impacts. |
| Mar 09 | Q4 earnings report | Positive | -8.3% | Quarterly and annual revenue, profitability, and user activity remained substantial. |
| Nov 10 | Q3 earnings report | Positive | -8.2% | Revenue and net income increased while average MAUs expanded. |
| Aug 11 | Q2 earnings report | Positive | -4.1% | Revenue and profitability improved despite declining paying users. |
| May 19 | Q1 earnings report | Positive | -4.9% | Revenue, net income, and average MAUs increased year over year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
YALA's earnings announcements generally diverged from fundamentals, with four of five tag-specific events followed by negative reactions despite positive reported results.
Key Terms
non-gaap financial measures financial
average maus technical
gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Financial and Operating Highlights
- Revenues were
US in the second quarter of 2026, compared with$82.6 million US in the second quarter of 2025.$84.6 million - Revenues generated from chatting services in the second quarter of 2026 were
US .$47.4 million - Revenues generated from games services in the second quarter of 2026 were
US .$34.2 million
- Revenues generated from chatting services in the second quarter of 2026 were
- Net income was
US in the second quarter of 2026, compared with$29.3 million US in the second quarter of 2025. Net margin[1] was$36.5 million 35.5% in the second quarter of 2026. - Non-GAAP net income[2] was
US in the second quarter of 2026, compared with$34.4 million US in the second quarter of 2025. Non-GAAP net margin[3] was$39.4 million 41.7% in the second quarter of 2026. - Average MAUs[4] increased by
12.3% to 47.6 million in the second quarter of 2026, compared with 42.4 million in the second quarter of 2025. - The number of paying users[5] was 10.9 million in the second quarter of 2026, compared with 11.2 million in the second quarter of 2025.
Key Operating Data | For the three months ended | ||||||
June 30, 2025 | June 30, 2026 | ||||||
Average MAUs (in thousands) | 42,421 | 47,625 | |||||
Paying users (in thousands) | 11,186 | 10,861 | |||||
[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 titled "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; main mobile applications are mobile applications that have exceeded the 0.5 million average MAUs threshold at least once. |
[5] "Paying users" refers to registered users who played a game or purchased our virtual items or upgraded 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. "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 solid results across our flagship products and growing momentum in our gaming business in the second quarter of 2026," said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. "Our revenues exceeded the upper end of our guidance, driven by an
"Beyond the sustained strength of our flagship products, we made progress in expanding our gaming ecosystem. Our new games, including our first self-developed match-3 title and desert-themed SLG title, continued to advance smoothly with a clear roadmap taking shape for the next stage of development. We also continued to strengthen our pipeline of self-developed products, spanning casual games, hyper-casual games, social products and AI applications, designed to maximize the synergy between our social and gaming ecosystems. Building on years of deep-rooted expertise in MENA, we will continue to unlock local opportunities and broaden our reach globally through strategic partnerships to deliver sustainable growth for our shareholders."
Ms. Karen Hu, CFO of Yalla, commented, "In the second quarter of 2026, we continued to pursue high-quality development while maintaining solid profitability. Total revenues were
Second Quarter 2026 Financial Results
Revenues
Revenues were
In the second quarter of 2026, revenues generated from chatting services were
Costs and expenses
Total costs and expenses were
Cost of revenues was
Selling and marketing expenses were
General and administrative expenses were
Technology and product development expenses were
Operating income
Operating income was
Non-GAAP operating income[6]
Non-GAAP operating income in the second quarter of 2026 was
Interest income
Interest income was
Investment income
Investment income was
Income tax expense
Income tax expense was
Net income
Net income was
Non-GAAP net income
Non-GAAP net income in the second quarter of 2026 was
Earnings per ordinary share
Basic and diluted earnings per ordinary share were
Non-GAAP earnings per ordinary share[7]
Non-GAAP basic and diluted earnings per ordinary share were
Cash and cash equivalents, restricted cash, term deposits and short-term investments
As of June 30, 2026, the Company had cash and cash equivalents, restricted cash, term deposits and short-term investments of
[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 titled "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 the 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 titled "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. |
Share Repurchase Program
Under the Company's two share repurchase programs launched in 2021 and 2026 (the "2021 Program" and the "2026 Program"), the Company repurchased 4,357,024 American depositary shares ("ADSs"), representing 4,357,024 Class A ordinary shares, for an aggregate amount of approximately
The 2021 Program expired on May 21, 2026. Under the 2021 Program, the Company was authorized to repurchase up to
In addition, the Company had cancelled 12,734,059 ADSs, representing 12,734,059 Class A ordinary shares, as of August 14, 2026. The Company will continue executing its 2026 Program, under which the Company may repurchase up to
Outlook
For the third quarter of 2026, 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.
