Yalla Group falls as Q2 revenue misses analyst expectations

Published 11/08/2025, 22:12
Yalla Group falls as Q2 revenue misses analyst expectations

Investing.com -- Yalla Group Limited (NYSE:YALA), the largest social networking and gaming company in the Middle East and North Africa region, reported second-quarter revenue that fell short of analyst expectations, sending shares down 7.1% in trading.

The company posted revenue of $84.6 million for the second quarter of 2025, representing a 4.1% increase YoY but missing the consensus estimate of $84.95 million. Non-GAAP earnings per share came in at $0.22, with net income rising 16.4% YoY to $36.5 million. The company’s net margin expanded to 43.2%, a 4.6 percentage point improvement from the same period last year.

Despite the revenue miss, Yalla reported an 8.8% increase in average monthly active users to 42.4 million. However, the number of paying users decreased by 7.0% to 11.2 million compared to the second quarter of 2024.

"We delivered another robust performance in the second quarter," said Yang Tao, Founder, Chairman and CEO of Yalla. "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."

The company’s chatting services generated $53.6 million in revenue, while games services contributed $30.7 million. Operating income increased 3.4% to $30.6 million compared to the same period last year.

For the third quarter of 2025, Yalla expects revenues to be between $78.0 million and $85.0 million, with the midpoint of $81.5 million.

The company has been actively repurchasing shares, buying back 6,230,299 American depositary shares for approximately $41.0 million in the first half of 2025, with $35.6 million of that occurring in the second quarter alone.

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