Overview

* Hello Group Q2 2025 net revenues fall 2.6% yr/yr to RMB2,620.4 mln, shares down 10% premarket

* Company reports Q2 net loss of RMB140.2 mln, compared to profit last year

* Overseas revenue grows 72.7%, offsetting domestic declines

Outlook

* Company expects Q3 2025 revenue between RMB2.59 bln and RMB2.69 bln

* Hello Group ( MOMO ) anticipates Q3 revenue change of -3.2% to +0.6% year-over-year

Result Drivers

* OVERSEAS GROWTH - Overseas revenues increased by 72.7% due to strong performance of Soulchill and new apps

* DOMESTIC DECLINE - Revenue from Chinese mainland decreased due to lower Momo and Tantan app revenues

* TAX IMPACT - Additional withholding tax accrual of RMB547.9 mln affected net income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 RMB 2.62

Revenue bln

Q2 -RMB

Adjusted 0.58

EPS

Q2 -RMB 96

Adjusted mln

Net

Income

Q2 Net -RMB

Income 140.20

mln

Q2 RMB

Adjusted 447.70

Income mln

from

Operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Hello Group Inc ( MOMO ) is $9.30, about 12.7% above its September 8 closing price of $8.12

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)