Conference Call
Yalla Group Limited will hold a conference call on Monday, August 17, 2026, at 8:00 PM Eastern Time, 4:00 AM
Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.
Event Title: Yalla Group Ltd. Second Quarter 2026 Earnings Conference Call
Registration Link: https://register-conf.media-server.com/register/BIa9b95130104d40aa9a598586197e750b
Additionally, a live webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in
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 measures are not defined under
The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest
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, 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
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
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, | June 30, | |||||||
US$ | US$ | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 526,972,019 | 268,371,117 | ||||||
Restricted cash | 1,625,525 | 1,797,132 | ||||||
Term deposits | 84,800,000 | 217,427,135 | ||||||
Short-term investments | 141,251,128 | 336,596,144 | ||||||
Prepayments and other current assets | 41,659,226 | 31,167,184 | ||||||
Total current assets | 796,307,898 | 855,358,712 | ||||||
Non-current assets | ||||||||
Property and equipment, net | 14,976,818 | 15,146,724 | ||||||
Intangible asset, net | 728,348 | 663,976 | ||||||
Operating lease right-of-use assets | 1,902,655 | 4,840,602 | ||||||
Long-term investments | 82,053,772 | 57,821,227 | ||||||
Other assets | 250,000 | 858,516 | ||||||
Total non-current assets | 99,911,593 | 79,331,045 | ||||||
Total assets | 896,219,491 | 934,689,757 | ||||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Accounts payable | 1,066,625 | 1,059,103 | ||||||
Deferred revenue, current | 55,178,093 | 52,493,495 | ||||||
Operating lease liabilities, current | 357,525 | 1,781,737 | ||||||
Amounts due to a related party | 44,177 | 15,264 | ||||||
Income taxes payable | 1,319,111 | 2,325,945 | ||||||
Accrued expenses and other current liabilities | 30,350,120 | 25,363,411 | ||||||
Total current liabilities | 88,315,651 | 83,038,955 | ||||||
Non-current liabilities | ||||||||
Deferred revenue, non-current | 1,837,543 | 1,453,259 | ||||||
Operating lease liabilities, non-current | 1,095,245 | 2,686,922 | ||||||
Deferred tax liabilities | 2,924,137 | 2,885,096 | ||||||
Total non-current liabilities | 5,856,925 | 7,025,277 | ||||||
Total liabilities | 94,172,576 | 90,064,232 | ||||||
EQUITY | ||||||||
Shareholders' equity of Yalla Group Limited | ||||||||
Class A Ordinary Shares | 13,441 | 13,441 | ||||||
Class B Ordinary Shares | 2,473 | 2,473 | ||||||
Additional paid-in capital | 339,199,644 | 349,196,164 | ||||||
Treasury stock | (42,497,929) | (66,242,824) | ||||||
Accumulated other comprehensive (loss) income | (1,636,586) | 668,175 | ||||||
Retained earnings | 515,197,658 | 572,215,132 | ||||||
Total shareholders' equity of Yalla Group Limited | 810,278,701 | 855,852,561 | ||||||
Non-controlling interests | (8,231,786) | (11,227,036) | ||||||
Total equity | 802,046,915 | 844,625,525 | ||||||
Total liabilities and equity | 896,219,491 | 934,689,757 | ||||||
YALLA GROUP LIMITED | ||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS | ||||||||||||||||||||
OF OPERATIONS | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Revenues | 84,564,086 | 79,006,789 | 82,608,696 | 168,440,853 | 161,615,485 | |||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of revenues | (27,944,596) | (26,473,813) | (26,802,984) | (57,145,019) | (53,276,797) | |||||||||||||||
Selling and marketing expenses | (8,661,573) | (9,722,665) | (17,841,216) | (15,604,841) | (27,563,881) | |||||||||||||||
General and administrative expenses | (9,002,347) | (10,251,576) | (8,642,276) | (17,697,655) | (18,893,852) | |||||||||||||||
