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Earnings call · Jun 2026 (Q2 FY26)

Aurora Mobile Q2 FY26 earnings call JG

Aug 20, 2026 Source

Executive summary

Aurora Mobile Q2 FY26 — Record SaaS Revenue and EngageLabs Growth

Aurora Mobile delivered a strong Q2 FY26, achieving a significant milestone with SaaS business revenue exceeding RMB 100 million, driven by robust developer services and exceptional growth in its global EngageLabs product. The company maintained its GAAP profitability streak and generated positive operating cash flow, while strategically investing in AI agent platform upgrades to capture future market share.

Highlights

6

  • SaaS business revenue exceeded RMB 100 million for the third time, fueled by Developer Service revenue of RMB 79.9 million.

  • EngageLabs ARR reached a record high of $14.6 million as of June 2026, representing 170% year-over-year growth.

  • Gross profit grew by 16% year-over-year, with gross margin improving by 197 basis points.

  • Recorded fifth consecutive quarter of U.S. GAAP net profit.

  • Net operating cash inflow of RMB 23.3 million.

  • Net dollar retention rate for core developer subscription business reached a historic high of 106% for the trailing 12-month period ended June 2026.

Concerns

3

  • Vertical Applications revenue decreased 16% year-over-year.

  • Market Intelligence revenue decreased 12% year-over-year and 11% quarter-over-quarter due to continued weak market demand for Chinese APP data.

  • Value-added services revenues were down 15% year-over-year.

Segment performance

SegmentRevenueYoYQoQMargin
Developer Services
Fueled by subscription services, driven by increases in both customer number and ARPU.
Subscription service revenue: RMB 70.7 millionSubscription service growth YoY: 32%Subscription service growth QoQ: 9%
RMB 79.9 million24%——
Vertical Applications
Overall decrease year-over-year.
—-16%——
Financial Risk Management
Operating in a tough business environment, making necessary adjustments on go-to-market and various strategies.
—-17%pretty much remained flat—
Market Intelligence
Due to the continued weak market demand for Chinese APP data, in line with expectations.
—-12%-11%—

Orderbook & backlog

EngageLab cumulative signed contract value RMB 200 million end of Q2 2026

exceeded

This speaks volume in terms of the market acceptance and total addressable market for these products.

EngageLab new contracts RMB 27.4 million Q2 FY26

worth of new contracts signed in Q2 alone

Total deferred revenue RMB 181.9 million June 30, 2026

historic high balance

Acts as a high-quality leading indicator, giving good visibility into near-term revenue stream and strengthening operating cash flow profile.

Product announcements

ProductTypeDetails
Silent Authlaunch
GPTbots.aiupdate
Modellixmilestone

Deals & partnerships

Bank of China, Hong Kong Subscription services win

Notable win for subscription revenue in Q2.

CXMT Subscription services win

Notable win for subscription revenue in Q2.

Mingshun Zhenzhen Subscription services win

Notable win for subscription revenue in Q2.

Pufahang Financial Risk Management customer

Customer signed up or renewed in Q2 for Financial Risk Management.

Ping An Xxin Financial Risk Management customer

Customer signed up or renewed in Q2 for Financial Risk Management.

Yitonghang Financial Risk Management customer

Customer signed up or renewed in Q2 for Financial Risk Management.

Risks & headwinds

Weak market demand for Chinese APP data ongoing

Market Intelligence revenue decreased 11% quarter-over-quarter and 12% year-over-year.

Mitigation:This result is in line with our expectation, implying management is aware and managing expectations.

Tough business environment for Financial Risk Management ongoing

Financial Risk Management revenue decreased 17% year-over-year.

Mitigation:We are making the necessary adjustment on go-to-market and various strategies.

What to watch in Q3 FY26

EngageLabs ARR growth

next quarter
Current $14.6 million ARR, 170% YoY growth
Target Continued strong growth, potentially exceeding prior records

Why it matters

EngageLabs is highlighted as the 'jewel' and key growth engine for global expansion.

EngageLabs being the jewel of Aurora Mobile's growth engine has again brought in excellent numbers every quarter since its launch. In this quarter, the highlights include Firstly, EngageLab recorded another quarter of tremendous growth where the ARR reached a new milestone of $14.6 million as of June 2026. This represents a 170% year-over-year growth.

Q&A highlights

Can management provide insights into the strong Q2 performance and offer hints on the outlook for Q3 and Q4 2026?

Management highlighted Q2's three key milestones: quarterly revenue exceeding RMB 100 million, fifth consecutive GAAP profit, and RMB 23.3 million net operating cash inflow. For the rest of 2026, the stance remains cautiously optimistic, driven by EngageLab's growth and continued strict cost discipline.

“As we look into the rest of 2026, our stance remains cautiously optimistic. We are encouraged by the business growth trajectory with the global EngageLab business delivering standout momentum.”

asked by Calvin Wong · answered by Shan-Nen Bong

1 min read 5 chapters

Detailed narrative

SaaS Business Milestone

Aurora Mobile achieved RMB 100 million in quarterly revenue for its SaaS business, a quarter earlier than anticipated, validating its pure SaaS strategic transformation and forming a durable revenue foundation. This milestone is anchored by high-margin recurring developer subscription revenue and supported by strong customer retention and rising enterprise demand.

EngageLabs Global Expansion

EngageLabs, the company's global flagship product, reached a record ARR of $14.6 million as of June 2026, growing 170% year-over-year. The cumulative signed contract value exceeded RMB 200 million by the end of Q2 2026, with over 2,100 customers. Recognized revenue for EngageLabs in Q2 FY26 was RMB 27.5 million, representing an outstanding 186% growth year-over-year.

Developer Services Performance

Developer Services revenue grew 24% year-over-year to RMB 79.9 million. Within this, core developer subscription services delivered a historic high quarterly revenue of RMB 70.7 million, representing growth of 32% year-over-year and 9% quarter-over-quarter, driven by increases in both customer number and ARPU.

AI Agent Platform Upgrades (GPTbots.ai)

The company released a major production-grade upgrade to GPTbots.ai, tackling industry limitations by supporting business system integration and end-to-end task execution. The upgrade centers on a graph-enhanced knowledge base, autonomous workflow automation across 14 communication channels, and robust enterprise governance. These enhancements aim to improve overseas sales conversion, expand market reach, satisfy international data compliance, and reduce customization costs for global clients.

Profitability and Cash Flow

Aurora Mobile achieved its fifth consecutive quarter of U.S. GAAP net profit and generated a net operating cash inflow of RMB 23.3 million, reflecting strong earnings quality and sustainable business operations. Gross profit grew 16% year-over-year to RMB 69.2 million, with gross margin improving by 197 basis points, demonstrating the ability to convert business scale into sustainable profit generation.

AI-generated summary of the company's earnings call. Not investment advice.