Technology and product development expenses | (8,338,195) | (9,097,323) | (9,915,355) | (16,166,332) | (19,012,678) | |||||||||||||||
Total costs and expenses | (53,946,711) | (55,545,377) | (63,201,831) | (106,613,847) | (118,747,208) | |||||||||||||||
Operating income | 30,617,375 | 23,461,412 | 19,406,865 | 61,827,006 | 42,868,277 | |||||||||||||||
Interest income | 6,791,492 | 5,884,059 | 5,446,054 | 13,352,672 | 11,330,113 | |||||||||||||||
Government grants | 603,115 | 67,165 | 4,699 | 666,548 | 71,864 | |||||||||||||||
Investment income (loss) | 21,758 | (432,522) | 5,090,505 | 4,056 | 4,657,983 | |||||||||||||||
Income before income taxes | 38,033,740 | 28,980,114 | 29,948,123 | 75,850,282 | 58,928,237 | |||||||||||||||
Income tax expense | (1,531,310) | (620,089) | (619,210) | (2,968,387) | (1,239,299) | |||||||||||||||
Net income | 36,502,430 | 28,360,025 | 29,328,913 | 72,881,895 | 57,688,938 | |||||||||||||||
Net loss attributable to non-controlling interests | 269,782 | 575,459 | 2,434,355 | 981,717 | 3,009,814 | |||||||||||||||
Net income attributable to Yalla Group | 36,772,212 | 28,935,484 | 31,763,268 | 73,863,612 | 60,698,752 | |||||||||||||||
Earnings per ordinary share | ||||||||||||||||||||
——Basic | 0.24 | 0.19 | 0.21 | 0.47 | 0.40 | |||||||||||||||
——Diluted | 0.20 | 0.16 | 0.18 | 0.41 | 0.34 | |||||||||||||||
Weighted average number of shares | ||||||||||||||||||||
——Basic | 155,958,658 | 152,975,006 | 150,945,883 | 157,604,992 | 151,954,839 | |||||||||||||||
——Diluted | 180,765,359 | 177,171,652 | 175,048,711 | 181,508,856 | 176,104,576 | |||||||||||||||
Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Cost of revenues | 1,328,152 | 2,150,971 | 2,391,819 | 2,654,237 | 4,542,790 | |||||||||||||||
Selling and marketing expenses | 170,304 | 440,566 | 425,808 | 341,332 | 866,374 | |||||||||||||||
General and administrative expenses | 1,328,931 | 2,161,700 | 2,097,097 | 2,459,438 | 4,258,797 | |||||||||||||||
Technology and product development expenses | 20,670 | 146,087 | 182,472 | 140,144 | 328,559 | |||||||||||||||
Total share-based compensation expenses | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
YALLA GROUP LIMITED | ||||||||||||||||||||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Operating income | 30,617,375 | 23,461,412 | 19,406,865 | 61,827,006 | 42,868,277 | |||||||||||||||
Share-based compensation expenses | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
Non-GAAP operating income | 33,465,432 | 28,360,736 | 24,504,061 | 67,422,157 | 52,864,797 | |||||||||||||||
Net income | 36,502,430 | 28,360,025 | 29,328,913 | 72,881,895 | 57,688,938 | |||||||||||||||
Share-based compensation expenses, | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
Non-GAAP net income | 39,350,487 | 33,259,349 | 34,426,109 | 78,477,046 | 67,685,458 | |||||||||||||||
Net income attributable to Yalla Group | 36,772,212 | 28,935,484 | 31,763,268 | 73,863,612 | 60,698,752 | |||||||||||||||
Share-based compensation expenses, net of | 2,848,057 | 4,899,324 | 5,097,196 | 5,595,151 | 9,996,520 | |||||||||||||||
Non-GAAP net income attributable to | 39,620,269 | 33,834,808 | 36,860,464 | 79,458,763 | 70,695,272 | |||||||||||||||
Non-GAAP earnings per ordinary share | ||||||||||||||||||||
——Basic | 0.25 | 0.22 | 0.24 | 0.50 | 0.47 | |||||||||||||||
——Diluted | 0.22 | 0.19 | 0.21 | 0.44 | 0.40 | |||||||||||||||
Weighted average number of shares | ||||||||||||||||||||
——Basic | 155,958,658 | 152,975,006 | 150,945,883 | 157,604,992 | 151,954,839 | |||||||||||||||
——Diluted | 180,765,359 | 177,171,652 | 175,048,711 | 181,508,856 | 176,104,576 | |||||||||||||||
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SOURCE Yalla Group Limited